Legislative Updates: A Weekly Roundup of Federal, State, and Local Actions – May 19

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 19, 2023.

Chamber members are invited to join weekly legislative update calls hosted by our Advocacy team to hear the latest legislative matters concerning our community. Note: Our next call will be on Friday, June 2, 2023. There will be no call on Friday, May 26, 2023, in observance of the Memorial Day holiday.

2023 Primary Election Results
The Chamber committed to our members and the business community to step up this election and lead an issues-based campaign focused on inclusive growth policies. We wanted to ensure that our members were informed and engaged in this election and that candidates understood the impact pro-growth policies have on our city's economic health and vibrancy, as well as safety, cleanliness, and community quality of life. 

We want to congratulate those who won their races! The Chamber looks forward to our continued collaboration with our city's elected officials, and we look forward to our continued collaboration as we work to grow the Philadelphia region.

Mayor
Cherelle Parker (D) 

District Council
Quetcy Lozada
Anthony Phillips 
Cindy Bass
Brian O'Neill 

Democratic At-Large City Council 
Isaiah Thomas
Katherine Gilmore Richardson
Jim Harrity
Rue Landau
Nina Ahmad  

Republican At-Large City Council
Frank Cristinzio
Drew Murray
Gary Grisafi
Jim Hasher
Mary Jane Kelly 

Join the Chamber and the Inclusive Growth Coalition on Wednesday, June 7, 2023, in-person for the Rally to Support Small Biz. 

Party Control Remains
The outcome of two special elections in the state House preserved the current 1-seat margin in the legislative chamber as each party retained control of their respective seat. 

As the state House returns to session next week, it will need to catalyze the start of a budget process that will win Republican support and passage in the Senate before the end of the fiscal year on June 30, 2023. 

The state Senate will return the week of June 5, 2023, to consider final passage of two business-related bills that would accelerate a phasedown of the Corporate Net Income Tax and increase the cap on net operating loss (NOL) carryover. 

Join the Chamber on Monday, June 5, 2023, for our in-person Pennsylvania Legislative Reception and on Thursday, June 15, 2023, for our virtual State Advocacy Update with Representative Jordan Harris.

Debt Negotiations Continue as New Paths Forward Develop
President Biden and Speaker McCarthy continued discussion on the debt limit this week, with each leader showing newly found room to negotiate in advance of a federal default.  

House Appropriations Markups Proceed
House Republicans have so far unveiled four of the 12 appropriations bills for the 2024 Fiscal Year set to begin on Sunday, October 1, 2023:

• Agriculture, Rural Development, Food and Drug Administration, and Related Agencies;  
• Homeland Security;  
• Legislative Branch, and;   
• Military Construction, Veterans Affairs, and Related Agencies.  

Among the remaining eight bills include two of the largest and most heavily funded bills, Defense and Labor, Health and Human Services, and Education. 

There was no City Council Stated Meeting this week. The next meeting will be held on Thursday, May 25, 2023. 

Upcoming City Council Meetings
 On Monday, May 22, 2023, the City Council Committee on Rules will hold a hearing on zoning bills to create or amend zoning overlay districts for South Street/Head House Square, East Poplar, and the 4th Councilmanic District, and bills to amend the institutional mater plans for Holy Family University and Saint Joseph's University. Bills to restore CMX-4 zoning to the University City Townhomes site will also be heard at this hearing.    

Pro-Growth Advocates Needed for Increased Investment in Business and Job Growth in the City's Budget
As we near the end of the FY24 Council Budget Hearings, although the public comment period has ended, there is still time to testify!  

Please consider providing written testimony and signing the Chamber's petition letter that will be delivered to Council in advance of the budget vote. If you would like to provide testimony, please complete this form or contact Ashley Miscevich, Manager, Local Government Advocacy & Engagement, at amiscevich@chamberphl.com with any questions. We have resources available to help with testimony.  

We want to remind our readers that through our advocacy, in partnership with the valued members of the Inclusive Growth Coalition (IGC) led by the city's diverse chambers, business tax reductions were ultimately included and passed in the FY23 Budget. We will continue to work with members of City Council to champion pro-growth policies while advocating for increased reductions to both the Wage and BIRT taxes during this budget cycle and over the five-year plan.   

