COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE OF THE WHOLE - - - Room 400, City Hall Philadelphia, Pennsylvania Tuesday, May 4, 2010, 1:50 p.m. - - - PUBLIC TESTIMONY: PROPOSED 2011 CITY BUDGET COMMITTEE MEMBERS PRESENT: Anna C. Verna, Chair Darrell L. Clarke Wilson W. Goode, Jr. Bill Green William K. Greenlee Curtis Jones, Jr. - - - 2 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET
Good afternoon, everyone. AUDIENCE: Good afternoon.
Welcome. This is a continued public hearing off the Committee of the Whole. I would just like everyone to know that we have approximately 55 people who are on our list to testify. We do want to hear everyone. Therefore, we're going to give everyone three minutes to testify. Our first witness will be Pete Matthews. (Applause, cheers.) (Witness comes forward.)
Madam President, that cheer was for you so you can give me a little bit more than three minutes. (Applause, cheers.)
Welcome. Please identify yourself for the record. and proceed with your testimony. 3 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET
Thank you, thank you, Madam President. Members of City Council, thank you for this opportunity to come before you and testify to the City of Philadelphia on the 2010 budget. With Philadelphia currently facing an estimated $150 million budget deficit --
Anyone having conversation, I suggest you do so in the corridor. I think every witness deserves our attention and our respect. Thank you.
Thank you. 10 PUBLIC TESTIMONY RE 2011 BUDGET With Philadelphia currently facing a estimated $150 million budget deficit, the Mayor's put before City Council two scenarios to raise new revenue in order to balance the City budget -- a $300-per-year trash fee, and a 2-cents-per-ounce tax on sugared sodas and fruit drinks. It appears the Mayor and City Council and the citizens are entered into a discussion about the best possible course from a number of different directions. As the representatives of the City's largest workers' union, AFSCME District Council 33 is more than just an interested party to these discussions. 10 PUBLIC TESTIMONY RE 2011 BUDGET the State last September for those changes as well as approval for the City to raise the sales tax by a percentage point. These two initiatives helped the City to generate $700 million to balance that budget that City Council passed last June. Since that time, District Council 33 has continued working with the City to find ways to maintain the level of City services that the citizens and taxpayers of the City demand. For the past two years, AFSCME District Council 33 has been working closely with the City to find ways to operate more efficiently to maintain vital City services and to find the necessary revenue to continue delivering those services. Recently, District Council 33 led the way when it comes to making sure that our health benefits are affordable to the City. 10 PUBLIC TESTIMONY RE 2011 BUDGET contract in at least the last twelve years, it is clear that District Council 33 and District Council 47 have received the lowest per-member, per-month contributions for health care for all City workers by a very wide margin. Last December, District Council 33 was the first City union to move to a self-insured model that allowed us to maintain our health benefits without adding expense to the City. In fact, we have been maintaining our benefits, in spite of rising costs, even though we have not received a health benefits contribution increase in the last two years. In spite of our demonstrated record of controlling health-care costs, there is still pressure, mostly generated by the media, for the City to consider benefit cuts for our members when that option is not justified by the facts. 10 PUBLIC TESTIMONY RE 2011 BUDGET of the City, we have an interest in any proposals before City Council that would change the taxes our members pay. We understand that both of the Mayor's proposed revenue enhancements are controversial because they are both regressive taxes that target poor and middle-class working families of the City disproportionately. However, we also recognize that the City needs new revenue sources to continue to deliver the vital City services that our members provide, services that most of the citizens of the City have made clear they support. With that in mind, we would urge you to also consider options or amendments to these proposals that would make them more fair and progressive. One such proposed amendment would increase the real-estate tax to cover the added expenses associated with trash collection. 10 PUBLIC TESTIMONY RE 2011 BUDGET because it would allow taxpayers and homeowners, including senior citizens, to deduct this added expense as part of their real-estate taxes and would positively impact the real-estate tax rebates that senior citizens receive. District Council 33 will continue to deliver quality services to the best of our ability. All we are asking you to do is to find ways to fund those services in the fairest manner possible. We believe that Mayor Nutter did the right thing by presenting City Council with a responsible budget proposal that recognizes the need for maintaining vital City services. During last year's budget discussion, it was clear that many citizens in many neighborhoods around the City were angered that they were not receiving City services in a timely manner.
10 PUBLIC TESTIMONY RE 2011 BUDGET recent snowstorms, which virtually closed down most City businesses. It should be noted that the number of City workers staffing cutbacks over the past several years was the cause of the City's inability to clear many neighborhood streets; it was not due to the unwillingness of District Council 33 members to do the work. If it was up to the members of District Council 33, we would be out there in every neighborhood in the City, making sure that our friends, neighbors, and families were able to dig out and get back to normal, but that was not our call. We can only do so much when staffing levels and equipment and supply budgets have already been cut to the bone. Given these serious limitations, we think the Mayor is making the right choice by looking for more revenue as opposed to more service cuts in order to balance the City as budget. 10 PUBLIC TESTIMONY RE 2011 BUDGET A recent editorial in the Philadelphia Inquirer correctly pointed out that the percent family poverty 5 rate in the City is a very large 6 contributing factor to the City's budget 7 difficulties. People can't pay wage 8 taxes if they don't have jobs. And yet, 9 the very fact that they are in poverty 10 increases demand for services. 11 However, blaming the City 12 workers who deliver those services, as 13 the Inquirer also did in another recent 14 editorial because taxes also go to pay 15 for their wages and benefits, is not 16 justified. Cutting health and pension 17 benefits for active and retired City 18 workers will only add to the poverty rate 19 because our members and retirees pay 20 taxes too. 10 PUBLIC TESTIMONY RE 2011 BUDGET benefits in lieu of high wages. That equation has helped the City to function for a long time. One administration after another has tried to reduce the City's workforce by layoffs, attrition, and by privatizing vital City services while turning a blind eye to the obligations they had to the City's employees as a result of the contract and arbitration settlements. To continue on this path this year instead of exploring new revenue sources would be a mistake. It is becoming more and more obvious that the citizens of the City want and deserve basic services but are unwilling to pay because they have been promised both lowered taxes and increased services for too long. 10 PUBLIC TESTIMONY RE 2011 BUDGET they live, in spite of shrinking staffing at all operational levels. Thank you. And I'm available to answer any questions you may have on our position on the budget or on the contract negotiations with the City. Thank you. )
Thank you. Mr. Matthews. We certainly are very grateful for the vital services your members provide the City. Are there any questions from members of the committee? Or any comments? The Chair recognizes Councilman Green.
Thank you, Madam Chair. Thank you very much for your testimony, Mr. Matthews. I just wanted to -- I wonder if the unions have had a chance to look at the amount of Class 200 spending that the 13 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET City does, which is about $681 million of services that are paid for by contract, and what impact you think that has on citizens. I also want to note that while your workers were making their hourly wage out there, cleaning our streets of snow, private contractors were being paid one man in a truck $600 an hour. (Applause, cheers.)
$600 an hour for them to clean snow. That's not fair and that's not reasonable. So what I'd like to suggest is, I look forward to working with you to find ways to make government more efficient in part by bringing some of these services back into being performed by our City workers. Thank you. (Applause, cheers.)
Well, I think that is a great question, Councilman Green, one that we have been pursuing 14 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET ever since I've been in this union about private contractors, and we bring up exactly that point, that they're overpaid for -- in most instances, we do the work over that they do because they fail to do a good job -- (Applause.) (Cheers.)
So I am very hopeful that you will pursue that avenue with us because I think that would be a significant saving with all of the savings we have already saved the City; we have saved the City significant amounts of money. And (indiscernible), everybody tries to make a point of health care. I would like to point out, we've received over the years significantly less money on our health care, we've provide our benefits, and we have saved the City millions of dollars over the years by the way in which we manage our health with welfare, so I look forward to working 15 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET with you on that. Thank you. (Applause, cheers.)
So we talk about efficiencies in City government, and I still think City government can be efficient in some other ways, but I guarantee you, there is a lot of fat in the $681 million we spend contracting out services to other people. (Applause.)
I would absolutely agree with you on that. And one thing I would say, when I gave a speech out there, and I think I gave it in our testimony here: There is no fat; we are cut to the bone with what we do. So I agree with that, and I look forward to working with you on that. Thank you. (Applause, cheers.)
Are there any questions or comments from 16 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET members of the committee of this witness? (No response.)
Seeing none, thank you very much. We appreciate your coming in.
Thank you, Madam President, the opportunity to come in today.
I would ask our visitors to please leave quietly. We would like to continue to conduct business. Thank you. Our next witness?
Tom Kaiden, from the Cultural Alliance. (Witness comes forward.) MR KAIDEN: Good afternoon, President Verna and members --
Mr. Kaiden can you wait just a minute? 17 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET It's just too noisy. MR KAIDEN: Yep.
All right, Mr. Kaiden, kindly identify yourself for the record and proceed with your testimony. MR KAIDEN: Thank you. I'm Tom Kaiden, Acting Executive Director of the Cultural Alliance. Before I begin my prepared remarks, I just want to thank Council. I was in here a few months ago for the recognition of our past president, Peggy Amsterdam, and very much appreciate your recognition of her contribution, and I just want to assure you that we are committed to continuing her great legacy and ensuring that Philadelphia remains a world-class cultural city as we carry her work forward. And I'll now read my prepared remarks. 10 PUBLIC TESTIMONY RE 2011 BUDGET Council. I'm here today representing over 375 regional arts and cultural institutions, which provide 19,000 jobs, engage 24,000 volunteers, and serve million residents and visitors each 7 year. On their behalf, I testify in 8 support of keeping arts and cultural 9 funding intact in the City's Fiscal Year 10 2011 Operating Budget and Five-Year Plan. 11 There is an incredible will to 12 make and enjoy art in this region. 13 Creativity is a vital part of who we are 14 as Philadelphians, and it's central to 15 how we grow our economy, our communities, and ourselves. In the current environment, cultural organizations are maintaining a delicate balance of community service and financial survival. 10 PUBLIC TESTIMONY RE 2011 BUDGET and, in some cases, even increasing -- affordable, high-quality cultural programs. The African-American Museum in Philadelphia is a great example of this. " And given the percent increase in 15 attendance since the exhibit's opening, 16 we know they're doing the right thing for 17 Philadelphians. 18 As you can see, in the midst of 19 an incredibly challenging economy, 20 cultural organizations are showing 21 remarkable resilience in producing more 22 art with less money. 10 PUBLIC TESTIMONY RE 2011 BUDGET and personal contributions to help make up for shortfalls in corporate foundation and other government support. Along with arts organizations and residents, the City of Philadelphia has done a notable job of maintaining investment in its cultural assets. Today, I urge you to continue that investment. We're a world-class city. And to stay competitive, we need to keep the investments that provide a solid return. Time and again, the arts have proven themselves to be that kind of investment. Every dollar invested from local government returns $5 in local tax revenue. And don't forget what arts and culture is doing to support some of Philadelphia's other key industries too. In this region, arts audiences spend almost $185 million per year at our hotels and over $250 million per year at our restaurants. 10 PUBLIC TESTIMONY RE 2011 BUDGET Another defining characteristic of a world-class city is its distinctiveness. Philadelphia's arts and culture sector is often cited as one of our most extraordinary assets. Our arts and culture sector is not only unique but is an inseparable part of our identity. Unlike other businesses that take advantage of the chance to move when it most benefits their bottom line, the roots of our cultural institutions are deep and strong. They are woven into the fabric of who we are, what we've been, and who we will become. When we're all gone, the Philadelphia Museum of Art will be standing tall. Most importantly, though, the mission of every cultural organization is to meet the needs of our residents. 10 PUBLIC TESTIMONY RE 2011 BUDGET median ticket price to our region's cultural attractions is just $14. We could raise those prices to cover our costs, but that means the prices would triple, and it would mean closing our doors to a large portion of the City's residents. In fact, 43 percent of all admissions to arts organizations are free -- free. It makes it possible for the arts to be available to all Philadelphians. It's the kind of public access we can't afford to keep up without your continued support.
And its access is vital to a generation who will rely on their creativity to compete in the global committee. Residents are now relying on arts and culture offerings even more. To meet public demand, nearly half of our region's cultural organizations have actually increased, or expect to increase, their programming. 10 PUBLIC TESTIMONY RE 2011 BUDGET up from 27 percent in October; this at a time when no one has a dime to spare. The public is doing its part, and their actions demonstrate that arts and culture are a valuable asset to Philadelphia and the region. But the public alone can't keep these organizations afloat. That's the bottom line of our nonprofit status: We're not in it for the money; we're in it for the public good. We're here to provide a service that has been demonstrated to be more vital to our community now than ever before. So I urge all of you to match our residents' support with continued City funding for arts and cultural organizations. It's an investment that improves Philadelphia's competitiveness, its quality of life, its educational network, and, ultimately, its bottom line. It's how we grow. Thank you for you go allowing me to speak today. 10 PUBLIC TESTIMONY RE 2011 BUDGET
Thank you very much. MR KAIDEN: And I urge you to continue your investment in the arts and culture sector. Thank you. (No response.)
Seeing none, thank you for come in to testify. Our next witness?
Good afternoon. Please identify yourself for the record and proceed with your testimony.
Good afternoon. I'm Shelly Yanoff. I'm Executive Director of the region's child advocacy organization, Public Citizens for Children and Youth. 10 PUBLIC TESTIMONY RE 2011 BUDGET government. So we advocate for kids. For many years, as you well know, President Verna, I've come in and spoken before this body about things that kids and families need to help them grow and to help Philadelphia be the place it should be. I am glad to see and to say that many times, you've heard us. Council heard us ten years ago, when we said that the across-the-bar drink tax would not destroy local pubs or bars but would bring in needed funding for schools. You heard us, and it happened. And no bad things happened to the bars or pubs, but kids got more in school. Thank you. You heard us in subsequent years when we urged that the City support efforts to end lead poisoning, a permanent injury and injurer of too many of our children. You heard us when we spoke of the importance of staffed and open house centers to this community. 10 PUBLIC TESTIMONY RE 2011 BUDGET You heard us when we said that neighborhoods would not be safe unless we invested in them -- in lighting their streets and supporting their arts and their recreation centers and in their libraries. You heard us, and we thank you for this support. But every year, as inflation grows, while these programs and services have not thus far been cut in major ways, they are, at best, left stagnant, limping along when what we need to be doing is much more. At worst, they've endured continuous small cuts. And as you well know, communities as well as individuals have been harmed by hundreds of small cuts. But today, we're threatened with much more than that. We must close the budget gap or face drastic changes, with impact on many of us who need City services. 10 PUBLIC TESTIMONY RE 2011 BUDGET nation, state, and, city have only heard the down-with-government noise. Unfortunately, the media plays to this sound. Last week in Springfield, Illinois, thousands of people went to the State capitol and said, "Don't cut our schools, don't cut services. Show some guts and raise the money to save our future. Show some guts," they said. But we didn't hear or read much about it. Too often, it wasn't reported. Few heard the majority feeling expressed that people expect and want government to provide them needed good services, that it costs us much too much not to. The kids with nothing to do get in trouble, that waiting lists for needed services are very expensive, that finding centers closed or kids untreated are costly in both physical, emotional, and physical terms. 10 PUBLIC TESTIMONY RE 2011 BUDGET of the consequences or other choices. If we ask others or ourselves whether we support more taxes, we will say no. 6 If we ask, however, Would you rather have libraries, recreation centers, health centers stripped of more resources, would you rather have the number of children with lead exposure grow or fewer after-school programs, longer waiting lists to health centers, fewer swimming pools open, fewer facilities for the homeless, or would you be willing to support a fair tax? the answer would change. Most citizens of this city have shown over and over again that they want good services, they're willing to pay for them, but they want to be treated fairly. 10 PUBLIC TESTIMONY RE 2011 BUDGET the answer would be no. 3 If you ask whether the med-ed industries and universities should start contributing something since they don't pay property taxes, the answer would be yes resoundingly. Large nonprofits in other cities support the government in which they are sited; why not here? What happened to pilots in silence? If Boston's nonprofits can contribute millions to their city, why are we not asking publicly that Penn and Temple and Drexel and all of them do as well.
