Thank you, Council President Johnson and Councilmembers. I won't keep you too long from lunch. My name is Omeed Firouzi and I'm Professor and Director of the Temple Law Low Income Taxpayer Clinic. We serve low-income individuals who have disputes with the IRS, Pennsylvania Department of Revenue and Philadelphia Department of Revenue. And as such, I'm here to talk about the Mayor's proposal to repeal the $100,000 exemption from the Business Income and Receipts Tax. We can't talk about this though without talking about the issue of worker misclassification. When workers are misclassified as independent contractors, their employers fail to withhold taxes which means that the workers end up with a higher tax burden and fewer benefits. This happens in a range of industries -- bless you, Councilmember. This happens in a range of industries across the city, including among home health care workers, staffing workers, school workers and of course people who work in the gig economy. So there are thousands of low-income and middle-income Philadelphians who are affected every year. So what does this mean in terms of this tax? Well, for the last several years, thankfully these workers when they get a 1099 or are paid in cash and are misclassified, at the very least they're paying the same rate of tax that employees pay, that same 3.75% rate roughly for residents, for example. That's the same rate that I as an employee would pay in terms of withholding. So that has been consistent because of the fact that there has been an exemption from the Business Income and Receipts Tax for the first 100k of gross profits. So this has allowed these workers to just pay the same rate. Now, of course it's worse for them because they're paying it essentially after the fact out of pocket, but at least they're paying the same amount. But if we got rid of this exemption, this is going to be an added burden for these folks because it's not necessarily the case that they even have expenses because they're really employees, so it's not like they're going to be able to claim expenses to have a lower net profits rate. And even if they wanted to challenge their misclassification, there's no clear and direct way to do so before city agencies, and a lot of them are afraid to challenge their misclassification because of retaliation. So that likely means a lot of folks are going to end up paying this Business Income and Receipts Tax, and that's going to be another administrative barrier for a population that's already subject to so many barriers that prevent them from going further. So I hope that you will consider the impact of this policy.
No, thank you very much. We're taking everything in consideration. Thank you very much. Council will be at ease until 1:30. Just before you leave, at 1:30 we have to go into the Committee of the Whole to vote on the appointments of those who will be appointed to the Center City District which requires official business as a quorum. Thank you very much. See you at 1:30. (Lunch recess.)
This is the public hearing and the public meeting of the Committee of the Whole regarding Resolutions Nos. 250403, 250404, 250405, 250406 and 250407. I want to thank you all for being here. Ms. Loughead, will you please call the roll and take attendance.
Present. Thank you. A quorum of the Committee is present and this hearing is now called to order. Ms. Loughead, will you please read the titles of the resolutions.
Resolution 3 No. 250403, appointing Chris Cullom to the Board of Directors of the Center City District. Resolution No. 250404, appointing Allan Domb to the Board of Directors of the Center City District. Resolution No. 250405, appointing Jim Pearlstein to the Board of Directors of the Center City District. Resolution No. 250406, reappointing Carol Watson to the Board of Directors of the Center City District. Resolution No. 250407, reappointing Tina Byles Williams to the Board of Director of the Center City District.
Thank you, Ms. Loughead, and will you please call the first panel to testify on the Center City District appointee resolutions.
How are you doing, Paul. Just state your name and title for the record and please begin your testimony.
Thank you very much. My name is Paul Levy. I'm Chair of the Board of the Center City District and very pleased to be here. Let me apologize on behalf of Prema Gupta the CEO, who has been in that role since January. She is out of town dealing with an ailing parent at this time so she could not be here. I'm very pleased to testify in favor of the past listed resolutions. And in keeping with the provisions of Bill '727 which 1990 authorized the creation of the Center City District, I want to testify in favor of all five nominees. Nominees 3 are individuals recommended by our Board of Directors at their February 2025 meeting to fill vacant seats. Another 2 are filling a different set of vacant seats. The two Board members we have for renewal terms are Tina Byles Williams and Carol Watson. We have two seats that are vacated that will be occupied until December 2029. Chris Cullom is the Chief Operating Officer of Thomas Jefferson University and Jim Pearlstein, the CEO of Pearl Properties. And then one seat that has been vacated with an expiration term of December 2028, and that would be proposed to be filled by Allan Domb, CEO of Allan Domb Real Estate. I've attached to my testimony brief professional bios of each of the five new individuals and renewing individuals. Were these nominees to be approved, the Board's composition would be 28% minority, 38% women with a very strong mix of commercial, office, hospitality, retail and cultural representation. That list of the remaining Board members is also attached. Thank you very much for this opportunity to testify and I'll take any questions you may have.
Thank you very much. Any questions or comments from members of the Committee. Chair recognizes the gentleman from the 5th Councilmanic District, Councilmember Jeffrey Jay Young.
Thank you, Mr. President. And good afternoon, Mr. Levy. Thanks for being here. Just a quick question for the Board. Composition and makeup of the Board, is there any representation from this body on that Board? Does City Council have a seat on that Board?
Traditionally there has not been a member of City Council. The approach has always been to have property owners, businesses and representatives who then are approved by this body.
Thank you. I mean, I ask that because those same property owners and businesses come to us, myself, I'm sure Council President Johnson and Councilmember Squilla as well, with issues that they have regarding just overall quality-of-life stuff in Center City outside of the things that you all deal with. I mean, I've even had complaints of property owners about Center City District, right. And so. We're just trying to figure out how we as a body can have a voice, because you are taxing authority that essentially, you know, that some members, you know, everyone's not going to like it, right. And you are a taxing authority and we are essentially held accountable to some of those members as well. So I just wanted to throw that thought out there.
Understood. And I would just say we welcome free and open communication, which we have with every member of City Council. So do not hesitate to bring any problems to my attention or to Prema, and I know you've addressed several to her. We welcome that conversation.
Thank you very much. Are there any other questions or comments from members of the Committee? Is there any witnesses to testify on these resolutions? Chair recognizes Councilmember Dr. Anthony Phillips.
Just a quick question which is burning for me. I just want to make sure that this Board, Paul, if you could speak on it, can talk about what do they see as part of their vision, what do they see as the most viable strategies for repurposing vacant office spaces in Center City?
Sure. I'll be glad to address that. As you know, we've been very fortunate, this body passed a 10-year tax abatement back in 1997 and we've had extraordinary success as a city converting more than 40 major buildings, million square feet, 9 from office to residential. 10 One way to put it is we've done the easy buildings in the last 20 years, and we have the challenge now of a lot of buildings that don't lay out easily for conversion. And so, certainly we are open to a discussion whether there could be, as the Mayor has proposed, possibly a 20-year abatement for certain buildings. I think we do need some new tools for some of the harder buildings to do so, a very good track record, but we may need to do more as we move forward and we'd be glad to share the recommendations that we've given to the Administration in that regard.
Quickly, is residential the only option just out of curiosity or is there anything else for entertainment purposes or community purposes, whatever that --
I think you're raising an excellent point. There are a lot of people nationally saying that our downtowns are frankly overcommitted to only office and what we really need to is diversify. Residential is just one of those things. Obviously, education and research hotels, we've converted many buildings. But you're right, entertainment and other uses, and I think the real challenge of the next several years is to maintain as many office jobs as we can and everything they support, but to think about new industries that we have here. Life sciences obviously is doing well in University City because of proximity, but we need to think differently going forward.
Thank you very much. Any other comments from members of the Committee? (No response.)
Any other witnesses here to testify on the appointment resolutions? (No response.)
Hearing none, this concludes the hearing -- thank you very much.
This concludes the hearing for Resolution Nos. 250403, 250404, 250405, 250406, 250407 and we will now go into the public meeting. There being no further questions from this Committee and no other witnesses on the list to testify, I will ask if there is anyone else present who wishes to offer testimony on Resolution Nos. 250403, 250404, 250405, 250406 and 250407? (No response.)
Hearing none, I want to thank everyone who took time out of schedule, particularly Paul Levy, for participating and we value your opinion. As we are now in our public meeting to consider action on the following Bills 250403, 250404, 250405, 250406 and 250407, Ms. Loughead, please call the roll.
Present. The Chair recognizes Councilmember Majority Leader Gilmore Richardson for a motion on Resolutions 250403, 250404, 250405, 250406 and 250407.
Thank you, Mr. President. I move that Resolution 8 Nos. 250403, 250404, 250405, 250406 and 250407 be reported from this Committee with a favorable recommendation and that the rules of Council be suspended as to permit first reading of this bill, of these resolutions at the next session of Council. (Duly seconded.)
The Chair notes for the record that Councilmember Gilmore Rich -- no, Councilmember Jamie Gauthier seconds the motion. It has been moved and properly seconded that Resolution 24 Nos. 250403, 250404, 250405, 250406 and 250407 be reported from this committee with a favorable recommendation that the rules of Council be suspended to permit consideration of these resolutions in our next session of Council. All those in favor of the motion will signify by saying aye. (Aye.)
