Legislative Updates: A Weekly Roundup of Federal, State, and Local Actions – May 6

Your Chamber advocacy team is working to share legislative updates and continue to advocate for your business in Washington, D.C., Harrisburg, and Philadelphia. We’ve created a round-up of recent activity including Key Takeaways for Your Business and a Detailed Legislative Update. This represents our best knowledge of the situation as of 9:00 a.m. on Friday, May 6, 2022.

Chamber members are invited to join weekly legislative update calls hosted by our Advocacy team to hear the latest on COVID-19 relief and recovery efforts at the federal, state, and local level as well as other legislative matters concerning our community.

To learn more about how our region is preparing for recovery, visit our Recharge & Recover PHL Information Hub:

Inclusive Growth Coalition – Update

GIVE PHILLY A RAISE!

Particularly during this recovery period, to grow our economy, reduce poverty, maintain quality services and make our city safer, it is imperative that we increase the number of gainfully employed people in Philadelphia – either working for themselves or others.

The urgency of this moment cannot be understated. At no other time in recent history have we had a more pressing need and a confluence of available options to do so. The city’s recent announcement regarding property tax increases will add additional revenue to the General Fund, even with the appropriate property tax relief measures. This, combined with a better than projected budget surplus realized with the American Rescue Plan and reasonable economic growth estimates, presents the rarest of opportunities to aggressively invest in creating good-paying jobs, growing local businesses, and generating more revenue for City services going forward.

The facts lay to bare – Philadelphia is being outpaced in job creation and has fewer business establishments per capita than comparable cities. These factors contribute to significantly less money being circulated locally, which is exacerbated by rising inflation, interest rates, and other costs on individuals and businesses – including property taxes.

However, we can reverse these statistics and their effects by substantially reducing the city’s “highest in the nation” tax on workers and the onerous double tax on enterprising people who run businesses—essentially, giving them a raise at this critical time. This is money that business owners can use to recover, grow, and hire and that local workers can utilize for their individual needs, thereby bolstering our local economy.

If Philadelphia is to realize true inclusive growth and change its designation as the largest, poor city in America, we must have the forethought and fortitude to reverse our decades-long declining job and business viability. The time is now to “Give Philly a Raise” and invest in our workers, businesses, and city.

City Council Stated Meeting 

Councilmember Cherelle Parker introduced an ordinance to further define short-dumping and revise penalties.

Councilmember Helen Gym introduced a resolution calling for hearings on the threat to the constitutional right to abortion and the impact of the potential repeal of Roe vs. Wade on women’s health in Philadelphia.

Upcoming City Council Hearings 

On Friday, May 6, 2022, the City Council Special Committee on Child Separation in Philadelphia will hold a hearing to further understand the role of community umbrella agencies (CUA), such as Turning Points for Children, in the local child welfare system, and to investigate further the systemic failures that resulted in three children being returned to their sexually abusive father.

On Monday, May 9, 2022, the City Council Committee of the Whole will hold a hearing on the proposed budget for the following departments: Office of Property Assessments and Board of Revision of Taxes.

On Tuesday, May 10, 2022, the City Council Committee of the Whole will hold a hearing on the proposed budget for the following departments: Managing Director’s Office, Mayor’s Office of Children and Families, and Planning and Development.

On Wednesday, May 11, 2022, the City Council Committee of the Whole will hold a hearing on the proposed budget for the Streets Department, Fire Department, and Prisons.

On Friday, May 13, 2022, the City Council Committee on Public Safety will hold a hearing to explore the role of the Philadelphia Police Department Neighborhood Services Unit as part of the city’s comprehensive response to the widespread prevalence of abandoned vehicles in the City of Philadelphia.

Property Tax Assessments 

On Tuesday, May 3, 2022, the Kenney Administration announced a citywide property reassessment and found that the aggregate value of all properties in Philadelphia has risen by approximately 21 percent since Tax Year 2020.

Join the Chamber on Monday, May 16, 2022, for our virtual City Hall Connectors with Commerce Director Anne Nadol.

On Monday, the Wolf Administration reported that the state brought in $4.5 billion more in tax revenue than projected, exceeding April’s tax revenue exceeded forecasts by $1.8 billion. Pennsylvania collected $6.5 billion in General Fund tax revenue in April. Personal income tax was the tax that most exceeded projections at $4.1 billion – $1.4 billion above estimate.

The Independent Fiscal Office said the reason that personal income taxes so far outperformed expectations wasn’t entirely clear but said it was likely due to people benefiting from the economic recovery and stock gains in 2021.

Join the Chamber on Tuesday, May 24, for our in-person Pennsylvania Legislative Reception.

Pennsylvania’s U.S. Senate Primary Polling

A Franklin & Marshall College Poll released on Thursday shows Lt. Governor John Fetterman increasing his commanding lead over U.S. Rep. Conor Lamb in the U.S. Senate Democratic primary race by a spread of 53% to 14%.  The U.S. Senate Republican Primary is much more competitive, showing candidates Mehmet Oz at 18%, David McCormick at 16%, and Kathy Barnette at 12% support among voters.