If obesity is a problem -- and it is -- and the tax on sugar-sweetened beverages would bring in funds and help the fight against obesity -- which it will -- and the majority of citizens again have been polled and support it, in spite of the lobbyists, to the contrary, why are you not supporting it? 10 PUBLIC TESTIMONY RE 2011 BUDGET healthier, that should be considered a good. We understand that these are hard times in both the City and State, and there are not easy choices. ) But the consequences of our choices need to be closely examined. How much will it cost us not to support health centers, prevention programs, libraries, after-school and community programs, or lead-prevention work? How much will it cost us in crime and loss of business and loss of lives? We are in the worst economic time in many, many decades; that's when we need more services, not fewer. The alternatives to not increasing some broad general tax are few, and most are not fair. Can we not agree at this time to suspend the perks for the richest among us, suspend for a while the abatements. 10 PUBLIC TESTIMONY RE 2011 BUDGET universities and other nonprofits for funding. Enact a property tax for two years while the assessment process becomes more fair, and help our kids become more healthy. It's never easy for a politician to raise taxes, but if you do it fairly, then it's right. " There are 23,000 babies born in Philadelphia each year. We ask you to invest in their families and in their communities' future. Thank you.
Thank you. The Chair recognizes Councilman Green.
Thank you, Madam Chair. Just for the record, I am holding a poll that shows -- it was an independent poll with much more 32 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET independent questions that show that 63 percent of Philadelphians, including every single demographic -- Democratic Republican, Independent, et cetera, White, Latino or African-American, every single demographic opposes a sugary- drinks tax by at least 62 percent. And I understand our need for services that you're asking for, and I share your goals with respect to everything you're talking about. I don't think that you're that concerned with where or how the resources come from; you're concerned with the end-game. And so, I don't think you're here really testifying in favor of any specific revenue measure; you're here, looking for resources for the areas that you work so hard in and care about so much. Is that fair?
I think that's fair. I do think that we need to 33 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET enact a broad general tax, and I think it should be time-limited so that we can maybe get in front of the ball.
Thank you very much. Any other questions or comments from members of the committee? (No response.)
34 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET Please identify yourself for the record.
I'm Dave Tukey. I live in West Mount Airy. I've been a tree tender for four or five years. Good afternoon, members of Council. I do want to divert a little bit from my prepared remarks; I know all of you can read them, so let me just do a little more extemporaneous version. There are lots of benefits for trees; the last page of the handouts I'm passing out lists them in 28 different kinds and 6 different categories. Most important for your consideration are the economic benefits. Research has shown that for every dollar a city spends on trees, the city receives $2 in benefits of various kinds, including storm-water abatement, improved energy efficiency, and even improvement of street maintenance. 10 PUBLIC TESTIMONY RE 2011 BUDGET ledgers. In many cities around the country, inclusion of that has helped their bond ratings. Trees are not just about things that look good; they are capital improvements of various important kinds for the City. Philadelphia has a lot of trees in some areas and very few trees in others. The quality of life in our areas tremendously depends upon the trees that we have. In terms of the budget hearings that you had with the Commissioner and his proposed Parks and Recreation budget, I especially appreciated questions from Councilman Green, Councilwoman Sanchez, and Councilwoman Brown; I want to touch on those briefly. It's hard to figure out exactly what that department needs to do with so many needs. One of the questions was the about manager-level positions in the service district that they were proposing. 10 PUBLIC TESTIMONY RE 2011 BUDGET I know across the country, one of the best things that a city has been able to do is focus neighborhood efforts on trees and getting city staff and local residents to work together in partnerships with school districts, local organizations, and business associations. In Philadelphia, there's a huge gap between the staff of Fairmount Park and things going on at the citizen level. The Penn Hort Society has filled that gap a little bit with the Tree Tender Program, but that does nothing for tree maintenance. We need some people that respond effectively in the neighborhoods for such issues, which brings me to questions that Councilwoman Sanchez talked about in terms of removals. It was mentioned that day that Philadelphia is a thousand trees behind in removals. 10 PUBLIC TESTIMONY RE 2011 BUDGET have dead branches, trees with fungus, and bark coming off of the trees up to 4 feet high. I've been trained to identify 5 these hazards, I know them when I see 6 them just on a quick visual inspection. 7 We need people to take down those trees. 8 And this leads me to another 9 issue that was mentioned, I believe, by 10 Councilwoman Brown: Why do we have so 11 many contractors doing work with trees 12 outside of Philadelphia that don't have 13 our state license plates on them or even 14 addresses from Philadelphia? 15 Councilman Green has talked about the fat in the budgets for contract work. I know, in many cases, the contract work done for tree-planting is not supervised by City supervised by City staff. In my neighborhood alone, I know contract work planting trees where those trees have died within two to three months. It's either bad material or bad planting, whatever it is, but that's a lot of money going in per tree. 10 PUBLIC TESTIMONY RE 2011 BUDGET not planting enough trees and they're not doing well. I recommend that we have more tree workers hired by the City, that Philadelphians plants their own tree because we care about our trees more than contractors outside the area care about them. In short, I think there's a lot more we can do with trees. They're an investment in our quality of life, they're an investment in our workforce, and they draw people to the City. Thank you very much for your kind attention. )
Thank you. Your full testimony will be given to the stenographer.
And it will, indeed, be made a part of the record. Thank you. 39 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET
Mike McCrea. (Witnesses come forward.) MR. McCRAE: The next three of us will come up together.
Oh, that's fine. So it would be Mike McCrae, Jim Helman, and Claudia Sherrod. MR. McCRAE: That would be correct. Thank you.
Good 40 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET afternoon.
And my fellow City Council members. My name is Claudia Smith Sherrod. It is indeed a pleasure to testify today. As I view the proposed budget for the youth Recreation Department, I can certainly say it is more favorable than the past budgets. Our children in the community applaud you for putting them back on the radar. Our youth are a priority, and our proposed budget shows concern for our children. The budget also encourages communities to be involved and to be there to provide backup and support. In addition to the budget that is proposed, I am hoping that additional support will be provided for the playgrounds, especially the South Philadelphia playgrounds that are in dire need, such as Smith Playground and Chew Playground. The activities at each are growing and more demanding, need more 41 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET staff to support the facilities, supervisors with assistants. Our playgrounds, with the City guidance, must attempt to fulfill the need in freeing up the facilities' supervisors so that they can become proactive in programs created and fulfilling the need each facility encompasses. We also want to keep the present youth and galvanize more youth and community support. I can personally speak on Chew and Smith playground looking to expand; however, it needs backup to support the facility supervisors. Are the jobs for the recreation center so low on the totem pole that they cannot be considered to build our centers because of the limited resources? The proposed budget is a favorite, positive thing for playgrounds and centers. Keeping the budget in a favorable mode, won't you please go a little further to give the support needed 42 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET to help provide quality direction for our youth. That's my overall testimony in terms of what I view. But I'd like to just make a few more comments regarding trees and grass, green space. I think they're beautiful, but I don't think they should come before our youth. (Applause.)
Good afternoon, President Verna and members of Council my name is Jim Helman. I'm a resident of Grays Ferry, and I'm privileged to serve my community as President of Smith Playground, 25th and Jackson Streets; Vice President of Donald P. Finnegan Playground, 30th and Morton Streets; and Secretary-Treasurer of Vare Recreation Center 26th and Morris Streets. I am here to testify in support of funding for the Department of 43 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET Recreation, soon to become a component of the Department of Parks and Recreation. In a recent interview on public broadcasting radio, Mayor Michael Nutter was asked a question about public safety. The interviewer was referring to the police and fire departments. In his response, the Mayor said that we must not forget public recreation, which is an important part of public safety. (Applause.)
While it was unusual to hear an occupant of the second floor of City Hall say such a thing publicly, why wouldn't the Mayor say what we have been saying for years; after all, aren't our children safer in our buildings than on our streets? Don't we prefer to hear the sound of bouncing basketballs than the sound of gunshots? (Applause.)
Wouldn't we rather deal with the commotion of free play and structured programming than deal with the 44 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET commotion of crime in our neighborhoods? And who would not want our young people to visit our playgrounds and recreation centers to play, learn, and grow with us? As if to advance his thinking, the Nutter Administration has proposed a budget with a more than $2 million increase and $5 million for capital improvements; that is certainly a step in the right direction, and we support it. Unfortunately, it is not nearly enough to repair the debilitating damage caused by the brutal budget cuts of the last two years. Much more will be needed to return public recreation to the level it was at when Mayor Nutter took office. In fact, department staffing today is near what it was at the beginning of the Rendell Administration, in the early '19990. In addition to the poor staffing levels, public recreation and the public safety it represents seems to be taken second place to parks in the 45 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET upcoming merger of the two departments. In point of fact, it is unusual to even hear the phrase "public recreation" anymore. It seems that we have become something called "out-of- school-time activities" in the minds of some of our recreation professionals, including those at the very top who are guiding the merger. The department has even appointed an out-of-school-time activities coordinator to, well, I guess coordinate something. In a recent printed response to a question posed by the Philadelphia Parks Alliance, Commissioner Michael DeBerardinis stated the goals and strategic objectives of the merger. The Commissioner included: "Develop high-level practices and expand leadership in out-of-school-time activities." The statement was buried in an avalanche of green spaces, natural resource, forest management, outdoor 46 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET recreation, environmental assets, and green practices. The merger seems to be a story of trees, green spaces, carbon footprints, and nature trails -- and very precious little about the people-oriented City service that public recreation has always represented. To paraphrase an old saying, we are losing sight of the needs of our citizens, especially our young people, because the trees are blocking our view. Now, we are certainly not opposed to trees and green spaces. These are vital subjects in today's society, and they need to be addressed. (Interruption by cell phone sound coming from balcony.)
Jim, just a minute. I don't think you need that background. Whoever is -- where's that coming from? Okay. Please proceed.
I'll start that 47 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET paragraph over. Now, we are certainly not opposed to trees and green spaces. These are vital subjects in today's society, and they need to be addressed, but they must be put in perspective. We must be careful not to allow our forests to become more important than our people. We must avoid the disposition of resources to the creation of nature trails at the expense of quality programming for our young people. Yet that seems to be what is happening. In next year's proposed budget, the department wants to hire as many as 40 arborists, while the same number of positions in public recreation remain vacant, and many have been vacant for well over a year: Recreation leaders I, Assistant Recreation Leaders, and Custodians -- all missing from the field while we rush to plant trees. The organization chart for the merged department is amazingly top-heavy 48 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET while the field has a problem hiring RSIs, which are crucial to effective programming at the local level. There are virtually no plans, and even very little talk, about developing programming which, by the way, we were told would happen by the Mayor before the merger vote. Nothing is heard about more teen centers or summer teen camps or structures athletics or field trips, all immensely beneficial to the young people we serve. And let's, for a movement, examine the after-school-time activities, which has become the catch phrase for what used to be called "public recreation." At our facilities, we serve older teenagers, young adults, and older adults who clearly do not fall into the category. It's almost as if the current department administration wants to grab hold of our young people and bend their 49 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET minds into green advocates, environmentalists, and arborists. Now, we can talk about green spaces. Let's start with all those green spaces with their carefully manicured lawns, nicely pruned trees and shrubs that create an almost parklike setting. You know the green spaces I'm talking about. We call them "cemeteries," and they are the green spaces where we have deposited so many of our young people over the years. Let's talk about those green spaces and figure out what we can do to preserve them for people of my generation instead of the generations that come after me. (Applause.)
Thank you. Let's talk about our carbon footprint. 10 PUBLIC TESTIMONY RE 2011 BUDGET communities, and let's figure out what we can do better to help reduce them. Why is this happening? It could be that the Mayor's statement about public recreation being part of public safety are mostly empty words. It could be that our commissioner was the Commonwealth's Secretary of Conservation and Resources and whose wife is senior director of the Horticultural Society responsible for overseeing the Philadelphia green project. It could be that the leadership of Fairmount Park are strong and dedicated people while the leadership of Recreation are weak and complacent. It could be any of those or any number of other things. What is important is that we do not go running around blindly planting trees and forget to help plant a quality future for many of the young people of our city. 10 PUBLIC TESTIMONY RE 2011 BUDGET Thank you. ) MR. McCRAE: He's a tough act to follow. I am Mike McCrea, President of Philadelphia Recreation Advisory Council. To all members of Council, the last two years have been difficult for all of us, and I first have to thank City Council for their continued support; without that, things really could have easily been much worse. As volunteers, we continue to support the vital partnership we have with the Parks and Recreation Department over the last two years with this department. While it has lost over 19 percent of its operating budget, it 20 continues to deliver the same vital 21 services offered at every facility across 22 the City of Philadelphia. 10 PUBLIC TESTIMONY RE 2011 BUDGET department as well as the volunteers that support their local facilities. In large part, it is the partnership that really makes it work. The mutual respect we have for each other and the reality that each of us would not be as successful without the other goes a very long way. Obviously, again, none of this happens in a vacuum. During our merger discussions over the last twelve months, the vision of the combined Parks and Recreation Department is communicated and amplified on many occasions. 10 PUBLIC TESTIMONY RE 2011 BUDGET have been saying for many years and have not heard from the second floor of City Hall in a long time As the Mayor guaranteed us during the merger negotiations, we want to be sure the quality of these services and the resources necessary to carry them out would remain intact. 5 million increase from last year's operating budget level. In their testimony, the department stated most of it would go to funding over 40 positions; more than half of that which would support the Administration's goal of planting trees. We had several discussions with the department concerning currently unfilled program and maintenance worker positions. 10 PUBLIC TESTIMONY RE 2011 BUDGET minimum staffing level in program level, and full-time custodians short of that 4 same goal in the Maintenance Department, 5 the majority of which of these positions 6 have been unfilled for at least a year. 7 The answer was, they could not 8 promise how many of these positions could 9 be filled in this proposed budget. That 10 minimum level, however, supports the 11 minimum number of employees required to 12 safely operate every staff facility for 13 the requisite number of hours per week 14 While we support the increase 15 in funding, we also believe these open 16 and unfilled field-level positions that 17 provide direct people services to the 18 community must get equal consideration. If we want to be a first-class parks and recreation department, we cannot allow our children to become second-class recreation citizens. ) MR. McCRAE: I like that. 10 PUBLIC TESTIMONY RE 2011 BUDGET the green initiatives laid out by this administration, and we truly get the benefits of planting more trees, we also believe there's a need to be a little more perspective and balance involved in the discussion.
While we have heard time and time again about the need for reducing our carbon footprint, the need to reduce the bloody footprints that continue to proliferate in many of our communities is crying out for equal time. Basic public safety, especially as it pertains to our youngest and most vulnerable, should never have to take a backseat in any discussion. The Parks and Recreation Department, among other things, is charged with the operation of over 150 safe havens spanning every community across the City. It's hard to imagine a more daunting task. 10 PUBLIC TESTIMONY RE 2011 BUDGET ownership in it, and support the partnership with the Department of Parks and Recreation that we continue to have. We will continue to hold out hope that we can develop the same kind of partnership with this administration. Thank you.
Thank you. I want to publicly thank both of you for your commitment to our community. I know how involved you are with the youth and with the recreation centers, and I often think, what would it be like if you weren't there? I really want to, as I said, publicly thank you for all that you do. Thank you. MR. McCRAE: Thank you, Madam President. (Applause.)
Just a moment. The Chair recognizes Councilman Clarke. 57 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET
Thank you. Thank you, Madam President. Good afternoon. As a councilmember who had a small involvement in the park merger, I would just like to, first of all, thank you for your continued involvement from the recreation side. And I want to say that I understand your concern. Being involved from the early phases of this process, it was clear that the number of advocates -- this was when people were in opposition to the merger. The number of advocates on the park side of it was much more numerous than the number of advocates from the recreation side. As a matter of fact, the folks on the recreation side were cooperating in a way to say, If this happens, let's ensure that the recreation is not left behind. And that actually continued through the process, where we sent out requests for opportunities to be on the 58 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET newly-formed Parks and Recs Commission. It was heavily weighted to park advocates than recreation. We had to go out of our way to make sure that there were people who had recreation backgrounds. And, frankly speaking, that level of involvement continues. And we all know, you know, in the City, the folks that use the rec centers tend to be more local, tend to be the people that live in those particular neighborhoods who may not necessarily be characterized as an advocate but more so as a user. MR. McCRAE: Yes.
So their advocacy skills and the need to be advocates, frankly speaking, is jut not there. MR. McCRAE: Correct.
But I just 59 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET want to say that in my conversations and other Councilmembers' conversations with Mr. DeBerardinis, we emphasize that every day, to make sure that this unification of these two departments is done in a fair and equitable way, where ultimately, the true merger of those departments, that it will be a seamless transition, and you will not even know the difference between the two entities, because all of it, at the end of the day, is supposed to provide support to the citizens of Philadelphia. So I understand your concern; it's real. But I just want to say, you know, as this Councilperson -- and I go so far as to speak for all Councilmembers, we're going to be on top of that to make sure it's done in a reasonable way. MR. McCRAE: Thank you, Councilman.