The ayes have it and Resolution Nos. 250403, 250404, 250405, 250406 and 250407 will be reported from this committee with a favorable recommendation with the suspension of the rules to permit consideration of these resolutions at our next session of Council. This concludes the public meeting of the Committee of the Whole to consider the Center City District appointment resolutions. We will now continue with our scheduled public comment regarding the FY26 budget. Ms. Loughead, will you please call the next panel to testify during our afternoon session.
Daniel Betancourt, Anthony Mohammed, Tiffany Johnson, Carol Johnson and Mitesh Patel. (Witnesses approached Witness table.)
Please state your name for the record and please begin your testimony.
Thank you very much. Whichever of you want to start first, please begin.
I'm going to go ahead and start then. Thank you, Dan Betancourt, President of Finanta, CDFI in North Philadelphia in the Greater Kensington area. Today I'm here to talk about affordable housing for our community, particularly around the unbanked Finanta, who's been part of the American industry empowerment zone for more than 30 years, launched and is the first time we're saying this publicly, has launched a brand new credit union, and that's what I'm here to talk about, and how we're going to address housing citywide. First of all, we did receive a charter for this brand new bank and we're going to place our very first branch in North Philadelphia on Kensington and Castor. Yes, and this is not an ordinary credit union. This is a minority depository institutional income designation and CDFI credit union. The first time in the country it's been done in years 9 that a CDFI started a credit union, 10 so it's a pretty unusual situation. 11 We did start a steering committee 12 citywide. Some members, part of 13 the Administration of course and 14 Councilwoman Quetcy Lozada has been 15 there to table and Commerce 16 department members Karen Fegely and 17 Yvonne Boyd and the whole idea is 18 to provide critical affordable 19 housing options for low-income 20 Philadelphians. 21 We know that City 22 Council is working on a plan with 23 the Mayor to address housing for 24 those that are underserved in the city, particularly around the 30,000 housing goal that we have here in the city. Our CDFI addresses housing in two ways: One, the traditional Finanta, the CDFI, provides capital for developers of affordable housing. We've done that through LIHTC, among other tools. And then finally, the credit union will provide affordable housing in terms of mortgages. And so, what I'm here to really say is we're working with the administration to provide two things: One is contributions to the credit union for this launch and to help capitalize it. And number two, it is to provide a deposit so we can use that capital to lend in our community. Already within a short amount of time we raised $30 million in deposits. And so, we're well on our way to provide this brand new public institution here for Philadelphia. Thank you.
Thank you. Just for clarity, so you're saying you're partnering with the Administration to receive funding to support the credit unions to provide funding for those who are becoming first- time homebuyers, correct?
That's all I wanted to know for the record. Thank you very much. Go ahead, sir.
Yes. Good afternoon, Council President and Councilmembers. My name is Anthony Mohammed and I'm the owner of AM Electric, Inc., an electrical contracting company right here in North Philadelphia. We've been in business since 2002 doing residential, commercial work all across the city. We're a small team, just over employees, but we're proud 7 of the work we do and the people we 8 serve. I'm here today because the 9 city's business taxes are holding 10 us back, plain and simple. We've been busting our backs to keep the lights on literally and to keep good employees employed. But every year those tax bills get heavier and it gets harder to grow, harder to take care of our team and harder to stay competitive. We're not a big corporation. We're small. This is a local working-class operation. We want to build something solid for our families and our community. The hardest part for me as a business owner has been looking after my employees who show up in the cold, in the heat, working overtime, doing things the right way and not being able to offer them health insurance for a long time, not because I didn't want to but because between taxes, operating costs and keeping payroll, there just wasn't enough left. We finally started offering some medical insurance for our employees, but it came too late for a few good people who left us for jobs outside the city where companies aren't getting squeezed like we are. That hurt. It wasn't just losing workers, it was just was losing people. I trained people I needed. I'm not asking for a handout, none of us are, but we need some breathing room. The tax rates in the city are punishing the people trying to do things the right way.
Hello, hi. My name is Tiffany Johnson. I'm here today to give my testimony about my experience with different city-owned, funded programs, PHDC, Built for Last, TAP. I've been dealing with these programs for the last couple of years and they have helped me and my family, especially my elderly mother that just got out of the nursing home. For one program, PHDC, they helped me with different home repairs through the Basic Home Modification Program. That program is very excellent. They prevented me from having to relocate my mother into low income or what have you. They came out very fast. They did a lot of repairs that saved me money. And my mother, she's receiving retirement so it benefited her because she didn't have to spend too much money out of pocket. The reason I'm here also is to thank you for having these programs. They are well-needed in the community. They help elderly, low-income, people with mental health issues and just people that just can't afford to do repairs. And I think there should be funding sent to these programs because they do help and they do assist people in the community. (Applause.)
Next we have Joselyn Rodriguez-Almendra, Ysis Rivera, Mike Roth and Jorge Gonzalez. (Witnesses approached Witness table.)
We're students at Olney High School and we're here just to express our gratitude and the commitment that the School District has recently shown us for our athletic facility. It's amazing to see the school district investing in our sports field. The improvements that are going to be made will make a great difference in our teams and the school community. We generally appreciate this initial commitment to enhancing our athletic facility. As we look ahead, we also recognize that to truly bring this project to its full potential and create a top-notch base for our student athletes, further investment will be important for the next phases to begin.
We're both very grateful for the investment in the sports field. We know that these investments will improve our training environment and overall experience and a greater sense of pride and motivation. However, to truly reach our full potential and embark the next exciting phase of development for our team and facility, further investments will be critical in the upcoming years.
Good afternoon. My name is Jorge Gonzalez. I'm Olney High School Athletic Director and being a Spanish teacher there for seven years. So first I want to express our gratitude to the school district for consideration and proposed budget allocation for Phase and of the renovation of the athletic complex. These four steps are meaningful in (inaudible) in the heart. Development and spirit of the youth and their families. That said, as we envision the future of this complex we recognize our community need to stand beyond these initiative phases. To truly serve our growing population and to provide a (inaudible) that's accessible in closely and fully functional, we need to go forward. We respectfully ask for you to continue partnership and advocacy to maintain the Olney athletic complex a full scale reality. With the additional support, we can ensure that these projects become a lasting source of pride, of benefit for everyone in our city. Thank you for your literacy and your commitment to our community. Thank you.
My name is Michael Roth. I'm the proud principal of Olney High School. Members of Council, thank you for having us today. I do want to recognize these two students, Isis and Jocelyn, who've been great advocates for the Olney school community while also carrying a course load, while also applying to college, but they have done a tremendous job speaking in front of the school board about this very issue and speaking with the Philadelphia Inquirer. Just a little bit of context about our visit here today. I've had the pleasure of serving in leadership capacity in the Olney neighborhood for the last years. 7 During that time, I've served for 8 eight years as the principal of 9 Olney Elementary School and am now 10 in my third year as the principal 11 of Olney High School. 12 As some of you may know, 13 Olney High School came back to the school district of Philadelphia's control three years ago after a Aspiras Charter was not renewed. In each of those years since becoming a school district of Philadelphia school, we have improved student test scores. This past year we have had the highest ELA and biology test scores of the last 10 years. We've also established eight majors that students can select from after their sophomore year, and these majors are focused on giving students skills that can ensure postsecondary readiness. We are also proud to boast active sports programs. 8 Both of our boys and girls lacrosse 9 teams were in the playoffs 10 yesterday. If my voice is a little 11 hoarse, it's because I was cheering 12 them on. Girls won, boys lost. 13
Lacrosse 16 team, lacrosse. As you've heard 17 from our students, our school community has been advocating that the student athletes no longer have to play in an unacceptable sports complex. I am proud to say that since the school team's advocacy, the school district of Philadelphia has proposed $7.15 million investment to build a new and modern fieldhouse and put in new fencing. (Applause.)
Yeah, we're really excited about that. This will also add bleachers and a few other items. A vote for approval of this funding is scheduled to go in front of the school board this month. We are grateful to the School District of Philadelphia leadership team and are hopeful for that approval from the board this month. The student athletes, athletic director and myself have come to Council today to celebrate these needed investments, but we are also asking that City Council, the Mayor and others do not forget that even with these investments, the sports facilities, the students and the communities deserve will only be half done. I just need 30 more seconds and I'm done. Our hope is to secure funding for the additional $10 million needed to allow for modern fields and a track where students can safely compete. They cannot run on the track right now. And Jocelyn actually got hurt just a month ago. Her ankle was twisted on our softball field. We would like to thank Councilmember Phillips for his advocacy and hope that other members of City Council will support us in these efforts. So thank you for having us today. (Applause.)