We urgently need pro-growth advocates to stand up and have their voices heard! Learn more at inclusivegrowthphl.org.   

Election Day Roundup
Former City Council Majority Leader Cherelle Parker was the victor in the Tuesday, May 16, 2023, Democratic primary race for Mayor. Parker easily topped the eight other Democratic candidates, including former City Controller Rebecca Rhynhart, former Councilmembers Helen Gym and Allan Domb, and Supermarket Magnate Jeff Brown, to become the party's nominee to be Philadelphia's next Mayor. Parker will face Republican David Oh in November's General Election. With registered Democrats outnumbering registered Republicans in Philadelphia by a margin of seven-to-one, Parker will likely be Philadelphia's 100th Mayor and the first woman to hold the seat. 

Only three incumbent District Councilmembers faced opposition on Tuesday, May 16, 2023. Newcomers Quetcy Lozada (7th District) and Anthony Phillips (9th District), who both won Special Elections last November to replace former Councilmembers Maria Quiñones Sánchez and Cherelle Parker, respectively, easily beat their challengers to win the Democratic nomination for a first full-term on City Council. Cindy Bass (8th District) narrowly defeated her challenger Seth Anderson-Oberman. Bass has maintained a few hundred vote lead, with 98% of the divisions having been reported. Councilmember Brian O'Neill (10th District) did not have a Primary opponent but will face Gary Masino in the November General Election. 

In the race for City Council-At-Large, the three Democratic incumbents, Isaiah Thomas, Katherine Gilmore Richardson, and Jim Harrity, were among the top vote-getters for an At-Large seat, along with two newcomers, Rue Landau, former head of the Philadelphia Human Relations Commission, and Nina Ahmad, former President of the Philadelphia Chapter of the National Organization of Women (NOW). All five of the Democratic nominees will be on the November 2023 ballot and are all but guaranteed to win.  

In the Republican race for City Council-At-Large, the top five vote-getters were Frank Cristinzio, Drew Murray, Gary Grisafi, Jim Hasher, and Mary Jane Kelly. In November, they will battle it out against each other, and against Working Families Party candidates incumbent Councilmember Kendra Brooks and Nicolas O'Rourke, for the two At-Large seats guaranteed to a minority political party by the Philadelphia Home Rule Charter.  

In other news, Register of Wills Tracey Gordon was ousted after just one term in office. Gordon lost the primary to fellow Democrat John Sabatina, Sr., the father of former State Senator and now Court of Common Pleas Judge John Sabatina, Jr. Sabatina, Sr. will face off against Linwood Holland in the November General Election.  

Despite several recent controversies involving her office, incumbent Sheriff Rochelle Bilal is, at the time of this writing, leading the race against challenger Michael Untermeyer for the Democratic nomination for Sheriff. The successful Democratic nominee will face Republican challenger Mark Lavelle in the General Election. 

Christy Brady, who briefly served as Acting City Controller before resigning to run, was elected to a full term as City Controller.  

Ballot Questions
There were four questions on the Tuesday, May 16, 2023, ballot, three of which were approved by voters. Here's a recap: 

Question 1: Should the Philadelphia Home Rule Charter be amended to expand the requirements for annual minimum appropriations to the Budget Stabilization Reserve, more commonly known as the "Rainy Day Fund?" 

• 67% of voters approved of this change. This amendment requires the city's Director of Finance to include projections for the Rainy-Day Fund in the 5-Year Plan and to increase the fund's allocation to the Rainy-Day Fund from a maximum of 5% to 17% of the projected General Fund Revenue. This was a measure championed by Councilwoman At-Large Katherine Gilmore-Richardson.  

Question 2: Should the Philadelphia Home Rule Charter be amended to create the Division of Workforce Solutions within the Department of Commerce and to define its duties? 

• 65% of voters approved of this change. The newly created Division of Workforce Solutions will promote workforce development, provide information about and connect job seekers to job training and employment opportunities, and serve as a central repository for the city's public and private workforce development programs and services. This measure was introduced by Council President Darrell Clarke. 

Question 3: Should the Philadelphia Home Rule Charter be amended to make employees of the Citizens Police Oversight Commission exempt from civil service hiring requirements?  

