Legislative Updates: A Weekly Roundup of Federal, State, and Local Actions – June 24

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, June 24, 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. The legislative updates calls will resume in September 2022.

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

Inclusive Growth Coalition Update
City Council Passes Wage and Business Tax Cuts!

This week, after a sustained lobbying campaign led by the Inclusive Growth Coalition (IGC), supported by the Chamber, City Council took an important step to help our local businesses and workers expand equity and reduce poverty when it approved reductions in the city’s wage tax and business taxes.

By reducing both the wage tax, which both employers and workers pay, and the BIRT, which every business pays, City Council took an important step toward making Philadelphia a city that rewards and incentivizes workers and business owners.

Although there is more work to do – to have the cuts continue over a period of years to the point where Philadelphia’s rates are level with the surrounding counties and more competitive with the region and Nation – this is a major step toward allowing every business to invest in growing and adding jobs and keeping more money in workers’ pockets.

FY 2023 Budget
City Council has given final approval to a $5.6 billion FY 2023 budget. Budget highlights include:

The net income portion of the Business Income and Receipts Tax (BIRT) reduced to 5.99 percent from the current 6.2 percent. The lowest since it’s been since 1988;

Resident wage tax cut from 3.84 percent to 3.79 percent and non-resident wage tax cut from 3.45 percent to 3.4 percent;

Homestead Exemption increased to $80,000 from the current $45,000 (the final amount is more than the $65,000 proposed by the Mayor but less than the $90,000 proposed by Councilmembers Johnson and O’Neill);

LOOP Program funding increased to $35.2 million from the current $25 million (more than the $30 million proposed by the Mayor following the reassessment), and;

Increased funding to address public safety in neighborhoods, including funding to keep recreation centers open on weekends, expand the Community Life Improvement Program (CLIP), enhance street lighting and security cameras, support police recruitment, and other quality of life improvements.

City Council Stated Meeting
Councilmember Cherelle Parker, on behalf of Council President Darrell L. Clarke, introduced legislation to create a North Broad Business Improvement District.

City Council has given final approval to a $5.6 billion FY 2023 budget. Councilmembers Helen Gym, Kendra Brooks, and Helen Gym voted against the BIRT and wage tax reductions.

City Council approved the Rebuild Project Statement for Fiscal Years 2020, 2021, 2022, and 2023 (Resolution 220424) on Thursday, June 23, 2022.

City Council approved bills 200006-AA, 200007-A, and 200040-A on Thursday, June 23, 2022. These bills would amend the Philadelphia Code and the Philadelphia Home Rule Charter.

City Council unanimously approved Bill 220493 (Prevailing Wage Requirements in Airport Operating Agreements) on Thursday, June 23, 2022.

City Council is in recess until Thursday, September 15, 2022.

For more details on the budget deal, read the full report.

Budget Negotiations Stall
This week, the state House and Senate left the Capitol early since the four caucuses had yet to meet about the FY 2023 budget. At the time of this writing, it is believed legislative leaders will work over the weekend to come to an agreement on the budget and bring members back to work Sunday evening to begin voting on various code bills.

Natural Gas Impact Fees Highest since 2018
On Friday, June 17, 2022, the Pennsylvania Public Utility Commission (PUC) announced that the Commonwealth’s natural gas industry paid $234 million in impact fees last year, the highest since 2018.

School Voucher Bill Advances
The state Senate Education Committee passed a House bill that would institute a public school voucher program to allow students to transfer out of poorly performing schools and leave with most of their state subsidy to pay tuition and other costs at a private, cyber, or charter school.

Congress advanced the following issues this week before it adjourns to begin a two-week Independence Day recess:

Congressional leadership met this week to discuss a path forward on the Bipartisan Innovation Act, which passed in separate forms in both House and Senate but has more recently stalled. Sticking points in the bill include labor, climate, and trade provisions which are expected to be removed.

The Bipartisan Safer Communities Act was released this week following a recent agreement from a group of twenty senators on a framework for a gun-control bill.

The House Appropriations Committee approved topline funding for the twelve FY 2023 appropriations bills. The Committee set an overall funding level of $1.6 trillion with the spending caps set for each spending bill.