Thank you. One second. Don't leave just yet. Don't leave just yet. One, I would like for Dr. Councilman Phillips just to speak on this because he's like the lead advocate. But any time we have young people in the room speaking truth to power, and I know we have other folks come in the room we get all up and we take pictures with them and smile, but let's stand up and give them a round applause for these young people for doing the right thing. (Applause.)
We just want you to know we support you. You're the future leaders of now. And so, it means a lot that you're here speaking truth to power advocating regarding to your school needs. The Chair recognizes Councilmember Dr. Anthony Phillips.
Thank you, Council President. I just want to briefly say thank you to Principal Roth because we met about a year ago or so as part of this tour that I was doing around the 9th District schools. And immediately in our meeting there was a synergy, because Principal Roth had been thinking about the Olney High School field and its terrible conditions. And I had just driven by the field and I said, what's up with this field. And so, immediately we both started talking about what is needed and why for decades this field has not been maintained or any support. I mean, we have young people who have to go to the restroom outside. Their bleachers are condemned. They can't even use the bleachers. I mean, the field looked like -- I mean, it was rough and these kids were playing on it like it was just something that they were used to and they are used to unfortunately. And the reality of matter is that if we take care of this field, we're going to take care of a whole neighborhood in the city of Philadelphia that needs some love. (Applause.)
So the school district has committed a little bit of funding, which as you said is going to help with some of the bleachers, the fieldhouse and the scoreboard. But that does not help us redo the field itself so Jocelyn can play softball properly and safely as well as the football field. So now, we're asking for Council to chip in and then we're also getting the state to work on chipping in. So we just need everybody to come together to make it something bigger and better for this neighborhood. I want to thank Principal Roth and all the students for all the amazing advocacy that you are doing. We got something done and hopefully this body together we can get something done for you all together. Thank you. Appreciate it. (Applause.)
Next we have Malachi Armstrong, Brennan Morag, Catherine Blunt and Thanh Doan followed by Adisa Julian and Ben Clark. (Witnesses approached Witness table.)
Can you please state your name for the record and please begin your testimony.
Good afternoon. My name is Thanh Doan and the owner of TD1 Agency located 600 Washington Avenue. I'm also the realtor and property investor in Philadelphia since 2014. TD1 Agency was established to sell insurance and assist many business owners in many different ways. I'm here to testify in support of further reducing the wage tax and Business Income and Receipts Tax. I'm also speaking on behalf of many business owners which are my clients in Philadelphia and including mine. As a business owner, we are facing financial challenges in many different ways which include all the business expense. The cost of auto insurance in Philadelphia is higher than supper. The increase in the premium have been increased twice as fast. Home insurance, the premium has risen by 30% and higher, also included commercial insurance premium rising by 7.9 and higher too. Starting in January 1, 2015 electric bill will increase of approximately 10% and 12.5% of the natural gas bill. September 2024, water bill also increased by 12.3%. Cost of supply have increased and will increase more. Limited parking and crime are also additional disadvantage in Philadelphia compared to New Jersey and many other suburb area. Property taxes increased and the landlord also increased in rent. The 100,000 exemption being removed will impact all small businesses. This will increase tax liabilities. A lot of my clients moved to Delaware County, Delaware state and New Jersey due to those reasons. My office also have to change to virtual office for that reason. Instead of paying additional tax, we use this money to reinvest into the business and hire more employees. This will generate more jobs and then more resident want to live in Philadelphia. Every dollar matter when we are running small business. I am in the process of reopen my physical office again in Philadelphia. I were working in Philadelphia since 2018 and so many of my clients, but the need the City need to make grow possibilities. Thank you very much.
Good afternoon, Council President and Councilmembers. I am Katherine Blunt currently in the 3rd District and formerly from the 5th District Jefferson Manor. I am here to voice concerns regarding Resolution 2 250214. I'm not opposed to the passage of a city budget that assesses, plans for and addresses the big picture in which the here and now as well as anticipates the economic reality of the city, state and country and the immediacy and in the distant future. The economics of all are intertwined. Hopefully, we acknowledge the economic recession. Hopefully, we understand its potential negative impact because the economics are interconnected. We understand that our fiduciary responsibility goes beyond the immediacy of our current term in office. It goes to also a responsibility for our constituents, the city and the other terms of office, of other officeholders and extends beyond the current generations to future ones as well. I am here to announce and remind, if we don't know, that the people do know that business as usual model that we use for government operations and government funding and spending is really dead. The people on the street know that. We know it is continuously resuscitated by and for and through connected government and corporate operation systems mutually dependent on power politics driven by big money economic. It is a system that is kept alive for a shrinking minority while the large majority of us are left in decay. I am here to ask you, as Dr. King would, to be our champions. We need you to champion us. I'm not going to quote statistics or any of that because it is already being given to you. But I'm asking you to be our champions. The people who live here have lived here and will be here when the others go and the others continue to destroy. Stand up for us. Be with us. Hear our voices, share our concerns, and work for us. Thank you. (Applause.)
Good afternoon. My name is Adisa and I reside in West. I am here today to express opposition to the proposed budget's allocation of funds. Many of our community leaders, organizers and youth have advocated for themselves and their loved ones, for these Councilmembers entrusted with our welfare to prioritize people over corporate profit and policing. Many people don't want millions of their tax dollars used on new police stations and training facilities, upgraded firing ranges or electric bikes. We don't need to fund PPD's access to tactical drones like those used to conduct genocides overseas or to invest in Bluetooth cameras that record once weapons have been drawn. We don't need to fund riot gear for PPD to weaponize against us when we exercise our First Amendment. We don't need to spend 1.8 million on police recruitment ads and we surely don't need to waste 1.3 million on moisture wick uniforms for the well-being of cops, although maybe the added comfort will make them much trigger happy. Truly I don't want to see a dime go to the PPD. I'd rather see that 800-plus million reallocated to boost every ask from your constituents. But we know that won't happen. So to my fellow constituents, when this budget passes mostly unchanged and they ask for your votes between now and November to facilitate incremental change to issues that are killing us daily, I hope that it is understood as a sign to divest from this violent and oppressive institution. And to those elected leaders who are truly advocates for the people but regularly face barriers by the system, I hope that instead of becoming career politicians you choose to mobilize the people away from the suppressive system and towards an equitable Philadelphia. Thank you. (Applause.)
Thank you all for hearing me on behalf of the Covenant House Youth Shelter Pennsylvania. I'm Malichi Armstrong, Covent House alumni, ambassador, youth advocate, author and transformational speaker. In 2012, the Covenant House saved my life. My story, like so many others who've passed through the Covenant House doors would bring dispirited tears to your eyes leaving you to question humanity. On the other hand, the support we encounter will bring tears of joy, allowing you to believe in the humility of humanity. I've discovered that people who dedicate themselves to this line of work are raising young adults like myself, that their titles and positions far surpasses expectations and encompasses so much more from employment processes, housing, transportation, food, clothing, parenting, sibling mentoring type relationships, teaching life skills such as paying bills, accountability, et cetera, are surface and dare not to compare to the lifesaving efforts of staff members pulling crying youth off the edge when our early lives have plummeted. Today as an author and speaker I empower people to destroy the limits of circumstances and become leaders of life. And I stand with you today humbled, honored and hopeful for every youth stood where I once stood, asking you our decision-makers to make one better decision. Invest not just in charity but in commitment to our children, our community and our country. Programs like Covenant House can serve youth in shelters who are searching for jobs and in school, with speakers from all industries with entry-level requirements like trucking, cyber security, nursing, finance. Just like recruiters do in trade school, we change lives by connecting people and systems, aligning programs and creating opportunities that lead to purpose filled lives. Programs must intertwine and align systematically like partnerships. Resources must highlight companies hiring entry- level employees, high school diploma, GED. Our youth see a different workforce, the gig economy, e-commerce, entrepreneurship. These skills need to be trained and developed alongside of personal and interpersonal growth. Investing in ourselves is our biggest opportunity. It's our biggest investment if we can only accomplish and achieve this together. Thank you for your time. (Applause.)
Next we have Emily Pugliese, Audrey Patterson, Emily Abendroth, Diana Gonzalez, Bonita Cummings and Desiree Whitfield. (Witnesses approached Witness table.)
Just state your name for the record and please begin.