Thank you for your continued support. 60 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET
Certainly. MR KAIDEN: We know you, Councilman Clarke, we know you to be a supporter of public recreation. And we were not opposed to the merger.
We met several times with the Mayor, who promised us a lot -- very little of which we've actually seen. And when you say you emphasize to the Commissioner every day, maybe you should start emphasizing it every hour. (Laughter.)
Well, I will go so far as to -- because I do feel responsible in maybe even a little more 61 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET than in a small way for this merger, that I would go so far as to commit to you today that if it calls for a convening of the meeting with the Commissioner and any Councilmembers who would want to be in that particular meeting, and if it calls for members of the Administration, to sit down with the new commissioner, 'cause I do know the Commissioner. As you know, he used to be a Recreation person, and I knew him personally before I was even involved in government or any of the political realm, and I knew him to be a committed person. But I would be very confident in setting up and commit to you to setting up whatever format we need to do to make sure that the level of support is there from the recreation side, and I'll make that commitment to you publicly.
You're welcome. Thank you, Madam President. 62 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET
You're welcome. Any further comments or questions from members of the committee? (No response.) Thank you. And, Jim, please learn to say what you really think. (Laughter.)
I'm Brian Villa, V-I-L-L-A, a resident of the 2nd Councilmatic District. 10 PUBLIC TESTIMONY RE 2011 BUDGET members and guests, thank you for hearing my budgetary and Park and Recreation Department comments. I am Brian Villa, Director of Philly Tennis Advocates and the 10th and Lombard Street Seger Park Tennis Club. With me is Kitty Perrin, United States Tennis Association staff member and Philadelphia and Delaware County Service Representative; she will also testify today. 4 million increase supporting the capital budgets for Parks and Recreation infrastructure. 10 PUBLIC TESTIMONY RE 2011 BUDGET study. As a consequence, Parks and Recreation conditions and operations in the 1st, 2nd, 3rd, and 6th Council Districts have drawn noted interest; here, an abstracted tennis court analysis has been developed. In the greater downtown area and including the FDR Park at Broad and Pattison Streets, the public park tennis courts leave much to be desired. Examples include courts that lack light for nighttime play or have severely worn-through court surfaces, courts replete with cracks and fissures, and courts that have been institutionally abandoned. 10 PUBLIC TESTIMONY RE 2011 BUDGET estate indicators or birth rate statistics. Accordingly, there is a lack of recreational opportunity since overburdened and under-maintained Parks and Recreation facilities cannot meet demand. To be a first-class city, this must change. The people of Philadelphia require more tennis courts and would benefit from it. Tennis is a growing sport. It reaches diverse populations in terms of age and ethnicity, yet it reaches far fewer than it should, or could, due to lack of playing opportunity. But the cost is more than lack of play; the City also loses out. The City loses out because, without capital monies for courts, private money and professional resources from the USTA and other national nonprofits cannot leveraged. 10 PUBLIC TESTIMONY RE 2011 BUDGET grants cannot be sought or implemented if playing facilities are substandard and in dire need of repair. The City also loses out in terms of economic and social development because inferior sites cannot hold local, regional, or national tournaments that would otherwise bring in revenue through shoppers, visitors, and hotel users to town. Philadelphia's history is one that includes it being a successful tennis town. However, that reputation is severely diminished today when the local infrastructure is not fit or cannot accommodate play. ) In the area around City Hall and beyond, that is the case. Visit Seger Park, Marquardt, Weccacoe, and Garden Court playgrounds, or the tennis courts of FDR Park. What you will see is not pretty; yet, starting today, it can be changed by each and every one of you. 10 PUBLIC TESTIMONY RE 2011 BUDGET Please pass the proposed operating and capital budgets for Parks and Recreation and begin turning around the City's recreational infrastructure, with a clear eye towards the tennis topics presented. You should not be surprised to find a large amount of support and mountains of social benefit. Thank you for your interest in my comments. I look forward to meeting and working with you to improve Philadelphia's tennis environment and the City as a whole.
Didn't we have new tennis courts installed there two years ago?
Two, I think. 68 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET
No? She's saying yes and you're saying no. 5 Which was it? I think it was approximately two years ago.
Well, no matter the case, we acknowledge that tennis courts were put in place on the border of Broad and Pattison. However, I think that it is important to recognize that the ten tennis courts in the back were reduced to five; and, therefore, there's only a net gain of five for the area as a whole. As the Council President, I am sure, would take note, the area of the Stadium Complex is legislated to undergo a redevelopment as well as the Naval Yard; therefore, bringing in additional populations. So my point, I believe, is supported that the incoming population is not adequately serviced by the present 69 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET state of the tennis-supporting infrastructure. The same is the case for the Center City area. In Center City, basically, Washington to Spring, and river to river, there are only five publicly-available tennis courts, and they're in terrible shape now. Many people who otherwise support parks through reservation system, such as at Seger Park, are basically abandoning the site because it's not worth the cost. Therefore, people leave town, they spend money their money elsewhere, and you get into, so to speak, a bit of an economic death spiral. If the City were to invest in more tennis sites that have three courts or more, they could be eligible for grants and opportunities through the USTA. There are lots of children that want to become tennis superstars, and their parents support them in these endeavors. 70 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET Tennis tournaments, if adequately structured, take place over the weekend or multitudes of weekends. That means people have to stay around and spend their money. It also improves communities. It's a very cost-effective economic engine.
I'm very sorry to hear that the five tennis courts in the back at FDR Park were not rehabilitated. I was told they were going to be repaired, they would have new fencing; but apparently, that hasn't happen. I was absolutely delighted with the new tennis court fronting Broad Street, and I know it's not enough, but I'm afraid the money in the City is not enough either.
The money in the City, respectfully, Madam Council President, can be leveraged with the USTA and with other organizations such as the 71 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET National Recreation and Parks Association.
Kitty Perrin, United States Tennis Association, Middle State Section. Thank you very much for the opportunity to voice my support for the increased funding for Parks and Recreation. As you may have noticed from my introduction, I have a real interest in the state of tennis in the Philadelphia. Philadelphia has a lot of history with tennis. Bill Tilden, U.S. Pro Indoor. U.S. open started here. Philadelphia also has three grass court tennis facilities that are 72 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET over a hundred years old. And with almost 300 tennis courts located in the Fairmount Park and Philadelphia Parks and Recreation Department sites, you could say tennis has been an important part of parks and recreation in the Philadelphia area. To add to the dimension of that, Philadelphia has the Arthur Ashe Youth Tennis and Education Center, one of the finest in the country. It also has the Althea Gibson Tennis Center that serves the youth and adult in that area. Has the Black Women in Sports Foundation, which supports not only tennis but supports -- but all sports to youth in Philadelphia. Tennis is a sport for a lifetime, and it promotes healthy lifestyles. Families play together, you can play on a wall, you can play with another person. It can be a team, it can be tournaments, it can be national tournaments, it can be the U.S. Open 73 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET Challenger series; I kind of added a little bit there. You can have junior-team tennis, adult leagues, quick start for and under. 6 Tennis has shown an increase of 7 43 percent over all other traditional 8 sports since the year of 2000. 9 Enough about the tennis and my 10 passion for it. I'm really here to promote the passing of the increased budget for the Parks and Recs. With my job, the visits that I make, I have a deep concern not only for the tennis but all recreation facilities. So I started attending the Park Alliance meetings, the Hunting Park meetings with the revitalization of the park, and the Fairmount Park Conservancy. I work with the Philadelphia Parks and Recreation Department, the Fairmount Park Commission. And I must say it has been a pleasure. My concerns are not -- concerns about not getting the increased funding 74 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET are not unfounded. When I visit the schools in Philadelphia and the Parks and Recreation sites, I see obesity, children that can't even walk or play without being out of breath, or really don't want to participate with the activity. I am concerned about these things. Recreation is so very important in the lives of everyone, especially the children. It brings families together, keeps them fit and healthy, easy to make positive decisions for their lives, and has proven to increase grades in schools. Tennis being a part of recreation, young and old can play in the sport for a lifetime. It also gives children another choice in life from the traditional sports of football, baseball, and soccer. I am a person that grew up in the Parks and Recreation programming, and it made a significant impact on my life. In conclusion, the people of Philadelphia love their parks and want 75 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET them to be maintained, provide safe and clean sites for children and adults so they can all have successful lives. Healthy parks promote healthy and fit people. With that being said, please support the passage of the increased funding for the Parks and Recreation. It is time for City Council to take hold of their Parks and Recreation sites to make them the best that they can be for everyone to enjoy. Thank you very much.
Thank you. Any questions or comments from members of the committee? (No response.)
The tree 76 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET situation. We're wanting to plant more trees, which are wonderful for the City. But the gentleman that spoke about planting the trees also talked about how they aren't maintained. If we continue to keep planting trees, how are we going to maintain the ones -- we can't even maintain the ones that we have. They were planted at, Auberry, a site at Auberry. That site needs painting and repair. Trees are great, but let's look at it carefully. Thank you.
Mr. Villa, before you leave, would you see Tiffany from my office? We have a report on the tennis courts. Good afternoon. Please 77 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET identify yourself for the record.
Before I do proceed, I would like just to say a few words about the tree issue. I'm here as a private individual, and it's about making some suggestions for raising needed funding. I've been a member of Tree Tenders since '95, and part of our mission statement is to restore the urban forest in East Falls and to generate environmental stewardship. A week ago Friday, we had 220 children at a local park that was well- groomed because of both the Park Department and volunteers enjoying trees, and I would hate to think that any of us who are interested in planting trees think that they're more important than children. We work with children, and 78 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET we've worked with over, I think, 8,000 children at this point. So please don't think people who like trees do not like children. President Verna and members of Council, thank you for this opportunity to share my thoughts on how to balance the Fiscal 2011 budget for the City of Philadelphia. First, enact a 1-cent-per-ounce tax on sugar and non-alcoholic beverages. Some have cited possible job loss as a reason such a tax is unwise. Since the tax could result in more people drinking sugar-free beverages, jobs delivering unsweetened drinks might increase, thereby counteracting any loss of jobs delivering sugar-laden beverages. What is vitally important is the long-term improvement and the health of all citizens. By stopping, or at least decreasing, intake of sweetened drinks, and drinking more of our fine Philadelphia Water Department water, men, 79 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET women, and/or children might lose weight, or at least decrease their rate of gaining weight. I took the bus in today, and I was atypical in terms of my weight because I was normal weight, and a number of the people on the buses had clasped in their hands their bottles of soda. Obesity can generate or aggravate health problems, problems which affect quality of life, length of life, self-confidence, and productivity. As a consequence, personal health costs increase, a high price to pay indeed for a bottle of a sugar-ladened soda or juice drink. Also, the intake of milk by children might increase, therefore ensuring they have healthy teeth and strong bones. Next suggestion: Eliminate unnecessary or redundant positions such as the sheriff and city commissioners. Next suggestion: Change the 80 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET current real-estate abatement program to either five or ten years, with the following payment schedule: Year 1, payment of percent; Year 2, 6 percent; Year 3, 40 percent; Year 4, 60 7 percent; Year 5, 80 percent; Year 6 and 8 forward, a hundred percent of full 9 real-estate tax. And I have a ten-year 10 plan; I won't bother reading that. 11 But aside from the fact such 12 changes would generate desperately-needed 13 income for the City, it would also be a 14 strong statement about how the Mayor and 15 City Council feel about the plight of 16 current property owners who have been 17 paying full real-estate tax bill year 18 after year after year. 19 Since 1971, my husband and I 20 have been paying our full real-estate tax bill. We have also been paying for the maintenance of an 81-year-old house, which weekly seems to generate an expensive repair. For instance, estimates for chimney repair were as high 81 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET as $15,000. My driveway replacement would cost in excess of 30,000. The concrete is crumbling and cannot be patched. Were we rich, we could move every nine years to a new abode and not have to pay taxes and pay the asking price of a $12 million Rittenhouse Square penthouse. I don't know if you saw yesterday's paper, but people who have the means, I think, to pay those very high prices, I don't think, would be uncomfortable having to pay more taxes and earlier. (Applause.)
A graduated payment plan would also generate personal fiscal responsibility. In the next two to three years, some property owners will be required to pay their full estate taxes for the first time. Instead of paying $200, they might be required to pay 6,000 -- (Timer bell rings.) 82 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET
When the budget is balanced, the Department of Parks and Recreation will be able to fill the positions necessary to increase the number of trees planted throughout the City so there will be a 30 percent tree cover. Currently, the overall canopy is percent, but only 11 percent in East 10 Falls and much less in other 11 neighborhoods. 12 Once that happens, you and I 13 and other Philadelphians will breath a 14 great deal easier. 15 Thank you
Thank you. The Chair recognizes Councilman Jones.
Thank you, Madam President. Cynthia, I want to thank you for what you do. I was amazed as to the wide number of issues that you spoke to today. I had you pegged just as a tree 83 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET tender.
I wanted to thank you for what you do in East Falls and also in conjunction with your citywide effort to do more tree-planting. My only request is that Mr. Spivey, who lives up in East Falls, loves planting trees with you a little too much. And I was looking at the tree you mostly recently planted, and I thought it was a little to the left. So -- but I want to thank you, and I want to encourage you. If the Mayor is to achieve his goal of planting the number of trees that he he's requested, it is only through groups like yours that we will eventually get it done. 84 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET So thank you.
Thank you. Any other questions or comments from members of the committee? (No response.)
Seeing none. Thank you very much. Our next witness?
Bette Begleiter and Danyell Williams. (Witnesses come forward.)
Good afternoon. My name is Bette Begleiter, and I'm here for Maternity Care Coalition, who, for 30 years, has been working to improve the health and well-being of pregnant women, babies, and families with very young children. Today, we're here today to talk to you, and we're not going to ask for money.
85 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET Wonderful.
We're here to tell you about a reentry program that works, and we're really here to tell you about a population that has been very ignored, and that is women who are incarcerated. About five years ago, we were approached by the Philadelphia Commissioner -- Deputy Commissioner of Treatment at the Prisons, and he asked us to bring our MOMobile program to the prison that was being built, the Riverside Correctional Facility. He told us about the pregnant women up there and women with very young children that were really, really in desperate need. He said, "We have space for you; we have no money." We went out and we raised the money to start a program, and we got a four-year grant from the Robert Wood Johnson Foundation, and we found over 15 local funders to help us out; no City 86 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET money. We started the program about four years ago. And what we do is, we -- any woman who is pregnant at the prison is referred to our MOMobile there. We work with them and we work with women with children under the age of two. And we work with them in educational groups, where we give them the information and the education and the resources they need to have a healthy beginning. We learned that pregnant women were having their babies alone, with only correctional officers in the delivery room. And we went to -- he was then the warden, but Commissioner Giorla and said we'll get our staff trained as doulas -- which are labor-support people -- if you let us go with them. He said yes. And since, I guess it's, June 2009, we've attended almost 50 births. The important part of this program is we don't just stay with the women while they're in prison. We're in 87 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET prison; we have offices there, but we stay with them when they leave. And this is the key part: We know that such a critical period, when women leave and go back to the community. We work with them for up to a year, visiting them in their home, helping them reconnect to family, 'cause we know that for women -- we've always used a male model for reentry, but the needs of women are really different. And for women, the key to successful reentry is reconnecting with their family successfully. We want to tell you it's working. What we're most proud of is our 28 percent recidivism rate. Now, we're told that generally, the recidivism rate in our City jails is about 65 percent. Ours is 28 percent. The women are staying out of jail. They're getting connected to the resources they need. We know that they're learning about parenting. We do pre- and 88 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET post-tests. They're improving their knowledge. And the women that we've looked at in terms of their bonding, over 93 percent have healthy bonding with their babies. We're excited about this program, we want to keep it going. And there is a lot of interest in the program locally and nationally. But when you hear numbers -- I mean, we've served 350 women, we have that 28 percent recidivism rate, but the real heart of the story is in the women's lives. And Daniel's here to tell us a little bit about it.
