COUNCIL OF THE CITY OF PHILADELPHIA2 COMMITTEE OF THE WHOLE3 Room 400, City Hall6 Philadelphia, Pennsylvania Thursday, June 16, 20117 9:30 a.m. PRESENT: COUNCIL PRESIDENT ANNA C. VERNA10 COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN DARRELL CLARKE11 COUNCILMAN FRANK DiCICCO COUNCILMAN W. WILSON GOODE, JR.12 COUNCILMAN BILL GREEN COUNCILMAN WILLIAM K. GREENLEE13 COUNCILMAN CURTIS JONES, JR. COUNCILMAN JACK KELLY14 COUNCILMAN JAMES KENNEY COUNCILWOMAN JOAN L. KRAJEWSKI15 COUNCILWOMAN DONNA REED MILLER COUNCILMAN BRIAN J. O'NEILL16 COUNCILWOMAN MARIA D. QUINONES-SANCHEZ COUNCILWOMAN BLONDELL REYNOLDS BROWN17 COUNCILMAN FRANK RIZZO, JR. COUNCILWOMAN MARIAN B. TASCO18 BILLS 110135, 110136, 110137, 110138, 110139, 110140, 110477, 110478, 11047920 RESOLUTION 110161 - - -22 2
We2 will have silence, because we're going to3 have testimony. We're going to respect4 those who are speaking, and I expect all5 of you to respect the members of Council.6 So I'd like to go on with this hearing.7 And may I say that we have any8 number of witnesses this morning. So for9 everybody to be heard, we are going to10 limit each witness three minutes, three11 minutes to testify. So when you hear a12 bell, you'll know to please try to13 conclude your remarks.14 This is a continued public15 hearing of the Committee of the Whole.16 I would ask Mr. McPherson to17 please read the bills that are before us.18 MR. McPHERSON: Bill No.19 110135, an ordinance to adopt a Capital20 Program for Fiscal Years 2012 through21 2017.22 Bill No. 110136, an ordinance23 to adopt a Fiscal 2012 Capital Budget.24 Bill No. 110137, an ordinance25 6/16/11 - WHOLE - BILL 110135, ETC.1 adopting the Operating Budget for Fiscal2 2012.3 Bill No. 110138, an ordinance4 amending Chapter 19-1500 of The5 Philadelphia Code, entitled "Wage and Net6 Profits Tax," by revising certain rates7 and making technical changes.8 Bill No. 110139, an ordinance9 amending Chapter 19-1800 of The10 Philadelphia Code, entitled "School Tax11 Authorization," by amending Section12 19-1806, entitled "Authorization of13 Realty Use and Occupancy Tax."14 Bill No. 110140, an ordinance15 amending Section 19-1801 of The16 Philadelphia Code, entitled17 "Authorization of Tax," to further18 authorize the Board of Education of the19 School District of Philadelphia to impose20 a tax on real estate within the City of21 Philadelphia.22 Bill No. 110477, an ordinance23 amending Section 19-1801 of The24 Philadelphia Code, entitled25 6/16/11 - WHOLE - BILL 110135, ETC.1 "Authorization of Tax," to further2 authorize the Board of Education of the3 School District of Philadelphia to impose4 a tax on real estate within the City of5 Philadelphia.6 Bill No. 110478, an ordinance7 amending Chapter 19-1800 of The8 Philadelphia Code, entitled "School Tax9 Authorization," by adding a new Section10 19-1807, entitled "Authorization of11 Sugar-Sweetened Beverage Tax."12 Bill No. 110479, an ordinance13 amending Section 19-1301 of The14 Philadelphia Code, entitled "Real Estate15 Taxes," by revising the real estate tax16 rate, under certain terms and conditions.17 Resolution No. 110161, for the18 approval by the Council of the City of19 Philadelphia of a Revised Five Year20 Financial Plan.21
Thank22 you.23 Our first witness will be?24 MR. McPHERSON: Karen Brown.25 6/16/11 - WHOLE - BILL 110135, ETC.1
Is2 Ms. Brown here?3 (Witness approached witness4 table.)5
Good6 morning. Kindly identify yourself for7 the record and proceed with your8 testimony.9
I'm Karen Brown,10 and I thank you for letting me testify11 today.12 COUNCIL PRESIDENT VERNA:13 Please proceed.14
I am very proud of15 my heritage, as someone who came from16 South Philly who grew up loving cheese17 steaks, cannolis and soft pretzels. It's18 been a tradition in our fair city where19 visiting the City, tourists also enjoy20 these things. If one makes a diet of21 these foods, no doubt obesity may be a22 problem. But in the land of cheese23 steaks, cannolis and pretzels, we choose24 a soda tax to fight childhood obesity?25 6/16/11 - WHOLE - BILL 110135, ETC.1 The fact that we use taxes as a2 method of paying for the bill of our3 overspending is bad enough, but we4 further this mockery by using our5 children to make this legislation.6 Tugging at the hearts of the7 parents while robbing their purses has8 become a standard of this Administration.9 Add to that that the tax will cause10 consumers to also purchase out of our11 City, further crippling our businesses,12 increasing more closures among them,13 which will eventually result in more14 unemployment. Who does this benefit?15 Not the citizens of Philadelphia.16 Twenty-three million for a17 summer SLAM program for 700 children is18 absurd and another way of wasting our19 taxpayers' money. Why are these children20 failing, is what I asked?21 I do not agree that throwing22 more money into a broken school system is23 a solution. We need more accountability.24 I am glad that Mayor Nutter is listening25 6/16/11 - WHOLE - BILL 110135, ETC.1 to the parents and the children who are2 crying about this broken system. I am3 also glad that he is finally believing in4 accountability, but what has he done for5 the past three and a half years? Why is6 he now just waking up?7 Finally, if the Mayor gets his8 way by passing this tax as part of the9 school budget, by state law it can never10 be repealed.11 Mayor Nutter, no more taxes.12 That's what you said. That's what you13 should be sticking to. You need to be14 accountable. That's what you promised15 the voters of this City. No more taxes.16 You tried this last year and it17 didn't work. You used this as a switch18 and bait to raise our property taxes. Is19 this your plan again? Eventually the20 tax-paying well runs dry.21 Thank you.22 (Applause.)23
Our24 next witness.25 6/16/11 - WHOLE - BILL 110135, ETC.1 MR. McPHERSON: Our next2 witness is Danita Bates. Danita Bates.3 (No response.)4 MR. McPHERSON: William Wade.5 (No response.)6 MR. McPHERSON: Emmanuel7 Bussie.8 (No response.)9 MR. McPHERSON: Dorothea10 Graham.11 (No response.)12 MR. McPHERSON: Dorian Harris.13 (No response.)14 MR. McPHERSON: Ogbonna Hagins.15 (No response.)16 MR. McPHERSON: Tim Stults.17 (No response.)18 MR. McPHERSON: Bridgett19 Timons.20 (No response.)21
Is22 Ms. Timons here?23 (No response.)24 MR. McPHERSON: Robert25 6/16/11 - WHOLE - BILL 110135, ETC.1 Benjamin.2 (No response.)3 MR. McPHERSON: Susan Gobreski.4 (No response.)5 MR. McPHERSON: Helen Gym.6 (Witness approached witness7 table.)8 COUNCIL PRESIDENT VERNA:9 Please approach the witness table,10 identify yourself for the record and11 proceed with your testimony.12
Hello. My name is13 Helen Gym. I'm a Philadelphia public14 school parent, taxpayer, resident of this15 City.16 I guess I'm here today to talk17 a little bit about what I hope is a18 conversation of the day around this City,19 which is what is happening to our20 Philadelphia public school system and the21 important need to address what's22 happening for the Philadelphia public23 schools, not only for next year but for24 the long term. And for a long time we've25 6/16/11 - WHOLE - BILL 110135, ETC.1 been saying that we need to talk about2 our schools and that our schools would be3 both the best thing that could be told4 about Philadelphia or an albatross around5 its neck. And so here we are at the end6 of a long process and period, and I just7 want to say to all the City Council8 people who are here, we are here today9 because of a lot of bad decisions that10 have been made over a long period of11 time. There have been a lot of decisions12 that we certainly wish that City Hall13 could have done. We wish that City14 Council could have asked a lot more15 questions when the School District came16 up every single year to present its17 budget, and we felt that there were18 massive holes and lots of questions that19 could be asked.20 We know that this District and21 this Administration is one that many22 parents rebuke. We do not endorse it.23 But at the end of the day -- and they24 should be rebuked for terrible sudden25 6/16/11 - WHOLE - BILL 110135, ETC.1 decisions they've made over a long period2 of time, but at the end of the day, we're3 asking you not to use City funds to4 reject the Administration, that that is5 not the way to send -- that is not the6 only way to send a message of rebuke.7 And we appreciate the City Council people8 who have been down at the School9 District. I believe Councilman Green,10 Councilman Blondell Reynolds Brown sent a11 letter, but for the other Councilmembers12 who have not been there, we're asking you13 to think very carefully about how we're14 going to fix the system so that it's not15 just about whether it's -- it's not just16 about a soda tax today or it's not just17 about a rebuke of the School District18 today, but that this is a conversation19 that needs to talk about setting up a20 partnership that works with parents and21 community people who are deeply concerned22 and out there fighting every single day23 for our public schools, for a better24 administration, for strong leadership for25 6/16/11 - WHOLE - BILL 110135, ETC.1 our school budget that places children2 and classrooms first. We need City3 Council's help to be able to do that. We4 need you to send out a message and to say5 things like accelerated schools, to talk6 about school funds going back into our7 local schools so we can restore back8 teachers. We ask you not to think that9 giving money to the schools necessarily10 endorses a leadership in the11 administration that has not done right by12 our children.13 But we do need City Council14 today. We need your partnership. We15 believe that -- you have partners at the16 schools and parents who are out there who17 are going to fight and hold this system18 accountable. We'll be there with you,19 but we need your help.20 Thank you.21
Our25 6/16/11 - WHOLE - BILL 110135, ETC.1 next witness.2 MR. McPHERSON: Has Robert3 Gates made it down from upstairs?4 (No response.)5 MR. McPHERSON: Stephanie6 Nagele and Helen Kindle?7 (No response.)8 MR. McPHERSON: Lola Oladopo,9 O-L-A-D-O-P-O.10 (No response.)11 MR. McPHERSON: Marcia Kling.12 (Witness approached witness13 table.)14
Good15 morning. Welcome. Please identify16 yourself for the record.17
Marcia Kung. I am a18 parent of children who had gone through19 the public school system in Philadelphia.20 I won't take three minutes.21 I too am terribly concerned22 that we are talking about a soda tax and23 not the long-term look, picture of the24 school system. I know personally of25 6/16/11 - WHOLE - BILL 110135, ETC.1 people who have considered moving into2 the City, but are waiting until their3 kids are finished school in the suburbs4 because the school system in the City is5 questionable, and the future certainly is6 questionable. I know of a corporate7 entity who considered moving into the8 City, but doesn't feel that their9 employees will have a sound system in the10 future, nor are they concerned -- they11 are concerned about the workforce and how12 educated it will be for them.13 I don't understand why we're14 talking not about the big picture but15 about a soda tax. Our kids are worth16 much, much more than that.17 Thank you.18 COUNCIL PRESIDENT VERNA:19 You're welcome.20 (Applause.)21
Good22 morning. Please identify yourself for23 the record.24
Excuse me?25 6/16/11 - WHOLE - BILL 110135, ETC.1 COUNCIL PRESIDENT VERNA:2 Please identify yourself for the record.3
I'm sorry. My4 name is Dorian Harris. I'm a parent of5 six children that attend the public6 School District.7 COUNCIL PRESIDENT VERNA:8 Please proceed.9
Yes. Good10 morning, Council. Good morning, parents,11 family and everyone. I'm here to protest12 against the budget cuts. I have six13 children that attend the public School14 District, and as far as they've been15 there -- the school that I'm personally16 involved with is Pastorius Elementary --17 I have seen a big turnaround in the18 school over the past year and a half,19 academically and socially.20 I'm also a parent that's21 involved with Parent University presented22 by the Philadelphia School District.23 Through this program, it enhanced my24 education. I am now a product of -- I25 6/16/11 - WHOLE - BILL 110135, ETC.1 just graduated through one of their2 accelerated programs to obtain my high3 school diploma as well. So by me4 enhancing my skills, I would like my5 children to go through the same steps6 that I'm leading as an example to them.7 I even had a chance to attend a8 couple of the Philadelphia promise9 academies, which I have seen made a big10 turnaround. There's a big difference11 from what the school once were and then12 when it became a promise academy. I've13 seen all the achievements and how that14 had actually changed during the school.15 If additional funding is not16 obtained, transportation services will be17 eliminated. I mean, even the pre-K will18 be half days. Proper public education19 for Philadelphia students is not20 something we can allow to be sacrificed21 for the sake of budget balancing. We22 need our elected officials to support23 public education. With City Council's24 support, we can stand as a united front25 6/16/11 - WHOLE - BILL 110135, ETC.1 and demand of the state that our students2 get the education they deserve and so3 desperately need.4 Thank you.5 (Applause.)6
Thank7 you very much.8 Please identify yourself for9 the record.10