Good afternoon. My name is Emily Pugliese. I am the Policy Director at Green Building United. We are a regional nonprofit membership organization focused on the equitable transition to a climate- friendly and healthy-built environment through education, advocacy and strategic initiatives. I am here today to encourage Council to use this year's budget as an opportunity to create a holistic and long-term plan for housing in our city. Yes, we face a housing crisis in Philadelphia that requires quick and strategic solutions, but it's imperative that we consider the long-term impacts of those solutions so we don't exacerbate future crises. In 2024, the Parker Administration released their energy poverty alleviation strategy, which found that a quarter of low-income households spend nearly, 20%, 20% of their total income on energy alone. The report also states that 70% of single family homes lack basic air sealing. We know how to tackle these challenges: Build on the success of the integrated approach championed by the Philadelphia Energy Authority's Built to Last program while continuing to improve Philadelphia's building energy code to ensure all housing investments citywide are working proactively to combat this energy poverty crisis. At the same time, utility costs are continuing to skyrocket, as evidenced by recent rate change cases by the Philadelphia Gas Works and Philadelphia Water Department. Climate change will continue to exacerbate these costs in the years ahead. So now is the time to take definitive action to make our housing stock more energy-efficient and resilient. If we don't take action now, we are merely pushing these costs onto homeowners and renters in this city, many of whom are already struggling to pay bills. Lastly, City Council must remember that Philadelphia and the rest of the nation faces cuts to federal funding and investments, including the LIHEAP program that helps our most vulnerable neighbors cover the cost of housing. Council should be considering investments in direct energy assistance programs and complementary initiatives like the Shallow Rent Subsidy program to decrease the long-term carrying costs of housing and guarantee our residents comfort and safety in their home. As the budget is finalized, Green building United asks that City Council fully fund the Philadelphia Energy Authority at $10 million to include $5 million for the Built to Last program, work with the Parker administration to ensure that the H.O.M.E. Initiative and forthcoming changes to building codes prioritize long-term affordability and energy-burden reduction for residents and fund complementary programs like the Shallow Rent Subsidy program that will ensure housing affordability is possible for all Philadelphians. Thank you for prioritizing affordable, efficient and resilient housing for all. (Applause.)
Hello. My name is Emily Abendroth. I'm the Program Manager for Philly Climate Works, which is a project of Sierra Club PA and a proud member of the Here for Climate Justice Coalition. I'm speaking today both -- also, I live in the Cobbs Creek area of West Philly and I thank Councilmember Gauthier for her service as our representative. I'm speaking today both as a resident who every day sees the dire need for comprehensive home repair funding access on my own block and as a member of an organization that is determined to join forces with others across the city to fight for the services and resources and dignity that we all need and deserve as many others. I'm here today asking City Council and Mayor Parker to fully fund the Philadelphia Energy Authority's $10 million budget request, both to support the Built to Last home repair program for low-income Philadelphians and other critical initiatives that they do. My own life and work experiences have particularly allowed me to see the need, the potential and the impact of the Built to Last program. I live on a low-wealth block where many of my neighbors have been for 30 to 60 years raising multiple generations. Every single house on that block was built between 1920 to 1925. Very few to none of us have efficient cooling access. There's very little air sealing. And because we are right on the creek, there have been problems for decades with block plumbing, flooding and poor drainage, problems that are only getting worse as the force of storms that we're enduring in terms of amount of rain per hour is increasing. These houses may have even had difficulty weathering many of these conditions in 1920, but a century of wear and tear on their infrastructure has made them differently vulnerable, and I watch my neighbors all the time do the patchwork repairs that they can, including simply bucketing out water. But in order to do the kinds of things that are long-term repair and remediation, we need the kinds of programs that Built to Last is that meets multiple kinds of services from multiple programs and braids them together. I just want to name that this is something that Built to Last uniquely provides. I'm very aware that currently neither the Mayor's budget nor her major H.O.M.E. Initiative include funding for PEA or Built to Last. And it's my hope that this City Council will insist and ensure that both of them do. I want to also name as a person my support for the package of protections for Philadelphia renters that Philly Thrive and One PA in collaboration with Councilmember O'Rourke's office have pushed so hard for. And I know that despite your busy schedules I'm hoping you will find time and space to hold a hearing for the Safe Healthy Homes Act this legislative session. And that's it, yeah. Thank you. And I'm here for climate justice. We believe safe, healthy housing on a living, able planet is both essential, achievable and winnable. Please advocate. (Applause.)
Good afternoon, Council President Kenyatta Johnson and Councilmembers. My testimony is actually three minutes. I'm not even going to try to read it, but I would add that it be transcribed into the record in its entirety, along with just some photos that I copied to kind of show around what I'm going to try to just pull some excerpts of this testimony around, you know, this operating and capital budget plans. Don't much frighten me for many people who may know me, but this package that was given for members of Council and it is 6 some extra ones that was on the 7 table so Council should have it, 8 I'm here because I know a budget is 9 going to be passed and that's no 10 doubt. 11 However, I just wanted 12 to say for my community of 13 Strawberry Mansion, and I think I 14 said my name. I'm Bonita Cummings, 15 Director of Strawberry Mansion 16 Community Concern, that you not 17 allow us to be an experiment. And I'm really -- I lost a son in 2018 to gun violence so I'm very clear about death. And we've all already witnessed in terms of experiments, we've seen it in the public housing highrises, failing in public safety and producing cruel housing conditions. We saw it in the Tuskegee Syphilis experiment on Negro males. We saw it in Henrietta Lacks and family, the treatment that her family is still impoverished today. So I say we know every neighborhood needs housing and we are grateful to have an expansive look at housing, but we also have had the experience of being experimented on. So the designs are not in cooperation with what communities are asking. So we want to make sure that in terms of density being created, that it's not created where it creates crime, trash. There's no socioeconomic upliftment as described in these plans. And my community employment, there's hardly any. Strawberry Mansion residents can't even get jobs at the corner bodegas. So I'll just ask you all to please not allow us to be experimented on. Don't allow 4 more years to go by while Black 5 males and Black females now get 6 shot down because we've put so much 7 density in neighborhoods with 8 housing with no quality plan as to 9 how that housing should be placed 10 in neighborhoods. And don't allow this bullying to go on from anyone, particularly these powerful housing organizations, the zoning board, planning commissions, unions, because your neighborhoods or your districts are next. And if Strawberry Mansion gets overrun with excessive housing that creates too much density, it places our boys on street corners, our girls on street corners. They have nowhere to go, just houses stacked on top of each other and nowhere for them to go. So I just want to say thank you. Please don't experiment with us one more time, particularly with public housing. Right now they're just not calling them highrises. They're shortrises, but we're packing each other up on top each other. So thank you for your time and for hearing the voices that are too often left out of the rooms where decisions are made. Thank you. (Applause.)
Next we have Rob Zuritsky, Burnell Goldman, followed by Mitesh Patel, Jigar Mehta, Loc Pham and Michael Pennyman. (Witnesses approached Witness table.)
That's good. Just state your name officially for the record.
Robert Zuritsky representing the Philadelphia parking industry. And I'm happily joined here by a lot of the people in the parking industry. If you would all please stand up and just wave to our friends in Council here. Thank you. Also joined by Burnell Goodman, who operates a couple of hotels in the market. He's just one of the people that are concerned about not having enough parking in Center City going forward. So thank you for the opportunity to speak today. I'm here to bring to light the crisis affecting every Philadelphian's access to affordable parking. Over the last years, 7 Center City has lost over 10,000 8 parking spaces, 62 private 9 facilities and more than 500 jobs 10 due to the unsustainable tax policies. It no longer makes sense to operate and maintain offstreet parking in Center City, Philadelphia. Over half of everyday parkers are Philadelphia residents. There are teachers, nurses, trade workers and families who need affordable convenient parking to reach their jobs, medical appointments and local businesses. If we don't act, the consequences are severe. In addition to making it harder on constituents, we risk 2000 living- wage jobs in the parking industry, $150 million in annual tax revenue that our industry generates for the city as well as our ability to host major events like the FIFA World Cup and All-Star Games coming next year, events that allow Philadelphia to shine on the world stage. The problem is clear: Parking facilities face the highest tax burden in the city. Some facilities facing over 60% of what they collect. I am urging the City Council to re-evaluate just one of the 13 taxes and fees that are paid by offstreet parking lots, specifically the Use & Occupancy tax, which uniquely penalizes private -- I'm going to just keep going, private parking operators and taxes lots as if they are open, 24/7 and filled 24/7. Fortunately, the Tax Reform Commission has recommended a solution, eliminate the U&O tax on parking facilities while increasing street meter rates $1 per hour in commercial areas. Data analysis shows that would generate the funds needed to provide U&O tax relief. I urge this Council to adapt this reform to protect jobs, maintain accessibility and ensure stable revenue for our city's future. We need to act now if we want to keep offstreet parking viable. Philadelphians deserve and need affordable, available transportation options. Thank you for your time. (Applause.)