Hello, good afternoon. As Bette stated, over 90 percent of our clients, when they are released from Riverside Correctional Facility, are successfully reunified with 89 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET their children, and that's including our clients who give birth while incarcerated and clients who gave birth prior to their incarceration. Most of our clients lead successful lives. As stated, less than 30 percent return to Riverside Correctional Facility. And I wanted to talk about a specific client. When she came to our program in May of 2008, we had been at Riverside since November of 2006. When she came to us in May of 2008, she was five months' pregnant, and she had already been there for the majority of her pregnancy, at Riverside. She eventually gave birth while incarcerated at Riverside, in November of 2008. Subsequently, the following month, she was released from the program and successfully reunified with her child due to instrumental part that the MOMobile program played in making sure that reunification happened. 90 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET The client has been in our program since that time, December of 2008. She successfully completed our program in December of 2009, but she is still very much active in our program. Anytime we need her to come out and do something for our program or talk about her story, she has done so successfully. Actually, she participated in a BBC piece that was down done on the MOMobile program here in Philadelphia, in January. So that was exciting for her. She just completed her nursing degree; she's actually going for her LPN license in September of this year. And she is a happy, productive member of society and raising her child appropriately. So this is definitely a program that's worked. It's cost-effective. Men and women, it's an annual of $30,000 a year to house a person at one of the Philadelphia jails. For a pregnant woman, it's triple that amount. So it's 91 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET important to keep these women out, keep them reunified with their families and, most importantly, their children. Thank you.
Thank you very much. Your program sounds very successful. Do we have anyone -- Councilman Jones?
Thank you for your testimony. If I understood you correctly, the amount of newly-incarcerated females is going up, but the recidivism rate based on that kind of treatment and care and attention to deal is going down, meaning they don't go back to prison.
Right. And when we talk about the recidivism rate, we're talking just about the women who participate in our program.
We like to 92 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET think that.
The key factor is the continued services that these women receive up to a year post their release date. There are several programs that are provided to women and men while they're incarcerated, but the program stops as soon as they hit the door. So if those support services are not continued, the circumstance are set up for the clients to come back.
And just what I'd like to add is, we actually just submitted a proposal with folks from the University of Pennsylvania and Rutgers University to the National Institute of Health to test and say, well, what is making the difference? This is the most comprehensive program in the state working with incarcerated people, you know, in this target group. And they're going to compare it with a jail in Delaware County 93 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET and a jail in Camden that don't have that level of services. So I'm hoping we can come back and say yes, we know for sure this is what made the difference.
Could I make a request that you also provide that information to what is called CJAB, Criminal Justice Advisory Board, to its members and then one honorary member, Councilman Curtis Jones, so that we can take a look at what works so we can try to attempt to replicate it, particularly if it's cost-effective.
You know, one of the things -- this is a very ignored 94 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET population. And, you know, there are about one woman for every eight or nine men that are in jail, but they are really important. And then, when we provide services to women, we're getting a double win, because we're not just winning for the woman; we're winning for the family that they left behind. And so, I just hope that we can just start a conversation where we think about treating women differently, 'cause their needs really are different.
Samuel Clarke. 95 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET (Witness comes forward.)
Yes. My name is Samuel Clarke, a researcher. And thank you for the opportunity. I'm here to discuss corruption and discrimination in the Philadelphia Police Department, specifically the McKenna brothers and Ray Carnation. In May of 2008, a federal jury, after examining the documentary evidence and hearing testimony of witnesses and cross examination, concluded that the Philadelphia Police Department retaliated against the McKenna brothers and Ray Carnation because they reported discrimination and corruption. The most culpable persons that the juror cited was a Captain Colarulo, if I'm pronouncing his name correctly, 96 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET Lieutenant Beckmire, and a Sergeant John Maroney. All these three individuals have been promoted. They now have an incentive to continue their racist conduct leveled at African-American officers and African-American citizens. The lack of disciplinary sanctions against these officers provides an incentive to retaliate against any other officer that would come forward to exercise their responsibility legally and ethically to report discrimination and corruption. I certainly don't believe that the citizens of Philadelphia want to continue paying the salaries of supervisors who are retaliating against honest officers that reported discrimination and corruption. This type of arrangement rewards the guilty and sanctions the innocent. In addition, one of the attorneys that works for the law firm 97 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET that the City of Philadelphia hired to defend this indefensible situation, he posted on his facebook that "My job is to make certain the City of Philadelphia continues to discriminate against its employees." Now, this case is a huge financial burden to the citizens of Philadelphia because the jury awarded $10 million to these officers. So it's not the words -- I'm just repeating the conclusions that the jury reached by examining the evidence, and the City of Philadelphia certainly paid a pretty penny to the law firm to defend this. So they were able to look at everything and conclude that yes, these officers were retaliated against and fired simply because they exercised their legal and ethical responsibility to report corruption and discrimination. I think it's important to really ask what policies or programs have 98 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET been put in place in the Philadelphia Police Department that would definitely prevent this type of action, this type of retaliatory action, from occurring to anyone else that would step forward and report discrimination and corruption. And I might also add that there are other cases in the pipeline, if you will, that will also be a tax -- you know, a burden for the taxpayers for the City of Philadelphia. (Timer bell rings.)
So I would hope that the citizens, and certainly this Council who represents the interests of the citizens, would make efforts to make certain that discrimination and corruption is eliminated from the Philadelphia Police Department. At present, because of the actions that were taken by the Philadelphia Police Department, it appears that there is systemic corruption in that department that should be 99 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET addressed immediately. I thank you
Thank you. Any questions or comments from members of the committee? (Applause.) (No response.)
I will be available to, you know, assist you in any way that I can.
We'll call together: Dynnita Bryant, Lashan Stewart, Eduardo Soriano Castillo, and Fabricio Rodriguez. (Witnesses come forward.) 100 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET
My name is Dynnita Bryant. Hello. I'm a security officer for the Allied Barton Security Services, and I'm also a shop steward at the Philadelphia Museum of Art. I'm here because of the poor conditions and the way that we're being treated at the Art Museum. I can't go to the pharmacist for my prescriptions if I don't go to family and friends to take the same prescription as I do. I simply cannot take medicine necessary for me to live a healthy, normal life. I recently suffered an infection in my left knee, and I was hospitalized for 13 days. As I left the hospital, the hospital asked me for my 101 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET health insurance. Like many Allied officers, I have none. Like many Allied officers, I am paid too little to afford the health plan. Excuse me. And because I'm paid -- I mean, because I can't pay my medical bills for treatment, I live on the debt that I have to pay out-of-pocket to survive. It is not an oversight that Allied Barton fails to provide a health plan that's affordable for our low wages, it is not by oversight that Allied Barton makes a profit because their cost of business is onto the workers. And they need to be responsible for what they put us through. Standing for twelve hours a day, causing problems on our backs, knees, and ankles and feet. Women who are pregnant are expected to stand at their post until the day of childbirth. After childbirth, it is not uncommon for a single mother to be taken to court by a highly-paid Allied Barton lawyer when she claims unemployment 102 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET benefits for her maternity leave. This is why we fought to be represented by a union for three years. The union is calling for access to a more affordable health plan. The union called for family-sustaining wages, and the union wants to allow elderly and pregnant women to sit at their posts. Please do not award the museum until the subcontractors Allied Barton has provided that they're willing to respect our voices. Thank you.
Hello. My name is Lashan Stewart. I am a single mother living in West Philadelphia. I am also the secretary for the Philadelphia Security Officers Union. I work as a security officer for Allied Barton at the 103 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET Museum of Art. Allied Barton wage is so low that I constantly have to work overtime. I barely have the time to see my own son. Despite working overtime, that continues to (indiscernible) into my shoulders. My insurance is so inadequate that I am left paying bills out of my pocket for necessary medical tests. And while I am at work, trying to break even, I get phone calls from bill collectors. There is nothing I can do to satisfy them. As a woman working are for Allied Barton, I feel unsafe. Women working as a security guard are sexually harassed on a regular basis. Male managers prey on young women. Many of them are single mothers like me, who are afraid to lose their job. Like me, they are afraid that if they speak out, they will lose the earnings they can provide for their families. We are taught that we do not 104 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET have the same rights as these men. It is well known at the museum that some of these managers have a history of making unwanted sexual advances; they're allowed to keep working anyway. Working for Allied Barton I, see people slipping into debt, living in fear, and working themselves to the grave; I don't want to end up like them. I want to be able to spend more time with my son, buy a car, and finance a new house. I want to defend my rights without being afraid of losing the income that I can provide for my family. For the sake of my son, my community, and my coworkers, we need to get things better at the museum now. Please do not award the museum until the subcontract to Allied Barton has proven that it is willing to respect our voice. Thank you for your time. (Applause.) (Councilman Clarke assumes chairmanship of hearing.) 105 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET
Thank you. Please proceed. State your name for the record.
Good afternoon. My name is Eduardo Soriano Castillo. I'm an organizer with the Philadelphia Security Officers Union. We proudly represent 135 officers currently working at the Philadelphia Museum of Art. I have been privileged to work one-on-one with Allied Barton security officers since the fall of 2005. In those few years, I've had the privilege of walking side-by-side with hundreds of security officers in the City on a path towards justice and a voice at the workplace. Today, I wish to share with you a story of Mr. Shake. Mr. Shake wasn't able to be here today for a number of good reasons. I met Mr. Shake, a security officer at the museum for 34 years, at a 106 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET small diner in Northeast Philly a couple weeks ago. Mr. Shake is a short, frail, 79-year-old man, with gray hair and thick-rimmed glasses. He looked like he'd been standing on his feet a long time. He explained to me, with an undertone of sadness during our conversation, what happened to his life after Philadelphia took his good union job and privatized it in the name of saving $2 million. He explained to me, in 1993, it was either the City guards or the City road workers that were facing the ax. And what Mr. Shake said was, "I guess it was us they deemed less deserving of fair wages, job security, and dignity." Mr. Shake still works full-time at the Museum of Art as a security guard, and it's not because he needs something to occupy golden years; but it's because if he stops working, he and his wife will literally go hungry. If Mr. Shake stops 107 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET working, he can't pay the monthly premium of $128 for his health insurance, which him and his wife literally rely on to survive and live. If Mr. Shake stops working, he may never be able to afford the repairs that his home desperately needs; currently, he is living with a roof and walls that leak year-round. If Mr. Shake stops working, he can't forward the day-to-day cost of living expenses like groceries and general household products. During the course of our conversation, I embarrassingly observed Mr. Shake struggling with his lunch, a floppy slice of pizza. And then, as if to punctuate the injustices that his man has had to endure, one of his teeth fell out and bounced across the table towards me. After retrieving his tooth and reinserting it into the appropriate gap, Mr. Shake went on to explain that because 108 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET of lack of resources, he has to have his teeth glued back into his jaw. He can't afford the procedure that he actually needs, and lives in day-to-day pain because of it. Charles Shake support the Philadelphia Security Officers Union, not because he will be around long enough to reap the full benefits of the union, but because, as Mr. Shake says, no one should ever suffer what I've been through at the hands of Allied Barton Security Services in the name of profits. Councilmen and Councilwomen, on behalf of Mr. Shake and the 135 members of the Philadelphia Security Officers Union, we call on you to call on Allied Barton and our beloved Museum of Art accountable. Please move the $2.3 million budgeted to the museum into the City's general budget and send a clear message to the Museum of Art and Allied Barton Security Services that in Philadelphia, we value our working 109 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET families. Thank you your time and consideration. (Applause.)
Thank you. Hello. My name is Fabricio Rodriguez. Thanks to our City leaders for taking a moment to hear our concerns. I'd like to hold up Councilman Greenlee, who's been a big leader on our issues for a long time. I'm the lead coordinator for the Philadelphia Security Officers Union, and I have been fighting to reform the security industry in our city since 2004. We have heard how our City taxpayers are subsidizing the profits of companies like Allied Barton and institutions like the museum so that our security officers can get health care from emergency rooms and City clinics. 10 PUBLIC TESTIMONY RE 2011 BUDGET We've heard all these workers paid an enormous price the last time our city was facing budget troubles. But we think the problem is much bigger than the museum. There are 16,000 security guards in our city, and 97 percent of these workers are African-American, half of them are women. The vast majority of them are poor and lack any health care. These are hard stories to hear and hard statistics to learn about, but our movement isn't driven by sadness; we're driven by the dream of a new day. It is our vision that thousands of workers in our city and millions of Philadelphians and visitors that depend on their -- on these security guards can have better public safety by increasing the training that the museum is fighting -- that the Security Guards Union is fighting for to prevent violence, report crimes better, and deescalate critical situations. 10 PUBLIC TESTIMONY RE 2011 BUDGET The Philadelphia Security Officers Union isn't only fighting for better jobs; we're fighting to create a better security officer. The first step on that road to our vision is winning our first contract of the Philadelphia Museum of Art. The museum should be concerned with increasing security at that facility. We've given 'em plenty of opportunities over the last three years to take a proper stand. At every step of the way, we've been ignored or undermined. This year, our city will contribute five City buildings to the museum, worth $171 million. 4 million. 3 million. The museum is, by far and away, our City's most generously supported nonprofit. 10 PUBLIC TESTIMONY RE 2011 BUDGET lots of other sources; in fact, they raise on the average a million dollars every two-and-a-half days. I know that the museum is vigorously lobbying City Council for those resources. They're telling you not to miss the big picture, about how much they stimulate the economy. 3 million means a lot to our city at a time when we're cutting back our libraries, pools, and after-school programs, it barely represents 2 percent of the museum's total budget. They could raise it in less than a week. While the museum is housed for free in five City buildings, full-time security guards are homeless. While our city pays for the museum's utilities, security guards that work full-time have their lights and their heat shut off. 10 PUBLIC TESTIMONY RE 2011 BUDGET poverty. The Bible says: When someone is given much, much will be required in return; and when someone is entrusted with much, even more will be required. The security guards of the Museum of Art are doing everything in their power to create a better, safer museum. But the museum leaders, on the other hand, are given much, yet fail to do even the smallest thing to help these secure guards. Museum leaders have failed to do what is required. Today, Philadelphia must be prepared to do what is required of us. On behalf of the 16,000 security guards in our city, the millions of citizens and visitors that rely on the services they provide, we are calling on City Council to follow the lead of Councilman Goode, who believes that the museum and Allied Barton should be held accountable to a higher standard.
10 PUBLIC TESTIMONY RE 2011 BUDGET allotted to the museum into the City's general budget as a Class 500 grant, assuring that the museum and Allied Barton are going to do right by their workers, do right by the collections, and do right by their patrons. Thank you. )
Thank you for your testimony. Any questions by members of the committee for these witnesses? Councilman Goode.
Thank you, Mr. Chairman. Good afternoon, Mr. Rodriguez. Thank you for your testimony, and Miss Bryant, Miss Steward, and Mr. Soriano Castillo. Simply put, you are absolutely right. First and foremost, Allied Barton, as long as it is contracted to the museum, should be held responsible. The museum itself should be held 115 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET responsible for who it contracts with and what is put within that RFP and contract in terms of fair-labor practices and in terms of a wage standard and benefits standard. And then, of course, if we award that money, appropriate that money, City Council should be held responsible. And so, we stand behind you, and we'll do what we can do to make sure that, particularly after the art museum came in here, in budget testimony, and acknowledged that they could do it, but has chosen not to do it and left it up to themselves to make the decision, they clearly don't respect the fact that this Council's asked them to do things fairly and to put the contract back out to bid. And so, we do stand with you, and I thank you for your testimony again. (Applause.)
Thank you, Councilman. Any other members have any 116 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET questions of these witnesses? (No response.)
There being none, I want to thank you very much for your testimony. PANEL MEMBERS: Thank you.
Thank you for the opportunity to testify today. I really --
I'm sorry. My name is Judith Robinson, and I'm here today to testify regarding the budget hearing. I really thought today that I 117 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET would come down here and talk about funding with the SRC, and I see that hearing is scheduled for next week, so I'm going to switch gears a little bit and connect this all together because it's sort of related to some of the things I've heard today. On December the 7th, in the Public Property and Public Works Committee, there was a hearing on Bill 12 No. 090786, and it was regarding a subdivision of land from our school, Duckrey School, at 15th and Susquehanna. This land, which has presently a basketball court being used -- and it's behind the school, so children may come and ride their bikes. I mean, there's a drill team that practices there. Children, as they do, they have these little skateboards they ride down; I forget what they're called. But any number of recreational activities take place at that site. And the subdivision that was 118 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET done to make this land available for sale to a nonprofit organization, it was to subdivide it from the Duckrey School playground and to be sold to a nonprofit organization for $1. My testimony today was to say to you all, because we are such in need of tax dollars, that you not ever again take money from our School District. And I'll tell you what I mean and make the connection. According to the resolution 14 that was prepared by the School District to take this land and subdivide it from the school, according to that document, if the City sold the land, the money would come back to our school children, okay? So I'm very, very much concerned that this Council, a division of it, did not consider that very important fact. If that money was to come back to our school children, then perhaps our students wouldn't be reading 119 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET at such a low level. I want this to please go into the record. When we were trying to ascertain what was going on with this land deal in a meeting that we held in our community, our elected official Jewell Williams came to the meeting with these statistics, but he didn't come -- and I want this in the record, please. Can I get this in the record? I want you all to please see it, what I'm talking about here.
Well, I want to make sure you see it as I am talking about it, sir, please, because the students at the school are reading -- like 73 percent of them are not proficient in reading, and over 60 percent are not proficient in math. We asked the principal about this in fact. But our elected official Jewell Williams, the state representative, came 120 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET to the meeting about land, bringing these statistics. (Timer bell rings.)
He didn't bring them like he was trying to help these children; he was brought 'em sort of like Big Willie, you know, almost like if these children are reading so bad, not only will we take this land; we'll take the whole school. The entity that you all were proposing to give this land to for $1, I have a Google search that I did, and it says that this organization has access of $110 million; I want this to go on the record too. Because I just feel -- and I'm going to come back; I hope I can come back and talk when you have your school session, because to be honest with you, I was really, as a real estate broker, interested in focusing on this land deal. But, you know, it's like once you see something bad, you can't turn back, you 121 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET know. These children are doing so badly here, at the school that, you know, I can hardly focus, to be honest with you, on the land deal. But basically what I want to say to you all is that we need to focus on why our children aren't learning, why over 70 percent of them are not reading on proficient levels. In addition, we have these renaissance schools we're about to divvy them up to our children and give them to these folks. Are we assured that before we spend the money that our children will get a curriculum that will help them develop? I just want to put all of this information in the public record. So, you know, I want to make sure nobody thinks that I agree with what's going on with how we are funding our schools, and not only how we're funding 'em; how we are taking our eyes off of the process 122 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET once the funding is given to them. There was a article in the Daily News about this court -- this land deal, with these basketball courts, so I really hope I'm not sounding too disjointed, that I'm really clear about what my concerns are. My concerns basically are that you're selling land, especially with this property -- public property bidding process that's just being into play recently, that you give fair market value, especially when the land -- or proceeds, I should say, will go back to our children So if I could just have all of this put into the record. Thank you very much. (Applause.) (Council President Verna resumes chairmanship of hearing.)
You're welcome. Our next witness? 123 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET
Hi. I'm Linda Lauff. I'm President of the Friends of Pennypack Park. Good afternoon. I represent an 124 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET all-volunteer organization of 2,000 members who care for, use, and enjoy a 1688-acre park in Northeast Philadelphia. As volunteers, we have dedicated many, many hundreds of hours each year in the park. We do monthly cleanups, plant trees, do trail work and stream bank stabilization, erosion management, recycle, educate, inform, and communicate important issues to the members in our community. We love our park. We also care about all of Philadelphia parks, whether or not they're the natural areas, ballfields, playgrounds, or recreation centers. We want our park system to be better funded for many years of decreased funding. The Friends of Pennypack Park support Mayor Nutter's proposed $3.3 million increase to the new department of Parks and Recreation. We want Philadelphia to be the greenest city in the country. Under the leadership of Michael 125 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET DeBerardinis, we hope to see this goal accomplished. Mr. DeBerardinis has the vision to lead this new department. We want to continue to see our parks and recreation centers well maintained and managed. Funding for this department is crucial in providing the necessary staff to see programs continue and for buildings to be operated effectively. Our parks and recreation centers are the gathering places in many of our communities. This is where our children go for after-school programs, summer camp, and swimming, and for adults and senior citizens to take a variety of classes, socialize, relax, or exchange ideas. As more and more people have less income due to the economic -- the current economy, our parks become their vacation destination. Our parks provide picnic sites, bicycle and walking trails, playgrounds, and a place to go fishing. 126 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET It's a place to unwind from the stresses of everyday life. One of the biggest annual efforts of the Friends of Pennypack Park is the planting of trees. Due to many environmental factors, our tree canopy has been greatly reduced, as it has in so many other parks and communities throughout the State. We have, for 11 years, continued to plant hundreds of 12 trees in our park, but our efforts need 13 more help. A much larger effort, with 14 more resources must be made if we want to 15 reach our goal of planting 5800 trees. 16 We all recognize trees increase 17 property value, reduce greenhouse gasses 18 and air temperatures, and help revitalize 19 our neighborhoods, as any homeowner who 20 lives near the Pennypack Park can tell you. In closing, an affirmative vote for the budget increase to the Department of Parks and Recreation is an investment we cannot afford to neglect. Many 127 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET volunteers from park friends groups to the average citizen want our City Council members to recognize the value of our parks. Our parks provide quality of life and a focal point for many of our neighborhoods. Just over this weekend, our Friends group received an e-mail from someone in New Jersey asking for information about the Pennypack Park because they were visiting here this summer. (Timer bell rings.)
So as you see, our park is a point of destination. Our park system is known throughout the country, and we want to share the pride we have with a well-funded department. Whether you live in or outside Philadelphia, our parks are truly treasured. I hope you recognize this value and vote for Mayor Nutter's proposed budget. (Applause.) 128 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET
Thank you very much. If we have a witness here who has written testimony and cannot stay because of the time, we will make certain that your testimony is made a part of the record. So anyone who feels that they can't stay to testify, we will make your written testimony a part of the record. Thank you.
Good afternoon. Pardon me. My name is Fatima Ali; I'm speaking on behalf of Rasheeda Ali- Campbell. She's from Love, Love & Love, Incorporated. 129 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET Thank you, City Council, Council at-large, and citizens of Philadelphia for the opportunity to address you today. In Philadelphia and all across America, we are experiencing a financial crisis. Thousands of people are losing their jobs and homes every day. There are times that my generation has never seen before. However, today, we stand ready to face these challenges. Today, we are encouraged because we have a viable solution to many of our city's problems. Today, we introduce EarthShift. Philadelphia is a city with historical significance. It is only fit that we introduce a project that will have historical ramifications. We have been working on our project for more than two years. We have learned in this time that many people in the City will not listen to what we have to say. But more importantly, we have 130 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET learned that many people will listen. We have collected over 400 signatures and have many letters of support from significant figures in the City and across the State for our project. We have supporters from around the world endorsing our work. And we believe that Philadelphia is ready for the EarthShift. Philadelphia has a unique opportunity to be a leader in this country. We can show the United States our remarkable ability to become financially prosperous once more. We can become producers of one of the most innovative designs in American history. The EarthShift will bring jobs and pride to our city and change the face of homelessness forever. This home is made from recyclable materials. This home can heat and cool itself. This home can grow its own food. This home has its own running water and electricity. 131 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET Our organization needs one vacant lot, just one. Please help us build our EarthShift. Please move to make this a reality in Philadelphia. Thank you. (Applause.)
Thank you. What Councilmatic District do you live in?
Yes. She lives in Yeadon, but the rest of the family lives in Philadelphia.
Where does the rest of the family live? 132 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET
In North Philadelphia. Actually -- UNIDENTIFIED SPEAKER: Germantown.
Germantown, North Philadelphia. UNIDENTIFIED SPEAKER: North Central Philadelphia.
North Central Philadelphia. We have a lot of -- we actually have the petition still online, and people are still signing it.
Mm-hmm. I would suggest that members of your family, or whoever, deal with the District Councilperson in North Philadelphia; it would be Councilman Clarke. In Germantown --
Is Laurel Sweeney here? She's scheduled for 5:30. (No response.)
Good afternoon. My name is Don Haas. I'm the Operations Manager of the Bell Atlantic Tower, a 53-story office building in Center City. I'm here today in my capacity as the current chair of BOMA Philadelphia, the Building Owners and Manages Association. 10 PUBLIC TESTIMONY RE 2011 BUDGET I would like to thank all Councilmembers for this opportunity to testify during today's hearing on Bill 5 No. 100198. BOMA fully recognizes and supports Council's difficult job of balancing a budget in this trying economic time. As building owners and operators, we too are experiencing many of the same pressures to establish a budget without unduly burdening our tenants. It's quite a balancing acts. By means of background, BOMA is a nonprofit organization whose members provide, within the City limits alone, over 51 million square feet of office space for over half a million office workers. 10 PUBLIC TESTIMONY RE 2011 BUDGET Center, to name a few. Our member buildings not only define the skyline and add character to the City but are a tremendous economic driver for the region. In the Greater Philadelphia region, the assessed real estate valuation of BOMA-represented office building exceeds $16 billion, translating into over $250 million in real-estate taxes. Within the City of Philadelphia alone, our members' buildings exceed billion in valuation and produce real-estate taxes of over $120 million annually. 70. million annually. This releases the City from supplying those services already included in our real-estate taxes. 10 PUBLIC TESTIMONY RE 2011 BUDGET In addition, BOMA member buildings and occupants pay revenues to the City for City wage, business- privilege and use-and-occupancy taxes as well as the Center City District assessment, totaling over $1 billion annually. 3 billion each year. Our industry and tenants, as a whole, represent 70 percent of the tax base of the City of Philadelphia. In 2009, BOMA members spent in excess of $362 million in goods and services to operate and maintain Philadelphia office buildings. A vast majority of these goods and services were purchased locally and created and sustained real, local jobs. The total annual payroll for BOMA office building occupants is approaching $10 billion per year. 10 PUBLIC TESTIMONY RE 2011 BUDGET Philadelphia gains from the employees in BOMA-member buildings through the redistribution of income through the local community vis-a-vis the purchase of goods and services. Commercial real estate has historically been a lagging market indicator, which the larger economic impact is not necessarily reflected immediately. This is due in part to the long-term nature of lease transactions. ) We are currently in the midst of a liquidity crisis in the commercial real estate. At a time when companies are seeking to contract and gain greater efficiencies out of their workforce. 6 percent, with a sublet market as high as 15 percent. With this vacancy rate, there's an increasing pressure on the landlords to compete for transactions. 10 PUBLIC TESTIMONY RE 2011 BUDGET tenants have suburban or out-of-city- market options. Needless to say, this has an impact on all values and the City's tax rolls. In the commercial space, the impact of the property tax increases may not be immediate but could have dire and long-term consequences as tenants make decisions about whether to remain in the City or to relocate to suburban or other jurisdictions, increase or downsize their workforces, with the corresponding amount of place leased. 1 million. This will directly impact our member buildings' ability to attract and retain tenants. Additionally, some of the burden will be passed onto the companies that occupy those buildings. 10 PUBLIC TESTIMONY RE 2011 BUDGET that will drive employers from the City, not only affecting real-estate taxes, but also taking away employees and their considerable dollars spent in Philadelphia. The loss of intellectual capital these employees possess can also not be ignored.
The unintended consequences from this proposed tax structure will have a tremendous effect on a wide variety of industries. The potential negative impact to BOMA-member buildings and overall decreased occupancy of office space in the City will cost jobs in all facets of the real-estate industry, including those of the trades and construction fields as well as every other building service, including janitorial staff, security personnel, management staff, parking attendants, and physical-plant operations. 10 PUBLIC TESTIMONY RE 2011 BUDGET exploring other avenues of revenue generation and, equally important, correcting the structural issues which gave rise to the current dilemma. We respectfully submit the need to close the budget gap not be made at the expense of those already contributing at the highest level and providing the necessary long-term economic stimulus vehicle. We value our contributions to our great city. Our long-term profitability is tied directly to the economic stability of our city, including a predictable and fair tax structure. Please provide us the tools to support that growth. Thank you.
Thank you, Council President Verna and members of City Council, thank you for opportunity to 141 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET testify. And thank you for the continuing support of City Council. I'm testifying on behalf of the Utility Emergency Services Fund. We provide the emergency financial assistance to low-income families whose utility service has either been shut off or is about to be shut off. Each grant is matched dollar- for-dollar by PECO, PGW, or the Philadelphia Water Department. This year, we are assisting over 5,000 families. We're year-round. We're the last resort, especially when LIHEAP and Crisis are closed. Over the last five years, over 90 percent of the families we served did not return for additional UESF assistance. I enclose a map that shows the families we served in City of Philadelphia over the last five years on . This year, PGW is projecting 30,000 terminations. PECO is projecting 142 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET 82,000 terminations this year. During the three-week period preceding this year's opening of LIHEAP, UESF provided financial assistance at the unprecedented level of over three quarters of a million dollars in three weeks. There was a time in our recent past when this level of assistance would have been provided almost over the course of an entire year. As of today, about five weeks since the end of the winter moratorium, we are just about out of funds. The City's Office of Housing and Community Development is proposing to cut $200,000 in Fiscal Year 2011, which would be used entirely for grants to low-income families. These families, about 500, will either get their utilities terminated or will not be able to have their utilities restored. And the City will lose the opportunity to leverage the $200,000 into $400,000 of assistance. 143 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET UESF is an essential part of the safety-net structure. When one safety net is reduce substantially, it is felt across all of the others. The cost of cutting $200,000 not only impacts upon the utility security of low-income families; it also deeply affects other crucial areas such as children's health, education, homelessness, and housing abandonment. We see some families may pay their utility bills, but at the expense of their not paying rent or mortgage. Families will decrease their food purchases to pay for heat. And some families will cut back both on food and heat, wreaking havoc on the health of children. On behalf of the 500 families who would be without utility assistance this coming year, I ask that the $200,000 is restored. The $200,000 will be leveraged into $400,000, problems will be prevented before they occur, and 144 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET Philadelphia communities will have long-term and measurable, positive impacts, both socially and financially. In closing, I also want to express UESF's support for the City's Office of Supportive Housing and the many programs they direct to address homelessness. UESF has been fortunate to participate in OSH's homeless-prevention and rapid rehousing program and has helped in the prevention of homelessness of over 250 families through the provision of housing stabilization services. OSH has prevented the homelessness of a great many more families, also preventing larger problems before they occur. Thank you for the opportunity to testify. (Applause.)
Did I understand you to say that 200,000 was cut from the budget?
At OHCD's preliminary CD hearing, the budget for UESF was cut by $200,000 in their opening budget. That was based upon the CDBG allocation from the previous year.
Thank you. Our next witness is Toni McIlwaine and Harriette Saunders. (Witnesses come forward.)
Good afternoon. Please identify yourself for the record. MS. McILWAINE: Good afternoon. My name is Toni McIlwaine, and I just wanted to come and speak to Council in reference to homelessness and just to 146 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET share a little story. I come from a place of poverty most of my life. And because of a lot of different things that happened in my life, I wound up getting married, and that started the chain of homelessness for me. I remember being in a shelter over in Jersey, living there with my son, and attending school in Philadelphia. And the things that my children had to endure on top of abuse, because I come from a place of so much abuse, he had to come to school, but I remember my child and taking him to the bathroom, and we didn't have anyplace to sleep but in a car, and I had to take him to the bathroom to wash him up, because that's what we do. And he was screaming, "Well, Mom, Mom, why do we have to go there to wash up?" And my husband did have a job at that time, but because the places are so high for decent housing, we wound up 147 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET going to a place where we became evicted over and over again. And so, a couple months ago -- a woman of the most God and I attended a church across the street, and I'm always there, praying all the time. And so, I noticed that God had brought in a lot of homeless people. And at that particular time, he minister to me, myself, I was homeless too, because homelessness comes on all different categories. Because of abuse, I have moved from place to place. I'm in a place for one month, and then I'm in a place for two months and then three months and then a year. And my children say, "Well, we moving again?" Because of the abuse and the mental state that we were in, it caused us the (indiscernible) of homelessness. But when I was there, in the church, I met a beautiful young lady who came in, and she's sitting next to me. And I begin to talk and we begin to pray, 148 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET and the women of faith begin to pray with her. And she started crying. And so I said, "Well, how long have you been out here?" And she told me she had been out here for at least 30 years, in the system. And she was eating out of trashcans, in and out of mental institutions. And I was saying to myself, "Lord, God, how can we have and live in a society where our people can be out on the streets that long length of time?" And so, I didn't chose this position; God chose to put me in this place because I have no education of the world. So by me going through what I have done for almost 30 years, God has put a burden on my back. And so, I really hear the cry of the homeless people. Just like I said, it comes on different categories, but I had the privilege of meeting this young lady here. And so, the lord has blessed me 149 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET to have her walk with me, and I began to show her and help her get her ID, help her comb her hair, and just help her establish herself. And so, the lord is blessing me in that way. So I just wanted to come and just share the story and to just cry out to see what we can do on the levels of homelessness. And not only that, reform the shelters because I'm going to the place where she at, and those places are filthy. And so, I'm asking and crying out so maybe we can get together or form a group where we can go in and do surveys on the shelters to improve those shelters. Thank you for listening to me.
