Philly voters give small businesses a boost and the arts office staying power

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On Tuesday, Philadelphians voted to give small and local businesses a better shot at city contracts and make the city’s arts and culture office a permanent part of government.

Both ballot questions passed by wide margins in Tuesday’s midterm election, changing Philadelphia’s Home Rule Charter, the document that lays out how the city government operates.

The first question, which changes how the city awards contracts to businesses, passed with about 79% of the vote. The second, establishing a permanent arts and culture office, received about 84% support, according to Wednesday’s unofficial election results from the Philadelphia City Commissioners.

Both proposals were previously approved by City Council and Mayor Cherelle Parker, but needed voter approval to become amendments to the charter. Both measures still need to be certified.

Here’s what voters approved, why the changes were proposed and what happens next.

Giving small businesses a leg up

The first ballot question changes how Philadelphia city government can spend money on goods and services, giving small and local businesses a better chance of winning city contracts.

City contracts are agreements in which the city pays a business to do a job or provide something it needs. For example, Philadelphia might hire a construction company to repair a recreation center, a cleaning company to maintain city buildings or a supplier to provide office equipment.

Previously, the city generally had to choose the qualified business offering the lowest price.

Now, City Council can make rules that give smaller, Philly-based companies an advantage, even if they charge a little more.

The change also allows the city to set aside certain jobs worth up to $500,000 for small and local businesses, up from $100,000. It could also make it easier for smaller construction companies to qualify for city work by easing some financial requirements.

That doesn’t mean local companies will automatically get more work, but it gives the city more freedom to choose them.

And there’s plenty of money available. Philadelphia and its publicly funded partner organizations spend more than $1 billion a year paying businesses for construction, supplies and services.

Why change the rules?

For years, Philadelphia tried to ensure businesses owned by women, people of color and people with disabilities received a fair share of city contracts. Most recently, the city aimed to spend 35% of its contracting dollars with those businesses.

But in 2025, a conservative legal group called America First Legal challenged those policies in court. The city settled the lawsuit and moved away from giving businesses advantages based on race or gender.

Parker later introduced a policy in November 2025 that focused on helping businesses based on their size and whether they’re located in Philadelphia.

The ballot question, introduced by Councilmember Katherine Gilmore Richardson on behalf of Council President Kenyatta Johnson, allows City Council to build those preferences into the city’s contracting rules.

Supporters say it could help smaller businesses compete against larger companies and keep more city money in Philadelphia.

The change doesn’t guarantee contracts for any particular business or group. It also doesn’t remove the city’s existing goal of helping historically disadvantaged businesses, although the Parker administration has changed how it pursues that goal.

Making Philadelphia’s arts office permanent

The second ballot question makes Creative Philadelphia, the city’s office for arts and culture, a permanent part of city government.

Creative Philadelphia helps support local artists, public art projects and cultural events. Its work includes overseeing city public art programs and supporting organizations like Mural Arts Philadelphia.

Until now, the office existed because of executive decisions made by previous mayors. That meant a future mayor could shut it down or change its role.

Now, it will become part of Philadelphia’s Home Rule Charter — essentially the rulebook for how city government operates. That means a future mayor can’t simply get rid of it. Voters would have to approve another change.

The amendment also requires the mayor to appoint a chief cultural officer to run the office. Valerie Gay currently holds that position, earning $205,000 a year.

It also makes it easier to hire specialized arts employees, allowing up to 15 positions to be exempt from the city’s usual hiring rules. The office currently has about 10 employees.

Councilmember Isaiah Thomas introduced the measure.

Why was the arts question important?

The change comes as Philadelphia’s arts organizations have struggled with funding.

A 2026 study by SMU DataArts found that Philadelphia had the largest drop in local government arts funding per person between 2019 and 2024 among 10 cities studied.

The city also cut funding for the Philadelphia Cultural Fund, which provides grants to local arts organizations, from $5 million to $3.5 million in its latest budget, according to the Committee of Seventy.

Those cuts come despite the arts being a significant part of the local economy. The Greater Philadelphia Cultural Alliance estimates that arts and culture bring about $3 billion in economic activity to the region and support roughly 132,000 jobs.

The ballot question doesn’t guarantee more funding for artists, museums or cultural organizations. City officials will still decide how much money goes toward the arts each year when they create the budget.

What it does mean is that Philadelphia will always have a city office dedicated to supporting arts and culture, even when a new mayor takes office.

So what happens now?

The results still need to be certified. The city is scheduled to begin its official canvass of votes Friday, Nov. 6.

Once finalized, the amendments will become part of the city’s Home Rule Charter.

For small businesses, the next steps involve City Council and the Parker administration establishing or updating contracting procedures, including how bid preferences work and which companies qualify. The amendment itself doesn’t hand out any contracts.

For Creative Philadelphia, the change is more straightforward: An existing office becomes a required part of city government. Future budgets will determine how much staff and programming it can support.

Philadelphia voters have a long history of approving changes to the city charter. According to City & State Pennsylvania, the city has passed more than 80 charter amendments since 2000.

The post Philly voters give small businesses a boost and the arts office staying power appeared first on Billy Penn at WHYY.

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