Philly’s New Budget Reallocates $33 Million From Police Into Arts and Affordable Housing!

Philly’s New Budget Reallocates $33 Million From Police Into Arts and Affordable Housing!

Amid the current protests the one constant request seen on makeshift signs and shouted from the streets was to “defund the police.”  This caused a uproar among those “backing the blue” and pressured the city to make the change.  Well it looks like the Philadelphia City Council and Mayor Jim Kenney heard those shouts loud and clear because $33 million has just been stripped from the police budget.

In addition to defunding the police the new budget will also roll out new reforms to improve the police force both inside and out.  Changes include implicit bias training, an equity manager for the department as well as bodycams for officiers.

The deal was reached Wednesday night regarding the 2021 fiscal year.  City Council’s proposed $4.9 million budget called for the reallocation of the $33 million into various city organizations and initiatives.

The new budget calls for approximately $25 million will go towards addressing healthcare needs including healthier food options, affordable housing, job training and anti-poverty.  In addition $1.35 million will be allocated for the arts of Philadelphia.  This will address the crises that the Philadelphia Cultural Fund was facing. 

Mayor Kenney commented regarding the budget by saying “It is extremely disappointing that at this time we are not able to move forward with some of the crucial investments I proposed back in March, before the pandemic and resulting economic downtown were felt in Philadelphia. And it pains me that this budget reduces some City services and eliminates hundreds of jobs.”

Council President Derrell L. Clarke added, “The lack of access to affordable housing, health care, living-wage jobs and healthy foods has been exposed by these crises – along with many problems. We cannot go back to that old normal. We need to create a ‘New Normal’ and address these disparities head-on. I believe this budget is an important start toward doing that.”

According to CBS Philly, the budget includes an increase in Non-Resident Wage and Net Profit Tax to 3.5019%, an increase to the Parking Tax from 22.5% to 25%, and a pension bond debt restructuring that will generate savings of about $80 million, according to the budget package.

The budget is scheduled to get final approval by city council on June 25.

Below is a breakdown of the highlights of the city’s preliminary 2021 budget via CBS Philly:

POLICE

The deal calls for a $33.3 million cut in funding to the proposed Philadelphia Police Department budget, which would bring it approximately 4% below funding for the current year.

The mayor agreed to eliminate the proposed $19 million increase. An additional $14 million was cut from the police budget by transferring funding for crossing guards and public safety enforcement officers to the Managing Director’s Office.

The reduction in spending also calls for reforms within the department that include: Body cameras for officers, bias training, engaging mental health professionals for police-assisted diversion and an equity manager for the police force.

In addition, $400,000 will be spent to create a police oversight commission, and additional funds for public defenders.

FIRE

The Philadelphia Fire Department will have its proposed budget cut by $5.8 million, bringing the department’s budget to this year’s level.

TAX INCREASES

The wage tax for non-residents will increase to 3.5019% for a one year period, and will not seek a reduction in wage taxes for residents.The city says that increase would come to about $1 per paycheck for someone making $50,000/year.

The parking tax will rise from 22.5% to 25% for one year.

A committee will be created with the goal of reducing the city’s parking tax to 17% in 2022.

INCREASED SPENDING

The proposed budget does call for spending increases.

The ‘New Normal Budget Act’ would set aside $25M to address disparities that came to the forefront during the unrest that followed the death of George Floyd. City officials want to use that money for health care, affordable housing, anti-poverty efforts, job training and more.

$20 million would be invested into the ‘Housing Trust Fund.’

$1.45 million would be set aside for adult education.

$1.35 million that was slated for elimination would be restored to the city’s Cultural Fund and African-American Museum.

$825,000 in funding would be earmarked for criminal justice reform, specifically for re-entry services.