CITY COUNCIL COMMITTEE GIVES PRELIMINARY APPROVAL TO FY2024 BUDGET, WITH FOCUS ON WORKER RECRUITMENT & RETENTION, QUALITY OF LIFE, CONTINUED WAGE & BUSINESS TAX REDUCTIONS
PHILADELPHIA, June 8 – With a focus on recruiting and retaining city workers, improving quality of life in neighborhoods, violence prevention and public safety, and a commitment to ongoing wage and business tax reductions to spur equitable growth, a City Council committee gave preliminary approval today to a city budget for Fiscal 2024, which starts on July 1.
The $6.2 Billion budget received approval in Council’s Committee of the Whole today. The budget was also scheduled to receive first reading by the full Council in its regular Meeting on June 8. Final passage of the budget would take place on June 15, before it heads to Mayor Kenney for his consideration.
The budget deal preliminarily approved by Council today takes an array of important actions to address homeowners and taxpayers’ concerns, including:
WORKFORCE RETENTION & ATTRACTION
Hiring Bonuses. $10 Million in hiring bonuses to fill vacancies in public safety and other hard-to-fill city positions – a problem that has grown since the COVID-19 pandemic. Council heard repeated testimony in budget hearings of widespread vacancies in the Police Department, Prisons, and other departments.
Police Recruitment & Cadet Training. Adding $3 Million for intensive recruitment of Police Officers, and $1.5 Million to further develop the Police Cadet program.
Parental Leave. $2.1 Million to increase parental leave for city workers from 4 weeks to 6 weeks, an issue associated with recruiting and retaining city workers.
Workforce Development. $5 Million to fund a workforce development program in the Streets Department for existing workers.
QUALITY OF LIFE IN NEIGHBORHOODS
Illegal Dumping. $1.475 Million in additional funds to fight illegal dumping in neighborhoods – funding that will go to the Streets Department.
Vacant Lots. $1 Million added to have the PA Horticultural Society clean more lots.
Same Day Pay. An additional $3.5 Million to expand Same Day Pay, a program run jointly by non-profit organizations with city input that puts people to work cleaning and greening city neighborhoods, with an emphasis on hiring returning citizens.
Cleaning up Neighborhood Business Corridors. $3 Million more for an existing city program, Taking Care of Business, that cleans up neighborhood small business shopping corridors, as well as employing workers at a living wage. The increase means the program’s budget will be $10 Million as it expands citywide.
Code Enforcement in Licenses & Inspections and Law. Additional $1 Million to help L & I add more inspectors to help with code enforcement of buildings – a chronic problem in many neighborhoods. Added $560,000 to help Law add 8 attorneys to enforce the laws against illegal construction.
Investing in Recreation Centers. $15 Million in capital spending to upgrade and improve recreation centers in neighborhoods across Philadelphia.
Office of Sustainability. $1 Million added to this Office to promote environmental justice and climate change initiatives.
PUBLIC SAFETY
Mental Health Crisis Response Teams. $3 Million more for Mobile crisis response teams equipped to assist Police in responding to 911 calls where mental health problems are indicated. The city currently budgets $6 million for these teams.
Public Safety Cameras. $1 Million to add more cameras to safeguard neighborhood rec centers and playgrounds.
ECONOMIC OPPORTUNITY
PowerCorps. An additional $500,000 for PowerCorpsPHL, an AmeriCorps program that trains young people to work in the green economy and urban farming.
“The needs of our citizens and residents are great, and City Council is doing what it historically always does – stepping up to the plate to fund programs it believes are worthy and best able to serve citizens and improve their quality of life,” said Council President Darrell L. Clarke, presiding over his final budget as Council President after 12 years at the leadership helm.
“This process is difficult but vital to the operations of the city,” said Council Majority Leader Curtis Jones Jr. (4th District). “We thank the Kenney Administration and members of Council for figuring out mutually what our city needs to prosper.”
TAXES
Continuing an effort promoted last year, a consensus of Councilmembers supported incremental reductions in the city’s Wage and Business Income & Receipts Taxes that are slightly more than the incremental reductions already proposed in the budget by Mayor Kenney.
The Wage tax on residents would decrease from 3.79 percent down to 3.75 percent. The net income portion of BIRT would decline from its current 5.99 percent to 5.81 percent. The original reductions proposed by Mayor Kenney would provide $150 million in tax relief over the Five-Year Plan; the additional tax cuts voted by Council today would provide another $24.1 million in relief over the Five-Year Plan. The added reductions were championed by At Large Councilmembers Katherine Gilmore Richardson and Isaiah Thomas.
“I am so pleased to have the support of my colleagues for the second year in a row in further reducing our City’s wage tax,” said Councilmember Gilmore Richardson. “With the highest wage tax in the nation, these continued reductions will allow us to further uplift residents and Philadelphia’s small and diverse business communities. In addition to my environmental justice and climate change package, I’m confident we are making necessary investments so our City works for all residents.”
“As the poorest big city in America, we need to make it easier to create jobs and grow small businesses in our city,” said Councilmember Thomas. “By working closely with small business owners with diverse backgrounds, we were able to set a tax structure that makes it more affordable for people to choose Philly. This budget eases this burden without cutting services. In addition, we’ve also invested in the arts and our young people to continue to uplift Philly as a world-class city.”
“While this budget which received preliminary approval today doesn’t give us everything we wanted, it still achieves several things,” said Council’s Whip, Mark Squilla (1st District). “It includes additional funding to improve quality of life in neighborhoods, it increases our efforts to attract and retain a quality city workforce, and it continues our responsible reductions of wage and business taxes to send a signal to workers and businesses alike: Philadelphia is open for business.”
“I’m happy with the budget that members have by and large come to an agreement on,” said Council’s Deputy Whip Cindy Bass (8th District). “We’re supporting what the people indicated they want: investment in human services such as violence prevention and mental health, as well as programs to improve their neighborhoods.”
“With an increase in neighborhood crime and a staffing shortage of over 1,000 uniformed officers, we need to provide the Police Department with the funding necessary to fill these vacancies. We want to support our Police in a way that gives them the resources they need to do their jobs and keep us all safe”, said Councilmember Brian O’Neill (10th District).
“I want to thank my Council colleagues and Mayor Kenney’s administration for working together to build a budget that will prioritize everyday Philadelphians and that makes investments in solving our city’s most pressing issues,” said Councilmember Kenyatta Johnson (2nd District), Chairman of the Special Committee on Gun Violence Prevention. “This year, I advocated for additional funding for youth programming as part of my “Save Our Youth” budget proposal. Our city’s young people are in crisis and youth violence is a pressing issue that demands immediate attention and comprehensive solutions. With the investments in this budget, Philadelphia will make significant strides toward our common goal of creating safe, healthy, and prosperous communities for all Philadelphians.”
The Operating Budget as amended by Council is here.
The Capital Budget as amended by Council is here.
The Capital Program as amended by Council is here.