Good afternoon, Council President, fellow Councilmembers. My name is Burnell Goldman. I'm the area GM for the Windsor Suites Hotel and the Model by Hilton Philadelphia, Rittenhouse Square. Between those two hotels, we have well over 100,000 guests, tenants, visitors that stay at our combined hotels every year. And we employ at least 75 employees directly. And then indirectly with our partners, there has to be well over 100 other people that work on the building with our restaurant partners and other vendors that support our hotel. I just wanted to kind of echo some things that Rob just mentioned. Just overnight parking at our hotel at most hotels in the city are anywhere from $65 to $75. So if you think about it, a guest that may pay that times two because they come in on a Friday or Saturday, right, and the room rate isn't much more than the cost of that parking. If you combine the two days and add them together, it's like here for a third night if you're staying for two nights. So if you -- and this is just everyday folks that are staying at the hotels, right. You know, after the pandemic we had to rely -- we do rely on more leisure business than we do business travelers. So this is mom and pops. These are people that you know that do staycations and your relatives that come and stay at our hotels. A lot of our employees choose to park because of the limitations with SEPTA. We all know what's going on with that currently, right now, so our employees do depend on parking as well but it is expensive. As you well know, the hotels pay 15.5% tax. Parking right now is even higher than that at 22.5. So if you think about it, the parking -- the higher the tax for our parkers, the worse it's going to be for those 100,000 guests, those tenants, those residents, everyone who comes to stay and our employees at our hotels. So I'm just asking you to not increase that tax because it will have an effect on all of your friends, families, visitors, anyone who's coming to the city of Philadelphia will just be passed right on to them. Thank you. (Applause.)
Thank you. State your name for the record and please begin your testimony.
Hi. My name's Mitesh Patel. I'm here to discuss the proposed budget and more importantly the tax implications. It's weird for me to be talking about it because I am an S Corp/LLC so I understand I'm on the BIRT and the revenue side, but I feel like a lot of the businesses in my area are going to be tremendously affected by being incorporated. I can figure out my taxes on maybe two pieces of paper. When I looked the credits and the 60% and the different numbers, I feel as though those who are unincorporated are going to have a hard time figuring it out. They will need accountants. They will probably need more resources and they may also look at possibly not even declaring whatever income, just to try and figure out what it is that's being asked of them. I feel as though there could be better ways. I have reached out to the Asian American Chamber, and their recommendations would not increase like their rate of tax that I am seeing that is being proposed on the individuals that are already having a hard time in the community. And having property there I can already see the insurance rates are high. We're going to add on this extra tax. I don't understand how businesses are going to open up in a struggling area.
Thank you. My name's Jigar Mehta. Thank you, Council President. Thank you, Councilmembers. Mitesh Patel, he did call the Asian Chamber, but he also called me. I'm a dear friend of his for many, many years and I'm here basically for him. He asked me to explain this in the way that I can best explain it. He asked me first, he said, Jigar, that's great, all this corporate stuff, unincorporated stuff. He goes, what about the guy who makes $100,000 of revenue and $65,000 income? That's the Area Medium Income in Philly. $65,000 -- if you're making $65,000, the max rent you could probably pay is about $1,600, $1,500 best. That's the affordability max you're going to do. That's Northeast Philly. We grew up in Northeast Philly. So he said, he goes, what is this going to do to them? I said, this is what it's going to do to them. This is going to be an increase. If you get rid of the $100,000 exemption, this is going to be an increase of 1652 for that person that makes $100,000 revenue and $65,000 income. That's the 1099 contractor. That was the man who testified earlier before. That's a 1099 person that can't get a job because they've been just as impacted. They're not going to be able to get a W2 job so they start their own business. This is the immigrant who cannot speak English who has to survive for their family. They're the ones who are going to get impacted by this. And then here's the worst part about it: Because of the way this is structured with the, you know, we went through to do the math, what would happen with them is very, very complicated how the tax credits of taking a 60% BIRT tax credit, applying it to the NPT so you can get a new, fair, equitable tax base, that was very, very complicated. That is also going to increase the estimated payment. So the impact on that person making $65,000 for that first year is going to be $4,437. They ain't making it. They're not making it. So what they're going to have to do is they're going to tell their kids, honey, we're not paying rent this month or they're going to go underground. They're not paying their taxes. They're not going to do it. I cannot imagine. That's what Mitesh told me. He's like Jigar, this is going to be a bad problem. So what we are proposing. And now, look, I'm not proposing this through the Asian Chamber, okay. I'm proposing this as a friend. We have a lot of work, there's a lot of math, there's a lot of legal stuff that we got to figure out. But what we're saying is that right now let's get rid of -- well, Mitesh first said let's make sure we keep the receipts part of the tax, the BIRT tax. There's a receipts component where you got to pay .010141. Let's keep that part. So if you're making $100,000 that's $141 actually you're going to have to pay that you didn't pay before. Okay. The other part of it though he said was that eliminate the income component of that BIRT, because what this does today and what it's going to do is that you're going to have a double tax on income when we get rid of this exemption. All right. So you're going to get the tax on -- first you have the receipts tax, but then you're going to have an income tax on the BIRT, but now they're also going to be paying the NPT tax. All right. Now, what happens that they're going to have to try to figure out this -- okay. They're going to have to figure this out. They're not going to be able to figure it out, so they're going to have to hire a lawyer, they're going to have to hire an accountant. I just know the people that we grew up with, the immigrants that we grew up, I know the guys that have been just as impacted, they're not going to do that. They're not going to be able to do it. So we're asking is to keep the receipts tax, eliminate the BIRT for income, and then maintain the NPT equivalent to whatever the folks that are working are paying. So that's basically it. Thank you so much for this opportunity.
Thank you. The Chair recognizes Councilmember Isaiah Thomas.
Thank you, Council President. I just want to say thank you for your testimony. What you have just communicated is something that I've been trying to get folks to understand for a few weeks now since the idea of us even discussing the possible elimination of the $100,000 exemption. I don't think we realize how catastrophic this is going to be, not just for small businesses, but someone earlier even testified about independent employee. Now, maybe I'm a DJ or I'm in a creative economy, right. Us getting rid of the $100,000 exemption while simultaneously not reducing the net income portion of BIRT will make it so that everybody in the creative economy will leave Philadelphia. They will say there's no point in being in the city of Philadelphia because not only are you going to tax me on my $15,000 promotional check because I got a lot of followers on social media, not only am I going to have to pay a wage tax on that later on, after that money is already spent, the City of Philadelphia is going to come back and we're going to tax you again not once, but twice. So that means that a person who's just a content creator who has a lot of followers on social media will now be taxed three times. So I just wanted to put an exclamation point on this, Council President, because I've been hearing a lot of people come down and say that we're looking at tax cuts for big corporations and big businesses. Unfortunately, when you cut taxes, the uniformity clause says everybody will benefit from it. But I can tell you firsthand that if this Council body doesn't do something, doesn't do something about the current tax structure that we are in and we adopt this proposal as is, we will look up and we will have pushed the entire creative economy out of Philadelphia. Musicians, filmmakers, artists, sports folks, tech people, gig economy is all going to go. So your testimony inspired me. Someone earlier had similar testimony and I just wanted to put an exclamation point on exactly what you said. Because when we say it here, we're sell- outs. But this is a regular Philadelphian telling us this is what's going to happen to the industry. So I appreciate you, sir. Thank you, Council President, for the little bit of leeway. (Applause.)
You talked about uniformity clause. So that's the one thing that I was looking into. So this will meet the uniformity clause. Because what it is, is that there's two classes. He is a corporate, I'm unincorporated if we're talking about the gig people. So we can just eliminate the income BIRT component for the unincorporated to save these guys. And still I love my brother, but he's going to have to pay those taxes. That's okay. And we talk about law firms now. Law firms are unincorporated, but they were taking advantage of this complicated 60% tax credit so their reduction by us eliminating that net income component, the BIRT, is only going to be .00264. All right. That's not a windfall. They got a break. Good lawyers. That's why the -- I'm not going to get in it. But thank you. Thank you. Sorry about that.
Thank you very much. The Chair recognizes Councilmember Jeffrey Jay Young.
Yeah, that testimony just provided some clarity for me. One of my best friend's full-time job is he drives Uber and they get 1099s, right. So now, our Uber drivers are going to now have to pay BIRT because they don't make $100,000 a year, right. So they're going to have to pay BIRT. So that's something I think we as a body need to really think about how we can provide some relief to some of our most vulnerable workers in the city. So thank you, Mr. President.
Next up we have Jovan Goldstein, Tyisha Beckham, Susan Segal, Rashida Price and Diana Coleman. (Witnesses approached Witness table.)
My name is Rashida Price. I am here today speaking on behalf of One PA West Southwest Rising. I want to express our deep gratitude to the Office of Clean and Green Initiatives and its remarkable coordination across city agencies which have brought meaningful improvements to our neighborhoods, particularly in addressing blighted and vacant properties. We are encouraged by the progress made and appreciate the openness of L&I's staff and City Councilmembers in supporting our community-driven efforts to report and resolve unsafe properties. We are also looking forward to seeing how the Mayor's H.O.M.E. Initiative will address blight and vacancy. I am here to highlight an urgent gap in our city's approach to property stabilization. While programs exist to clean vacant lots and demolish imminently dangerous buildings, there remains no program to address thousands of unsafe, abandoned properties that pose significant risk to residents that yet remain untouched. In November 2021, City Council passed a bill creating the Necessary Urgent Repair program, adding it to the Philadelphia maintenance code. However, despite its passage the program has never been implemented. In the 3rd District alone where I'm a resident, there are over 400 unsafe abandoned properties, homes that deteriorate more each day, increasing crime and violence, damaging neighboring homes and eroding the integrity of our communities, until demolition becomes the only option which is a wasteful and preventable outcome. We believe that stabilizing these buildings aligns with the Mayor's goal of building and preserving 30,000 homes. We have spoken to neighbors forced to coexist with raccoon colonies, homes where leaking roofs have destroyed adjacent properties and streets that wreak of sewage due to unchecked leaks. We urge the Council and the Mayor to consider allocating funds within the H.O.M.E. Initiative to establish the Necessary Urgent Repair program or at the very least to create programming that effectively addresses its objectives. Stabilizing these properties would not only prevent unnecessary demolition but also contribute to the broader goal of preserving and expanding housing across Philadelphia. By investing in urgent repairs and holding property owners accountable for costs, the City can take a proactive approach to protecting neighborhoods and ensuring safer, more livable communities. (Applause.)
Good afternoon and thank you for the opportunity to speak to you today about the Mural Arts program. I'm Susan Siegel. I reside in the 2nd Councilmanic District. Since 1993 I've had the good fortune to partner with Jane Golden in Mural Arts on a variety of projects, and that's 32 years of watching the organization grow. I helped fund and commission a dozen neighborhood murals while running Philadelphia's Welcome America festival. And while working a corporate foundation, I helped fund two murals depicting the legacy of President Clinton, President Lincoln, that included working with five school district middle schools learning about the history of Lincoln and mural-making, and those are located in Center City at 8th and Market and 7th and Chestnut. And I hope we've done our part to help beautify and inspire. I also helped oversee and fund the private-public partnership of their office on Mt. Vernon Street. And of course, I participated in numerous paint days and events. From this three-decade perspective, I come to you today to strongly advocate that Council not only support the 3.7 million budget requests but increase the allocation by $1.5 million for a total funding of 5.2 million. You have heard testimony from others about the impact of their work on artists, students, the incarcerated and the community writ large. In addition to this impact, the amount of publicity Mural Arts has garnered for Philly is priceless, including national and international articles, news, features and awards. They are an economic driver for tourism and artists. The impact of these tourist dollars is invaluable. Artists and civic leaders throughout the country and world come to Philadelphia to learn from Mural Arts. Mural Arts is a best in class organization. As others have testified, for every dollar they receive they churn out way more value. We know how important Mural Arts is to Philly and how lucky we are to have their creativity, energy and care here. Their program aligns well with Mayor Parker's safety, economic opportunity, education and clean green initiatives. It's a wise investment and I thank you for making the full investment at 5.2 million. And I thank you all for everything you do for the city. (Applause.)
Good afternoon, Councilmembers. My name is Jovan Goldstein. I'm here today to advocate for aggressive tax reductions, not just as a fiscal policy but a necessary step to revitalize our economy, support existing businesses and attract new ones that will create much-needed jobs for Philadelphia residents. I speak from both professional experience and personal commitment. I am the managing partner and founder of JT Goldstein, which is a full service CPA firm based in Philadelphia in the Logan Square section of the city. We provide audit, tax and business advisory services to clients across the country. I have been practicing as a certified public accountant for years. I was born and 17 raised in Philadelphia, a proud 18 product of the Philadelphia school 19 system and I still call this city 20 my home. And full transparency, I 21 am also the Board Chair of the 22 African American Chamber of 23 Commerce of PA, New Jersey and 24 Delaware. I sit on the City's Tax Commission appointed by Council President Kenyatta Johnson and contribute on several boards, including PIDC, the Economic League, to help move our city forward. I share this background not just to establish my qualifications to speak on tax policy, but to underscore my deep roots to Philadelphia. I'm committed to this city. But let me be clear, that's a personal decision. If I were deciding strictly from a business perspective, I would have already moved just my firm a few blocks away to City Line Avenue, where the tax burden is significantly lower. Now, I don't get paid to offer personal advice. I earn a living by helping businesses make smart business decisions that have to be efficient. And I want to share three real-world scenarios I encounter often to illustrate how Philadelphia tax environment is costing us jobs and economic growth: Scenario 1, the out-of- town business owner. A prospective client from out of town will call me and ask, should I headquarter in Philadelphia? And after analyzing the cost-revenue potential and most critical tax implications, I cannot in good conscience recommend Philadelphia, unless 100% of their revenue is generated here. Most businesses will have substantially saved significantly by just moving to other jurisdictions in our suburbs. Scenario 2, growing a Philly-based business. I have a client based in Philadelphia who provides national services. They've grown from 2 million to 23 million in just four years. They love the city. But again, I'm hired to help them stay tax-efficient. We're currently analyzing their move right now and unless something significantly changes, they're likely to take their jobs, tax revenue and future growth with them. And what's sad about this circumstance, we're not just losing businesses. We're losing the businesses we help grow. Scenario 3, the uncapitalized small business. Another client, small diverse business, she's fluctuating annual revenue. 150,000 they start, then they can go up to 300,000 and then drop back down to 150,000. They want to grow, but they're afraid to hire. Why? Because of the wage tax rate. It makes them uncompetitive when hiring talent that could just easily work in the suburbs and receive what we call a raise. That fear of hiring stalls our growth and limits capacity and keeps them trapped in a cycle of unperformance -- I'm almost done. I'll close out. These are not hypotheticals. These are daily conversations in my line of work. And in each case I must give sound business advice, not sentimental advice. If the numbers don't work, I can't tell someone to stay in Philadelphia just because I did. In closing, I'm not here to argue that we shouldn't pay taxes. I believe in paying my fair share. I see the value of our government and what it provides, but I'm deeply concerned about Philadelphia's longstanding trend of job loss and reliance on nonprofits exempt from real estate taxes and the burden we place on wage earners and businesses instead.
If we want to grow a city, we must make it competitive. That means making it easier, not harder for businesses to thrive here. That means growing the pie, not slicing it thinner. And that means acting boldly and urgently to reduce our tax burden or we will continue to lose to the suburbs despite having more assets, more talent and more potential. Councilmembers, I will continue to live and have my business here. But without serious tax reform, I will also continue to advise my clients that Philadelphia might not be the best place for them to do business. Thank you for your time. )
Thank you for your testimony. Please state your name for the record and proceed.
Good afternoon, Councilmembers. My name is Tyisha Beckham and I'm the proud owner of Noire Hair and Wax Salon located in South Philadelphia. Since opening our doors in 2019 we've built more than a business. We've built a community. We currently employ four amazing individuals and serve a loyal clientele who see Noire as a safe space, a welcoming space. I'm here today not only as a business owner, but as a resident deeply rooted in Philadelphia's economic future. I urge you to consider how critical tax reform is, especially for small minority business owners like me. Like many minorities, I started Noire with limited capital. Every year a large portion of our profits are swallowed up by city taxes, Business Income and Receipts Tax, net profits tax and more, leaving very little to reinvest. That means delaying equipment upgrades, limiting staff raises and pausing plans to expand. And yet we keep pushing for it. I'm currently preparing to open a second business, a coffee shop in West Philadelphia set to launch in 2025. But in the current tax climate I have real concerns about whether I can grow this dream into reality. We're not asking for favors. We're asking for a fighting chance. Every extra tax dollar is a missed opportunity to hire, to invest, to give back. Tax relief would allow us to reinvest in our neighborhood, support other small vendors and drive local job creation. Philadelphia has the opportunity to lead with policy that supports growth, equity and sustainability. Tax reform isn't just about tax dollars and cents. It's about creating space for all business owners to succeed. Thank you for your time, your continued commitment to our city's future. (Applause.)
Calling up Ben Clark, Diana Coleman, Karen Lee, Antonio Lewis, Nancy Garrick. (Witnesses approached Witness table.)
My name is Ben Clark. I'm a resident of the 2nd District and I'm an attorney at Community Legal Services. I help low-income clients maintain access to life essential utility services, including by getting access to much-needed home repair programs in our city. I'm here today with several current and former clients that we've assisted to urge you to fully fund our city's home repair programs in this year's budget. The need for home repairs runs deep and wide. As you've heard today and in recent years, Community Legal Services has represented nearly 1000 low-income homeowners with serious repair needs. These clients come from every single Council District. They're young adults in their 20s, single parents in their 40s and homebound seniors in their 70s. CLS's multiple units assist these clients with a wide range of legal needs, and that means we're uniquely positioned to see how a repair need today can cause a crisis tomorrow. I want to paint a picture for you of what that can look like. For one client of ours, a busted pipe meant they almost lost their children. An unexpected plumbing malfunction and subsequent water shut off led DHS to open an investigation and threaten custody of their children. In another, an elderly client's oil heater broke down this past winter and he didn't have the funds to replace it. When he reached out to us, he was confined to his bed because the cold aggravated his arthritis. Blankets and a space heater were the only sources of heating in his home. Other clients face a heartbreaking choice, go deeper into debt or sell a family home passed down through generations just because they can't afford to fix a broken roof. And dozens of new cases arrive in our office every week from low-income Philadelphians threatened with electric and gas shutoffs. Often their high utility bills are caused by drafty energy efficient homes -- inefficient homes, excuse me. Our city's home repair programs go right to the root of these compounding crises. Repairs save lives. They keep families together. They preserve generational wealth and repairs keep the lights on, the water running and the house warm. So I urge you to provide full and robust funding to Build to Last and the Basic System Repairs Program this year and long into the future until every Philadelphian lives in a safe, dignified, energy-efficient home. Thank you. (Applause.)
And if I may, I just want to note for the record that several folks were not able to come testify in person today because of work or health obligations. But, Councilmembers Bass, Gauthier, Lozada, Squilla and Young, you'll be receiving testimony from constituents of yours with home repair needs via email. Thank you very much.
Thank you. We look forward to receiving it. Okay. Please state your name for the record and proceed.
Hello, everyone. My name is Antoine Lewis. I'm a member of One PA Southwest Rising. We are here -- I'm here today to talk about our Safe Healthy Homes campaign. I've had friends in my neighborhood forced out of their homes. Unfortunately, there are other people in our shoes who are close to losing their family homes as well because their family can't afford to make home repairs. To make matters worse, the current home repair list has a waitlist over 10,000. We don't want to move. We don't want to move. I've been living in West Philly for years. This house 15 has been in my family since 1963. 16 We need Healthy Homes campaign to 17 keep our family living into the 18 community of West Philadelphia. At 19 an alarming rate, people are being 20 forced out of their homes. I want 21 to stay in my home. Would you like 22 to stay in your home? 23 The current budget 24 proposal actually cuts funding for home repair programs. That's why we are asking for $40 million for Basic Systems Repair and $10 million for Built to Last. Currently the Built to Last has no 6 money in the budget. I want to stay in the community and I need home repairs, not fast cash for my home like most other citizens have to deal with. Does that make sense for a city battling homelessness to cut its budget for home repair programs? I think not. Thank you for your time. (Applause.)
Greetings. My name is Karen Lee and I'm a member of One PA West Southwest Rising. As a member of One PA, we applaud Mayor Parker's historical H.O.M.E. Initiative to address these problems. And with a few tweaks, this initiative will reach the people who need it most. However, there is one area that One PA would like to focus on and hope that you support our efforts. Home repair programs like Basic Systems Repair and Built to Last are critical to preserving homes and combating gentrification. The current proposal would actually reduce funding for these programs while increasing home eligibility. That doesn't make sense. The Basic Systems Repair program already has a backlog of more than 7000 households to receive emergency repairs that includes plumbing, heating and electrical problems. All of these are emergency issues that need to be addressed like yesterday. Raising income eligibility to $100,000 further exacerbates an already extensive list of residents who have waited months, years to receive this service. As a recipient of Basic Systems Repair more than a decade ago, my home was almost condemned before I was able to get the much- needed repairs that started out as minor but were almost catastrophic by the time my name came up on their list. One PA also supports the Built to Last initiative because it too addresses home repairs, energy conservation and safe, healthy homes. We support the Mayor's vision through this new initiative. And in that support, we're asking $40 million for Basic Systems and also $10 million for Built to Last to assist those who need much- needed home modifications to city residents who want to maintain in their homes. Thank you for this opportunity. And, yes, redevelopment and investment can be beneficial but never would it prioritize its profit over people. Thank you. (Applause.)
Thank you for your testimony. State your name for the record and proceed.
Hi. My name is Nancy Garrick. I'm a member of One PA West Southwest Rising. I want to reiterate the previous request that there be a hearing for the Healthy Homes Renters initiative, proactive rental inspections, that it be scheduled very soon. I'm here to talk about BLT -- basic -- BLT and BSRP. Philadelphia is a city of rowhomes. When one home falls into disrepair or is demolished, there are problems with the adjacent homes. There was an article in The Inquirer this week about the problems one family had to deal with when the home next to them collapsed. We have to remember that we have wonderful housing stock here in Philadelphia and we need to preserve the homes that we already have. There's no way that we can build our way out of the current housing -- current housing shortage. Programs like Built to Last and Basic Systems Repair allow folks to stay in their homes, and we've already heard very compelling testimony of why this is important. It's also essential that we focus on the folks who earn less than $30,000 a year because they have less resources to fall back on. And finally, the reason these things are important it's -- and this is really important. If people can stay in their homes, it preserves the social fabric of their neighborhood. It provides generational wealth for them to pass on to their children and it also counteracts gentrification. In closing, I just want to say people who have benefited from Built to Last and Basic Systems Repair can confidently say this is my home and I'm not going anywhere. Thank you. (Applause.)
All right. The next group up is Cheryl Dondero, Cherie Brummans, Lesley Corey, Javi Alvarado, Jeannine Lisitski, Mia McGuire, Jordan Brogan and Michael Pearson. And apologies for any mispronunciation. (Witnesses approached Witness table.)
Good afternoon. Please state your name for the record and proceed with your testimony.
Hi. Good afternoon. I'm Cherie Brummans. Thank you, Council President Johnson and esteemed members of City Council. Thank you for the opportunity to be here today so that we can talk about a pressing issue and, that is, the urgent need for increased human services funding at the city level. My name is Cherie Brummans. I live in the city of Philadelphia in the Fairmount section. I serve as President and CEO of the Alliance of Community Service Providers. We are an association located in Philadelphia that works with Philadelphia-based nonprofits and we represent organizations that serve children and families, adults living with mental health conditions, substance use disorders, intellectual and developmental disabilities and autism. Our member organizations form a vital part of Philadelphia's human services infrastructure. Most of their funding comes through Medicaid, which as we have all been paying attention to recently, is currently under tremendous threat at the federal budget reconciliation process. Although this is a fluid situation, we're unlikely to know exactly the extent to which Medicaid cuts will occur by the time this body passes its budget. While the full impact of potential Medicaid cuts is still unfolding, we must be prepared for the reality that fewer dollars and greater barriers to access are ahead of us. Federal Medicaid cuts would reduce funding for providers and reduce or eliminate some services altogether. This will have a debilitating and destabilizing impact on the entire human services ecosystem in the city of Philadelphia. Think hospitals -- this will weaken the safety net and increase systemic burdens downstream. So think hospitals, jails, foster care, all of the other systems that are impacted when human services are not delivered to people in an effective way. We also compromise the values of equity, dignity and accessibility that these organizations strive to uphold. We understand that no 21 city, Philadelphia included, can completely absorb the impact of deep federal or state funding cuts. What we are asking for is budgetary flexibility so that the city can step in strategically where support is most critical, despite the challenges we face. I want to acknowledge and appreciate the intentional work that this Council and Administration have done to support our sector, from the Kensington Caucus to the Majority Leader's Nonprofit Task Force and the Committee on timely payments, we've seen a genuine commitment to recognizing the value of human services and those who provide them. Thank you again for your time and leadership and your continued partnership. I'm proud to be joined today by several of our provider member organizations who will offer their own perspective on what's needed to protect and strengthen the safety net in Philadelphia for the individuals who are the most vulnerable among us. Thank you. (Applause.)
Thank you for your testimony. State your name for the record and begin.
Hi. I'm Cheryl Dondero, Director of Government Affairs for Gaudenzia. Thank you, Council, all of you that are here. I am very pleased to represent Gaudenzia and offer this testimony. Gaudenzia was founded in Philadelphia in 1968 with a single treatment program. Today we are the largest Commonwealth's largest nonprofit provider of substance use and co-occurring mental health disorders and housing programs. We work with so many of you. We have programs in 8 out of 10 of the Philadelphia districts. We join with the other providers of the Alliance today to express deep concern regarding any reductions of federal funding for the Medicaid program and its impact on Philadelphia's budget and its citizens in Philadelphia. Gaudenzia employs many people at our facilities where we provide vital treatment for substance use and mental health disorders and provide housing. Our treatment programs not only benefit those in need of care, but they also have a significant economic impact in the local community through taxes, contractors, supplies and personal spending. Systemwide nearly all of Gaudenzia's revenue comes from Medicaid funding. Any cuts to Medicaid would significantly jeopardize the livelihoods of our staff and put many, if not all, of these jobs at risk. Simply Medicaid cuts will close programs due to the nature of the progression of mental illness and substance use disorder. Many of our patients have already lost everything without Medicaid. They're simply not going to disappear. They're going to show up in emergency rooms and homeless services and foster care and criminal justice systems and emergency response. Behavioral health treatment breaks the cycle of disease and dysfunction, enabling individuals to return to productive lives. Any savings from Medicaid cuts would far out be outweighed by the increased burden on our communities. Rooting out fraud, abuse and waste in public programs is admirable, but must be approached thoughtfully and precisely. In closing, please know that Gaudenzia is available to you to discuss creative solutions with the City and follow-up meetings as the Medicaid situation evolves. We encourage and hope you will build flexibility into the City's budget. In anticipation of these cuts, Medicare cuts put at risk every program and person who testified today. (Applause.)
Good to see you. Please state your name for the record and proceed.
Yes. My name is Dr. Jeannine Lisitski, President and CEO for Mental Health Partnerships. We've been transforming mental health care for nearly 75 years, beginning with advocates with lived experience who helped to close state psychiatric hospitals and push to reinvest in community-based care. We believe recovery is possible for everyone, especially with support from peers who have walked similar paths. Today our peer-driven model supports nearly 9000 individuals and families annually, from homeless outreach and mobile peer support to residential care, case management, family advocacy and much, much more. We're also a national leader in training certified peer professionals, helping people move from disability to employment and from isolation to empowerment. This work strengthens our communities. It reduces the pressure on emergency services and builds a pipeline to stability. But as you know, that pipeline is under threat. Flat city contracts have made it impossible to sustain prior service levels, leading to reduced access. Further cuts would jeopardize our ability to operate and endanger critical services for those who need them most. As federal and state cuts loom, I urge City Council invest now in the community-based providers who keep Philadelphians housed, healthy and safe. And I invite you to meet with us as the Medicaid landscape evolves to explore solutions together. Let's build flexibility into this year's budget to weather the rainy days ahead and ensure our communities continue to thrive. Thank you for your leadership, your amazing commitment to the well- being of our entire community. Thank you.
Thank you for your testimony. Okay. Please state your name for the record and proceed.
My name is Jordan Brogan. I am the CEO at Center for Families and Relationships. We're a nonprofit outpatient mental health organization providing individual and family therapy services along with psychiatric evaluations and medication management to families all across the city. We specialize in family and trauma counseling. Through our outpatient we serve an average of 800 clients, families a week. Our focus is working with the family system not only to reduce symptoms in the individual, but to help break patterns in the system that perpetuate those symptoms, helping lead to lasting change for the family as a whole. 97% of the work we do is supported through Medicaid. We also have a grant-funded program called Together through Trauma, which is a systemic approach to gun violence treatment. This program provides trauma counseling, community workshops and trauma- informed staff training in six Philadelphia recreation centers located in zip codes most impacted by gun violence. Our final program, Children Deserving Services, provides counseling services to uninsured children and families based on their legal status of immigration. Cuts to funding to eliminate any of these programs would be detrimental to the community, especially at a time when things are so uncertain and the experience of trauma and the need to support are at an all-time high. CIFAR values systemic thinking and collaboration. I stand here today to ask to be a partner with the City to develop creative solutions as the Medicaid situation evolves and ask that flexibility is built into the budget to ensure these programs can continue to help the community thrive and continue to exist. Thank you. (Applause.)
Thank you. Thank you for your testimony today. And please state your name for the record and proceed. Ms. McGUIRE: Hi. Good afternoon. My name is Mia McGuire. I'm the Chief Operating Officer at SpArc Philadelphia. SpArc Philadelphia is the parent organization for Spark Services and the Arc of Philadelphia. We are located in the North Philadelphia section of the city and provide both support services and advocacy for individuals with intellectual disabilities and autism. We are currently facing a crisis as we look at the possibilities of funding cuts across our industry because of Medicaid. The services that we provide to individuals with disabilities allow them to live an everyday life. They are able to get up each day and go to work, be with their friends and participate in meaningful activities that not only enrich their lives but allow them to be in a safe environment while their families and caregivers go off to their own jobs. SpArc Services currently supports 43 individuals with disabilities who work in competitive jobs. They are the people who collect your carts at the market, clean up the trash after the Phillies game, keep the PennDOT locations clean so that you can be comfortable waiting to get your ID and numerous other jobs that are meaningful throughout the city of Philadelphia. Without job supports, many of these folks would be in jeopardy of losing their own jobs. The impact of funding cuts goes beyond the people that we support at SpArc. SpArc Philadelphia employs 115 people who primarily live within Philadelphia County. Without funding for the programs and services that we provide for our organization, the services and others like ours, we will no longer be able to continue normal operations and risk closure or personnel cuts. At this point in time we don't know the full impact of the funding cuts, but we do know that this will hit our industry that is still recovering from the COVID pandemic, especially hard. And we ask for your support as we move forward through this. (Applause.)
Thank you for being here and thank you for your testimony today. Please state your name for the record and proceed.
Good afternoon. My name is Dr. Lesley Corey and I represent Step By Step and our dedicated Philadelphia employees and consumers. Step By Step provides vital residential and nonresidential community services to adults with mental health, behavioral health and intellectual disabilities. I'm here today to advocate for the flexibility in the city's budgetary process, particularly as we face the potential impacts of federal Medicaid cuts on our programs and the individuals we serve. The proposed Medicaid cuts could severely impact access to critical healthcare services. Specifically, reductions could lead to fewer covered services, including essential mental health and disability services, increased hospitalizations as individuals who lose access to preventative care and outpatient services will have to rely more on emergency care, financial burdens for Philadelphians, especially those with low incomes who may struggle to pay for alternative care or go without services entirely, Job losses as organizations like Step By Step are forced to reduce staff or scale back programs due to financial deficits. At Step By Step we are already beginning to feel the strain from our current contracts and are being forced to reevaluate our ability to continue providing services even before any Medicaid cuts have taken effect. If these cuts go through, it will exasperate existing challenges and create new barriers to care for the most vulnerable members of our community. The consequences of these cuts will disproportionately affect the people who rely on Medicaid the most, low-income families, children, elderly individuals and people with disabilities. This will lead to worse health outcomes, more significant health disparities and long-term financial strain on the city. I'm urging you to consider these potential impacts as you develop next year's budget. We need flexibility and foresight in these difficult times to ensure that our most vulnerable populations do not suffer due to federal funding cuts. I ask that the City Council consider maintaining or even increasing local support for these services to help offset the impacts of any Medicaid reductions. Thank you for your time and continued commitment to all Philadelphians' well-being. (Applause.)
Thank you for being here today and for your testimony.
Good afternoon, everyone. My name is Jake Becker and I have the privilege of serving as the Managing Director for Health Services at Public Health Management Corporation. It's now 2 to 1. The Phillies are going into the bottom of the 9th in the first game of the doubleheader. So we're here in the afternoon. I want to simply say thank you on behalf of Mike Pearson, the CEO of Public Health Management Corporation. I grew up in Olney, a couple blocks from Olney High School, product of the Philadelphia public school system and I'm a Germantown resident, Councilmember Bass. As someone committed to the health and well-being of the city, I just want to say thank you for your support and hanging in there on a late afternoon on a Wednesday. I want to talk about our city's strained health care system. And I want to explain what's at stake, in particular for community hospitals and service providers who don't have access to reliable funding and how cuts to reimbursement efforts such as Medicaid exacerbate existing challenges providing health care services in critical social service settings to communities where this is needed most. To illustrate this, let's actually talk about something positive. The Public Health Campus for PHMC at Cedar, which was developed in partnership with the hospitals of the University of Pennsylvania as well as CHOP. This was an innovative risk-taking activity that was an effort to prevent what's happening at Crozer in Chester, to prevent what happened at Hahnemann six years ago. Organizations even as large or as collaborative as Penn and CHOP and PHMC are really being attacked by all sides. And this isn't a big versus small organizational situation. This is the integral fabric of health care in Philadelphia for our communities that are most vulnerable. That's why we're here at the Alliance and something that we're very proud to be part of. And so, we really want to make sure that you and Council are really aware of the public health fabric that takes all of us. It's not one organization. It's not one health system. It's not one group of behavioral health versus mental health and so on. And so, I just simply want to say thank you for your support to this point. We know that your attention is necessary as we continue to move forward with the budgeting process and we're dealing with all the nonsense from the federal government on top of that. I think that's public record, nonsense from the federal government. I said that -- all right, we get this, Phillies. We can do it. So I just simply want to say that there is a real funding threat. Big organizations are dealing with it, even as we try and protect these necessary community based hospitals like what's happened in cedar. Thank you to Councilmember Gauthier. Thank you to Councilmember Ahmad. Thank you to Councilmember O'Rourke and all of you who have been invested in community-based solutions, 257. There we go. (Applause.)