Inclusive Growth Coalition Update
City Council Passes Wage and Business Tax Cuts!

This week, after a sustained lobbying campaign led by the Inclusive Growth Coalition (IGC), supported by the Chamber, City Council took an important step to help our local businesses and workers expand equity and reduce poverty when it approved reductions in the city’s wage tax and business taxes.

In an op-ed penned by the Inclusive Growth Coalition, of which the Chamber is a member and supporter, the leaders of the city’s diverse chambers touted these reductions as a clear signal that city leadership understands what tax cuts like these are — investments in the future of the city and its residents — and that it is willing to engage with job creators who want to make Philadelphia businesses competitive again.

By reducing both the wage tax, which both employers and workers pay, and the BIRT, which every business pays, City Council is took an important step toward making Philadelphia a city that rewards and incentivizes workers and business owners.

That’s why the tax cuts backed by the majority of Council members are important — they help every business and worker. A healthy economy needs a varied economic base, including large anchor companies with a national profile, midsized local firms, and mom-and-pop neighborhood staples. A strong economy creates good opportunities for people with different skills and educational backgrounds. An inclusive economy ensures that no community is left behind such that every race, gender, industry, and neighborhood can participate.

Although there is more work to do – to have the cuts continue over a period of years to the point where Philadelphia’s rates are level with the surrounding counties and more competitive with the region and Nation – this is a major step toward allowing every business to invest in growing and adding jobs and keeping more money in workers’ pockets.

FY 2023 Budget
City Council has given final approval to a $5.6 billion FY 2023 budget. Budget highlights include:

The net income portion of the Business Income and Receipts Tax (BIRT) reduced to 5.99 percent from the current 6.2 percent. The lowest since it’s been since 1988;

Resident wage tax cut from 3.84 percent to 3.79 percent and non-resident wage tax cut from 3.45 percent to 3.4 percent;

Homestead Exemption increased to $80,000 from the current $45,000 (the final amount is more than the $65,000 proposed by the Mayor but less than the $90,000 proposed by Councilmembers Johnson and O’Neill);

LOOP Program funding increased to $35.2 million from the current $25 million (more than the $30 million proposed by the Mayor following the reassessment)

$15 million for rental assistance;

$1 million for eviction protection and the right to counsel;

$2.6 million increase in funding for the Free Library of Philadelphia; and

Increased funding to address public safety in neighborhoods, including funding to keep recreation centers open on weekends, expand the Community Life Improvement Program (CLIP), enhance street lighting and security cameras, support police recruitment, and other quality of life improvements.

City Council Stated Meeting
Councilmember Cherelle Parker, on behalf of Council President Darrell L. Clarke, introduced legislation to create a North Broad Business Improvement District.

Councilmember Helen Gym introduced legislation to amend the Philadelphia Home Rule Charter to create a Prison Oversight Board. This charter change would create a staffed, independent prison oversight board with investigative authority if approved. Councilmember Gym promised to convene interested parties over the summer to outline the responsibilities and composition of the oversight board.

Bill 220239 (Notice of Benefits to Children in Foster Care) was reported out of Committee and had its First Reading on Thursday, June 23, 2022. This bill would require the City to notify children in foster care of actions taken with respect to Social Security and other benefits. As a reminder, it was revealed earlier this year that the City’s Department of Human Services had been taking Social Security and other benefits belonging to children in foster care and depositing those funds into the City’s General Fund. This bill would eliminate this currently legal but controversial practice. This bill will be considered for Second Reading and Final Passage at the next session of City Council on Thursday, September 15, 2022.

City Council unanimously approved the appointments of Sarah-Ashley Andrews and Chau Wing Lam to the Philadelphia Board of Education.

After a last-minute deal was struck between Councilmember Cindy Bass and Mayor Kenney to increase funding for Rebuild projects in the 8th Councilmanic District, City Council approved the Rebuild Project Statement for Fiscal Years 2020, 2021, 2022, and 2023 (Resolution 220424) on Thursday, June 23, 2022.

