City Hall

City Council to Consider Reinstating Early Property Tax Payment Discount, Threatens to Withhold School District Funding Amid Asbestos Building Shutdowns

Philadelphia City Council is considering reinstating a previous 1% discount for early payment of property taxes, which would apply to residents who pay next year’s full tax bills by the end of February 2024. The discount was suspended in 2021 in order to mitigate a COVID-19 pandemic-related revenue shortfall. If the measure moves forward, it would be the latest in a trend of attempts by city officials to provide tax relief for Philadelphians who may be experiencing undue financial burden.

Earlier this week, members of City Council also threatened to withhold funding from the Philadelphia School District unless it presents a concrete solution to its asbestos problem, as well as other capital needs. Two schools have been shut down in the past few weeks due to damaged asbestos, while several others have been closed in recent years for the same reason. Several other Philadelphia lawmakers have called for additional funding from the state to help tackle the issue.

Upcoming Committee Hearings

Philadelphia City Council holds several public hearings throughout the legislative calendar. You can watch the hearings here.

• The Committee on Streets & Services will be holding a public hearing on Friday, March 17 at 1 p.m. to discuss several proposed regulations and ordinances, including parking regulations.
• The Committee on Housing, Neighborhood Development & The Homeless will be holding two public hearings next week — one on Monday, March 20 at 10 a.m. to discuss discrimination against households holding tenant-based vouchers, and one on Wednesday, March 22 at 1 p.m. to discuss rent control.
• The Committee on Transportation & Public Utilities will be holding a public hearing on Monday, March 20 at 10 a.m. to discuss a potential concession agreement with Slice Wireless Solutions for wireless services.

Election Update

For detailed information about the upcoming 2023 municipal elections, please see the inaugural Election Hub created by the Chamber of Commerce for Greater Philadelphia.

Mayoral Forums Continue; Philadelphia Residents, Community Leaders Weigh in About Direction of the City

With more than 60 days remaining until the May 16 primary, mayoral candidates’ schedules have been jam-packed with forums on policy issues ranging from the city’s arts and culture industry to public transit and mobility. This week’s forums allowed candidates to discuss their positions on issues affecting the tourism and hospitality industry and affordable housing and historic preservation. In addition to more traditional forums, many of the candidates have participated in Facebook Live interviews with Reverend Alyn E. Waller of East Mount Airy’s Enon Tabernacle Baptist Church, which boasts one of Philadelphia’s largest congregations.

While candidates have been working diligently to spread their campaign messages far and wide, residents and industry leaders have also been weighing in on what direction they believe the next mayor should take the city. A recent poll conducted by the Lenfest Institute for Journalism revealed that while more than half of potential voters surveyed believe Philadelphia is a good or excellent place to live, serious concerns about public safety persist. Furthermore, whether or not the individual views the city in a positive or negative light was largely dependent on their socioeconomic circumstances.

Meanwhile, Mural Arts Program Executive Director Jane Golden shared her vision for the future of the arts with the Philadelphia Citizen, urging mayoral candidates to consider creating a department of the arts with a cabinet-level director and a dedicated funding stream, among other ideas.

City Council’s Only Republican Incumbent Faces Union-Backed Democratic Challenger

The Philadelphia Republican Party’s presence on City Council has grown slightly more precarious in recent years, with Councilmember Kendra Brooks of the Working Families Party (WFP) having successfully chipped away one of the two traditionally Republican-held at-large seats reserved for minority party representation in 2019, and another WFP candidate vying for the other. Longtime Republican City Councilmember Brian O’Neill is being challenged as well, this time by a union-backed Democratic candidate. However, his Democratic challenger will be facing an uphill battle, as District 10 — the Far Northeast district that Councilmember O’Neill has represented for more than 40 years, longer than any other councilmember in modern history — tends to skew more conservative than the rest of the city.

Around Town

TUGSA Approves Contract Agreement, Ends Six-Week Strike

After six weeks of striking for improved pay, members of the Temple University Graduate Students’ Association (TUGSA) opted overwhelmingly to ratify the university’s most recent proposed contract agreement on Monday, with 98% of members voting “yes.”

Philadelphia Accelerator Fund Celebrates First Affordable Housing Units

The renovation of a historic West Philadelphia property is nearing completion, the first project of its kind made possible by the Philadelphia Accelerator Fund — a two-year-old, public-private partnership dedicated to increasing the availability of affordable housing and connecting Black and brown developers to the capital necessary to create it. Eight units in the building will be available at market rate, while nine will be reserved for renters who earn 80% of the area median income or less.

Throughout the country, large municipalities are laboratories of democracy. New and innovative policies introduced in one market are often exported to others, and ultimately replicated at the state and federal level. This newsletter highlights emerging local policy and regulatory discussions that impact industries, businesses, and organizations across the nation.

GIG ECONOMY & TECHNOLOGY

CHICAGO — United Center Concessions Workers in One-Day Walkout

Concessions workers at the United Center staged a one-day walkout Sunday that affected food and beverage service during the afternoon’s Chicago Bulls game.

LOS ANGELES — Los Angeles Freelancers Secure New Protections From City Hall

Freelance workers in Los Angeles are set to receive more protections with the Los Angeles City Council’s adoption on Friday, February 24, of an ordinance intended to protect the industry. The ordinance requires that any contract of $600 or more between employers and freelance workers must be in writing, with a date by which the freelancer must be paid. If the contract does not include a date or if there is no written contract, employers must pay freelancers within 30 days after the work is completed.

SAN DIEGO — San Diego Police Want to Add Surveillance Tech: 500 Streetlight Cameras Plus License Plate Readers

Almost three years ago, the city of San Diego cut off access to its broad network of Smart Streetlights — more than 3,000 devices perched atop light poles that could collect images and other data, some of which the Police Department used to solve criminal cases. On March 1, the San Diego Police Department said it wants access to 500 of those devices to be restored — and they want to add another crime-solving tool to the network: automated license plate readers.

LABOR & EMPLOYMENT

CHICAGO — Chicago’s 25 Largest Employers Exceed Pre-COVID Headcount

Unlike the rest of the nation , the Chicago area has failed to recover all the jobs lost in the pandemic – with the exception of  Chicago’s 25 largest employers, which have collectively exceeded their pre-COVID headcount levels. As of December 2022, the area had 3.81 million employees (compared to 3.83 million in February 2020), according to the Bureau of Labor Statistics. Chicago’s top 25 employers accounted for nearly 12% of those workers.

CHICAGO — Chicago Area Scores Number One Ranking for Business Relocations, Expansion in 2022

For the 10th straight year, the Chicago region recorded the most business relocations and expansions among large metro areas in the U.S., Site Selection magazine said.

LOS ANGELES — Los Angeles Port Director Expects “Real Progress” in West Coast Labor Talks This Spring

The head of the Port of Los Angeles said he remains confident West Coast port employers and dock workers will get closer to a contract agreement over the next few months as stalled negotiations continue to pressure cargo flow. West Coast dockworkers have been operating without a contract since last summer, and uncertainty over negotiations has pushed shippers to shift cargo to East and Gulf Coast ports. In January, the Port of Los Angeles processed 726,014 TEUs, a 16% YoY decrease.

NEW YORK CITY — Starbucks Reinstate Fired NYC Union Organizer

Starbucks employee Austin Locke has been reinstated to his position at a Long Island City location after being fired in July 2022 following a vote to unionize. The company will need to pay $21,000 in backpay and penalties for violating NYC’s Fair Workweek Law.

SAN DIEGO — Nearly 2,000 San Diegans Found Full-Time Jobs Through Workforce Partnership Programs in 2022

The San Diego Workforce Partnership aided local employers in connecting more than 1,800 local residents to jobs that offered living wages averaging $22.79 an hour. More than 11,000 people were served by the organization in 2022, including 9,444 job seekers who received training or placement in internships or career opportunities.

WASHINGTON, D.C. — D.C. Tech Hiring Market Heats Up in Light of Recent Silicon Valley Layoffs

As thousands of tech layoffs in Silicon Valley made headlines in recent weeks, many opportunities for software developers and engineers have opened up on the East Coast, with Washington, D.C., showing the potential to become a new epicenter of sorts.

POLICY & POLITICS

CHICAGO — Lightfoot Out; Vallas, Johnson In for April Runoff

Lori Lightfoot, the first Black woman and the first openly gay person ever to serve as mayor of Chicago, became a one-term mayor on Tuesday. With nearly 99% of the precincts reporting, Lightfoot, who guided Chicago through the pandemic, finished third in Tuesday’s election with 17.06% of the vote –  behind former Chicago Public Schools CEO Paul Vallas and Cook County Commissioner and Chicago Teachers Union organizer Brandon Johnson.  Vallas, who won 33.77% of the vote  and Johnson, who wound up with 20.29%, will compete in a runoff election April 4.

CHICAGO — In City Council Races, Most Incumbent Chicago Aldermen Are Holding Onto Their Seats, Advancing to Runoffs

In a Chicago aldermanic election marked by a dozen aldermen calling it quits, incumbent City Council members who ran for re-election  had an overwhelmingly good night on February 28. Unofficial results had only one incumbent losing, while the other 31 other incumbents had over 50% of the votes cast in their races. Poised to win these races outright, these incumbents will avoid the April runoff elections.