Identify yourself for the record. 150 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET
Hi. My name is Harriette Saunders, and I just want to say that I thank God because he brought me from a long ways. And I was, like I said, homeless for over 30 years, sleeping here and there, in cars, on the streets, and subways, and eating out the trash. And he, you know, he blessed me and spared my life. I could have got killed on the streets, and he blessed me to meet her. And, you know, there's a lot of people out there, going through the same things. They're dirty, they smell, and they need a place to eat and sleep and stay just like I do, and I'm no 18 better than they are. And God is good to all of us. He spared my life from a long ways. If it wasn't for him putting this lady in my life and, you know, cleaning me up and everything, I wouldn't be here if it wasn't for God. And now I sleep on the indoors, 151 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET and, you know, I'm able to, you know, get myself back together again, you know, and go do the things I used to do.
Is Nurit Shein here? (No response.) (Witness comes forward.)
So my name is Danita Bates, and I'm a parent, youth, mental-health, and senior-citizen 152 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET advocate and a community activist of North Philadelphia. I want to speak on numerous of things. I know it's short of time, but first, I want to elaborate on the selling of the basketball courts by the City for $1. I was told by a state representative and by Councilman Clarke that the basketball courts were unoccupied, which was untrue. And our concerns were as a community and the concern and of all parents, we were not involved of the situation until it was almost too late. But the basketball courts are being occupied. I myself started the community youth marching bands for all the community youth at 1600 Susquehannah Avenue, and that's where we practice that. And the kids also use the basketball courts. We also want revitalization for the basketball courts and the tennis 153 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET courts that were over there at one time, a playground, trees and benches for our seniors, so at the end of the day, the seniors, the community, and the youth are profiting from these situations and issues that's going on with the basketball courts. So we do want to oppose the project of the basketball courts being sold, and we just want them revitalized and a rehabilitation and resources going back into the schools in North Philadelphia instead of them being shut down, and we just want them rehabilitated for the whole community. We want the community, along with the senior citizens and the youth, to prosper from any projects that goes on in those areas. Right now, the kids are limited to having block parties or having any activities going on in the community because of all the developments that are being developed in our areas of North Philadelphia. And it's not -- none of 154 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET the monies are going back to the community, nor the schools, nor our seniors, nor our youth. So those are main concerns that we have. Us, as a community, we want revitalization so that at the end of the day, the youth are happy, the community is happy, and so is the seniors. So I fight and fight and fight. I'm going to fight, I'm going to keep going as far as I have to go to make sure instead of them being torn down, we want revitalization.
Randy Hoffer. MR HOFFER: Yes. (Witnesses come forward.) 155 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET
You have a panel? MR HOFFER: We're all the same.
Oh, good. Thank you for your patience. Who's going first?
I am. My name is Bruce Rush, and I'm from the Marketing Store, Incorporated. I'm here to talk about the proposed soda tax.
I'm not in favor of it; I'm here to indicate reasons that think it's not a good move on the part of the City. What I've seen in the media accounts has portrayed it one as obviously a source of raising revenue that the City needs, but also presentations relative to that it can have some impact on the health of children and the citizens. Particularly on that second point, I want to take a moment to talk 156 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET about how there is little evidence that such taxes change consumer behavior. In fact, what I've given you is -- I'm going to cite from a study that was recently -- a particular result of that was published. A recent study from a trio of researchers hailing from Yale, Emory, and Bates found that a 1 percent tax increase on junk foods resulted in a decrease in the BMI of only 0.003. So obviously, very little came from that. The researchers calculated that a 58 percent tax on soda, which is roughly what cigarettes are taxed, could reduce the mean BMI in the United States by 0.16 points. So the argument that it will have some impact on consumer behavior looks negligible at best. Secondly, relative to the economic impact, you certainly want any tax that there's going to be to be felt evenly by all citizens. But, in fact, 157 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET that would not necessarily -- common sense says that that would not necessarily be the way it would be with the soda tax because people who live potentially at the edge of the City near places where they can go, where the tax is not being imposed, potentially have an unfair value advantage of purchasing it at lower prices than people who don't have the ability to get out to areas where that's the case. So then the burden falls on people who are the least likely and able to go beyond that and, you know, and avoid that kind of tax on a product. Similarly, eventually, if the sales from that -- from those products, decreases enough, it clearly would have on impact on the ability of retailers and the manufacturers of those kind of products to continue to provide employment in the City, and that clearly is not going to be good in the overall sense for tax collections from a wage 158 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET point of view. Those are my thoughts relative to the issues on the soda tax.
Good afternoon. MR HOFFER: My name is Randy Hoffer. I'm from the Aramingo Business Association.
Randy Hoffer, Aramingo Business Association. Last time I was here, we were actually enacting the business improvement district; just to let you know, things are going well. Thank you very much. Okay. Aramingo Avenue has seen significant development since 2005 as Target, Applebee's, Forman Mills, and, 159 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET most recently, Lowe's Chick Fill-A, and Sonic have moved into the area. It is now home to additional big-box stores, fast-food establishments, and area supermarkets. The Aramingo Business Association has helped extend bus routes to serve new stores, improve safety, and cooperation with the police, and has successfully organized a business improvement district for the area. I am here, speaking today on behalf of the Aramingo Business Association and the 150 businesses that it represent. We're very concerned about the effect of the proposed sugar- sweetened beverage tax, and it will have an effect on these businesses along the Aramingo corridor. Beverage sales represent a sizeable portion of overall sales for grocery stores, and most of the convenience consumption sales for large-box stores such as Home Depot and 160 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET Lowe's. These stores cater to local residents, of whom 60 percent have an annual income of less than $24,000, as well as commuters that come to the corridor, looking for competitive prices. As it has been proposed, the sugar-sweetened beverage tax will represent an increase that would, in some cases, more than double the price of sweetened beverages. This would result in unacceptable increases to the prices of meals served at local restaurants and diners that strive to provide affordable meal options for local residents, shoppers, and employees of the nearby businesses. We urge City Council to consider our opposition to the passage of this tax. It is our opinion that this would set into motion a series of unintended and unwanted effects, further weakening taxpaying businesses in the City that are trying to flourish in an already highly competitive tristate 161 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET environment. In closing, just thank you for your attention and allowing the Aramingo Business Association to state its opposition to the proposed sugar- sweetened beverage tax (Applause.)
Good afternoon, Madam Chair and members of City Council. My name is Patricia Codina, and I am the Commercial Corridor Manager for the Kensington and Allegheny Business Association. The Kensington and Allegheny Business Association is an organization of local business owners and managers working together to create a business environment that will better support local businesses and attract more customers to the corridor. The association's goal also 162 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET includes supporting and retaining businesses along the corridor as well encouraging economic growth and development. I am testifying today on behalf of the Kensington and Allegheny Business Association, which represents 75 neighborhood merchants. The sugar-sweetened beverage tax, as it has been proposed, would have a devastating effect on our small businesses. Beverage sales represent a high percentage of our merchant sales overall. A tax increase of this magnitude would literally double the price of a two-liter beverage, and, in some cases, force retailers to charge more in taxes than the product actually costs. This excessive increase to the consumer's price would cause small businesses to lose a considerable portion of their profit margin and overall revenue. 163 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET Additionally, this tax could cause beverage manufacturers to stop investing in the City due to the significant drop in sale volume. There is also a potential loss of vital jobs, and this would disproportionately affect small businesses. Small retailers that currently get their beverages delivered directly from the manufacturer could now experience less service and higher products costs; therefore, paying more for the same goods. Additional costs will force retailers to further increase prices to the consumer, without realizing any revenue gain in their profit margins. Small businesses along the corridor are struggling and have been hit hard by the recent economic crisis. For businesses that are now trying to stay afloat, a tax increase of this proportion would have tangible and devastating 164 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET effects. Businesses closings along the corridor would cause increased blighted conditions as well as reduce the amount of tax revenue generated by the City. Finally, the businesses understand the City's need to increase revenue in order to cover wide shortfalls in the budget, but this tax puts an undue burden on small businesses to carry the brunt of the responsibility. We hope the City will look more carefully at the negative effects that the sugar-sweetened beverage tax would have not only Kensington and Allegheny, but on small businesses throughout the City. I would like to thank you for the opportunity to provide testimony on this very important issue. Thank you very much. (Applause.)
Any questions or comments? Yes, sir? 165 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET
Just one final point. Since the (indiscernible) corridor and the Aramingo corridor are side-by-side, we did attach the petitions. There are retailers for 7 the Aramingo corridor, which includes 8 most of the big-box stores. Target would 9 have been there, but they had some 10 corporate struggles to sign the petition. 11 And we have 41 of the small 12 independent merchants along the 13 Kensington Avenue attached for your 14 convenience. 15
We 16 have it. Thank you. 17 Our next witnesses? 18
Constance Neylor. 19 (Witness comes forward.) 20 (Applause.) 21
Good afternoon. 166 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET Let me see. How's this. Can you hear me?
Okay, thank you. Again, my name is Constance Neylor, and I'm here to ask for your support of programs that increase affordable and supportive housing and reduce homelessness. I would like to thank you for the opportunity to testify today, and I'd also like to thank Councilwoman Jannie Blackwell for her always continual leadership in the homeless community. Do not cut these life-saving programs. If the shelters were cut by even 10 percent, that would mean over 800 people could be denied beds over the next year and end up on the street. It is critical that funding is maintained for the Office of Supportive Housing, the Health Departments, and the Philadelphia Housing Trust Fund. 10 PUBLIC TESTIMONY RE 2011 BUDGET housing too well. I spent two years in the City's shelter system after I was struggling with depression and couldn't pay my rent. My friends and family couldn't help me, and I ended up in a City shelter with only $27 in my pocket. I'm lucky now to be a client of Traveler's Aid, where I live, in their Chestnut Manor supportive housing program, with case management. I believe in trying to make our community a better place, so I volunteer. I am currently on the boards of the Homeless Advocacy Project and the Health Care for the Homeless Advisory Board. I am also a proud Vote For Homes Coalition member, and we have done our part to register over 13,800 voters in the shelters, jails over the last ten years. Through my work with these great organizations and my experience, I know that homelessness results in a huge personal cost for men, women, and children who live in unsafe conditions. 10 PUBLIC TESTIMONY RE 2011 BUDGET In the end, the taxpayers have to pick up the tab for emergency services such as hospitalizations and incarceration, things that could be easily prevented with less costly intervention such as housing and treatment programs As someone with an autoimmune disease and multiple chronic illnesses, it was so challenging for me to take care of my health needs while living in the shelter. Because I am disabled, it is important for me to make my schedule so that I can see my doctors and have my own space to take care of myself Today, I am testifying on behalf of 13,511 women men and children who stayed at least one night in a Philadelphia shelter in Fiscal Year 2009 and needed an affordable place to call home permanently The consequences for not finding housing are drastic. 10 PUBLIC TESTIMONY RE 2011 BUDGET death of homeless persons is about 50 years, the age at which Americans commonly died in 1900. Today, non-homeless American can expect to live to age 78. Last year, 87 individuals were remembered on Homeless Memorial Day. This number includes not only those who die in shelters and on the street, but also people who were formerly homeless, and their deaths were likely compounded by their experience of homelessness. I know we can do better than this. We have been taking steps to understand why so many people died while homeless. 10 PUBLIC TESTIMONY RE 2011 BUDGET everyone. This team of public and private sector-participants, including the Medical Examiner's Office, is investigating why people are dying on the streets and in our shelters and seeks to prevent such deaths in the future. Please continue to fund the work of the Homeless Death Review Team so that we can ensure system improvements for The Department of Behavioral Health and the Office of Supportive Housing. We must make sure that no one dies unnoticed. We have solutions, but we need your help to make it work so that people are no longer dying while homeless. Please consider the following budget items that increase affordable and supportive housing, reduce homeless, and make this a better city for everyone. First, restore the 3 million in promised funding to the Philadelphia Housing Trust Fund. 10 PUBLIC TESTIMONY RE 2011 BUDGET Trust Fund's success, it is the only item to be cut one hundred percent.
) -- only money available to the City for foreclosure-prevention assistance. Second, continue to support the Public Housing Authority Office of Supportive Housing partnership that has allowed homeless individuals to move off the streets and out of shelters and into stable, subsidized housing Third, finish the inclusionary housing bill that will create more affordable and supportive housing units. 10 PUBLIC TESTIMONY RE 2011 BUDGET for the Health Department's Homeless Death Review Team I'd like to thank you for your time and leadership to protect housing and other essential services in Philadelphia
You have all been extremely patient, and I appreciate it.
Charlie Lim, John Yoo, Wan Woo, and Wan Yim. (Witnesses come forward.)
I understand that some are questioning just how we get our list together. 173 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET As you call in, your name is added to the list. It's not that we don't we go over -- UNIDENTIFIED SPEAKER: (Inaudible, off-mic.)
We were next on the list. I think you might have gotten over us for some reason. I just want to make sure we're still on the list.
I'm sorry. You have to wait. We called you. We have people who --
Good afternoon. Please identify yourself for the record. 174 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET
Good afternoon. Councilmembers. My name is Charlie Lim. I'm President of the Korean-American Grocers Association. We have around 600 members in the Philadelphia city who has small mom-and-pop store, convenience store, or deli store. Since the recession started two years ago, we lost over to 30 percent 11 of the gross sales in the past year, 12 which means we lost about 10 to 15 13 percent of net profit. 14 I understand the City applied 15 the sugar-sweetened taxes on beverage. It's going to hurt our business a lot, which means someone has to close the store and someone has to cross the street to getting in the Montgomery County or Delaware County, who's living nearby the border, which means you chasing out other people to some other county. And on behalf of that, we're going to lose small business. We already been losing 15 to 30 percent of the gross 175 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET sales in the past two years. It is not good for small business owners. You losing a small business owner, which means you losing revenue from the City. We have to make a win/win program. You need to make the -- collect the -- increase the revenue. And on the other hand, the small business owner has to stay in the business, pay the taxes. If you apply this sugar- sweetened beverage taxes, it's going to hurt our businesses. That's -- it's not my opinion; it is our members' opinion. So please reconsider that matter. Thank you.
Good afternoon. My name is John Yoo. I'm the chairman of the Korean-American Grocery Association. In 1991 to 2000, I was the president of the Korean-American Grocery Association. We had a research from the 176 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET homicide, research from the -- what's that, the Inquirer writer, name is Jennifer Hung, and I. We did research. We have 31 (indiscernible) case from the store. And most of them, like or 24, 7 I'm not exactly remember, that's the 8 plant (indiscernible), but eight case is 9 just a shooting because they say 10 miscommunication. 11 Miscommunication mean it's 12 between customer and owner because I'm 13 not the, you know, good English. Like we 14 are immigration peoples. So many of our 15 member cannot speak English real well. 16 So it's got a problem to the running the 17 businesses. 18 But the eight cases just from 19 (indiscernible). Like for one case, just 20 the customer want one pack of cigarettes. 21 The customer asking for the plastic bag, 22 but he didn't give it to them. That's 23 for the 52nd and Jefferson. And that's why the customer shot, the owner got killed on there. 177 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET So I really -- we really don't want to make, you know, miscommunication or argue with the customer and the store owner. You know, we want to live, we want freedom; that's why we came here. But we got every ten years, around 30 owners of the grocery, the people got killed. So you should, you know, consideration for that. Life is very important for everyone, you know. We understand the City need the money. So we going to have for something, but the increase for the beverage, you know, making, like, plastic bag tax, that's really chance to argue with the customers. Argue with the customers means we have a chance get killed, die. So that's the more important than any other (indiscernible). Thank you.
Thank you. MR WOO: My name is Wan Woo, and I'm the Vice President of the KAGRO. 178 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET And I have (indiscernible), but if this taxes goes on, I mean my business customers going to be staying from the City. And plus, this is going to be (indiscernible) customers are not going to be (indiscernible) for our businesses (indiscernible), and they will lose jobs from the companies. You know, companies that going to be less revenue for your city too. Plus, this going to be more advantage to the out in the suburbs, to areas and people stay out of the City limits and they probably get more money than the chance of you collecting more revenue for the City. Thank you.
Thank you. Thank you very much. You've been very patient. Mr. Lord? (Applause.) (Witnesses come forward.)
Good afternoon, 179 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET Madam President.
I apologize for the confusion. We heard our name called, but we thought we'd be called again before we were asked to come up, so that was some confusion there. My name is Bill Lord, and I'm the Executive Director of the Tenet Union Representative Network, which, as you may know, or TURN, which is the tenant advocacy and service organization here in Philadelphia. We have a number of programs that are funded through the City, including the Home and Hopper Program, (indiscernible), the Shelter-Plus Care Program, the Homeless Prevention and Rapid Rehousing Program, the Housing Assistance Program. All these programs are ways we provide services to tenants as well as to advocate for them. We also do tenants' 180 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET rights counseling, which means tenants' rights classes. We do individual counseling, we provide organizing assistance for buildings. So in serving thousands of tenants each year, we get an idea of what the need is out there, and we're here to say that there's a tremendous need for homeless people to prevent homelessness and to support tenants in the City of Philadelphia. And we say that because we believe that housing is a human right and that the City has an obligation to make sure that the housing needs of its citizens are met. And before I go on to exactly what we mean, I'm going to turn it over Albert Seawright, our lead organizer, to tell you a little bit about what is needed.