Inclusive Growth Coalition – Update

GIVE PHILLY A RAISE

Particularly during this recovery period, to grow our economy, reduce poverty, maintain quality services and make our city safer, it is imperative that we increase the number of gainfully employed people in Philadelphia – either working for themselves or others.

The urgency of this moment cannot be understated. At no other time in recent history have we had a more pressing need and a confluence of available options to do so. The city’s recent announcement regarding property tax increases will add additional revenue to the General Fund, even with the appropriate property tax relief measures. This, combined with a better than projected budget surplus realized with the American Rescue Plan and reasonable economic growth estimates, presents the rarest of opportunities to aggressively invest in creating good-paying jobs, growing local businesses, and generating more revenue for City services going forward.

The facts lay to bare – Philadelphia is being outpaced in job creation and has fewer business establishments per capita than comparable cities. These factors contribute to significantly less money being circulated locally, which is exacerbated by rising inflation, interest rates, and other costs on individuals and businesses – including property taxes.

However, we can reverse these statistics and their effects by substantially reducing the city’s “highest in the nation” tax on workers and the onerous double tax on enterprising people who run businesses—essentially, giving them a raise at this critical time. This is money that business owners can use to recover, grow and hire and that local workers can utilize for their individual needs, thereby bolstering our local economy.

If Philadelphia is to realize true inclusive growth and change its designation as the largest, poor city in America, we must have the forethought and fortitude to reverse our decades-long declining job and business viability. The time is now to “Give Philly a Raise” and invest in our workers, businesses, and city.

City Council Stated Meeting 

Councilmember Cherelle Parker introduced an ordinance to further define short-dumping and revise penalties.

Councilmember Helen Gym introduced a resolution calling for hearings on the threat to the constitutional right to abortion and the impact of the potential repeal of Roe vs. Wade on women’s health in Philadelphia.

Upcoming City Council Hearings 

On Friday, May 6, 2022, the City Council Special Committee on Child Separation in Philadelphia will hold a hearing to further understand the role of community umbrella agencies (CUA), such as Turning Points for Children, in the local child welfare system, and to investigate further the systemic failures that resulted in three children being returned to their sexually abusive father.

On Monday, May 9, 2022, the City Council Committee of the Whole will hold a hearing on the proposed budget for the following departments: Office of Property Assessments and Board of Revision of Taxes. The public will be able to testify virtually on the City Budget and taxes. The Chamber encourages all to sign up and let City Council hear from you regarding the urgent need to grow businesses and jobs in Philadelphia! To do so, either call 215-686-3407 or email budget.hearings@phila.gov.

On Tuesday, May 10, 2022, the City Council Committee of the Whole will hold a hearing on the proposed budget for the following departments: Managing Director’s Office, Mayor’s Office of Children and Families, and Planning and Development.

On Wednesday, May 11, 2022, the City Council Committee of the Whole will hold a hearing on the proposed budget for the Streets Department, Fire Department, and Prisons.

On Friday, May 13, 2022, the City Council Committee on Public Safety will hold a hearing to explore the role of the Philadelphia Police Department Neighborhood Services Unit as part of the city’s comprehensive response to the widespread prevalence of abandoned vehicles in the City of Philadelphia; and to examine the use of technology to solve shootings in the neighborhoods surrounding the 57 blocks where ten or more people have been shot since 2015.

Property Tax Assessments 

On Tuesday, May 3, 2022, the Kenney Administration announced a citywide property reassessment and found that the aggregate value of all properties in Philadelphia has risen by approximately 21 percent since Tax Year 2020. To reduce the potential impact these rising values may have on residents Mayor Kenney proposed a package of relief measures, including:

Increasing the Homestead Exemption (which reduces the taxable portion of a primary residential property’s assessed value) to $65,000 from the current $45,000;

A 20 percent increase in funds for the Longtime Owner Occupants Program (LOOP) to $30 million from the current $25 million (as a reminder, LOOP is the income-based program for homeowners who have lived in their home for ten years or more and experience a significant increase in their property assessment);

Allocating $40 million over five years to enhance implementation of all relief programs, increase outreach to homeowners about the programs, and work with City Council on using a portion of those funds for improved rent relief and to improve participation in the Senior Citizen Tax Freeze program; and

Reducing the residential wage tax rate over the next two years to 3.7 percent (from the current 3.8398 percent) and the non-resident rate to 3.44 percent (from the current 3.4481 percent).

The City’s Office of Property Assessment (OPA) is planning to post the results of reassessments of all properties in Philadelphia by Monday, May 9, 2022. In a statement following the Mayor’s announcement, Council President Clarke vowed to explore every option at City Council’s disposal to protect Philadelphia homeowners. Expect some fireworks around the new assessments in the OPA’s budget hearing, which is scheduled on Monday, May 9, to coincide with the release of the new property assessments to property owners.

