August 11, 2014

Mayors in Action: Leadership on Income Inequality Discussion

Public Policy

Michael A. Nutter delivered introductory remarks and participated in a facilitated discussion at the U.S. Conference of Mayors Cities of Opportunity Task Force summit. The panel, “Mayors in Action: Leadership on Income Inequality”, focused on four strategies: local autonomy over wage laws; better wages in our cities; benefits to make wages work; and financial empowerment and youth employment.
Living Wages

In 2005, while I was serving as a Councilman, we passed Philadelphia’s 21 st Century Minimum Wage Standard, which required City contractors to pay their workers at least 150% of the federal minimum wage.

And, on May 5th of this year, I signed the Living Wage Executive Order extending and expanding the reach of the Minimum Wage Standard. It:

  • Requires that City of Philadelphia contractors provide that same fair wage that their workers receive to their first-tier subcontractors. Thereby raising first-tier subcontractors’ pay to $10.88, the current minimum wage for City contractors; and
  • Will raise the living wage beginning January 1, 2015 for city contractors to automatically be raised $12. Better wages in our cities: Support better wages in our cities, such as increasing the minimum wage or getting businesses that receive substantial city subsidies to pay living wages or hire-to- employ workers.
Reintegration Services

In April 2010, I re-invigorated the Office of Reintegration Services, called RISE, which helps returning citizens transition back into the community, including providing job and skills training.

We established the Philadelphia Re-Entry Employment Program, which secures job creating economic development opportunities for returning citizens through the expansion of existing businesses and the attraction of new business to the City.

In April 2011, I signed an ordinance, called Ban the Box, that banned private and public employers in the City of Philadelphia from inquiring about an applicant’s criminal history until after the first interview. The purpose of the legislation is to protect ex-offenders during the job application process. Following the first interview, an employer may request a background check or require the applicant to reveal his or her criminal history.

In 2013, the Streets Department launched the Philly Future Track program, a six-month paid life and career skill building program for young people ages 18 to 24. During the program, participants, who were not previously enrolled in higher education and were unemployed, complete beautification projects around the City and gain valuable skills that will prepare them for future success.

Also in 2013, we launched PowerCorps PHL, a program that connects young adults with barriers to employment to specialized workforce training opportunities through the Philadelphia Water Department and Philadelphia Parks and Recreation. This program couples industry-aligned service projects with 180 hours of professional development.

Within PowerCorps PHL, 80% of participants are young men, 90% are African American, more than 60% have been involved in the justice system and approximately half are parents.

Tax Incentives

  We also offer a number of tax incentives:

  • The Philadelphia Job Creation Tax Credit, which offers eligible business owners a one-time tax credit of up to $5,000 for each new, qualifying full-time job created in the city;
  • The Welfare to Work Credit, which promotes the hiring of workers with barriers to employment – targeting long-term welfare cash recipients. The tax credit ranges up to $8,500 per hire.
  • The Work Opportunity Tax Credit, which targets short-term welfare cash recipients, veterans, SSI recipients and returning citizens. This tax credit is 40% of the first $6,000 in wages. Benefits to make wages work: Make work pay by improving supports to help workers and their families, such as paid sick leave, paid family leave, and other benefits for workers.
Parental and Family Support

Just this past January, we adopted a new a policy for Parental Leave, one of the most progressive family leave policies by a city in the country, for all exempt employees.

It provides four weeks of paid leave for employees who have worked for the City for at least six months and applies equally to birth, adoptive or foster mothers and fathers, including life partners.

Additionally, birth mothers can use up to eight weeks of accrued sick time immediately following the birth of a child.

And, parents can use up to five sick days a year in the event of a sick child.

In June, I created the Mayor’s Task Force on Paid Sick Leave and charged the Task Force with conducting a thorough and balanced review of paid sick leave policies and its potential impact on employers and employees. The Task Force will submit a full report with recommendations to City Council and me by December 1, 2014.

Financial Empowerment

We support efforts to enhance financial empowerment and promote employment opportunities for City youth.

We established a new office, the Mayor’s Office of Community Empowerment and Opportunity, or the CEO, and charged it with centralizing, advancing and managing our anti-poverty efforts and the money that comes in from many sources.

To address this cyclical, inter-generational problem, CEO launched Shared Prosperity, our comprehensive anti-poverty strategy, last year. Shared Prosperity is a strategic approach that aligns available resources and assets to areas of need, focusing on education, jobs and job training, access to benefits, housing security and economic security.

Under CEO, We've worked with local partners to connect thousands of low-income seniors to benefit programs, like SNAP and LIHEAP, that they were eligible for – we call the program BenePhilly.

And, to expand the reach of our BenePhilly Program, we recently launched BenePhilly Benefits Access Centers, six locations across the City in which citizens can get in-person help to see what benefits they qualify for and to sign up for those benefits.

We are also gearing up to open our 12th Financial Empowerment Center tomorrow. The Financial Empowerment Centers offer counseling services to citizens in need, including reducing debt, saving for the future and improving credit scores.

Our Financial Empowerment counselors also help citizens enroll in City programs that can help them stay in their home or manage high bills:

  • Basic Systems Repairs Program, which provides free repairs to electrical, plumbing and heating systems in homes owned by income-eligible homeowners;
  • Low-income Senior Real Estate Freeze Program;
  • Long time Owner Occupants Program, or LOOP;
  • Owner-Occupied Real Estate Payment Agreement;
  • Real Estate Tax Installment Program;
  • Real Estate Tax Deferral Program;
  • Homestead Exemption;
  • Water Revenue Assistance Program, or WRAP, a program that offers payment agreements to income-eligible customers with past due bills; and
  • Medical Delay, a program that will delay the shut-off of water services for 30 days due to a medical emergency.
Youth Employment

We support summer and year-round employment opportunities for young people through WorkReady Philadelphia. WorkReady provides a seamless connection for youth to what we call enhanced job opportunities – jobs that link together professional, academic and workforce development for the employee.

Just last month, I announced that the City had contributed more than $7 million to increase the number of summer and year-round youth employment opportunities.

Promise Zone designation – In January, Philadelphia was one of three cities selected as a Promise Zone. This designation gives the Mantua neighborhood preferential treatment for future federal grant opportunities to help revitalize this neighborhood.

Choice Neighborhood Implementation Grant - In June, Philadelphia won a $30 million U.S. Department of Housing and Urban Development Choice Neighborhood Implementation Grant. The grant is an important part of a comprehensive revitalization strategy for North Central Philadelphia.