CHICAGO — NYC Mayor Says Lightfoot’s Loss Is a “Warning Sign” on Ignoring Crime Issues

New York City Mayor Eric Adams said last week’s reelection loss of his Chicago counterpart is a “warning sign for the country” and that fellow Democrats ignore the issue of crime at the party’s peril.

DETROIT — Detroit City Council Approves $156.5 Million Surplus Spending, Pay Raises for Elected Officials

Detroit City Council on February 28 approved Mayor Mike Duggan’s proposal to spend $156.5 million in surplus funds on immediate projects across the city, including sidewalk replacements, park renovations, dangerous tree removals, unsalvageable building demolitions and transit improvements. Council members on February 28 also approved pay raises for Detroit’s mayor, city council members and city clerk.

LOS ANGELES — Ex-L.A. Official’s Bribery Trial Kicks Off With Fiery Opening

Federal prosecutors opened Raymond Chan’s fraud and bribery trial on February 21 by detailing the former Los Angeles deputy mayor’s alleged involvement in a years-long “pay-to-play” real estate scheme, while Chan’s attorney delivered an inflammatory opening that drew at least 11 sustained objections and a skeptical admonishment from the judge. Assistant U.S. Attorney Susan Har told the California federal jury deciding Chan’s fate that the former Los Angeles Department of Building and Safety general manager-turned-deputy mayor and his cronies had a common goal: “Get money, keep power and avoid the feds.”

PHILADELPHIA — Mayor Kenney Gives Final Budget Address of His Term

Last week, Mayor Jim Kenney officially kicked off Philadelphia’s 2023 budget season by giving his final budget address to City Council. His $6.1 billion proposed budget includes new measures to tackle the city’s gun-violence epidemic and address economic inequality, among other priorities.

PHILADELPHIA — Council President Clarke Resigns; Competition for Ultimate Council Leadership Position Begins

In the wake of Philadelphia City Council President Darrell L. Clarke’s official announcement of his retirement, four current district council members are eagerly throwing their names into the ring for the chance to succeed their colleague in the politically powerful leadership position.

RICHMOND — Potential Richmond Mayoral Candidates File Paperwork for 2024

Richmond will not elect its next mayor until 2024, but at least two people — former Richmond City Council president Michelle Mosby and ShiftMed Vice President of People Operations Garrett Sawyer — have already filed paperwork to prepare for potential mayoral runs in order to succeed term-limited Mayor Levar Stoney.

SEATTLE — Seattle Becomes First U.S. City to Ban Caste-Based Discrimination

Seattle has become the first U.S. city to explicitly ban caste-based discrimination. Caste now falls under the list of protected statuses in existing anti-discrimination legislation.

WASHINGTON, D.C. — D.C. City Council to Consider Reparations Bill

In an effort to address the city’s racial wealth gaps — which is reportedly the nation’s largest — Councilmember At-Large Kenyan McDuffie re-introduced a 2020 bill calling for the payment of reparations for the descendants of enslaved African Americans. Nine other council members have signed on.

PUBLIC HEALTH & SAFETY

BALTIMORE — Latest Attempt to Return Authority Over Baltimore Police Department to City Government Rejected

Last week, a proposed amendment to the Baltimore city charter that would prevent the transfer of control over the Baltimore City Police Department to the city government was rejected by a coalition of police reform advocates. Baltimore is the only jurisdiction in Maryland without total control of its own police department due to existing language in the city charter.

CHICAGO — Chicago Expanding Types of 911 Calls That Receive Mental Health Response

To handle Chicago’s roughly 175 behavioral health-related 911 calls each day, the city relies almost entirely on the police — an approach that can lead to jail detentions, unnecessary hospitalizations and violent police confrontations. A pilot program under Mayor Lori Lightfoot aims to curb the police role. The program, Crisis Assistance Response and Engagement, is setting up mobile teams that include paramedics, mental-health clinicians and, in some cases, police officers trained in crisis response. The teams aim to de-escalate crises and connect people to the care they need.

LOS ANGELES — City Council Approves Plan from Mayor Bass to Cut Red Tape for Homeless Services

At the request of Mayor Karen Bass, so that contracts for goods and services can be accepted immediately, the Los Angeles City Council voted on February 28, to waive its usual competitive bidding process when it comes to hiring vendors to tackle L.A.’s homelessness crisis. The council suspended competitive bidding and authorized the city administrative officer and city departments to act immediately to procure “construction contracts, service provider contracts, supplies, and equipment for homelessness facilities,” according to its resolution.

RICHMOND — City Council Approves Grant for New Police Department Crime Center

In an effort to increase the efficiency of the Richmond Police Department’s response to crime, City Council has approved $750,000 in grant funding for the creation of a real-time crime center, which will serve as a sort of “air traffic control for officers in the field,” according to Mayor Levar Stoney.

WASHINGTON, D.C. — City Council Considering Keeping Police in Schools

After previously deciding to gradually reduce the number of police officers in the city’s public and charter schools, D.C. City Council is reportedly considering keeping them there, citing a recent increase in crime and incidents of violence.

REAL ESTATE DEVELOPMENT

BOSTON — Mayor Wu’s Rent Control Proposal Reviewed by City Council

Boston City Council held a hearing examining Mayor Wu’s controversial rent control proposal, which would tie yearly rent increases to inflation and cap hikes at a rate of 6% plus the Consumer Price Index. The proposal has been contentious for both progressives, who argue there are not enough tenant protections, and the business community, who fear it will hurt landlords of small properties.

CHICAGO — Is This 2023 or 2013? Downtown Condos Are Selling for Long-Ago Prices.

Many condominiums in downtown Chicago neighborhoods have performed poorly as investments, selling recently at prices well below what their sellers paid for them years ago.

DETROIT — As Rush for Real Estate Ends, These Metro Detroit Markets Stay Hot

While there’s a certain amount of gloominess in the raw data concerning metro Detroit’s housing market, local executives say they are witnessing the emergence of plenty of hot markets at a variety of price points.

SAN DIEGO — San Diego Home Sales Fall to Lowest Level in 35 Years

January is typically a slow month for home sales in San Diego — but never this slow. There were 1,682 home sales in January, CoreLogic reported February 28, the lowest ever recorded dating back to 1988. The slowest month prior to January 2023 was 1,742 sales in February 1995, when much of the nation’s housing market was going through a steady period of a decline after a run-up in prices in the late 1980s.

TAXES & SPENDING

CHICAGO — City Investing $25 Million to Back Mortgages on West, South Sides

The city of Chicago is investing in the nation’s two major mortgage-backers, Fannie Mae and Freddie Mac, to generate hundreds of new home loans in the city’s Black and Brown neighborhoods where lending has been neglected in the past. “We’re investing taxpayers’ dollars in taxpayers,” said city Treasurer Melissa Conyears-Ervin. In recent months, she has directed $7 million of a planned $25 million of city money to a fund that invests in the mortgage-backers, with a stipulation that the money be used for loans on single-family homes on the city’s South and West sides.

DETROIT — Duggan Presents $2.6 Billion Budget, Says City Is in Position to Deal With Pension Cliff

Mayor Mike Duggan on March 3 presented a $2.6 billion budget for the city’s upcoming fiscal year and a four-year financial plan for the City Council’s approval. Duggan touted his 10th balanced budget as mayor, calling it “historic.” The upcoming fiscal year, 2023-24, starts on July 1. Of the total budget, $1.3 billion is for the general fund, with 54% allocated for city employee wages and benefits, 16% toward debt payment and pre-bankruptcy pension costs and 30% to support city services. General fund money comes from income tax, state revenue sharing, wagering tax, property tax and utility users tax.

LOS ANGELES — L.A. City Council Votes to Explore Ways to Implement New Measure ULA Tax

The Los Angeles City Council voted on  February 21 to explore ways to implement Measure ULA,  which passed in November and seeks an additional tax on property sales that exceed $5 million in Los Angeles. Currently facing litigation, the tax is expected to generate between $600 million and $1.1 billion annually. A majority of the revenue would go toward affordable housing and tenant assistance programs, backers said.

SAN DIEGO — In Major Setback, Proposed San Diego Parcel Tax for Libraries, Parks Falls Short of Signatures for 2024 Ballot

A proposed parcel tax that would upgrade parks and libraries in San Diego suffered a major setback recently when the registrar of voters determined supporters had not gathered enough valid signatures for the 2024 ballot. Supporters, who raised and spent roughly $1 million on their signature-gathering campaign last year, said they have not decided whether to make a second run at gathering enough valid signatures to get the measure on next year’s ballot.

TRANSPORTATION & MOBILITY

BOSTON — Inspector General Tells Boston School District to Investigate Late Buses

The Massachusetts inspector general Jeffrey Shapiro expressed “extreme concern” about a Boston school district bus contractor, and urged the district to tighten oversight and hold the contractor accountable.

CHICAGO — O’Hare Receives $50 Million in Federal Grant Money for Upgrades at Terminal 3

O’Hare International Airport will be getting $50 million in grant money from the federal government for upgrades at Terminal 3, including an expanded passenger corridor, approximately 10,000 square feet of new concessions and amenity spaces, renovated restrooms and improvements to the terminal’s baggage facilities.

DETROIT — DDOT Switches to Mobile Ticketing App Token Transit

The Detroit Department of Transportation (DDOT) is now using a new app for mobile ticketing from Token Transit. Payment with the current app, Passport, will be phased out after February 28. While riders can still buy 24-hour and 4-hour passes on either the Dart app or Token Transit, 31-day and 7-day passes can only be purchased via Token Transport. Any previously purchased, unused passes in a rider’s Passport wallet will be transferred to Token Transit by March 1.

LOS ANGELES — Vote On LAPD Transit Patrols Sparks City Hall Debate Over Safety on Metro System

The Los Angeles City Council voted March 1 to extend the LAPD’s contract to patrol Metro’s buses and trains, setting off a fresh debate over rising crime on the region’s transit system and the push to find alternatives to police. In a 10-2 vote, the council retroactively approved a six-month contract extension for security services at Metro, also known as the Los Angeles County Metropolitan Transportation Authority.

PHILADELPHIA — SEPTA to Invest $17 Million in 10 Fuel-Cell Electric Buses

Last week, the Southeastern Pennsylvania Transportation Authority (SEPTA) announced that it would be spending $17 million on 10 fuel-cell electric transit buses to its fleet. The buses are part of SEPTA’s efforts to work toward the goal of a zero-emissions fleet.

SAN DIEGO — San Diego Plans to Start Construction on $27 Million Railroad Crossing at Park Boulevard Near Petco Park This Summer

Construction of the long-planned railroad crossing at Park Boulevard, which would let motorists cross over the tracks along Harbor Drive near Petco Park in downtown San Diego, could start in August. Permits have been secured and city consultant Civic San Diego will solicit bids for work on the $27 million project in May, Christina Bibler, who is the director of the city’s economic development department, told the Union-Tribune.

WASHINGTON, D.C. — Lack of Necessary Funding Threatens Viability of Fare-Free Bus Program

Late last year, D.C. City Council passed legislation that promised to bring free public transit to the masses. Now, the city’s chief financial officer has removed funding for the widely popular fare-free bus program, citing a lack of available revenue to sustain it.

PUBLIC HEALTH 

— IDPH Reports 18 Illinois Counties at an Elevated Community Level for COVID-19, from the Illinois Department of Public Health.

ILLINOIS

AG Raoul issues guidance on reproductive health discrimination

Illinois Attorney General Kwame Raoul, in coordination with the Illinois Department of Human Rights (IDHR), released a guide Thursday outlining the state’s discrimination protections regarding pregnancy, childbirth, and reproductive health.

The guide: clarifies the state’s anti-discrimination laws as it relates to pregnancy and other reproductive health decisions, including abortion; explains the rights of individuals in a variety of settings, including in the workplace, housing, health care, schools, retail and service establishments, and other public accommodations; and informs citizens of the filing process for discrimination-related complaints.

“Under Illinois law, everyone has the right to make decisions about their reproductive health free from discrimination,” Raoul said in a statement. “This guidance will assist women in exercising their rights, as well as help employers, housing providers, health care practitioners and others avoid discriminatory practices.”

AROUND THE STATE 

— Illinois Ranks #2 State in the Nation for Corporate Investment: “Site Selection Magazine – an international industry-leading business publication — released its annual corporate expansion and relocation rankings, naming Illinois 2nd in the nation for corporate projects and Chicago the Top Metro for the 10th year in a row. The publication noted 487 Illinois projects in 2022, moving the state up from the number three spot in the previous year’s rankings,” from the Office of Gov. JB Pritzker. 

— Governor Pritzker Announces New Partnership Between Illinois Universities and the Chan Zuckerberg Initiative: “Governor Pritzker Thursday congratulated the University of Illinois Urbana-Champaign, Northwestern University, and the University of Chicago for being selected by the Chan Zuckerberg Initiative (CZI) to launch the Chan Zuckerberg Biohub Chicago (CZ Biohub Chicago) – a NEW biomedical research hub that will bring together leading scientific and technology institutions to study human tissue with the goal of creating new, groundbreaking therapeutics,” from the Office of Gov. JB Pritzker.

— Unruly school board meetings among the hot-button topics highlighted in annual education report: “Unruly public behavior at school board meetings is among the key issues highlighted in newly released polling data from the fifth annual State of Education Report released Thursday by the Illinois Education Association,” by the Chicago Tribune.

— Lawmakers take step closer to making all-day kindergarten reality in all school districts: “The House Child Care Accessibility & Early Childhood Education Committee advanced a proposal Thursday that could be the first step toward making all-day kindergarten a reality in each of the state’s schools. The committee passed HB2396 by Rep. Mary Beth Canty (D-Arlington Heights) in a 14-1 vote, which would require all school districts to make all-day kindergarten available starting this fall,” by The Daily Line.

— Gov. Pritzker Announces Nearly $60 Million in Grants for 118 Local Park and Recreation Projects Throughout Illinois: “Governor JB Pritzker along with state and local leaders and the Illinois Department of Natural Resources (DNR) Wednesday announced nearly $60 million in state grants are being awarded for 118 local park projects throughout Illinois to help communities acquire land and develop recreational opportunities,” from the Office of Gov. JB Pritzker.

CHICAGO 

Indicted Ald. Carrie Austin resigns from City Council 

Indicted Ald. Carrie Austin (34) officially stepped down from the Chicago City Council Wednesday after 29 years in office.

Austin was indicted on bribery offenses in July 2021 for conspiring to receive home improvements from contractors seeking city assistance for a development project in her ward and for lying to the FBI.

Austin asked a federal judge in November to declare her medically unfit to stand trial, but surveillance conducted by FBI agents in the weeks following found that Austin is “alert, lucid, and responsive” and able to move about on her own without assistance.

Austin has pleaded not guilty to all charges. If convicted, Austin would become the thirty-eighth City Council member convicted of a crime in the last 55 years. She is due in court for a hearing on May 25.

Austin’s 34^th ward was moved across the city following redistricting and is now located in the 21^st district under the new ward map, where Ronnie Mosley and Cornell Dantzler will face off in a runoff election April 4. Bill Conway won the 34^th Ward seat Tuesday night.

Vallas busts campaign contribution cap, nets former secretary of state endorsement

On Thursday, mayoral candidate Paul Vallas donated $100,100 to his campaign, a move that lifts contribution restrictions ahead of the upcoming mayoral runoff election and opens the door for wealthy businesses and individuals to donate vast sums of money to both candidates.

Candidate Willie Wilson’s $5 million self-donation in the first round of the mayoral election similarly lifted the fundraising cap, so Vallas’s move is not expected to change the campaign landscape drastically. Prior to the runoff election, Vallas’s campaign had raised a total of $2.75 million to Johnson’s $1.82 million.

On Thursday, Vallas also received a key endorsement from Illinois’ longest serving secretary of state Jesse White, which could prove crucial for Vallas to receive more endorsements from other Black elected officials, as both candidates are vying to secure the black vote.

MORE FROM CITY HALL 

— Search is on for CPD Supt. David Brown’s replacement, but the bench of insider candidates is thin: “Both candidates in Chicago’s mayoral runoff have declared they prefer an insider to replace departing Chicago Police Supt. David Brown,” by the Chicago Sun-Times.

— Majority of Police District slate candidates who faced ballot challenges outright winners in historic election: “After facing challenges that reached up to the Illinois Appellate Court, a majority of candidates who ran for election as part of three-member slates for the new police district councils swept their races in the election Tuesday,” by The Daily Line.

— Brandon Johnson questions past critical race theory comments from Paul Vallas, who says he’s focused on ‘issue-oriented’ campaign: “Two days after voters declared them finalists to become Chicago’s next mayor, Brandon Johnson raised issues with Paul Vallas’ past remarks where he said critical race theory in schools was harming families and taking emphasis off more important subjects,” by the Chicago Tribune.

— Aldermen to consider Lightfoot’s proposal to use cameras for bike and bus lane traffic enforcement: “The City Council Committee on Pedestrian and Traffic Safety will meet virtually Friday to consider a proposal from Mayor Lori Lightfoot, the Chicago Department of Transportation and some aldermen that would establish a pilot program for automatic bike and bus lane violation enforcement,” by The Daily Line.

— City Council candidates backed by Democratic Socialists Chicago chapter see mixed success after election: “Four of the five sitting aldermen endorsed by the Chicago DSA chapter won their races outright on Election Day, but just one of five challengers endorsed by the chapter is headed to a runoff election in April after capturing the largest vote share in her race on Tuesday,” by The Daily Line.

FEDERAL

Beltway Briefing: A Historic Visit on A Grim Anniversary

On President’s Day, after a clandestine journey involving a 10-hour train ride from Poland, President Biden made a surprise and historic visit to Ukraine, to show solidarity with a war-torn democratic nation battling for its survival and try to break an impasse as Russia’s invasion enters its second year. It was the first time in modern history a U.S. president entered a war zone where there was not an active U.S. military presence.

Public Strategies’ Howard Schweitzer, Mark Alderman, Rodney Davis, Patrick Martin, Towner French, and Kaitlyn Martin discuss Biden’s trip to Ukraine and the sharp response it drew from Congressional Republicans who have been critical of the U.S funding of the war effort and accused the President of neglecting issues back at home. They also break down the political fallout over the Administration’s response to a toxic train derailment and the resulting environmental disaster in Ohio that had the White House take bipartisan heat.

Listen to the full Beltway Briefing here.

“Despite the headwinds Democrats face going into November, Republicans are doing their best to save Democrats from themselves by putting forward extreme candidates whose principal qualification for office seems to be whether they support former President Trump’s false claim of victory in 2020.” — Howard Schweitzer, CEO, Cozen O’Connor Public Strategies”

The Cozen Lens

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• The 2022 midterm elections are so far unfolding as one would expect for a referendum on the party in control of power. But intra-party dynamics and the prevalence of Trumpism could leave Republicans making unforced errors in key races.
• Sixteen months into Joe Biden’s presidency, his biggest legislative accomplishment is the passage of the $1.2 trillion bipartisan Infrastructure Investment and Jobs Act. Implementation of the law is now in full swing. Funding is flowing and the Biden administration is developing rules promoting the president’s labor and “Buy American” priorities in infrastructure spending.
• Whether or not Democrats can get a reconciliation package over the goal line this year, there are several meaningful tax provisions, some new and some extensions of ones set to expire, that still have a reasonable chance of passing on a bipartisan basis.

What Have We Learned from the Primaries So Far?  

The House: National dynamics leave Democrats looking to salvage what they can in the House as intra-party fights continue apace.

• Democrats are playing musical chairs on a sinking ship. Rep. Sean Patrick Maloney (D-NY), the chair of the Democratic Congressional Campaign Committee, switched to running for reelection in his Biden +8.5 district to a new Biden +10.1 district last week. You know Democrats are in trouble when the campaign chief is worried about his reelection in a Biden +8.5 district.
• The Republican establishment can influence elections, but there’s a limit. The scandal-plagued Rep. Madison Cawthorn (R-NC) last week lost his primary against an establishment-backed challenger. House Minority Leader Kevin McCarthy (R-CA) has had success in recruiting and supporting top-tier candidates in open and competitive districts. But success is far from 100 percent. Republicans were unable to stop a controversial candidate from winning the Republican primary in NC-01. A Republican who supports QAnon conspiracies and was at the Capitol Insurrection won the nomination for OH-13. Both are competitive districts that Republicans could win with generic candidates, but face challenges with controversial ones.
• The presidents don’t have the final say in a race. President Trump endorsed Cawthorn, who lost. President Biden endorsed the moderate Rep. Kurt Schrader (D-OR), who is very likely to lose to a progressive challenger when all the votes are counted.
• Trumpism is here to stay as Democrats continue to fight over their direction. Republican primaries are battles over different gradients of Trumpism as the “progressive ” vs. “moderate ” battle among Democrats continues. While moderates have a better track record than progressives, the latter have scored real wins this year. More importantly, it’s the moderate House Democrats who are retiring and facing the biggest reelection threats, likely leaving the Democratic caucus more to the left after the midterms.

The Senate: The national dynamics plaguing House Democrats also are hurting Senate Democrats. But individual races and candidate quality are larger factors to determine control of the upper chamber.

• There are no “Biden Democrats ” winning in the Senate this year. Democratic incumbents have made a point to put distance between themselves and the president. Lt. Governor John Fetterman (D-PA) beat the more Biden-esque candidate in Rep. Conor Lamb (D-PA) in the Pennsylvania primary. Despite being shunned by the Democratic Senatorial Campaign Committee six years ago in the Senate primaries, Fetterman this year is being hailed as a populist brand that can play well where a Biden brand can’t.
• There are only Trump candidates winning in the Senate this year. Former football star and Trump-ally Herschel Walker will decisively win the Georgia primaries today. In Pennsylvania, the vote count between Mehmet Oz and David McCormick remains too close to call. Both Oz and McCormick sought to be in Trump’s good graces, with the former president choosing Oz in the end.
• The Republican establishment has gotten lucky (so far). Senate Minority Leader Mitch McConnell (R-KY) breathed a sigh of relief when the controversial conservative Kathy Barnette was running a distant third to Oz and McCormick. Democrats can’t win 2022 but Republicans can lose it with controversial candidates. To that end, Republicans aren’t out of the woods yet, with potential challenges in Arizona and Missouri and the opposition playbook against Walker in Georgia being fully unleashed.

The States: Trump’s unsubstantiated grievances around the 2020 elections are playing a central role in the 2022 midterms. But what Trump cares about, many voters shrug or oppose.

• The states are ground zero for Trump’s “Big Lie. ” It’s state legislatures, governors, and secretaries of state holding sway over election administration.
• Trump is going to face his biggest loss in Georgia (again). After losing Georgia in 2020 and the two Trump-backed incumbents losing the Georgia Senate runoffs in 2021, his endorsed candidate for governor, David Perdue, is on track to handily lose to incumbent Governor Brian Kemp (R-GA) today. This will be the third gubernatorial primary a Trump-backed candidate has lost after Nebraska and Idaho.
• Democrats are leaning into running against Trumpism. In Pennsylvania, Democratic Attorney General Josh Shapiro ran ads against (or rather for) state Sen. Doug Mastriano (R-PA) before last week’s gubernatorial primaries. Shapiro is eager to run against the “stop the steal ” Mastriano, who is causing heartburn among Pennsylvania Republicans.

How Goes the Buildout of the Bipartisan Infrastructure Law?

Update on Funding. About six months after the passage of the Infrastructure Investment and Jobs Act (IIJA), federal spending is well underway.

• To mark the law’s six-month anniversary, the White House shared last week that over $110 billion in funding has been announced so far for over 4,300 projects. This funding total includes $52.5 million on federal highway spending in FY22, $20.5 billion on transit spending in FY22, $27 billion for bridges over the next five years, and $3 billion for airports this year, among others. The Departments of Transportation and Energy have announced $5 billion in funding over the next five years to support electric vehicle (EV) charging infrastructure. The White House has also released a guide to funding and projects by location.
• The Biden administration’s kickoff of the law’s new grant programs continues. In addition to the approximately $110 billion in funding that’s been announced so far, the White House said last week that there is another $100 billion in the pipeline in the form of requests for information and notices of funding availability (NOFOs). The Commerce Department released NOFOs for broadband buildout earlier this month through the approximately $42.5 billion Broadband Equity, Access, and Deployment (BEAD) Program and a $1 billion program for middle-mile broadband.  

Biden’s Labor Agenda. The Democrats’ major labor legislation, the Protecting the Right to Organize (PRO) Act, is stalled in the Senate. The Biden administration is looking to advance the president’s pro-labor priorities though in part through federal infrastructure spending.

• The “vast majority” of IIJA spending will be subject to Davis-Bacon wage requirements, per a Department of Labor (DOL) fact sheet. The Davis-Bacon Act mandates that employers pay locally prevailing wages to construction workers assigned to projects on federal contracts. At an event hosted by Washington Post Live last week, Labor Secretary Marty Walsh highlighted the role of Davis-Bacon in his vision of job creation. “I think these projects are going to be projects that are going to create good jobs, good middle class jobs, good-paying jobs. There’s prevailing wage in Davis–Bacon with these jobs. So, we want to make sure that workers working these projects get a good wage. So, I think we’ll see that.”
• The Labor Department has proposed a new rule that would change how the federal government determines the “locally prevailing wage” under Davis-Bacon. Currently, the DOL considers a wage to be prevailing if over 50 percent of workers surveyed earn it. In the absence of enough information, it takes an average of wage rates. The new rule would revert to the method used from 1935-1983, which had a 30 percent threshold to calculate the prevailing wage. Walsh saidin a March press conference that the rule change would increase pay for approximately 1.2 million workers.
• In addition to wages, the proposed rule would also change other aspects of DOL’s enforcement of Davis-Bacon. It would widen the types of work that fall under the law’s purview to encompass solar panels, wind turbines, and installation of broadband and EV charging stations. The proposal would also make transportation within and between worksites covered by Davis-Bacon requirements. Finally, the new rule, if finalized, would expand the definition of “site of the work” to cover offsite locations where “significant portions” of a project take place, not just the primary worksite.
• These changes have the potential to increase costs of construction for infrastructure projects receiving federal dollars. DOL’s Davis-Bacon proposal is encountering GOP pushback. A group of 14 Republican senators sent a letter to Walsh last week objecting to the changes.
• In February, Biden issued an executive order mandating that certain federal construction projects use project labor agreements, which involve the government or a contractor negotiating terms with organized labor prior to breaking ground. The Wall Street Journal reported that the executive order would apply to $262 billion in federal contracts and approximately 200,000 workers.
• The Wall Street Journal has also reported that the Departments of Transportation and Labor are collaborating to develop guidance that would favor projects that give workers the opportunity to join a union when selecting applications to receive IIJA funding. The competitive grant programs established by the law give the Biden administration discretion in choosing how to allocate federal dollars.  

Biden’s “Buy American” Agenda. The Biden administration has also established “Made in America” requirements for material used in infrastructure projects funded under the law.

• “Buy American” is a top priority for the president and reflects a provision of the IIJA. During his first week in office, Biden issued an executive order to promote government procurement of products made domestically, and he emphasized this issue again during an April speech in Greensboro, NC. “From Day One, every action I’ve taken to rebuild our economy has been guided by one principle: Made in America,” the Associated Press quoted Biden. “It takes a federal government that doesn’t just give lip service to buying American but actually takes action.” The IIJA gives Biden an opportunity to do just that.
• Last month’s memorandum released by the White House Office of Management and Budget (OMB) indicates that to meet the “Buy American” requirement, all iron, steel, and construction materials must be produced domestically. Manufactured products must also be produced domestically and the costs of the components made in the United States must exceed 55 percent of the cost of all components.
• The memo includes three exceptions to allow waivers: (1) if following the guidance “would be inconsistent with the public interest,” (2) if the items to be procured “are not produced in the United States in sufficient and reasonably available quantities or of a satisfactory quality,” and (3) if buying American “will increase the cost of the overall project by more than 25 percent.” The OMB memo recommends that agencies tailor waivers to specific cases and requires that waivers be open to public comments, among other guidelines.
• The waiver categories seem as if they could be interpreted fairly broadly, potentially limiting the impact of this policy. Made in America requirements are an attempt to bolster US domestic manufacturing. Yet rising inflation at home could also lead suppliers to turn to cheaper foreign-produced materials and seek waivers on the basis of cost.

What Tax Changes Can Congress Really Pass This Year?  

Reconciliation: Tax Hikes and SALT. There are not 60 votes in the Senate for any of the approximately $1.5 trillion in tax revenue raisers still under consideration by Democrats through the budget reconciliation process, meaning the only way these move forward is if all 50 Senate Democrats can agree on a party-line package, particularly Senators Joe Manchin (D-WV) and Kyrsten Sinema (D-AZ).

• If reconciliation still happens, these provisions are the most likely to pass with these revenue estimates, and would garner $1.074 trillion – $1.267 trillion in tax revenue to offset the spending in the package:
  • Closing the tax gap ($127B-$320B) : This would increase funding to the IRS by $80 billion to help reduce the tax gap. Even Republicans want to close the tax gap, but they oppose increasing funding for the IRS, which is not a problem for Democrats.
  • International reforms ($335B) : Among other things, this would increase the global intangible low-taxed income tax (GILTI) from 10.5 percent to 15 percent, limit qualified asset exemptions, and change the calculation to a country-by-country basis. The international provisions are complex and there has been pushback to pare down the provisions among moderate Democrats, yet this is a major priority for Treasury Secretary Janet Yellen and the White House. Democrats need this policy included, otherwise the OECD/G20 deal on base erosion and profits shifting they spearheaded will fall apart.
  • 3.8 percent NIIT for active income ($252B) : This would extend the 3.8 percent net investment income tax (NIIT) to the ordinary course of a trade or business for taxpayers with greater than $400,000 in taxable income ($500,000 for joint filers) For one of the largest offsets, there has been little noise on extending the NIIT for active income. No news is good news, making it an ideal offset to keep in reconciliation.
  • Excess business loss limit ($160B) : This would make permanent the disallowance of a deduction of business losses in excess of $250,000 ($500,000 for joint filers) for non-corporate taxpayers, with disallowed losses to be carried forward to the next taxable year. Similar to the NIIT, there has been little desire to make the excess business loss limit permanent. It’s something both Republicans and Democrats have extended in the past, making it something of a revenue gimme.
  • 5/8 percent AGI surtax ($200B) : This would apply a five percent tax on adjusted gross income (AGI) above $10 million ($20 million for a married individual filing separately) and an additional three percent tax on AGI above $25 million. Sinema did not want to raise the top income tax rate from 37 percent to 39.6 percent, but she did support an AGI surtax. Another politically appealing item but could again be subject to carve outs, including from Sinema, who may want to exclude pass-through income, for example.
• Other tax pay-fors on the table if there is either more room for spending in a reconciliation package or some of the above offsets are nixed include the below:
  • 1 percent corporate buyback tax ($116B) : This would impose a one percent excise tax on publicly-traded US corporations for the value of any of its stock that is repurchased by the corporation during the taxable year. Progressives and some conservatives like to chastise corporate buybacks, making it politically appealing in some circles. There is potential for it staying in if Democrats need the revenue, especially as a way to signal opposition to corporate profits during a time of high inflation. But if the revenue is not needed, it probably won’t be worth its inclusion.
  • 15 percent corporate AMT ($300B) : This would impose a 15 percent alternative minimum tax (AMT) on adjusted financial statement income for domestic corporations with income in excess of $1 billion and for $100 + million of US subsidiaries to $1 + billion multinationals. Another provision that sought to assuage the “no rate hike ” stand of Sinema, the corporate AMT is politically appealing but massively complex. A minimum book tax was tried in the 1980s but scrapped because of its complexities. There are already many questions and carve outs being sought this time around.
  • Section 1202 ($6B) : This would end the special 75 percent and 100 percent exclusion rates for gains realized from certain qualified small business stock (QSBS) for those with an AGI above $400,000, reverting back to baseline 50 percent exclusion.
• Finally, if Democrats do not include an expansion of the $10,000 cap on the state and local tax (SALT) deduction in reconciliation, there will be no SALT relief elsewhere. What was once a top topic of conversation, SALT negotiations are now on the backburner. If reconciliation does come together, SALT likely would once again come to the forefront. The most important figure to watch is Senator Bob Menendez (D-NJ), a SALT champion who is not afraid to drive a hard bargain with his fellow Democrats.

If Reconciliation Fails. Some reconciliation tax provisions (and their reconciliation costs) could find a bipartisan path to passage in the interim if a partisan package fails to come to fruition.

• Clean energy tax credits ($325B) : This included the extension and expansion of production tax credits (PTCs) and investment tax credits (ITCs) for clean energy projects and properties, the creation of an ITC for advanced manufacturing facilities and equipment, and the expansion of the EV income tax credit. While the universe of clean energy tax credits is smaller than $325 billion in a world without reconciliation, there is bipartisan support for extending and creating new provisions. The macro politics of clean energy is partisan, but several individual provisions attract Republican support based on jurisdictional and geographical interests.
• R &D expensing ($4B) : This included delaying the start of amortization of R &D expenditures from after December 31, 2021 until after December 31, 2025. Reinstating R &D expensing is not a matter of if but when. If reconciliation fails, there’s critical mass of bipartisan and bicameral support to extend it.
• Low-income housing development ($18B) : This included strengthening and expanding the Low Income Housing Tax Credit and creating the Neighborhood Homes Credit to benefit developers and rehabbers of homes in distressed neighborhoods. Both of these provisions were included in the now stalled Build Back Better package and came from bipartisan bills.

Other Tax Provisions with Some Momentum. While by no means exhaustive, the following are tax policies worth watching for potential passage this year.

• Retirement tax benefits : The House-passed Securing a Strong Retirement (SECURE 2.0) Act of 2022 expands automatic enrollment in retirement plans, raises the age for required distributions from 72 to 75, increases the amount and age limit for IRA catch-up contributions, and expanding options for annuities in retirement plans. The SECURE 2.0 Act passed the House on a 415-5 vote last month. It was a bipartisan and multi-committee collaboration spearheaded by House Ways and Means Committee Chair Richard Neal (D-MA) and Ranking Member Kevin Brady (R-TX). Bipartisan efforts are underway in the Senate Health, Education, Labor, and Pensions (HELP) Committee and Senate Finance Committee, with Senator Richard Burr (R-NC), the ranking member of HELP and committee member of Finance, taking a keen interest. Brady and Burr are retiring this year and see this legislation as a legacy marker for them. Some compromise version will likely pass the Senate this year, either as a standalone measure or attached to year-end tax extenders.
• Gig economy 1099-K : Democrats and Republicans have introduced legislation to increase the reporting threshold requirement for payment vendors to send and gig workers to fill out Form 1099-Ks. The American Rescue Plan (ARP) lowered the threshold from $20,000 to $600, with no limit on the number of transactions. Frontline Democrats most in peril in this fall’s midterm elections are leading the charge to increase the limit from $600 to $5,000 while Republicans want to return the limit to $20,000. The measure in the ARP was opposed by all the major gig economy companies. However, the measure took effect this year, meaning it won’t come front-and-center until tax season next year. This makes action unlikely until the lame duck session after the midterms. Unless Democratic leadership sees a need to ameliorate frontline members post-election (several of whom probably will be lame ducks themselves), we don’t see leadership including this in a tax extenders package. Republicans could have greater leverage next year if/when they hold the majority.
• Interest deductibility : Five Senate Republicans and four House members (two Democrats and two Republicans) have introduced a bill to keep the limit on net interest expenses at 30 percent of EBITDA, rather than 30 percent EBIT, which changed to the lower limit this year. Despite the TCJA provision switching to the lower EBIT limit this year, it’s common for tax extenders legislation to be retroactive. This gives hope for supporters of a higher interest limit to push for an extension (albeit not permanent) of the EBITDA limit. As of now, though, there is not the critical mass of support to push its way into a tax extenders package.
• Bonus depreciation : Republicans in the House and Senate have introduced the Accelerate Long-Term Investment Growth Now (ALIGN) Act to make permanent full and immediate expensing from the Tax Cuts and Jobs Act (TCJA) that will begin to phase down next year. The 100 percent bonus depreciation provision in TCJA is often one of the most heralded parts of the legislation by Republicans who are open to keeping it. However, making it permanent would cost hundreds of billions of dollars. The more feasible option is a temporary extension. It is a priority for Republicans but Democrats probably wouldn’t agree to it without a real progressive concession. The bonus depreciation decreases by 20 percent each year until it sunsets at the end of 2026. Republicans may decide to wait to make their push until they have greater leverage, likely when they hold the majority. It is possible this could become a provision that hibernates until 2025.

Check Back in 2025. There are some tax policies that just don’t have the room to be negotiated and enacted, even if there’s bipartisan interest.

• Democrats had high hopes for extending the enhanced Child Tax Credit (CTC) passed in ARP. But Manchin opposed its inclusion in reconciliation. Democrats are still holding out prospects that they could leverage their current majority or President Biden to force Republicans to agree to an enhanced CTC in exchange for Republican priorities, but that sort of bipartisan cooperation has been hard to come by.
• Instead, there needs to be a major forcing mechanism for action. The next one comes at the end of 2025, when the TCJA’s individual tax provisions expire. That includes the TCJA’s enhanced CTC and the $10,000 cap on SALT deduction. But what does or does not happen depends on the control of the government. If a Republican trifecta holds unified control after the 2024 elections, the GOP will have little interest in working with Democrats and once again will use reconciliation on tax policy. The CTC would probably be extended as is while the SALT deduction may be completely eliminated. A divided government (likely Biden presidency and Republican Congress), however, would open the door to some compromise on the CTC and SALT.

Pennsylvania

Pennsylvania’s Public, Charter School Children to Receive Free Breakfast

The Wolf Administration has announced a universal free breakfast program for students at the state’s public and private schools for the upcoming school year. The $21.5 million initiative, which begins October 1, will help feed millions of children throughout the Commonwealth. WESA has more.

Pennsylvania Turnpike to Begin Producing Solar Power

The Pennsylvania Turnpike is planning to enter the solar power production arena. In the more immediate future, this will help the agency power its own administrative and office buildings, and eventually, it hopes to electrify portions of the road itself so that electric vehicles can be charged while they are being driven. The Pittsburgh Post-Gazette has more.

What Bills Might the General Assembly Be Prioritizing This Fall?

The Pennsylvania General Assembly is said to be considering several bills for the upcoming session, including a mandate regarding how mail-in ballots must be packaged and handled, monthly voter-roll purges, and more lenient permissions for tech companies to test autonomous vehicles. WESA has more.

 

Philadelphia

SEPTA Adding Elevators to Tasker-Morris Station to Improve Accessibility

In order to continue improvements to ADA accessibility on the Broad Street Line, SEPTA will be adding elevators to Tasker-Morris Station. In order to install the new elevators, SEPTA will be shutting down a lane along a one-block stretch, effective this week through spring 2024. Billy Penn has more.

Philadelphia District Attorney Krasner Speaks Out Against Impeachment Investigation

Philadelphia District Attorney Larry Krasner has spoken out against an ongoing impeachment investigation that was launched by state legislators in June, saying it may be a violation of the constitutional rights of the Philadelphians who voted him into office. The investigation concerns the District Attorney’s handling of the city’s gun violence problem. Billy Penn has more.

City Council President Clarke Orders Special Elections for District Council Vacancies

The City Council seats formerly held by Maria Quiñones-Sánchez and Cherelle Parker, both of whom recently resigned their positions in order to run for mayor, will be filled by special elections in November as ordered by City Council President Derrell Clarke. There are currently no plans for special elections to fill the at-large vacancies left by former Councilmembers Allan Domb and Derek Green. The Philadelphia Inquirer has more.

 

Pittsburgh

East Liberty Has Transformed

Throughout the years, East Liberty has gone through several phases of redevelopment. As it continues to grow, it attracts more residents who appreciate its proximity to landmarks, commerce, and dining in the area. The Pittsburgh Tribune-Review has more.

Pittsburgh Public Schools, City Pledge to Provide Students With More Jobs, Internships

On Friday, city and school officials announced that students enrolled in the Career and Technical Education program would have access to paid internships, jobs, and job shadowing. The Pittsburgh Tribune-Review has more.

URA Sells Larimer Property to Steel City Squash to Build New Recreation, Education Facility 

The Urban Redevelopment Authority Board voted to sell land in the Larimer neighborhood of Pittsburgh to a local nonprofit that will build a recreation and education center. The Pittsburgh Tribune-Review has more.

Elected Officials Request Audit of VisitPittsburgh

This morning, State Senator Wayne Fontana (D-Allegheny) announced that he requested Allegheny County Controller Corey O’Connor to audit VisitPittsburgh’s use of tax dollars. See more on Senator Fontana’s website.

 

Federal

Fetterman and Oz Hold Rallies in Philadelphia Suburb

Yesterday, Democratic U.S. Senate candidate John Fetterman held a campaign rally focused on abortion rights. His campaign is trying to quell concerns about his health following his stroke that took place earlier this year. In Bucks County, Republican U.S. Senate candidate Mehmet Oz attacked Fetterman’s reluctance to schedule a debate. Some Republicans believe that the race has gotten closer in recent weeks. The Philadelphia Inquirer has more.

A Guide to the 2022 Candidates for Governor

Spotlight PA has curated a guide to provide details about the five gubernatorial candidates that will be on the ballot in November.

Pennsylvania

State House Approves Session Operating Rules

Yesterday, the state House at long last passed its session rules, which included reforms that grant the chamber’s minority party, currently Republicans, more agency in the legislative process. Session rules are typically voted on at the first order of business in January, but an ongoing dispute over chamber leadership that was eventually resolved by three Allegheny County special elections last month prevented this routine procedure from occurring in a timely fashion. WITF has more.

State Senate Committee Subpoenas Norfolk Southern CEO

The Pennsylvania Senate Veterans Affairs and Emergency Preparedness Committee voted yesterday to subpoena Norfolk Southern CEO Alan Shaw to testify at a hearing regarding the recent East Palestine, Ohio, train derailment and subsequent public health and safety concerns. The hearing will take place March 8. PoliticsPA has more.

Standoff Between House Democrats, House Republicans Regarding Childhood Sexual Abuse Statute of Limitations Reform Continues

Though the state House has finally moved past its leadership disagreement from earlier this year, a partisan divide in the General Assembly still remains. This divide has most recently manifested itself in the ongoing debate between House Democrats and Senate Republicans over a childhood sexual abuse statute of limitations reform bill passed by the Senate in January, which was bundled with two controversial and unrelated constitutional amendments. PennLive has more.

Representative Zabel Named as Anonymous Legislator at Center of SEIU Lobbyist’s Sexual Harassment Allegations

An anonymous witness has corroborated the story of Service Employees International Union (SEIU) 32BJ lobbyist Andi Perez, who in a January meeting organized by then-House Speaker Mark Rozzi revealed that she had been sexually harassed by Representative Mike Zabel, whom she did not name publicly at the time. Some are now calling for Rep. Zabel to resign, though he has not yet publicly responded to the allegations. SpotlightPA has more.

 

Philadelphia

Mayor Kenney Gives Final Budget Address Before City Council

Earlier today, Mayor Jim Kenney gave the final budget address of his term, and the first in-person budget address since March 2020. The presentation of his $6.1 billion proposed budget was punctuated throughout with reflections on his administration’s accomplishments over his two-term tenure. The proposal largely sticks to the status quo, while offering new measures to tackle the city’s gun-violence epidemic and address economic inequality during Mayor Kenney’s final months in office. The Philadelphia Inquirer has more.

This Week’s Mayoral Candidate Forums Address Gun Violence; Performing Arts, Culture Economy

On Wednesday evening, WHYY, Billy Penn, and the CeasefirePA Education Fund hosted a mayoral forum during which eight candidates discussed their plans to address the city’s gun violence crisis, if elected. Topics ranged from city programs and community policing to potential changes to Philadelphia Police Department leadership. This evening, the Philadelphia Orchestra, Kimmel Center, and City & State Pennsylvania will be hosting a mayoral forum on Philadelphia’s performing arts and culture economy.

Philadelphia Flower Show Returns to Pennsylvania Convention Center This Weekend

The Philadelphia Flower Show, the Pennsylvania Horticultural Society’s signature annual event, is returning to the Pennsylvania Convention Center this weekend with a fresh perspective after two years of hosting the event outdoors. PennLive has more.

SEPTA to Invest $17 Million in 10 Fuel-Cell Electric Buses

Yesterday, the Southeastern Pennsylvania Transportation Authority (SEPTA) unveiled plans to purchase 10 fuel-cell electric transit buses to its fleet. The buses, which will cost an estimated $17 million, will be able to generate their own electricity, and are part of SEPTA’s overarching efforts to work toward the goal of a zero-emissions fleet. The Philadelphia Inquirer has more.

 

Pittsburgh

1Hood Media Hosts Allegheny County Controller Candidate Forum

Darwin Leuba and Corey O’Connor, the two declared Democratic candidates for Allegheny County controller, participated in a candidate forum to address issues such as accessible transit and the protections for the environment. O’Connor is the current acting county controller, while Lueba serves as the auditor of O’Hara Township. The Pittsburgh Union Progress has more.

The Next Generation of Pittsburgh Leaders Run Are Running for City Council

The candidate pool for various Pittsburgh City Council seats skews far younger than it has in elections past, with many hoping to bring a “fresh perspective” to the city’s legislative body. The current median age of challengers is 31, whereas the median age of current Council members is over 50. The Pittsburgh Post-Gazette has more.

Governor Shapiro Visits Pittsburgh-Based Astrobotic; Foreshadows Potential Budget Priorities

On Wednesday, Governor Josh Shapiro paid a visit to Pittsburgh-based aerospace company Astrobotic Technology, whom he lauded for their lunar landing equipment’s impending trip to the moon in May. During the visit, the Governor also highlighted Astrobotic as the type of science and technology company that Pennsylvania should be investing in, hinting at a potential priority that may be included during next week’s budget address. The Pittsburgh Tribune Review has more.