After a heated and lengthy exchange between Councilmembers David Oh and Katherine Gilmore Richardson, Bills 200006-AA, 200007-A, and 200040-A were approved by City Council on Thursday, June 23, 2022. These bills would amend the Philadelphia Code and the Philadelphia Home Rule Charter to provide a preference in civil service examinations for qualified graduates of a School District Career and Technical Education (CTE) program. This Home Rule Charter amendment will be on the November 2022 General Election ballot for voter approval.

Resolution 220197-A and Bill 220187 (Home Rule Charter Amendment to create Department of Aviation) were approved by City Council. Under this legislation, the Department of Aviation would report directly to the Mayor instead of the Commerce Department (as it is currently structured). This Home Rule Charter amendment will be on the November 2022 General Election ballot for voter approval.

Bill 220493 (Prevailing Wage Requirements in Airport Operating Agreements) was approved unanimously by City Council on Thursday, June 23, 2022.

Bill 220577 (Curfew for Minors) was approved unanimously by City Council on Thursday, June 23, 2022. Under the bill, all persons under 18 must be indoors by 10:00 PM (the previous curfew for minors aged 16-17 was midnight).

City Council has given final approval to a $5.6 billion FY 2023 budget. Councilmembers Helen Gym, Kendra Brooks, and Helen Gym voted against the BIRT and wage tax reductions.

City Council is in recess until Thursday, September 15, 2022.

Odds and Ends
The 2022 Wawa Welcome America Festival is underway! Check out the festival’s (June 19 – July 4) free multicultural and multigenerational, diverse and inclusive events, including the July 4th concert. This year’s July 4 Concert returns to the Benjamin Franklin Parkway and stars award-winning singer/songwriter Jason Derulo, multiple-platinum selling popstar Ava Max, and Grammy-award-winning singer-songwriter Tori Kelly.

The Bid Is Won! The Chamber is a proud supporter, partner, and leadership council member of the bid to bring the World Cup to Philadelphia in 2026. On Thursday, June 16, 2022, Philadelphia was selected as a host city for the 2026 FIFA World Cup.

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

Budget Negotiations Stall
This week, the state House and Senate left the Capitol early since the four caucuses had yet to meet about the FY 2023 budget. At the time of this writing, it is believed legislative leaders will work over the weekend to come to an agreement on the budget and bring members back to work Sunday evening to begin voting. The sticking point is the education code. The Governor is asking for substantially more money than last year, and Republicans want to keep dollars in the Rainy-Day fund for expected future revenue shortfalls. More to come.

Natural Gas Impact Fees Highest since 2018
On Friday, June 17, 2022, the Pennsylvania Public Utility Commission (PUC) announced that the Commonwealth’s natural gas industry paid $234 million in impact fees last year, the highest since 2018. Local communities directly impacted by drilling will receive $123.2 million. $86 million will be allocated to the Marcellus Legacy Fund, which pays for environmental, highway, water and sewer projects, and rehabilitation of greenways around the state. State agencies are due to get just over $25 million.

School Voucher Bill Advances
The state Senate Education Committee passed a House bill to institute a public school voucher program named the Lifeline Scholarship Program. The program would allow students to transfer out of poorly performing schools and leave with most of their state subsidy to pay tuition and other costs at a private, cyber, or charter school.

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

Congress advanced the following issues this week before it adjourns to begin a two-week Independence Day recess:

Congressional leadership met this week to discuss a path forward on the Bipartisan Innovation Act, which passed in separate forms in both House and Senate but has more recently stalled. Sticking points in the bill include labor, climate, and trade provisions which are expected to be removed. Doing so will focus the legislation on scientific research investments, supply chain resiliency, manufacturing and innovation, and semiconductor production.

The Bipartisan Safer Communities Act was released this week following a recent agreement from a group of twenty senators on a framework for a gun-control bill. At the time of this writing, the bill cleared a key Senate procedural step and is expected to pass the House and Senate before the end of the week.

The House Appropriations Committee approved topline funding for the twelve FY 2023 appropriations bills. The Committee set an overall funding level of $1.6 trillion with the spending caps set for each spending bill. At the time of this writing, all subcommittee markups were to be approved this week.

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. Weekly legislative calls will resume in September 2022.

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