Odds and Ends  

On Thursday, April 28, 2022, City Council President Darrell L. Clarke announced the city’s largest investment in affordable housing in Philadelphia’s history. Aptly named “Turn The Key,” the Philadelphia Affordable Homeownership Program is funded through the $400 million Neighborhood Preservation Initiative (NPI) program created by City Council in 2020. “Turn The Key” and NPI will provide funding to build more than 1,000 new homes on publicly owned city land.

Philadelphia Orphans’ Court has approved a plan to transfer ownership of the collection of the Philadelphia History Museum to Drexel University, effectively ending the 84-year life of the city’s Atwater Kent Museum.

Drexel President John Fry’s contract has been extended for another five (5) years; Fry will continue to lead Drexel University through June 2028.

Tuesday, May 10, 2022, is the last day to APPLY for a mail-in or civilian absentee ballot.

Upcoming Local Advocacy Programs

• •  [Virtual] City Hall Connectors: Commerce Director Anne Nadol
    • Monday, May 16, 2022 | 1:00 PM – 2:00 PM

Questions? Contact William Carter (wcarter@chamberphl.com) for more information about local legislative affairs.

On Monday, the Wolf Administration reported that the state brought in $4.5 billion more in tax revenue than projected, exceeding April’s tax revenue exceeded forecasts by $1.8 billion. Pennsylvania collected $6.5 billion in General Fund tax revenue in April. Personal income tax was the tax that most exceeded projections at $4.1 billion – $1.4 billion above estimate.

April corporation tax revenue of $676.1 million was $306.4 million above estimate. Year-to-date corporation tax collections total $5.8 billion, which is $1.1 billion, or 23.7 percent, above estimate.

The Independent Fiscal Office said the reason that personal income taxes so far outperformed expectations wasn’t entirely clear but said it was likely due to people benefiting from the economic recovery and stock gains in 2021.

Upcoming State Advocacy Program

• • [In-Person] Pennsylvania Legislative Reception
    • Tuesday, May 24, 2022 | 4:00 PM – 7:00 PM

Questions? Contact Liz Ferry (lferry@chamberphl.com) for more information about state legislative affairs.

Pennsylvania’s U.S. Senate Primary Polling

A Franklin & Marshall College Poll released on Thursday shows Lt. Governor John Fetterman increasing his commanding lead over U.S. Rep. Conor Lamb in the U.S. Senate Democratic primary race by a spread of 53% to 14%.  The U.S. Senate Republican Primary is much more competitive, showing candidates Mehmet Oz at 18%, David McCormick at 16%, and Kathy Barnette at 12% support among voters. Even so, the poll found that almost 40% of Republican voters say they are not sure who they will vote for in the race, and almost 60% of those who have chosen a candidate say they could still change their minds.  Pennsylvanians will vote in the state’s primary elections on Tuesday, May 17.  The winners of the U.S. Senate primaries will compete in the general election in November to succeed retiring U.S. Senator Pat Toomey.

Odds and Ends

A draft of a Supreme Court majority opinion was leaked earlier this week that would possibly strike down key decisions that guarantee protection of abortion rights. The issue drew a significant amount of attention on Capitol Hill and may reshuffle legislative priorities and timelines in the weeks ahead.

The House returns to Capitol Hill next week following its current district work week.

The Senate this week voted on a series of nonbinding motions to instruct conferees that have been formally selected to negotiate differences between House and Senate competition and innovation bills.  The Chamber sent a letter to regional conferees urging consideration of our position on several provisions between the two bills. 

Senate Democrat leadership has said that a Ukraine supplemental assistance package will not be brought to the floor for at least another week. This request from the White House closely follows an earlier request for additional funding for COVID-19 countermeasures, which has remained unresolved for months in Congress. Party leaders have not agreed on whether to pair the two spending bills or bring them to the floor separately. Many Republicans insist that a bipartisan proposal to reverse a White House border policy also be attached, which has complicated negotiations.

Leaders on the House and Senate Appropriations Committees have begun to negotiate top-line spending figures for the twelve required appropriations bills to fund the government through FY2023. Top-line numbers for funding are expected to be released in the coming weeks.

Questions? Contact Anselm Sauter (asauter@chamberphl.com) for more information about federal legislative affairs.

The constantly changing nature of this public health crisis requires continued engagement with public policy developments. We invite you to reach out to our advocacy team directly with your questions: 

• Anselm Sauter, Federal Affairs – asauter@chamberphl.com 
• Liz Ferry, State Affairs – lferry@chamberphl.com 
• William Carter, Local Affairs – wcarter@chamberphl.com 

Chamber members are invited to join weekly legislative update calls hosted by our Advocacy team to hear the latest on COVID-19 relief and recovery efforts at the federal, state, and local level as well as other legislative matters concerning our community.

To learn more about how our region is preparing for recovery, visit our Recharge & Recover PHL Information Hub: