FY2024 Budget Hearings - Public Testimony - Tax Bills 4 -18-2023

Name: FY2024 Budget Hearings - Public Testimony - Tax Bills 4 -18-2023
Uploaded: 2023-04-19T16:57:36.000Z
Duration: 1 h 48 min 5 s

Language and Public Hearing Introduction

The speaker introduces the public hearing on the city's proposed operating Capital budgets and proposed tax revenue measures due to the covid-19 emergency. Special procedures for public comment have been implemented, and certain ground rules have been established.

Public Comment Procedures

Speakers interested in giving testimony were asked to call or email by 3 pm yesterday.

Written testimony can be submitted to budget.hearings of phila.gov.

Testimony should be about the city's opposed operating Capital budgets and revenue measures.

Each speaker will have three minutes to speak, with a timer started when they begin their testimony.

Bills and Resolutions Being Considered

The bills and resolutions being considered are read out loud.

Bills and Resolutions

Bills numbers 230-144, 230-145, 230-146, 230-147, 230-148, and 230149 are being considered.

Resolution number 162 is also being considered.

Testimony from Dante Privet

Dante Privet is the first witness to testify at the public hearing.

Proposed Sports Complex at FDR Park

Brian Jeans testifies against the proposed $100 million sports complex to be built in FDR Park's Meadows area.

Importance of Green Spaces for Mental Health

Regular exposure to undeveloped green spaces like The Meadows can improve physical mental emotional health particularly for kids exposed to chronic stress.

Encourages City Council members here to consider them The Meadows as a vital Public Health Resource that can help provide our City's youth a safe secure space to heal the effects of stress and Trauma.

Introduction

This section introduces the witnesses who will be testifying before the council.

Witnesses

Miss George

Queen Judith Robinson

Rich Gorilla

Dante Pervitt

Kimmy Cook

Testimony of Rich Gorilla

Rich Gorilla testifies about the proposed sports complex in FDR Park and raises concerns about environmental impact, health risks, and neglect of existing fields.

Proposed Sports Complex in FDR Park

The plan was developed in 2018 when it was still a golf course.

Parks won't listen to the public and won't consider any changes to the plan.

Parks and the Conservancy say that The Meadows can't be saved from rising waters but they won't reveal the environmental and hydrological studies that supposedly prove that.

Environmental Impact

Philly tree plan recognizes that we need to increase tree canopy but this plan would clear cut acres of trees to build a giant heat island.

Artificial turf can heat up to 150 degrees.

Artificial turf also contains carcinogens including pifas and other toxic chemicals.

Health Risks

Even if fake grass were cheaper than real grass which it isn't, Parks is insisting our kids play on a surface that endangers their health.

Neglect of Existing Fields

There is a shortage of good playing fields but Parks ignores many fields that sit neglected right in our own neighborhoods.

It won't say how many it has or what it would cost to improve and maintain these fields.

Testimony of Kimmy Cook

Kimmy Cook testifies about divestment from public services such as parks, recreation centers, and libraries. She calls for fully funded public services through a true moral budget.

Divestment from Public Services

Unsafe building conditions, unexpected closures due to staffing shortages, and a lack of accessible programming leave our communities without the vital services we need to survive.

If we want to get serious about equity, we need to pass a true moral budget that provides fully funded public services.

Funding for Public Services

The funding exists but is being hoarded by the wealthiest Philadelphians who dodge paying taxes that should be going towards these vital city services.

The Chamber of Commerce is pushing a tax break for big businesses to the tune of 28 million dollars in lost revenue.

Tax Giveaways and Public Services

The speaker discusses the negative impact of tax cuts on public services, highlighting the need for fully funded public services that provide secure full-time jobs to those working on the front lines within their communities.

Negative Impact of Tax Cuts

Tax giveaways benefit mega corporations such as Comcast, Aramark, and Bert.

Tax cuts lead to revenue cuts which result in service cuts.

Underfunding is a choice that can be avoided by fully funding public services such as rec centers and libraries.