 

Federal

White House Releases Fact Sheets Demonstrating Impact of Infrastructure Investment in States

On Tuesday, the White House released fact sheets on how Bipartisan Infrastructure dollars are being spent in different states. Projects of note in Pennsylvania include the Lehigh Valley International Airport terminal expansion, intersection and sidewalk upgrades in Pittsburgh’s Hill District, and investment in clean buses for SEPTA. View other state fact sheets here.

Senators Casey, Fetterman Join Forces With Senate Colleagues to Introduce Rail Safety Bill 

On Wednesday, a bipartisan U.S. Senate group — including Pennsylvania Senators Bob Casey and John Fetterman — introduced rail safety legislation in response to the recent Norfolk Southern derailment in Ohio. If passed, the legislation will require rail companies to give advance notice to emergency response officials about the transport of hazardous materials, require routine inspections of said materials, and require crews of at least two people per train. CBS has more

CHICAGO, March 5, 2021 — Patrick Martin, principal and Midwest director of Cozen O’Connor Public Strategies, has been named to the board of directors of Rainbows for All Children, a national nonprofit organization based in suburban Chicago focused on providing support for children navigating trauma or loss.

“We are thrilled to have Patrick join our board,” said Stephanie Garrity, executive director of Rainbows for All Children. “Patrick was a stand-out candidate in his strong personal motivation to advocate for our programs and services as he greatly benefited from Rainbows as a child when his parents divorced.”

Directing Cozen O’Connor’s government relations and public advocacy efforts in the Midwest, Martin works out of the firm’s Chicago and Washington, D.C., offices. His practice focuses on advising highly regulated companies and he advocates for his clients before Congress, the White House, federal agencies, and state and local governments.

Prior to joining Cozen O’Connor, Martin spent several years at another national law and consulting firm where he worked closely with former Indiana Governor and U.S. Senator Evan Bayh in both government and private practice.

In his role at Cozen O’Connor Public Strategies, Martin has greatly expanded representation of the firm’s Midwest clients in the nation’s capital, receiving recognition from “The Hill” newspaper as one of their Top Lobbyists in the “Hired Guns” category for the past three years.

In 2020, Martin was named to the annual  “40 under 40” list published by Crain’s Chicago Business, recognizing his professional, civic, and charitable contributions. In addition, he was honored by the University of Illinois with a 2020 Outstanding Young Alumni award, celebrating alumni who have demonstrated outstanding professional achievement and leadership.

“We are proud of Patrick in his new role on the board of Rainbows for All Children,” said Jeremy Glenn, managing partner of Cozen O’Connor’s Chicago office. “I know personally the amazing work done by Rainbows in helping children and families cope with emotional trauma and loss. The work is more important now than ever, and Patrick continues to distinguish himself in both his professional career and in giving back generously to the larger community.”

Martin is a longtime member of the University of Illinois Alumni Association, participating in local clubs in both Chicago and in Washington, D.C. — counseling students and interns on how to best pursue careers in government and public policy. In addition to serving on the board of Rainbows for All Children, he also serves on the junior board of Catholic Charities and was most recently named to the organization’s Government Relations Executive Board.

Martin graduated from the University of Illinois in Urbana-Champaign (B.S. 2009, international, resource and consumer economics) where he was an Illinois General Assembly Scholar. He currently resides in Glen Ellyn, Ill., with his wife Caitlin and their two children, Lucy and George.

About Rainbows for All Children

Rainbows for All Children exists because 68 percent of children in America will experience a life altering event triggering profound grief before they turn 18 years old. Youth are affected by significant loss such as: death in the family, divorce, abandonment, military deployment of a loved one, incarceration or diagnosis of a life-threatening illness. Rainbows is dedicated to helping youth successfully navigate the very difficult grief process associated with these types of loss. Rainbows is a source of support for all youth as they navigate grief and heal from loss, whether from death, divorce, or other trauma. Rainbows fosters awareness that youth require support to heal and nurtures a community of effective Rainbows-trained facilitators, supported with a repository of resources designed to guide youth in their grieving process.

For over three and a half decades, Rainbows has sustained children and families in the wake of their tragedies through peer-support group programs and services, strategically designed to properly address their social and emotional well-being after a life-altering loss event. For more information, visit www.rainbows.org or contact: Stephanie Garrity 847-828-3796.

For more information on Patrick Martin and Cozen O’Connor Public Strategies, please visit https://www.cozen.com/people/bios/martin-patrick-g

Status Update:

On May 5, 2023, the Federal Highway Administration (FHWA) approved the release of the Final Environmental Assessment and draft Finding of No Significant Impact (FONSI) for the CBD Tolling Program. See below for an overview of the key findings from the Final Environmental Assessment and draft FONSI.

Congestion Pricing EA Findings:

The MTA and two Departments of Transportation are committing $207.5M over 5 years for mitigation measures largely focused on environmental justice communities and populations.[1]

• Includes $47.5M set aside for a new low-income discount
• $5M for additional monitoring of traffic, air quality, and transit station elements

New commitments in the Final Environmental Assessment include:

• A low-income driver discount program would provide a 25% discount for low-income frequent drivers on the full CBD E-ZPass toll rate after the first 10 trips in each calendar month (excluding the overnight period).
• Taxis and for-hire-vehicles may not be tolled more than once a day.
• Regional mitigation measures
• Provide a discount of at least 50% on the peak toll for trucks and other vehicles from at least 12 a.m. to 4 a.m.
• Expand NYC DOT’s Clean Trucks Program to accelerate the replacement of old diesel trucks to lower-emission vehicles
• Expand NYC DOT’s Off-Hours Delivery Program
• Place-based mitigation measures
• Retrofit refrigeration trailers (TRUs) at Hunts Point Market from dirty diesel to clean hybrid diesel
• Expand electric truck charging infrastructure
• Renovate parks and expand vegetative barriers along highways in EJ communities
• Install air filtration units in schools near highways
• Expand the NYC Department of Health and Mental Hygiene’s asthma case management program in schools and establish a new asthma center in the Bronx
• The exact cost of the tolls is not set yet, but the MTA is considering seven different scenarios (page 3), with charges ranging from $5 to $23 to drive into the congestion zone

Next Steps:

• The official 30-day public availability period for the Final Environmental Assessment and draft FONSI for the Project will be May 12, 2023 – June 12, 2023.
• After the 30 days elapse, the Federal Highway Administration (FHWA) will make its final decision, completing its review of the potential environmental effects of allowing the CBD.
• Following entry into a tolling agreement with the Federal Highway Administration, tolling could begin up to 310 days later (expected spring or summer 2024), during which contractors would design, build, test and activate tolling equipment.
• During that period, the below members of the Traffic Mobility Review Board (TMRB) would develop recommended toll rates along with any potential discounts, crossing credits and/or exemptions.
• Carl Weisbrod, Chair
• John Banks (REBNY President, 2015 – 2019)
• Scott Rechler (Regional Plan Association)
• Elizabeth Velez (Velez Organization)
• Kathryn Wylde (Partnership for NYC)
• John Samuelsen (Transport Workers Union)
• The TMRB’s recommendations will be presented to the MTA Board, acting in its legal capacity as the board of the Triborough Bridge and Tunnel Authority, the MTA agency that would collect the tolls.
• Following the filing and publication of a proposed tolling structure and a public comment period, the MTA would hold a public hearing before any tolling structure is adopted.[2]

Background on Congestion Pricing:

• Congestion pricing will introduce tolls on vehicular traffic in the CBD of Manhattan from 60^th Street (inclusive of 60^th Street) to the southern tip of Manhattan.
• The CBD does not include Franklin D. Roosevelt Drive, the West Side Highway, Battery Park Underpass, and any portion of the Hugh Carey Tunnel that connects to West Street.
• Vehicles will be tolled when detected entering or leaving the CBD.
• Tolls will be assessed and collected via EZ-Pass or billed to driver’s front license plate photos. A discount will be given to EZ-Pass customers.
• Goals of the CBD
  • Reduce daily vehicle-miles traveled within the Manhattan CBD by at least 5 percent.
  • Reduce the number of vehicles entering the Manhattan CBD daily by at least 10 percent.
  • Create a funding source for capital improvements and generate sufficient annual net revenues to fund $15 billion for capital projects for the MTA Capital Program
  • Establish a tolling program consistent with the purposes underlying the New York State legislation entitled the MTA Reform and Traffic Mobility Act.

Tolling Scenarios:

Exhibit 1

Table from FHWA Central Business District Executive Summary

[1]https://apps.cio.ny.gov/apps/mediacontact/public/view.cfm?parm=9CC5FE4F-F476-DBF9-8AE2F84FBB494C17_6F3DC552-A1CD-952B-56D6159AC4DA3367

[2]https://apps.cio.ny.gov/apps/mediacontact/public/view.cfm?parm=9CC5FE4F-F476-DBF9-8AE2F84FBB494C17_6F3DC552-A1CD-952B-56D6159AC4DA3367

“Tonight’s State of the Union address is less about the usual laundry list of policy priorities and more about President Biden building the political narrative for his all but certain re-election campaign.”
— Howard Schweitzer, CEO, Cozen O’Connor Public Strategies

The Cozen Lens

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• The State of the Union address is typically a forgettable affair, but President Biden has reason to try to seize the moment as he embarks on his expected re-election campaign.
• President Biden’s selection of Jeff Zients as the incoming White House chief of staff underscores the shift in his focus from passing his legislative agenda to implementing it as he gears up for the 2024 election.
• The rapid development of artificial intelligence has made it a growing topic of interest for both Congress and the White House.

