Spending plan includes new investments in violence prevention, street paving, and commercial corridors, along with increased property tax relief

PHILADELPHIA – Mayor Kenney today praised City Council for the final passage of the Fiscal Year 2020 Operating and Capital Budgets, which include important new investments in job creation, road repaving, education, and violence prevention.

“We applaud City Council for today’s vote on a spending plan that represents the priorities of the residents of Philadelphia,” said the Mayor. “Whether it be increasing equity in our neighborhoods, boosting affordable housing, improving street repairs and paving, or tackling the scourges of opioids and gun violence — this budget shows that our Administration and City Council are addressing the biggest challenges facing Philadelphia. I thank the members of Council for their thorough review of the proposal over the past three months, and look forward to signing the legislation.”

The Budget and Five Year Plan include:

  • $1.2 billion in general fund contributions to the School District of Philadelphia over five years.
  • $30 million over five years in additional investments to support the “Philadelphia Roadmap to Safer Communities,” the anti-violence initiative released in January.
  • $36 million over five years in new investments to support the work of the Philadelphia Resilience Project, the citywide emergency response focused on Kensington and surrounding neighborhoods at the epicenter of the opioid crisis.
  • $30 million over five years for our Police and Fire departments for 50 new officers, 1,500 body cameras (enough for every officer), seven new fire companies, and facility and equipment upgrades.
  • Over $200 million over six years for street resurfacing, to reach the goal of resurfacing and paving 131 miles annually by FY23.
  • $3.25 million over five years for cleaning on commercial corridors, and grants for community development corporations to revitalize neighborhood commercial areas.
  • Over $80 million to address the City’s affordable housing needs.
  • Gradual reductions in the Wage and Business Tax rates to make Philadelphia more competitive and spur job growth. The reductions represent a projected $136 million of foregone revenues from FY20 through FY24, an investment in the City’s economic growth.
  • The first-ever contribution to a Rainy-Day Fund ($34.3 million in FY20) to protect the City in case of an economic downturn.

Also included in the final budget package is an increase in the Homestead Exemption to $45,000 from the current $40,000, to mitigate the impact of rising property values. This change means that for a residential property owner with a home at the median value of $129,700, the Homestead exemption will lower their property tax bill by $630, rather than $560 under the current exemption.

The Homestead change was accompanied by an amendment to the budget that increases the City’s contribution to the School District by $8.4 million in foregone revenue. This gives increased relief to residential property owners, while at the same time ensuring that the School District’s own finances are not affected.

Other significant investments in the budget and Five Year Plan include:

  • Funding from the Philadelphia Beverage Tax to support further expansion of PHLpreK and Community Schools.
  • Proceeds of Rebuild borrowings to renovate and upgrade our libraries, parks, recreation centers, and playgrounds.
  • $21.7 million over five years for Free Library staff and building maintenance, allowing for six-day service at all library branches during the school year in FY20 and six-day service all year in FY21.
  • An additional $1 million annually to support summer jobs for youth in the city, providing meaningful opportunities to serve 4,500 Philadelphia youth through WorkReady.
  • $5 million in workforce development programs.
  • Funding for an Office of Career Connected Education, a joint venture between the City and School District, to connect school-aged youth to work-based learning experiences of increasing depth and complexity.
  • $2.3 million next year, and $11.7 million over five years, to expand street sweeping — using a combination of mechanical brooms and blowers.
  • $1.1 million dollars to launch a replacement of the Department of Revenue’s IT system. The future tax system will serve as the backbone for all the City’s tax operations and will offer increased functionality and flexibility for taxpayers.

The Mayor’s Budget Address, Operating and Capital Budgets, and FY19-24 Five Year Plan as proposed in March are available here. Updated documents will be available next week. The Administration will now submit a revised Five Year Plan to the Pennsylvania Intergovernmental Cooperation Authority (PICA).

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