Fully Funded Public Services

Fully funded public services include providing good secure full-time jobs to those working on the front lines within their communities.

Passing the Philadelphia wealth tax would help make our tax system more progressive, close the racial wealth gap, and support working Philadelphians.

A city budget should address basic community needs while also providing resources for communities to thrive.

The Meadows

The speaker expresses concern over the destruction of The Meadows due to airport expansion plans. She argues that this space is essential for her daughter's well-being and calls for an amendment of the plan to leave The Meadows intact.

Destruction of The Meadows

The Meadows is a wild space in South Philly that has been destroyed due to airport expansion plans.

Clear cutting 55 acres of mature trees compromises people's lives and accelerates flooding in Eastwick.

Parks and Rec is billing their clear cutting as "wetland restoration," which the speaker argues is not restorative but rather ecocide.

Synthetic turf that will leach forever chemicals into waterways will be used to cover 42 additional acres, costing $100 million.

Call for Amendment of Plan

The speaker calls for The Meadows to be left intact and for the plan to be amended.

Leaving The Meadows intact would cost zero dollars but provide a priceless legacy to countless generations.

Entrepreneurship and Inequity

The speaker discusses the importance of entrepreneurship in solving inequity in poor and underrepresented communities. She argues that it should be a priority of city government as it forms the new city budget.

Importance of Entrepreneurship

Entrepreneurship is one of the keys to solving inequity in poor and underrepresented communities.

Families who own a business have higher median net worth than families who do not, according to research.

Hispanic families who own a business have even greater potential for economic growth and development.

Priority of City Government

City government should prioritize entrepreneurship as it forms the new city budget.

Business Climate in Philadelphia

The cost of doing business, ease of doing business, and business creation are indicators of the business climate in Philadelphia. Small businesses in Philadelphia are creating new jobs at a higher rate than large or mid-sized companies. However, entrepreneurs are increasingly deciding against Philadelphia due to the highly regulated, costly, and bureaucratic environment.

Challenges for Entrepreneurs

It is more expensive to do business in Philadelphia than in Los Angeles, San Francisco or Washington DC.

A recent survey by the diverse Chambers Coalition of Philadelphia indicates that small businesses on small business owners would not recommend the city as a place to do business earning the city a score of negative 50 on a scale of negative 100 to positive 100.

Lowering the birth and wage tax ones is not sufficient to spur long-term economic growth for businesses to make long-term significant investments that will bring about sustained job growth we need a more competitive cost structure consistently our surveys indicate that the birth tax is the most burdensome tax followed by the wage tax.

Commitment to Supporting Latino-Owned Businesses

At gphtc they are committed to supporting Latino-owned businesses.

As business community leaders and residents of the city they must plan for a safe equitable and robust economic recovery.

Investment in Black Businesses

Investment in black-owned businesses is crucial through tax revenue measures. Despite being one of the largest cities with a majority diverse population including 42% African-American, Philadelphia has only 1.8 black-owned businesses per every 1,000 residents.

Challenges Faced by Black Business Community

Decades of inequality and economic barriers have resulted in relative stagnation for the black business community and black community.

Philadelphia still has the highest emanation wage tax and is the only major city in the country that double taxes businesses with the business income and receipts tax.

According to a recent economy league report, black wages increased a mere six percent or two thousand dollars accounting for inflation since 2010 compared to almost 25 percent for everyone else.

Call to Action

It's imperative that we continue progress consistently as we plan for Philadelphia's future.

Investing in Local Business Community

In this section, Miss Harrison encourages the council to invest in the local business community by making a one percent annual investment. She believes that this will make Philadelphia economically competitive in 10 years instead of 20.

Importance of Investment

A one percent annual investment can make Philadelphia economically competitive in 10 years rather than 20.

Investing in the local business community is crucial for economic growth and competitiveness.

Testimony from Zach Wilka

In this section, Zach Wilka testifies on behalf of the LGBTQ+ business community. He speaks about their partnership with other diverse Chambers to launch the Diverse Chambers Coalition of Philadelphia.

Diverse Chambers Coalition

The Diverse Chambers Coalition was launched with the goal of economic uplift for and within diverse business communities.