Yes. I'm Albert Seawright, TURN's lead organizer and a counselor. 181 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET I would like to first thank members who are over there that came out to join us this afternoon. It is important to fully fund the City's shelter and homeless programs because, for many Philadelphians, entering a shelter is the start of accessing stable housing. Tenants sometimes tell me, "I came from a shelter and I do not want to go back in the shelter." When the City's shelters and homeless programs are inadequate, some individuals and families are forced to move into substandard and unsafe housing. Once low-income individuals and families fall into the trap of going between substantial housing and the shelters, it is difficult to escape. There is not enough decent private and public low-income rental housing to serve Philadelphia's population. Many people that are trying to get into public housing sit on long 182 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET waiting lists for years. We are working directly with these individuals to rapidly place them into affordable housing. Our goal at TURN is to 48 hours to house them once 7 they come into our program and support 8 them to become stable in this housing. 9 We are finding that the lack of 10 decent and affordable housing prevents 11 this from being a smooth transition. 12 When people enter a shelter system that 13 is adequately funded and they are 14 transitioned into decent and affordable 15 housing, they come to expect and work to 16 maintain decent housing rather than 17 accepting substandard and unsafe housing. 18 Let us improve the quality for 19 the City's most needy families and 20 individuals by fully funding the shelter 21 and homeless systems in the City. 22
Okay, if I might add 23 to that, I think whatever people 24 understand is the cause of the City's crisis to be, whether it be the financial 183 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET crisis or the predatory lending or whatever else, it's clear that it is not the fault of homeless or low-income people or people that are low-income tenants. And yet, they're, in a lot of ways, required to bare the burden of this crisis through unemployment, foreclosures, evictions. A lot of properties where the landlords are foreclosed upon, the tenants find that the properties are no 13 longer maintained, the new owners are not stepping in, they don't want to put the money in, the banks don't want to fund the situation. So they're in a situation where they don't have adequate housing. A lot of substandard housing is the result of this housing crisis going on right now, not to mention an increase in domestic violence, which we are very concerned about because of the tensions that are in households as a result of unemployment or housing insecurity. Our request is basically 184 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET several, and that is that -- and most of these don't cost money. The first is that we do restore the money to the Housing Trust Fund, because that's been an important vehicle for helping people in the City of Philadelphia, and we really need it. It's very little, it's a drop in the bucket, but it's an essential drop for a lot of folks. We need continuing funding for OSH, Office of Supportive Housing, and for OHCD. Those programs are vital, they are too small, but they are vital to the folks in of City of Philadelphia. We would also like City Council to consider restoration of the rental suitability ordinance, which was something that was passed a couple years ago and has been suspended ever since and requires landlords to make sure the properties are in good shape before they rent 'em out. And that's even more important now in this crisis. 185 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET We support the notion of lead paint inspections before people move into properties because we think that solving the problem after children get sick is already too late. We support domestic violence legislation to make sure landlords don't discriminate against private-housing tenants. And we want housing code enforcement to be improved. We think there's a need for more inspectors, and there's a need for abatement. We need to make sure that City has the money to fix properties and then bill landlord, lien the properties to make sure they get the money back. And then we need rent stabilization. The bottom line is, we need to make sure that, in this city, people can afford housing and have rents that are at an affordable level for everybody. So that's what we're asking 186 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET for, and we think that housing is such a fundamental human need that it's important for these things to be met. And thanks for the time. And we have written testimony for you as well.
Do we have a representative here from Canada Dry? Do you want to approach the witness table, please. (Witness comes forward.)
Good afternoon. You've been extremely patient. Thank you.
Good afternoon, Madam President and members of the City Council. My name is Joe Szarzynski, and I represent Canada Dry, Delaware Valley. And I am here in opposition of the sugar tax. There's many reasons why I'm in 187 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET opposition and the members of my group are. If we look at soft drinks, basic soft drinks, they're drank for enjoyment, refreshment. When do we drink soft drinks? At picnics, barbecues, fun times graduations. It's a enjoyable consumption of product. To single out one item, sugar drinks, and also to single out people who live, shop, work, and travel and visit Philadelphia is not correct. If you look at the basic economics, let's take a 20-ounce bottle sold in Philadelphia in the City limits, it's $1.59. If you add the sugar tax to it, it's $1.99. That's not right. That's an economic disadvantage to the people who are visiting, having lunch, and drinking sugar drinks in Philadelphia. Let's take a 12-pack, 12-ounce case. If it's on sale in Philadelphia, it's $2.99; with the sugar tax, it's an additional 2.88. That item costs 5.97. 188 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET If you leave the City limits, you can still buy that package for 2.99. Again, an economic disadvantage. Two-liter. If a two-liter's on sale for 99 cents in the City limits, an additional $1.36 will be placed on that item, and the consumer will be paying $2.34. Also, the economic disadvantage is to the people that we sell to and deliver our products. They are the mom-and-pop stores of Philadelphia. If you travel the streets of Philadelphia, these mom-and-pop stores are the fabric of our city. A lot of these are independent owners who start their day at 5 a.m. and end their day at 9 p.m. They put long hours in, and they bring revenue to the City. Putting a request for them to track a tax is a burden on them. Not only do they not have the equipment, as our Korean business partners voiced their opinion, it's hard to get that across to 189 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET the people that they sell products to. So I just I plead with the members of Council, please do not put the people who live, work, visit at an economic disadvantage of buying sugar drinks in Philadelphia. Thank you.
Good afternoon. My name is Julio Espinal Ramos from the Dominican Grocery Store Owner Association, and I'm the vice president. So I'm here right now today regarding about the taxes.
It does feel like night, doesn't it? (Laughter.)
Almost. This is about the taxes on the soda. So that's effect to us so much. Also about the grocery store owner because we, right now, around more 190 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET than 500 grocery store owner, but the Dominican grocery story owner, and that's going to affect to us about the increasing of the taxes on soda. That affect also by the employees that we have because that's going to push the employees to close some store because they're supposed to -- that affects us so much. So please let's not and see what we can do it to just tax don't pass. Thank you.
Thank you very much. We appreciate your patience.
Hi. Stewart, you have a book here. Please be as brief as possible.
Council President Verna, members of City Council, my name is Stewart Weintraub, and I appear before you today on behalf of the 191 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET Philly Jobs, Not Taxes Coalition, which represents 600 businesses and community organizations and the thousands of Philadelphia jobs its members represent. We urge you not to pass City Council Bill No. 100188, known as the sugar-sweetened beverage tax. Many of you know me from my prior appearances before this honorable council, but for those of you who do not, I would like to take a moment to give you a little bit of my background. I've been practicing state and local tax law for almost 40 years. I began career at the City's Law Department and departing after ten years as the Deputy City Solicitor Chief of Tax Litigation. After leaving the Law Department, my practice has specialized in representing businesses and individuals in state and local tax law. For more than years, I have 25 served, and continue to serve, as chair 192 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET and co-chair of the Greater Philadelphia Chamber of Commerce's State and Local Tax Committee. And it's in that capacity that I've appeared before this Council many times in the past. I am a past chair of the Philadelphia Bar Association Tax Section 9 State and Local Tax Committee. And I am currently the chair of the American Bar Association's State and Local Tax Committee. During the administration of Mayor William Green, I served as the chief counsel to the Tax Reform Committee, which he convened during the late 1980s. I was appointed to serve upon the Southeastern Regional Tax Reform Committee, which proposed local tax reform to the General Assembly. During the administration of Mayor Edward Rendell, I was appointed to serve as the Tax Reform Commission chaired by former Councilmember Happy Fernandez. 193 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET And during 2003, I was appointed to serve as a member of the Tax Reform Commission created pursuant to the Home Rule Charter. I urge you to reject the sugar-sweetened beverage tax for two reasons. First, if enacted, the sugar-sweetened beverage tax would violate the Sterling Act, the First-Class Cities Business Tax Reform Act, and the uniformity clause of the Pennsylvania Constitution. Second, it is simply bad tax policy, which will ultimately cost the City jobs and reduce the City's tax collections from the other taxes collected by it. First, let's look at these legal issues. I am aware that a colleague, Joseph C. Bright, Esquire, already appeared before this Council and presented testimony that passage of the 194 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET sugar-sweetened beverage tax would be illegal, and I will not repeat his testimony. For your convenience, I've attached to my written testimony a copy of Mr. Bright's testimony. My purpose today is to expand upon his testimony. We start with a truism. The City, acting through this council, has no 11 inherent power to tax. The City's power to tax is limited to the power granted to it by the Commonwealth of Pennsylvania. In other words, unless a City tax can be traced to some authorization granted to it by the Commonwealth of Pennsylvania, it is invalid. The Sterling Act grants the City the power to impose privilege taxes, like the sugar-sweetened beverage tax. (Timer bell rings.)
But what draws that power, if the privilege extends outside the limits of the City. If the City is taxing something the Commonwealth 195 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET is already taxing, or if the City is taxing something who the State -- taxing someone who the State is licensing. Mr. Bright already addressed the Sterling Act issues as part of his testimony; and, again, I will not repeat them here. During 1984, effective for the City fiscal year 1985, the Commonwealth of Pennsylvania enacted a First-Class City Business Tax Reform Act, authorizing the City to impose the business-privilege tax. And pursuant to that authority, this council imposed the business- privilege tax Prior to enactment of the business-privilege tax, the City imposed, pursuant to the authority given it by the Sterling Act, the Mercantile License Tax. When the First-Class City Business Transform Act was enacted, it contained a provision which prohibited the City from imposing a business-privilege tax if imposing another tax based upon gross receipts for the privilege of doing 196 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET business in the City Imposition of the sugar- sweetened beverage tax should trigger the First-Class City Business Tax Reform Act preclusion from imposing another business-privilege tax while the existing business-privilege tax is being imposed. The third legal issue is the uniformity clause. The uniformity clause that the Pennsylvania Constitution requires that all taxes should be uniform upon the same class of subjects within the territorial limits of the authority levying the tax and shall be levied and collected under general laws. The Pennsylvania Supreme Court has held that for a tax to satisfy this constitutional uniformity requirement, the test to be applied is one of reasonableness. Is there a reasonable basis for treating one class of taxpayers differently from another? And I cite the case for you. (Timer bell rings.) 197 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET
What is the reasonable basis for singling out sugar-sweetened beverages for taxation. The apparent and stated reason is to fight obesity. However, there are two defects to the argument that the City can single out sugar-sweetened beverages to taxation because they contribute towards obesity. First, if fighting obesity is the reasonable basis, what is the reasonable basis for not including as part of the tax basis other sugar- sweetened food products -- candy, ice cream, donuts, et cetera, each of which has a higher concentration of sugar than the sugar-sweetened beverages. Second, if fighting obesity is a reasonable basis for enacting this tax, why is only approximately 30 percent of the estimated revenue to be derived from the sugar-sweetened beverage tax being dedicated to programs to fighting obesity? 198 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET With approximately 70 percent the revenue to be derived from the sugar-sweetened beverage tax being added to the General Fund to be used for general revenue purposes, what is the reasonable basis for subjecting sugar- sweetened beverages to tax and not other businesses contributing to the General Fund. Now, the policy issues, and this I'll be very brief with. Imposition of the sugar- sweetened beverage tax is bad tax policy. As described earlier and by prior witnesses, imposition of the business privilege tax the City imposed -- prior to the imposition of the business- privilege tax, the City imposed a mercantile license. The mercantile license tax was a gross-receipts tax. A gross-receipts tax falls most heavily upon a small business and high-volume, low-margin businesses Small businesses, neighborhood 199 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET food stores, convenience stores all employing neighborhood residents will be hardest hit by the sugar-sweetened beverage tax. We've heard that from the preceding witnesses that appeared before me here at City Council. (Timer bell rings.) Using the two-litre bottle, which we've already heard about as an example, the sugar-sweetened beverage tax, as the tax is being presently being considered by Council, imposes a tax at the rate which exceeds the cost of the product. A two-liter bottle is 67.63 ounces. At two cents an ounce, the tax imposed upon the privilege of selling that two-liter bottle would be $1.35. A two-liter bottle can be purchased for 99 cents. For a two-liter bottle, that tax equals 135 percent of the cost of the bottle. Surely the store owner cannot sell a 99-cent two-liter bottle for 200 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET $2.34. And just as surely, the store owner cannot absorb a $1.35 tax liability. The tax liability is many time greater than the profit from the sale of the product The only alternative is for the store owner to increase the cost to all products that is being sold in the store. However, if the store owner cannot pass the cost through to the consumer, the store owner must incur the cost. For the store owner incurring the cost to maintain profitability, the owner must reduce other expenses, possibly through layoffs Either way, the store owner's profit is reduced. This is a store owner who is already paying a 6.45 percent of net income and 1.1415 mills of gross receipts taxed to the City through the existing business-privilege tax. What does this mean to the City's tax revenue? If the store owner lays off employees, that would cause a 201 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET reduction in the wage tax collected by the store --
Thank you. You know, you've been very patient and I think I've been extremely patient and so have they.
It's in the written testimony and will be made a part of the record.
Thank you very much, and I'll be available for any questions that the Councilmembers may have. (Applause.)
Our next witnesses? 202 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET
-- and members of the Council and friends. , which is a public/ private partnership that coordinates the work of several agencies providing round-the-clock outreach services to one of the City's most vulnerable populations -- those living on the street or in other places not fit for human habitation. I want to thank Council and the Administration for their steadfast support for programs serving Philadelphia's most vulnerable citizens. 10 PUBLIC TESTIMONY RE 2011 BUDGET of the Department of Public Health and specifically the Homeless Death Review, I'd also like to note that the Homeless Death Review is simply the clearest and most heartbreaking demonstration of what happens when we fail to serve those most at risk. Started in January of 2009, the Homeless Death Review is a program of the Medical Examiner's Office in collaboration with the Department of Behavioral Health and Office of Supportive Housing. And it's the nation's first such team charged with review of deaths of persons who are homeless at the time of death and currently residing in Philadelphia. And, unfortunately, our outreach workers are often witness to such deaths. Sadly, the ongoing neglect that characterizes the lives of people living with homelessness may result in untimely, violent, and premature death. 10 PUBLIC TESTIMONY RE 2011 BUDGET general population is 78, the average person experiencing homelessness can expect to live only until age 50, or about the life expectancy in the year 1900. The Homeless Death Review aims to change that. The Death Review Team provides a critical and unprecedented opportunity for each of the systems that may have touched or, in some cases, unfortunately, failed to reach these individuals to review the circumstance surrounding their deaths. Its goal is identifying the gaps that exist and the types of solutions that are needed to prevent more deaths in the future. Inadequate funding of the Health Department could cause an interruption in this groundbreaking process that is currently generating new knowledge to decrease preventible deaths in Philadelphia. 10 PUBLIC TESTIMONY RE 2011 BUDGET triumphs, and Philadelphia boasts one of the lowest rates of street homelessness of large cities around the country, street homelessness endures. We cannot feel that there is a level of homelessness that is simply an acceptable and an inevitable part of urban life because we are better than that. The Homeless Death Review is but one innovative piece of a matrix of services, programs, planning, and evaluation that comprises the homeless system. And, as you know, the system of housing and services that provides pathways out of homelessness is operating above capacity and taxed heavily each day merely to find places for people to sleep. Beyond the 43 people who sadly died while homeless in 2009, there are countless stories of people whose lives still hang in the balance. 10 PUBLIC TESTIMONY RE 2011 BUDGET cancer and has no appropriate housing while he undergoes chemotherapy. On the other side, there is the hope that comes with the availability of adequate resources, like the man who recently was able to obtain permanent supportive housing and called the outreach worker on the phone to tell him the moment he arrived in this apartment. And this is a person who had lived on the street, isolated for more than 11 years. In addition to continued support for the Homeless Death Review, our plea to you today is to preserve housing and services for people experiencing homelessness in Philadelphia and to think systematically to address and prevent homelessness because none of us is home until all of us are home. Thank you.
Our 207 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET next witnesses?
Mr. Grace, are these other gentlemen with you that are sitting in the same row with you?
