PHILADELPHIA (KYW Newsradio) — Philadelphia Mayor Jim Kenney delivered his final budget address to City Council Thursday, unveiling an ambitious $6 billion spending plan that is likely to be the most popular of his two terms, providing funding for new and expanded services while decreasing the wage tax and part of the business tax, and holding the line on property taxes.
“Our vision for the final budget of this administration is to make investments that provide quality services and infrastructure for residents, maintain the city’s fiscal health, reduce racial disparities, and achieve equitable outcomes,” Kenney said.
The budget proposes generous new programs, like free rides on SEPTA for city workers and low-income residents, as well as increases for public safety, parks and recreation, street sweeping and paving and a six-day-a-week, city-wide library service, among other things.
“Generally I think it reflects the priorities of city council,” said Council President Darrell Clarke.
Clarke has often opposed Kenney’s proposals, beginning with the sweetened beverage tax in Kenney’s first budget, right up until last year when council passed a budget with far different tax breaks and anti-violence funding than the mayor had proposed. This budget, he said, would likely pass with a few “tweaks.”
“It’s based on reaching out to members of the public and members of council,” Clarke said. “Early on, we started a process of sharing views and priorities so I think a significant amount of this budget proposal will get a consensus.”
Kenney told council his budget was informed by a series of meetings and focus groups with community organizations and employees, as well as his own priorities of a safer, more just city where quality education is available for all in thriving neighborhoods with inclusive growth and economic opportunities.
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“These priorities reflect our concern for each other,” he said. “They are our city’s values. And I couldn’t be more honored to be this city’s mayor.”
Many of the new investments are in education, including a $12 million increase in the city’s contribution to the school district, an additional $51 million for Community College of Philadelphia, money to replace an expiring grant and continue free internet service for households with K-12 students, along with a continued expansion of one of his signature programs, free pre-K, with the addition of 950 new seats.
“More than 18,000 children will have attended PHLpreK by the end of our term,” he boasted. “This is an extraordinary accomplishment for our city. Establishing and expanding this program is a highlight of my career and I look forward to its continued success in the years to come.”
He also proposed an additional $25 million on public safety programs.
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“I know that ending this crisis is an urgent and personal priority for every elected leader in this room,” he told council. “There is no higher priority for my administration. Public safety is a precondition for every single one of our goals.”
There are millions more in the budget to recruit and retain more police officers, as well as for a new forensic lab and analytic work for Operation Pinpoint, the police department’s violence reduction effort in the highest crime areas.
There is also more money for the District Attorney’s office, the Defender’s Association, the Juvenile Justice Center, the prisons and a new initiative to clear criminal justice system debts for returning citizens.
Kenney announced that former Pennsylvania Public Welfare Secretary Estelle Richman would join the administration as the Managing Director’s Senior Advisor for Gun Violence Intervention Initiatives.
The streets department gets a boost, too, with an expansion of street sweeping and illegal dumping enforcement.
The Office of Homeless Services will get funding for 100 new supportive housing units, plus the city’s first tiny home village. There’s also an increase in money for services in drug-ravaged parts of Kensington.
But perhaps the most startling new investment is an initial $31 million to begin providing free rides on SEPTA for low income residents.
“This means much more than a free trip,” Kenney said. “In a recent community needs assessment, 39 percent of residents in poverty cited transportation as their biggest obstacle to finding and sustaining employment.”
“The zero-fare transit program will make it easier for low-income residents to get to work and access all of the opportunities that our city has to offer.”
City financial officials said, while reducing the wage tax to 3.7565% and the net income portion of the business tax to 5.83% — their lowest level in several decades — all of this is possible, largely because of the federal money that continues to flow from the American Recovery Act.
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The city is also repurposing a surplus in this year’s budget created by workforce shortages. Part of the money will be used to recruit and retain employees. To that end, city workers would also be offered free rides on SEPTA in the proposed budget.
Kenney, who has often been under siege since his admission on July 4 that he looked forward to no longer being mayor, took the opportunity to highlight the successes of his administration.
He said trash collection — which was chronically late during the pandemic — now has the most on-time rate in nearly a decade. He noted that Chubb Insurance had recently elected to put its headquarters in Center City.
He pointed to other new business openings: the rebound in hospitality and the selection of Philadelphia to host World Cup games and to be named an official “Welcoming City.”
“Looking back on our recovery from the pandemic, I am more optimistic than ever about Philadelphia’s growth, and the opportunities we can create for our residents and future generations,” Kenney said, also noting that this was his first in-person budget address since 2020.
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Council members promised a robust process to reach a final budget but the reception was generally positive.
“I like what I’m seeing,” said Majority Leader Curtis Jones. “There is a commitment to education, there is a commitment to public safety. The mayor in his last budget is putting his best foot forward.”
Kendra Brooks, a Working Families Party at-large member, praised the investments in education while expressing concern that the funding fell short of the “transformative” levels needed in many communities.
The Chamber of Commerce praised the budget’s “pro-growth investments.”
The sharpest critics were candidates competing to succeed Kenney.
Whoever wins will have to live with Kenney’s budget for their first six months, until the fiscal year ends in July 2024.
Kenney made a pitch for continuing signature programs such as universal pre-K and Catto scholarships that provide free tuition and support to Community College of Philadelphia.
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Referring to the children now in pre-K, the mayor painted a scenario:
“When their mayor stands in front of City Council – or if they are the mayor, don’t think it doesn’t cross my mind every time I visit a pre-K – I hope that our investments in growth and opportunity, paired with sound financial practices, have positioned the city’s finances, stability and prosperity to the point where the services and infrastructure we provide reflect our city’s highest ambitions.
“I have always approached this role with the years beyond this administration in mind.”
He walked through council chambers afterward, hugging the members then, as he headed for the door, he turned around, gave a wave and said, “Goodbye, everybody.”