The coalition aims to do good things for businesses and people, which are not mutually exclusive.

Regular surveys are conducted to convey experiences and challenges faced by business constituents who comprise the backbone of our local economy.

The main concerns for businesses are cost of doing business, clarity of doing business, lack of cleanliness, and crime.

Concerns for Businesses

Cost of Doing Business

Business-killing bird taxes are identified as their most onerous expense.

Double taxes do not occur in similarly situated cities to Philadelphia and are grinding away at businesses when resources are thinner than ever.

Crime

More than half our respondents reported being personally affected by crime.

Many have had to reduce hours of operation and hire expensive security to keep themselves safe.

Lack of Cleanliness

Lack of cleanliness presents a hurdle to quality-of-life issues.

Conclusion

In this section, Zach Wilka concludes his testimony by urging the council to vote yes to wage and birth tax reductions. He believes that real investment in private sector job growth is key to success.

Urging for Action

The primary action that the city can take right now to help grow businesses and create jobs is to reduce taxes.

Real investment in private sector job growth is key to success.

The LGBTQ+ community and businesses deserve investment as part of the values that our latest budget will represent.

Conclusion of Previous Testimony

The previous testimony has concluded and the next witness, Will Carter, is introduced.

Introduction of Will Carter

William Carter introduces himself as the Vice President of Local Government Affairs for the Chamber of Commerce for Greater Philadelphia. He thanks the committee for the opportunity to testify on the budget and discusses his work with the Inclusive Growth Coalition.

Challenges Facing Philadelphia

Philadelphia faces challenges such as poverty, education shortfalls, gun violence, and global economic forces that make it difficult for people to make ends meet.

Increasing the number of people making a good living can help address these issues.

However, Philadelphia has been experiencing double-digit declining job numbers over the past five decades.

One major reason for this phenomenon is that Philadelphia has fewer private employers than comparable locales.

As a result, roughly 60,000 residents leave the city annually in search of job opportunities elsewhere.

Investing in Private Sector Business Growth

The fastest way to grow jobs in Philadelphia is by investing in private sector business growth.

Currently, high taxes are causing many employers to locate just beyond city limits to avoid them.

A modest rate reduction will take 20 years for businesses to achieve a level playing field with regional national competitors. However, facts show that this can happen in 10 years with just a one percent investment of general fund dollars towards lowering wage and burn taxes.

Investing in Economic Growth

Kind Zaw, President CEO of Asian American Chamber of Commerce of Greater Philadelphia, testifies in support of reducing wage and vertex taxes to improve economic growth. He highlights the burden these taxes place on small businesses and how reducing them would incentivize businesses to stay and work in Philadelphia.

Key Points

Kind Zaw supports the reduction of wage and vertex taxes to grow all businesses citywide.

Reducing these taxes would be highly positive for black, brown, and Asian diverse businesses.

The Asian American population is the fastest-growing immigrant group in Philadelphia but is looking to move away due to crime and inflation-related difficulties.

Investing in businesses is crucial for improving job growth, reducing poverty rates, and creating stability and opportunities that empower future generations.

A reduction in wage and vertex tax will give a clear message that Philadelphia welcomes immigrant communities that want to grow.

Supporting Small Business Owners

Melissa Santos, President of Eagle Staffing Company, urges council members to vote yes on wage and vertex tax reductions. She emphasizes the need for more support for small business owners who work hard with a goal of growing their business.

Key Points

Melissa Santos urges council members to vote yes on wage and vertex tax reductions.

As a business owner herself, she works hard with a goal of growing her business.

More support is needed for small business owners who are the backbone of the economy.

Small Business Testimonies

In this section, several small business owners testify about the challenges they face in Philadelphia and how reducing taxes on businesses could help them grow.

Reducing Taxes to Boost Small Businesses

One business owner testifies that cutting Philadelphia's high wage and business taxes would give an immediate boost to workers and the ability for businesses to invest more in their growth.

Another business owner states that Philadelphia is the only major city that double taxes businesses through a business income tax and a business receipt tax, which has been a barrier for their business to grow in the city. They believe reducing taxes on businesses is the primary action the city could enact to help small businesses grow.

A representative from the Asian Chamber of Commerce testifies that lowering taxes will not only encourage existing businesses to stay open and grow but also attract new businesses to open in the city. They believe this will help storefronts at commercial neighborhoods thrive.

A minority woman-owned small business owner expresses frustration with politicians who prioritize entertainment over education, safety, and small businesses. She believes investing in schools would benefit parents who want better education for their children.

Witness Availability

In this section, council members check witness availability.

Witness Availability

Council members check if Bond Hand is available as a witness.

Council members check if Vicki Basu is available as a witness.

Zakaya Hamilton testifies about her experience as a small business owner and mother in Philadelphia.

Trash Trucks and Land Banks

The witness expresses disappointment that trash trucks take the recycle because recycles don't come to some zip codes. They also express concern about the land bank and how hard it makes it for small business owners homeowners to uplift their community.

Trash Pickup and Empty Lots

Recyclables are not picked up in some zip codes, leading to trash trucks taking them instead.

The land bank makes it difficult for small business owners and homeowners to uplift their community due to empty lots next to their homes.

It takes a long time for anything to get done, even something as small as getting trash picked up constantly due to so many empty lots in the community that the city owns.

Investors who receive land from the land bank leave behind hazardous materials such as trash, sheetrock, metal, etc., which is toxic and unsafe for the neighborhood.

Small Business Taxes

The witness urges City Council members to vote yes on taxi deduction reduction and birth tax since doing business in Philadelphia is harder with double taxes.

Double Taxation

Doing business in Philadelphia is harder due to double taxation with bow tax.

Other companies in other counties do not have double tax, making it difficult for small businesses like theirs to afford salaries offered by same businesses in other counties.

Urges City Council members present at the hearing to vote yes on taxi deduction reduction and birth tax.

Philadelphia Council ASL CIO President Testimony

The witness highlights how collaboration between Philadelphia Council ASL CIO and City Council has led to various protections for working people in the city.

Collaborative Work

Philadelphia Council ASL CIO represents nearly 150,000 working people in the city.

Collaboration between Philadelphia Council ASL CIO and City Council has led to various protections for working people in the city such as fair work week, prevailing wage protection, domestic workers Bill of Rights, paid sick leave, wage theft protection, and tower crane break ordinance.

The Importance of Funding for the Office of Worker Protections

In this section, the speaker discusses the importance of funding for the Office of Worker Protections in order to enforce worker protection laws and hold bad actors accountable.

Need for Additional Funding

The department requires substantially more funding in the 2024 fiscal year to cover an incredible amount of ground.

Council members are looking for $1.2 million dollars to retain and add much-needed positions, reduce wait times, and have appropriate outreach programs.

$30,000 is needed for case management software in the office of worker protection.

$350,000 is needed for labor relations and employee relations for new staffing.

Importance of Enforcement

Protecting fair wages is imperative and requires a fully trained staff that's fully equipped to cover tens of thousands of work sites in the city.

Legislative protections must be realized and enforced to ensure working people's rights are protected.

Successes Achieved by Limited Staff at Labor Department

In this section, the speaker highlights some successes achieved by the limited staff at the Labor Department despite their challenges.

Substantial Difference Made

Despite limited staff, substantial differences have been made in daily lives of working people.

Performance challenges and initiatives supplied by labor department show they have delivered close to or at their goals.

Examples of Successes

Tower crane brake ordinance ensures all crane operators must be allowed to descend and take a 30-minute break after four hours of work.

Fair Work Week ordinance ensures workers have a predictable work schedule with two weeks' advance notice for service, retail, and hospitality workers.

Conclusion

In this section, the speaker concludes their testimony and thanks council members for the opportunity to speak.

Final Remarks

Speaker thanks council members for the opportunity to speak and share their testimony.

Council support confirms there is no one else on the line waiting to testify.

The public testimony will resume on April 19th at 10 A.M.