• 53% of voters rejected this change. The staff of the Citizens Police Oversight Commission will continue to be subject to the civil service requirements. This measure was pushed by Council's Majority Leader, 4th District Councilman Curtis Jones Jr.

Question 4: Shall the Philadelphia Home Rule Charter be amended to create the Office of the Chief Public Safety Director and to define its powers, duties, and responsibilities?  

• 60% of voters approved of this change. This newly created cabinet position will coordinate the deployment of Police, Fire, Prisons, Parks and Recreation, Emergency Management, and any other relevant agency personnel in an effort to enhance and improve the city's public safety response. This measure was introduced by Council President Darrell Clarke. 

Upcoming Local Advocacy Events

Rally to Support Small Biz
Wednesday, June 7, 2023 | 12:00 PM – 1:30 PM | City Hall North Apron 

Please join the Chamber and the Inclusive Growth Coalition at the front door of City Hall for a rally to send Mayor Kenney and City Council a clear message that they must reduce the city's BIRT and Wage taxes to lift up our small businesses. 

Party Control Remains
Democrat Heather Boyd defeated Republican Katie Ford to win the District 163 Special Election for Delaware County’s open house district.  In defending the seat formerly held by State Rep. Mike Zabel (D), Democrats retained their majority control of the House chamber by a razor-thin one-seat margin. Boyd’s win also means that the Republican-controlled Senate and Democrat-controlled House must work together to adopt a bipartisan budget before the end of the current fiscal year on Friday, June 30, 2023.  Our Chamber advocates for: 

• Senate Bill 345, legislation that would accelerate the current phasedown of the state’s Corporate Net Income Tax (CNIT) from 9.99% to 4.99% by 2026 as opposed to the current 2031.  
• Senate Bill 346, legislation that would gradually increase the net operating loss (NOL) carryover limit from the current 40% to 80% over a four-year phase-in.  
• $100 million in new and dedicated funding to support employment opportunities for youth throughout the Commonwealth to expand their training and workforce preparation opportunities and provide safe, supportive environments for learning and new experiences. 

Plan for State-wide Economic Development
Governor Josh Shapiro released an Op-Ed last week calling on Pennsylvania to innovate, compete, and – through our dedicated workforce and extraordinary businesses – be more prosperous and create more possibilities across our Commonwealth. At an event earlier this week, DCED Secretary Rick Siger called for the development of an economic development plan for Pennsylvania that would help achieve the Governor’s vision “to entice and retain businesses and lead Pennsylvania into one of its greatest periods of economic growth.” 

A recent Brookings Report found that Pennsylvania must do more to convert its rich abundance of innovation assets into high-quality inclusive economic growth and broad-based employment across an array of high-tech, high-paying advanced industries. Pennsylvania possesses significant innovation assets that could power its emergence as a world-class knowledge-industry economy, with substantial benefits for millions of Pennsylvanians. And yet, the fact remains that the state’s innovation enterprise—especially its history of supportive innovation policy and resources—needs modernization to unlock and catalyze the state’s vast potential. 

The Chamber belongs to a broad-based, state-wide coalition, the PA Innovation Fund Coalition, which has been urging swift and bold action by the Governor and General Assembly to maximize this transformational opportunity. Pennsylvania should enact a bold public-private sector innovation economy strategy and create at least a $2 billion, ten-year investment program to leverage and scale existing strengths and build capacity in a state-wide, multi-industry innovation ecosystem by:  

• Developing diverse talent and career pathways across the innovation ecosystem;
• Retaining, growing, and attracting research, commercialization, and manufacturing activity and enterprises, and; 
• Building Pennsylvania’s identity and narrative among a national and global audience.

An independent economic analysis shows that direct public investment in a Pennsylvania Innovation Fund has the potential to draw additional public and private investment to further spur economic growth. These leveraged impacts include investments in venture capital, additional federal and philanthropic grants, and expanded construction and new facility development, among others. Research has shown how public capital investment can also increase the overall competitiveness of an economy through new business attraction, existing business growth, talent attraction, and increased productivity.  

The Chamber commends the Governor and Secretary Siger for the bold vision for Pennsylvania and looks forward to working with the Shapiro Administration and the entire General Assembly to take steps for Pennsylvania to “win again.” 

