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City Council gives approval to FY2022 Budget

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Historic Investments In Violence Prevention, Neighborhood Preservation, Poverty Reduction & Police Reforms

PHILADELPHIA, June 17, 2021— City Council gave its preliminary approval to a fiscal 2022 city budget that invests over $155 million in violence prevention programs to curb escalating gun violence, funds a $400 million program to create affordable housing, preserve neighborhoods and spur job growth, supports efforts to lift Philadelphians out of poverty, continues reforms in policing, and commits additional funds to revitalize the arts, culture and hospitality sectors of the local economy.

The $5.2 billion budget received favorable votes from City Council’s Committee of the Whole today, and then also received first-reading by the full Council in its regular meeting. Final passage of the budget is scheduled for June 24.

The budget deal agreed to by Council and the Kenney administration comes at a time when Philadelphia is slowly beginning to re-emerge from the impact of a COVID-19 pandemic that has devastated the country and the world and left Philadelphia with 153,724 infections and 3,705 deaths.

Large parts of the city’s economy were shut down by the pandemic and public health orders over the last year. But as the city’s vaccination rate rises and the number of new COVID-19 cases falls, officials have rescinded many of those mandates, and the city is re-opening. That has led Councilmembers to want to do everything they can to help Philadelphians recover from the pandemic, find opportunity and jobs, and require more racial equity in how the city functions.

“Philadelphia residents have weathered multiple storms this past year,” said Council President Darrell L. Clarke (5th District), who led Council’s budget negotiations with the Kenney administration, with ongoing feedback from his leadership team and other Councilmembers. “We promised at the start of this budget process that whatever we did collectively would be focused on investing in the people of Philadelphia and dealing with the significant racial and economic disparities revealed by the pandemic. We have much more work to do, but this budget agreement keeps that promise.”

Here are the key elements of the budget agreement approved by Council:

Violence Prevention & Opportunity/Jobs

The budget approved today invests more than $155 million in gun violence prevention programs and opportunity and jobs initiatives – strategies to curb a wave of gun violence that has Philadelphia on a pace to set records in homicides and shootings this year. The city experienced 499 homicides and over 2,400 shootings last year.

Highlights of the added funding and ongoing violence prevention efforts include:

  • $30 Million in additional spending by the Kenney administration that includes 911 triage/mental health co-responders, group violence intervention, jobs initiatives, and restored funding for parks and recreation and the Free Library.
  • $49 Million to community organizations, including $20 Million in healing, prevention, safe-havens, and community empowerment initiatives with input from City Council, plus $28 Million for out-of-school and summer programming for children, and $500,000 for targeted community investment grants.
  • $7.1 Million for Jobs training & workforce development led by Commerce Department.
  • $1.5 Million for two new Curfew Centers.
  • New Normal Jobs Initiative ($10 Million in FY21) Anti-Violence Resources Network.
  • Enhanced security cameras at recreation centers Stronger, commonsense gun laws – ongoing lawsuit against Commonwealth of PA.

Neighborhood Preservation

The budget agreement supports financing for the Neighborhood Preservation Initiative (NPI), a $400 Million citywide program approved by Council to preserve neighborhoods across Philadelphia. NPI will:

  • Construct thousands of new affordable homes.
  • More inclusive construction workforce – job training, apprenticeships.
  • Expand contracting opportunities for Black and Brown businesses
  • Preserve existing affordable rental units.
  • Keep homeowners in their homes with repair grants Create homeownership opportunities for Philadelphians — provide down payments and closing costs
    Assist disabled homeowners – adaptive modification grants
  • Prevent evictions — funding programs such as Phila. Eviction Prevention Program ($3 Million)
  • $6.5 Million to the Phila. Land Bank for vacant property and lot acquisitions
  • Stimulate small business growth – revitalizing neighborhood commercial corridors
  • NPI should generate 16,000 jobs & $1.5 Billion ineconomic activity over 4-years

Poverty Reduction

The budget agreement continues investments in Council’s Poverty Action Plan, an ambitious, long-term strategy to address Philadelphia’s deep-rooted problem that includes a quarter of the city’s population living in poverty. The plan includes:

  • Invest $20 Million in Poverty Action Fund (FY21 & FY22 combined)
  • Spurring $5 Million in added private philanthropy Obtain over $450 Million in federal & state benefits for Philadelphians
  • Create a public-private partnership with United Way, with the goal of lifting 100,000 Philadelphia residents out of poverty by 2023

Arts & Culture

A citywide process led by Councilmembers Katherine Gilmore Richardson and Isaiah Thomas explored the impact of the COVID-19 pandemic on artists and arts and culture organizations in Philadelphia and led to recommendations by a special committee to invest more strategically in artists and arts groups – with a focus on neighborhoods.

The budget invests nearly $7 Million more in the arts & culture, hospitality, and tourism sectors across all Philadelphia neighborhoods.

Schools

City Council consistently supports the needs of the School District of Philadelphia and the several hundred thousand children in city and charter schools. Council has continued to support schools this past year by:

  • Holding hearings and working with the District to ensure preparedness for after-COVID-19 career opportunities for graduates, based on labor market needs
  • Holding hearings to ensure the District is prepared to spend an added $1.3 Billion coming to schools through President Biden’s American Rescue Plan
  • The most COVID-safe schools exceed ventilation standards due to retrofits supported by the Philadelphia Energy Authority and Council, saving 38% on their energy bills, or $375,000/year per school. More retrofits are planned.

Police Reform

Throughout 2020 and into 2021, Council has heard the pleas from Philadelphians for necessary reforms in policing. This budget agreement includes:

  • Residency requirement for new police recruits
  • $14 Million over Five-Year-Plan to outfit Philadelphia police officers with tasers
  • $7.2 Million to fund behavioral health mobile crisis units & crisis hotline
  • $2.1 Million to operate Citizens Police Oversight Commission

An overview of the FY2022 Budget Agreement, is available for all Philadelphians to reader at, http://phlcouncil.com/wp-content/uploads/2021/06/FYBudgetAgreement2022_Handout-FINAL-VERSION.pdf.

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