Philadelphians without retirement savings plans through their employers could soon have access to a plan through the city after lawmakers approved legislation Thursday to enable the novel program to move forward.
City Council members unanimously passed legislation that creates PhillySaves, which is modeled on state-facilitated “auto-IRA” programs that allow people to invest through payroll deductions at no cost to their employers.
Voters would have to approve the creation of an investment management board through a ballot question, which is slated to appear in the May primary election.
The measure was part of a flurry of legislation Council considered during a marathon meeting Thursday, its last session of the year before legislators reconvene in mid-January. Lawmakers passed dozens of pieces of legislation touching on issues including housing, public health, small-business growth, and public safety.
In addition to approving the retirement savings program, Council approved legislation to:
- Ban mobile outreach groups that provide medical care and support services to people in addiction from a swath of Kensington, the epicenter of the city’s drug crisis.
- Expand outdoor dining in the city by making it easier for more restaurateurs to obtain permits.
- Prohibit so-called reservation scalpers, or websites that allow users to reserve tables at coveted restaurants and resell them without the permission of the businesses.
- Enable the reopening of a bus station on Filbert Street in Center City.
- Direct tax refunds to victims of deed fraud.
Here’s a breakdown of what else happened on Thursday:
H.O.M.E. inches forward over Parker’s objections
City Council on Thursday approved a key piece of legislation related to Mayor Cherelle L. Parker’s Housing Opportunities Made Easy, or H.O.M.E., initiative, the latest step in the drawn-out fight over how the city should spend the proceeds from the $800 million in city bonds the administration plans to sell to support the program.
The legislation — a resolution setting the first-year budget for the initiative at about $270 million — sparked a contentious showdown between lawmakers and the administration over income eligibility levels for the housing programs funded or created by H.O.M.E.
The resolution was approved in a voice vote, with Councilmember Curtis Jones Jr. casting the lone no vote.
Over Parker’s objections, Council successfully pushed to lower income eligibility thresholds, prioritizing poorer residents. For instance, lawmakers ensured that 90% of the bond proceeds that will be spent on the Basic Systems Repair Program will go to households making 60% of area median income, which is about $71,640 for a family of four.
“This budget opens city housing programs to ensure that more than 200,000 low-income and working-family households have a chance to get into a program that provides housing stability and economic mobility and increases,” said Councilmember Rue Landau, who helped lead the push to lower the income thresholds. “This is a transformational investment, a win-win.”
A separate but related piece of legislation — an ordinance authorizing the city to sell the bonds — also needs to pass before the administration can take on debt for the initiative. That proposal, which won committee approval Wednesday, is expected to come to the Council floor in January.
In a statement Thursday, Tiffany W. Thurman, Parker’s chief of staff, thanked Council for its vote.
“We look forward to continuing conversations with Council President Kenyatta Johnson and members of City Council in the weeks ahead, and to fulfilling Mayor Parker’s strong vision to save Philadelphia’s rowhomes,” she said.
Council waters down a bill on training for security officers
Council approved a bill requiring private security guards in Philadelphia to go through 12 hours of training when they are hired and an additional eight hours of training every subsequent year.
But the final version of the bill, authored by Councilmember Isaiah Thomas, has been significantly watered down by amendments following a legislative showdown between the Service Employees International Union Local 32BJ, which championed the original version, and real estate and private security industry leaders, which said it was overly onerous and costly.
Thomas’ original bill required security guards to receive 40 hours of training upon hiring, and it prohibited employers from conducting the training for their own workers. Instead, the instruction had to be provided by a nonprofit — potentially including a labor union. SEIU 32BJ, one of the most influential unions in the city, represents building services workers, including security guards.
The amended version, however, allows employers to conduct the training after getting approval for their program from the Philadelphia Office of Worker Protections — a major relief for business leaders.
The new version, which now heads to Parker’s desk, also exempts security guards for bars and restaurants from the training requirements, and pushes back the bill’s effective date from Jan. 1 to March 1.
An inquiry into DEI contracting changes is coming next year
City Council next year will examine Parker’s decision to end its long-standing policy of prioritizing women- and minority-owned businesses in city contracting and replace it with a system favoring “small and local” firms.
Johnson authored a resolution allowing the Committee of the Whole, which includes all 17 members, to look at the history of minority contracting policies in the city and “the rationale, design, and anticipated effects” of Parker’s new policy. The resolution was approved in a unanimous vote, and a hearing will likely be scheduled in the first half of 2026.
Race- and gender-conscious government policies have been targeted by conservative legal groups following a 2023 U.S. Supreme Court decision ending affirmative action in college admissions. The Inquirer revealed in November that Parker quietly ended the city’s 40-year-old contracting policy earlier this year due to the likelihood it would be challenged in court.
The mayor has said her new “small and local” policy will accomplish many of the goals of the old system because many small Philadelphia businesses are owned by Black and brown residents and have faced roadblocks to growth.
Attorneys hired by the city, however, had recommended a race- and gender-neutral policy of favoring “socially and economically disadvantaged” businesses, according to administration documents obtained by The Inquirer.
Lawmakers will get the chance to weigh in on that decision next year.
A controversial zoning change passes for University City
Council on Thursday also approved Councilmember Jamie Gauthier’s controversial University City zoning overlay, which seeks to regulate how higher education institutions dispose of property.
The legislation has been diluted from its original form, and it now regulates the sale of property over 5,000 square feet in University City — which would largely affect only universities themselves.
Gauthier has further amended the legislation to exclude healthcare institutions. Among other things, the bill would require that property owners have building permits in hand before they are allowed to move forward on demolitions.
A sale of land would also trigger review by the Philadelphia City Planning Commission.
The legislation is part of Gauthier’s outraged response to St. Joseph’s University’s sale of much of its West Philadelphia campus to the Belmont Neighborhood Educational Alliance, a nonprofit that operates charter schools. The organization is led by Michael Karp, who is also one of the larger student-housing landlords in the area.
Thomas, a Democrat who represents the city at-large, was the only member to vote against the bill. His vote was a break with the tradition of councilmanic prerogative, in which members generally approve legislation offered by Council members who represent geographic areas when the measure affects only their districts.
Quote of the week
That was Councilmember Brian J. O’Neill, Council’s longest-serving member, who is typically its shortest-winded. But on Thursday, he took his time in a speech saying goodbye to longtime legislative director Robert Yerkov, whose last day as a Council staffer is next month.
O’Neill said he was struggling to wrap up his remarks and joked that Council should limit the amount of time that its members can speak. Public commenters are generally limited to three minutes of remarks.
To quote Shakespeare: “Brevity is the soul of wit.”