Once again, I sit before you, and I'm here to tell you that we are firmly opposed to any type of soda tax. This tax is impractical and will succeed in only cutting jobs, not 208 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET cutting obesity rates. The tax will hurt hardworking middle-class families and the working poor of this city. The Mayor shows an alarming lack of understanding of the economic consequences of this tax and challenged our position that the tax will cost my membership jobs. What's so hard to understand? The cost of sugar drinks will double in cost, people will stop buying the products, City stores will stop stocking it, the soda companies will move less product, the Teamster drivers and industry support personnel will lose their jobs. Beverage-industry statistics show that when soda prices rise 10 percent, sales drop 8 to 9 percent. Reductions in soda sales mean job losses from bottling-plant workers to Teamster delivery drivers. Our best estimate at this time is potentially as many as 2,000 lost 209 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET regional jobs if this tax is passed. These job losses will not be limited to Teamster members alone. Supermarket employees, convenience store workers, and small-business owners who sell soda in their stores or restaurants will also be adversely affected if this onerous tax is passed into law. There are thousands of family- sustaining, middle-class Philadelphia jobs in beverage production, supply, distribution, sales, retailing, which depend on a healthy beverage industry. The loss of any of these jobs will only further erode the City's tax base. Teamsters Local Union 830 represents 2,200 Philadelphia members in the soft drink and beverage industry. These hardworking, taxpaying City residents do not deserve to have their jobs in place jeopardy because of a misguided attempt to plug the City's budget gap solely by taxing the product they produce and deliver. 210 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET The soda tax is also discriminatory. Taxing one product in one industry to the exclusion of numerous items containing similar sugar-based ingredients is simply unfair. The tax would not be imposed on snack items such as ice cream, candy, Popsicles, donuts, or other high-sugar foods. Instead, this tax would unjustly target and burden the beverage industry alone. Mayor Nutter proposes to use only million of the 77 million raised 14 annually through this tax for public 15 health education and services. 16 Let's be honest here. This 17 initiative is not about health; it is 18 about the deficit reduction and raising 19 taxes on Philadelphians who are already 20 burdened with among the highest taxation rates in the country. If Mayor Nutter is serious about improving citizens' overall health, then only a broad education program aimed at targeting eating behaviors and 211 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET promoting fitness and a healthy diet can effectively combat the country's obesity epidemic. Any food or drink consumed without moderation will cause weight gain. Madam President, I've been here to testify before you now three times. I've also met with you individually a separate time. I've also met with several of the City Council. I am here on behalf of my members who every day ask me whether or not they are going to continue to work in the City of Philadelphia. I am also here on behalf of the of every one of the business owners who are simply just trying to make a living and pay the taxes that they already pay in the City of Philadelphia. I respectfully ask the members of City Council to vote against the sugar drinks tax. It will be an additional financial burden on families already struggling to make ends meet. It does 212 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET not work for Philadelphia or for Philadelphia's workers. Thank you.
Why don't you both come up to the witness table, please.
My name is John Generose and I'm currently the Health and Safety Manager at the Philadelphia Pepsi plant and reside in the Mt. Airy section 213 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET of the City. I'm here to talk about the soda tax. And I ultimately believe that taxing businesses that provide good jobs to the citizens of Philadelphia is a bad idea because it will decrease the number of employees who contribute to City wage tax and employees at my workplace as well and other manufacturing retail outlets within the City. It will have a direct impact on future manufacturing as well as retail ventures within the City as operating in the immediate suburbs provides less costly but accessible options. I wanted to let you know that the tax -- if a tax is placed on the beverage we manufacture, deliver, and sell in Philadelphia, it could potentially drive consumers to the suburbs to do their grocery-shopping as well as purchase other goods and -- excuse me. It will drive consumers to the suburbs to do their grocery-shopping 214 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET due to tax increases, as they've discussed before. Eventually, this tax will only burden the citizens of Philadelphia, who cannot forward an additional tax. These citizens do not have the means or accessibility to do their shopping outside of City limits I ask, as a resident of the City and an employee of Pepsi, that you vote no on the beverage tax and respectfully request that the Mayor find another way to balance the City's budget Thank you.
Hello. Good afternoon. My name is Steve Bennett. I work for Pepsi also in the Mt. Airy section of Philadelphia. And I'm here to speak against the proposed beverage tax. Ultimately, I believe taxing businesses who provide good jobs for 215 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET citizens of Philadelphia is a bad idea. If this tax is passed, it will result in less demands, less workload, and eventually loss of job and employment of taxpaying citizens of Philadelphia. I ask that you vote no on this beverage tax and respectfully request the Mayor find another way to balance the City's budget.
Very 216 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET well. (Witness comes forward.)
Good afternoon. Please identify yourself for the record.
Good afternoon, Madam Chairwoman and members of Council. My name is Keima Sheriff, and I am here today to represent two organizations, actually. " And the other organization that I'm representing is Cookman Alternative Learning Community; that's housed out of Cookman United Methodist Church in North Philadelphia. And so, I'm just here to tell you a little bit of a story. First, I want to explain the power of the coalition. 10 PUBLIC TESTIMONY RE 2011 BUDGET UAC is a coalition of over 90 programs that provide services, assistance, and support to families and individuals thought Southeastern Pennsylvania. Everything we do is about helping individuals, families, and businesses in building a healthy community. By providing these services and others that assist these families and these individuals, we improve the lives of over 85,000 individuals in Southeastern Pennsylvania. We are a part of the coalition because we believe in the power of the coalition. Everything we do is about giving these families, these businesses, these individuals a hand moving up the economic ladder. It's about upward economic mobility; it's not about handouts. 10 PUBLIC TESTIMONY RE 2011 BUDGET the City budget is sustained or increased. So now I want to talk to you a little bit about what we are supporting in the budget. We know that before you are several revenue-enhancement ideas, and we're not taking a stand on what should or shouldn't happen. All we're asking is that if you do levy in any of these enhancements, that you think about using the funding to continue to support social-service and education programs because, unfortunately, we are the ones who get cut the most whenever we have to think about budget cuts And then I want to talk to you a little bit about what we do at Cookman. I serve as the executive director there. And just rather than giving you stale data, I want to talk to you about Maria. 10 PUBLIC TESTIMONY RE 2011 BUDGET in North Philadelphia and refused to leave. And even in her solitude, she ended up having two children, and decided, after her second one was born, that she needed a high school diploma. So she came to us and told us that she needed help. And she came at a very, very low reading level. So we had a lot of work we had to do And in addition to that, Maria was living in an abusive home, and so, she struggled because her family was not supporting her education or her desire to do more for her life and for the life of her two sons And so, we worked really hard for this child, got her reading levels up so that she could graduate; and not only graduate, but we were able to get her enrolled in Delaware Community College. 10 PUBLIC TESTIMONY RE 2011 BUDGET with her boys and go to school. And now, she's finished her first year at Delaware County Community College. And she wanted to be here today, but unfortunately, she couldn't because we're running late, and she had to be home to pick up -- when her sons were dropped off from daycare But that's why we do what we do -- for the students like Maria, who, in her words, "Miss Keima, I don't know why you guys decide to do what you do. " And I told her it's not that you don't deserve us; it's that we forgot that we deserve all of you, because you're still a part of this community. You may be lost, you may be forgotten, but we remember you. 10 PUBLIC TESTIMONY RE 2011 BUDGET not remembered, the kids who have lost their spirit to learn. And when you look in their eyes, you see true death, you see that they have lost all hope. Those are the kids that we work with And so, we continue to ask the City Council, when you're thinking about your budget and you're thinking about what to cut, to not cut alternative education, to not cut academic programs that for these kids are their last hope. And so I thank you for your time
Thank you. Thank you very much. Our next witness?
I was called 222 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET earlier today, at 3:30.
Why don't you approach witness table, please. (Witness comes forward.)
Good afternoon, President Verna and members of City Council. My name is Catherine Scott and I am President of AFSCME District Council 47. Thank you for the opportunity to provide testimony concerning the proposed Fiscal Year 2010 budget and Five-Year Plan. 10 PUBLIC TESTIMONY RE 2011 BUDGET Philadelphia. On the revenue side, it comes down to who pays and how much do they pay. Philadelphia's taxing policies presently requires individuals to foot most of the bill. Businesses pay very little; some pay no taxes. 25 billion. I asked City Council and the Administration to define what success is, querying, how do you know if wage and business tax reductions are working? At last year's community meetings, most groups identified the ten-year tax abatement as another tax ripe for elimination or reduction. Why isn't the ten-year abatement being examined? 10 PUBLIC TESTIMONY RE 2011 BUDGET in yesterday's paper is Exhibit A for why the ten-year abatement needs to be revisited as the condo niche market expands in Philadelphia. As large universities expand, their real-estate tax-exempt status places a greater burden on individual homeowners who are concerned about their property tax increasing. If Temple Hospital can pay up to $10,000 per week to scab nurses, why can't it make a payment in lieu of taxes arrangement with the City to make up for its failure to pay real-estate taxes on its properties. I would like to support Mayor Nutter's budget premise concerning expenditures for City services that cannot be cut any further. It is reckless to believe that because a position is vacant that it does not need to be filled. 10 PUBLIC TESTIMONY RE 2011 BUDGET provides details and specific positions to be eliminated,m I would like to examine three departments slated for cuts. First, the Police Department, where two graduate chemists, the laboratory director and accounting supervisor and nine criminal investigative research analyst trainee positions are on the chopping block, for a total estimated savings of wages and benefits of $721,072. Critical research and analysis which provide investigatory leads result in the apprehension of criminal suspects or identifying criminal enterprises. Criminal database management and providing centralized telecommunications for the safety of the public or officers is being compromised by not funding these positions. 10 PUBLIC TESTIMONY RE 2011 BUDGET backlogs. Criminals may be freed, perpetrators of cold-case crimes will remain free. DNA analysis is expected by juries. A professional director for the lab is absolutely necessary for technical expertise in maintenance of standards. As there is more emphasis on efficiencies to bring cases to trial, thus reducing the court backlog, incarceration costs, and other criminal-justice system costs, why would the City jeopardize a major component of that system being hampered to save less than $725,000. Second, the Prisons, where six social workers, three social-work supervisors, one accountant, and one industry shop supervisor are proposed for elimination for a total estimated savings of $753,192. 10 PUBLIC TESTIMONY RE 2011 BUDGET over 39,961 admissions and 39,654 discharges in 2009. All inmates who have money at the prison must be issued checks upon discharge. The prison has historically been understaffed when it comes to social workers and social-work supervisors, whose work is an intricate part of American Correctional Association accreditation. Persistently-high caseloads increase the length of stay of inmates, contributing to increased prison costs. Industry shops are a vital part of training and rehabilitating inmates and reducing prison costs by having services such as laundry done by inmates. These job eliminations are counterproductive if the City wants to continue its focus on reducing criminal- justice system costs. 10 PUBLIC TESTIMONY RE 2011 BUDGET positions are targeted for elimination at a saving $2,173,724.
These two combined departments have been the hardest hit in cutbacks over the past two decades. And the recreation centers and park systems show it. Recreation centers are badly in need of repair and caretaking. Well-maintained recreation centers send a message to the community that it is valued. Those centers reduce the acceptability of gang activity, which supports the City's and the union's very successful efforts over the last two years to reduce violence at recreation centers. Volunteers are an important asset of recreating centers. Reducing volunteer opportunities decreases the number of improvement projects. 10 PUBLIC TESTIMONY RE 2011 BUDGET emphasis on our Park and Recreation Department. It's time to make that commitment a reality, not the time to hamstring the vital services these departments provide, especially to children and civilians. Finally, in reviewing the budget, I see that even though it is down over 50 probation officers in Adult Probation alone, the First Judicial District is showing no vacancies. Most probation officers have over 450 offenders on their caseloads. With Probation and Parole saving millions in lieu of incarceration, it is shortsighted for the City not to invest money in diverting offenders from incarceration into rehabilitative services. Last year's City Council and the Administration chose to kick the can down the road by going to the State legislature to lower its minimum municipal obligation pension payment and raise the sales tax. 10 PUBLIC TESTIMONY RE 2011 BUDGET The inconsistent positions taken on pension last year were mind-boggling. The city employee pension plan funded at 53 percent was declared a catastrophe and needed a total revamping. However, the transport workers union pension plan, funded at 50 percent, was just fine. Same issue, different rules. And to make matters worse, the City did not make its full payment to the plan. It is these types of situational ethics which anger people. So, again, this year, the question presents itself: What are fair tax policies? Will this be the year that business tax rates and real-estate abatement are really evaluated? Or will it be the individual taxpayer who will do the heavy lifting again? Will the large nonprofits with huge endowments be expected to pay their fair share? We think that's not too much to ask. 10 PUBLIC TESTIMONY RE 2011 BUDGET Services has proposed changes to the business-privilege tax, which would exempt small businesses with sales in the City of less than $500,000 from paying the gross receipts portion of the BPT. ) These businesses would pay the net income portion of the tax. 003 percent Since about 84 percent of all business-privilege taxpayers have receipts less than $500,000 per year as of 2007 figures and paid less than $8 million, the remaining 16 percent of the businesses paid $83 million in BPT in 2007. By returning to the 1996 rate, with the exemption, small businesses would be protected, the richer businesses would pay an additional $75 million. This could significantly close any revenue gap. 10 PUBLIC TESTIMONY RE 2011 BUDGET Thank you for the opportunity to testify today.
Thank you. Your testimony has been very informative. We appreciate it. Thank you. We were supposed to recess at 4 o'clock. Are you all here to testify? Nobody's here to testify. Very well then. We will stand in recess until a quarter of 6. (Short break taken.) (Proceedings resume at 6:05 p.m.)
This is the continued public hearing of the Committee of the Whole. Lauren Sweeney?
Miss Sweeney, do you want to approach the witness table. (Witness comes forward.)
Good 233 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET evening.
Kindly identify yourself for the record and proceed with your testimony.
My name is Laurel Sweeney. I live at 6136 the North 7th in Philadelphia. As I 30-year resident of Olney and a community garden coordinator for eight years in Fisher Park, I will attest to the direct correlation of investment to return. I refer not only to how -- I'm sorry -- to how the degree to which positive change occurs directly depends on organizational effort, but also how money spent on healthy activities and greening goals yields higher market values and certainly a higher quality of life. In 1997, at a low point in history for the area surrounding Fisher Park, the Philadelphia Inquirer released 234 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET a study that described the least and most connected communities in Philadelphia. In terms of neighborhoods involvement, Olney was numbered among the lowest. Out of need and fueled by the circumstances outlined in that article, a group of residents comprised mostly of block captains banded together to address general safety concerns but mostly focused their efforts to change the perception of the park They wanted citizens to actually rejoice in its existence as a safe and health extension of their own property and not to fear it anymore. It worked Partnerships were formed with Councilwoman Tasco's Office; the Fairmount Park Commission and the Recreation Department, then separate entities; the Philadelphia Parks Alliance; and the Pennsylvania Horticultural Society The recipe of residents with 235 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET energy and interest and City agencies with human and financial resources cooked up into a jambalaya of regular cleanups, tree and plant advice and car, new gardens, and environmental-education opportunities for school kids. Today the park is teeming with activity and a lot of very happy people. There are young families walking to and from the park from every direction. Dog ownership is up, but very few are pitbulls anymore. In 2005, the median price of a home within walking distance of the park was $116,900; and in 2010, $137,500. Another statistic but about how green space impacts on attention in children. The study was done to examine children's ability to pay attention in class after play periods in asphalt- dominated and vegetation-dominated playgrounds. Kathleen Bago studied 500 children 14 schools that showed that the 236 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET higher level of vegetation in the schoolyard, the more highly the children rated the environment as restorative. These children had better attention scores in the classroom after playing in that environment. Don't our children need a leg up in this tumultuous city? Please keep the dollars towards the parks, recreation, and trees. This is the most efficient expenditure toward lowering obesity, crime, and depression, increasing home value and attention in children. Thank you very much.
Thank you, thank you. We appreciate your coming in to testify.
Thank you. We don't have anyone on the list, and I assume no one's coming in. 237 5.4.10 PUBLIC TESTIMONY RE 2011 BUDGET So this committee will stand in recess until Friday, May the 7th, at a.m. 4 Thank you all very much. 5 (Proceedings end at 6:10 p.m.) 6 * * * 7 8 9 10 238 C E R T I F I C A T E I HEREBY CERTIFY that the proceedings of the City of Philadelphia Council Committee of the Whole are contained fully and accurately in the stenographic notes taken by me on Tuesday, May 4, 2010, and that this is a true and correct statement of same. __________________________________ JOSEPHINE CARDILLO Registered Professional Reporter (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)