Upcoming State Advocacy Events 

Pennsylvania Legislative Reception
Monday, June 5, 2023 | 4:00 PM – 7:00 PM | Keystone Building, Hearing Room 1, Harrisburg 

State Advocacy Update with Representative Jordan Harris
Thursday, June 15, 2023 | 10:00 AM – 11:00 AM | Virtual 

Debt Negotiations Continue as New Paths Forward Develop
This week President Biden and Speaker McCarthy agreed to narrow the size of the negotiating table as debt limit talks continue, removing other congressional leaders from the conversation and, recognizing the time constraints under which they are operating – have designated proxies to negotiate on their behalf.  

While an agreement has yet to be reached, President Biden has now indicated “moderate willingness” to negotiate on one item that has been a red line for the House Republicans and where his own party has largely been opposed: enacting work requirements for recipients of federal social benefit programs. The President has made it clear that this does not apply to any health care program, such as Medicaid, but could apply to federal programs, such as the Supplemental Nutrition Assistance Program (SNAP) and Temporary Assistance for Needy Families (TANF).  

Ranking Member of the House Budget Committee Brendan Boyle (PA-02) has begun the process to force a vote on a clean debt limit increase should the President and House Speaker fail to reach an agreement before the currently unclear default date. While this serves as a strong message to Republican counterparts on House Democrats’ stance related to the budget, it is unlikely that Representative Boyle would secure the necessary 218 signatures to move this discharge petition forward.  

House Appropriations Markups Proceed
House Republicans have so far unveiled four of the 12 appropriations bills for the 2024 Fiscal Year set to begin on Sunday, October 1, 2023. Markups have so far been held on the following:  

• The Agriculture, Rural Development, Food and Drug Administration, and Related Agencies Appropriations Bill, which provides just over $25 billion in funding, 2.1% below the FY23 enacted level and 12.5% below the President’s FY24 budget request. [bill text | bill summary] 
• The Homeland Security Appropriations Bill, which provides $91.5 billion in funding, amounting to approximately $2 billion in funding above the FY23 enacted level. [bill text | bill summary] 
• The Legislative Branch Appropriations Bill, which proposes $6.7 billion in funding for congressional operations, a cut of 2% from FY23 enacted levels. [bill text | bill summary] 
• The Military Construction, Veterans Affairs, and Related Agencies Appropriations Bill, which amounts to a total of nearly $338 billion in funding, nearly $18 billion above FY23 enacted levels. [bill text | bill summary] 

Among the remaining eight bills include two of the largest and most heavily funded bills, Defense and Labor, Health and Human Services, and Education.  

Odds and Ends
Congressionally Directed Spending: Both the Senate and House Appropriations Committees have released lists of all member requests for Congressionally Directed Spending requests for inclusion in the FY 2024 Budget. Member-by-member requests from the upper chamber can be found on the Senate Appropriations Committee website, while those for the lower chamber can be found on the House Appropriations Committee website.  

Regionally Beneficial Federal Programs: Regrettably, the Greater Philadelphia Hub and Spoke Consortium was not selected to move on to Phase II of the application process for the Advanced Research Projects Agency for Health (ARPA-H). That said, the Chamber is pleased to share that the Economic Development Administration (EDA) released a Notice of Funding Opportunity for Phase I of the Regional Tech Innovation Hub Program. The Chamber strongly advocated for the creation of this program and for the insurance that Greater Philadelphia be able to compete for the opportunity provided by the program to build and evolve innovation centers in key U.S. regions. 

ChamberPHL Political Action Committee
Help us advance the business community’s agenda by contributing to support state and local candidates in key elections who share our commitment to a healthier business climate.

We invite you to reach out to our advocacy team directly with your questions:

• Renee Androckitis, Federal Affairs – randrockitis@chamberphl.com
• Anselm Sauter, State Affairs – asauter@chamberphl.com
• William Carter, Local Affairs – wcarter@chamberphl.com

Chamber members are invited to join weekly legislative update calls hosted by our Advocacy team. Note: Our next call will be on Friday, June 2, 2023. There will be no call on Friday, May 26, 2023, in observance of the Memorial Day holiday.