Reading Between the Lines of Biden’s State of the Union Address

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The State of the Union’s Historical (In)Significance. A constitutional duty of the executive branch, President Washington set the standard in delivering an annual message to Congress each year to inform about the “State of the Union” (SOTU) and give policy recommendations he judges as “necessary and expedient.” But the prominence of this annual tradition has ebbed and waned.

• The SOTU is a way for the president to use the bully pulpit in front of not just Congress but the American people. Tens of millions of voters tune in every year.
• The practical and political importance is limited though. Those who tune in tend to already be supporters of the president. The average change of a president’s approval rating from the SOTU is 0.2 points and just 25 percent of policy proposals in the SOTU end up getting passed by Congress (that number is lower in a divided Congress).
• The SOTU address isn’t always memorable, but it can sometimes provide moments for a president to change the narrative. The right phrase can create a captivating narrative – think President Clinton’s “the era of big government is over” in 1996 or President Bush’s “axis of evil” reference to Iran, Iraq, and North Korea in 2002.

Biden’s Informal Re-Elect Kickoff. President Biden will be the first person to deliver a SOTU as an octogenarian. He also plans to run for re-election. Tonight’s speech is the informal campaign kickoff.

• Biden wants to project strength in his speech. The phrase or near phrase “the state of the Union is strong” has been uttered in every SOTU address over the last 30 years. Today, most Americans believe the country is in or about to enter a recession. A top goal of Biden for his re-election is to change that mindset.
• Biden wants to build enthusiasm for his re-election. Right now, a majority of Democrats don’t want Biden to run for president. This is a moment for him to speak to his base about what he has done and what his administration will do in the year ahead.
• Biden wants to make the negative case against Republicans. Biden may be unpopular, but the GOP House is even more unpopular according to an NBC News poll. The president could employ the playbook of President Truman in 1948 against a “do-nothing” Republican Congress in the face of high inflation.

The Republican Balancing Act. During the SOTU and the Republican response afterwards, the GOP is looking to leverage its base’s opposition to the president by offering a MAGA perspective with a broader appeal than that of former President Trump.

• The opposing party can steal the show. The most memorable SOTU moment of Trump’s term was in 2020 when House Speaker Nancy Pelosi (D-CA) tore up his speech. President Obama’s most memorable moments were when Rep. Joe Wilson (R-SC) yelled “you lie!” in 2009 and when Supreme Court Justice Samuel Alito mouthed the words “not true” in 2010.
• The GOP chose Governor Sarah Huckabee Sanders (R-AR) to give their response. Sanders serves as a bridge between MAGA 1.0 and 2.0 as she hails from outside DC and is a new governor but she does not represent  a new face as the former press secretary for Trump.
• Republicans also want to broaden their appeal by reaching out to a growing segment of the population. Freshman Rep. Juan Ciscomani (R-AZ) was chosen to give a response in Spanish.

The White House Pivot

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Ch-Ch-Changes. It is common for a president to cycle through chiefs of staff, each of whom serves a different purpose and fits the particular priorities at that point in the president’s tenure. President Biden’s shift from Ron Klain to Jeff Zients signifies his transition from policy development to implementation and the need to demonstrate governing competence while he and his top political advisors are increasingly focused on his re-election campaign.

• After finding himself with an unexpected unified Democratic control of Congress at the start of his term, Biden was able to push through a prodigious legislative agenda. Getting these massive bills passed, like the American Rescue Plan, Infrastructure Investment and Jobs Act, Inflation Reduction Act, and CHIPS and Science Act, was no easy feat, but now the task becomes executing the myriad new programs.
• Zients has a history of taking on big implementation roles, including leading the fix of the botched Affordable Care Act website rollout in the Obama administration and then serving as Biden’s lead coordinator on the Covid-19 response.

Hurdles Still to Clear. Zients may have the experience to make him qualified for the role at this point in time, but there are still factors that are beyond his control that will present challenges.

• One of these struggles will be ensuring that the agencies are properly staffed as the aging career workforce has suffered from an exodus of talent due to the Trump administration’s efforts to combat the so-called “deep state,” the pandemic, and rising retirements. This could be compounded if political appointees use the halfway mark of Biden’s term to depart as well, as the need to confirm new nominees could delay requisite executive branch actions.
• Just as important is getting all of Biden’s pending nominees confirmed by the Senate. Democrats have an extra vote in the upper chamber now, but Republicans will still look to eat up the clock with procedural tactics. With the pile of nominees outstanding, Zients will need to work with Senate Majority Leader Chuck Schumer (D-NY) to prioritize those deemed most valuable.

2024 Looms Large. The success of Zients’ efforts to realize tangible results from the legislative achievements Klain delivered will have a real and direct impact on Biden’s re-election chances.

• Central to Biden’s re-election narrative is to show how the government can still work for the people. This is underscored by his multiple recent trips to various ribbon cutting ceremonies across the country celebrating new infrastructure projects.
• Biden will look to contrast this with what he will describe as Republicans’ incompetence and extremism. He will argue that while the GOP is seeking to cut entitlements and risking default, Biden is actually getting things done for the American people.It is too early to know how successful Biden’s pitch will be, but if implementation of the new programs gets bogged down, it will be harder to sell his case to voters. While passing these bills with grand aspirations makes for nice talking points in Washington, they could end up not having the desired political impact at the local ballot boxes if voters don’t see the benefits in time.

AI is DC’s Shiny New Toy

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Voluntary Guidance from the Biden Administration. To date, federal artificial intelligence (AI) policy has generally taken the form of recommendations and voluntary guidance.

• The White House’s major AI initiative is the Office of Science and Technology Policy’s (OSTP) Blueprint for an AI Bill of Rights. Announced in October, it is designed “to help guide the design, development, and deployment of artificial intelligence.” It outlines five core protections for all Americans who interact with AI. These include protections from unsafe or ineffective AI, protections from algorithmic discrimination, data privacy, notice and explanation of how an AI system is being deployed, and access to human alternatives to AI to resolve issues.
• The blueprint is not binding, but it includes a supplement titled “From Principles to Practice” intended to guide the public and private sector in the development and deployment of AI. If the White House chooses to pursue AI regulation, these principles may serve as a starting point.
• Last month, the National Institute of Standards and Technology (NIST) released its AI Risk Management Framework 1.0, a voluntary set of guidelines to encourage entities to take trustworthiness into account in the development, deployment, and evaluation of AI.

Regulatory Agencies. The Consumer Financial Protection Bureau (CFPB), Federal Trade Commission (FTC), and Equal Employment Opportunity Commission (EEOC) each have equities in federal AI policy.

• The CFPB is increasingly indicating a focus on automated decision-making and algorithmic bias in consumer financial products. In November 2021, CFPB Deputy Director Zixta Martinez highlighted “black box algorithms perpetuating digital redlining and discrimination in mortgage underwriting.” Last March, Martinez said that the CFPB was “increasing our research of algorithms and machine learning to understand how these technologies affect fair lending outcomes,” and CFPB Director Rohit Chopra released a statement saying that “we will be working to implement a dormant authority in federal law to ensure that algorithmic valuations are fair and accurate.”
• The FTC’s stake in AI policy is closely related to privacy. The agency’s rulemaking on data security and what it terms “commercial surveillance” touches on automated decision-making systems in domains including housing, credit, and employment. In a fact sheet on this rulemaking released last year, the FTC highlighted issues with algorithms including inaccuracy and bias.
• The EEOC under Biden is also focusing on AI. Included in its list of subject matter priorities in a draft enforcement plan released last month is the use of AI and machine learning in recruiting candidates for positions, making hiring decisions, and employment screening.

Congress. Unlike other tech issues, such as content moderation and online speech, AI has historically been a bipartisan topic in Congress, but that doesn’t mean much will happen under divided government.

• In recent years, the annual National Defense Authorization Act (NDAA) has often included notable provisions to support and manage AI development. The FY21 NDAA directed NIST to create its risk management framework and the FY23 NDAA directed the Department of Homeland Security to develop policies to guide AI acquisition, use, and the risks associated with AI within 180 days and the Office of Management and Budget to ensure that federal AI contracts comply with guidance. If political divisions in the fractious House scuttle passage of an FY24 NDAA for the first time in 63 years, it could eliminate a prime legislative vehicle for AI provisions to pass Congress this year.
• Though Congress has handled AI in a bipartisan way, that doesn’t mean that the parties don’t have differences in approaching this emerging technology. Both parties have indicated an interest in AI risks, such as accuracy, privacy, transparency, and accountability, but Democrats generally have had more of a focus on the harmful effects of bias on disadvantaged groups, while Republicans have generally emphasized the potential of AI to boost US industry.
• So far this year, Rep. Ted Lieu (D-CA) has called for the establishment of a new federal agency to regulate AI. Congress is unlikely to pass major legislation to regulate AI under divided government, but Lieu’s effort lays a marker for Democrats. Just weeks into the new Congress, House Republicans are beginning oversight of the Biden administration’s handling of AI. In a letter to the White House OSTP last month, House Science, Space, and Technology Committee Chair Frank Lucas (R-OK) and House Oversight Committee Chair James Comer (R-KY) raised concerns with the White House’s AI Bill of Rights for conflicting with NIST’s risk management framework.