Good morning. My11 name is L'Keisha M. Wilson and I have12 been a volunteer for the Philadelphia13 School District for nine years proudly,14 and I'm just here today because I was15 asked just to say a few words, because I16 do have experience from when the17 school -- the school that I was at when I18 first entered the school, it was Eastside19 High Elementary to me, and it made a20 whole turnaround under Dr. Ackerman's21 supervision and things.22 And I just want to say the23 School District of Philadelphia faces24 unprecedented funding cuts in next year's25 6/16/11 - WHOLE - BILL 110135, ETC.1 budget, contributing to 629 million2 budget gap. The parents, students and3 employees of the School District need the4 sponsoring governments to provide5 additional funding in order to preserve6 the gains that have been made and7 increase the success of our children and8 to turn the success of the City.9 If additional funding is not10 obtained, transportation services will be11 eliminated for the most students. Proper12 public education and public students is13 not something we can allow to be14 sacrificed for the sake of budget15 balancing. We need our elected officials16 to support public education. With City17 Council's support, we can stand as a18 united front and demand of the state that19 our students get the education they20 deserve and so desperately need.21 Thank you.22 (Applause.)23
Good24 morning, sir. Please identify yourself.25 6/16/11 - WHOLE - BILL 110135, ETC.1
Good morning.2 My name is Robert Benjamin. I'm a parent3 of an eight-year-old at Blankenburg4 Elementary School, and I'm here today to5 speak on behalf of the children.6 While all these adults in this7 room are vying for positions for or8 against, it's the children who are going9 to be hurt. So I'm just here to speak on10 the 400 children at Blankenburg School11 when I say whatever things are needed,12 let's get them done. Let the adults in13 the room stop playing games with these14 kids' lives.15 Thank you.16
Thank17 you.18 (Applause.)19 MR. McPHERSON: Lisa Bennett.20
Yes.23 (Witness approached witness24 table.)25 6/16/11 - WHOLE - BILL 110135, ETC.1
Good morning.4 COUNCIL PRESIDENT VERNA:5 Please identify yourself for the record.6
Hi. My name is7 Lisa Bennett and I got, I think, about8 three concerns.9 I couldn't understand why were10 the children education being targeted.11 Now, I don't really know, but I know it's12 targeted.13 Now, we know our kids need14 education and we know that's not what15 should have been targeted, but the way16 the school system is run, everybody be17 honest, when you walk in those schools,18 it's a mess. I don't know if that's why19 they took the money. I don't even know20 why they took the money, but it is a21 mess. So I guess in order to ask for22 more funding, I guess you do need to work23 on it, because it's not about Arlene24 Ackerman. It's not about nobody but our25 6/16/11 - WHOLE - BILL 110135, ETC.1 children, and the way these children in2 this school, the School District, is3 working, the kids are not really being4 educated the way they should. So that's5 my first concern.6 Now, the second one is that out7 of taxes, first of all, they're always8 saying we're poor. So if we're poor, why9 would you tax the sodas, why would you10 put taxes on houses when people can11 barely afford living now? I couldn't12 understand that part.13 But if you walk around, it's so14 many empty houses. They start selling15 them empty houses, the state will make16 money, the schools can make money, and17 the people that don't have a house will18 have a house.19 And that's basically it. Thank20 you very much.21
Thank22 you. Thank you very much.23 (Applause.)24
Good12 morning. Please identify yourself for13 the record and proceed with your14 testimony.15
Vaughn16 Dickinson from the Pepsi Bottling Group.17 Good morning. I appreciate18 your time. Under Vice-President and19 General Manager for Pepsi Bottling, which20 covers New Jersey, the Philadelphia plant21 and also Delaware, I'm here for one22 reason, not to rehash what you've already23 heard about our concerns as industry, but24 really my concern are the employees that25 6/16/11 - WHOLE - BILL 110135, ETC.1 will lose their jobs if this tax is2 passed.3 We all care about education.4 I'm a parent. My mother has taught for5 40 years as a teacher. This comes out of6 my employees and their children go to7 school in the City of Philadelphia. The8 impact alone on this tax to my facility9 in Philadelphia will be a few hundred10 jobs will be lost. For the industry11 across Canada Dry, Coke and Pepsi, you12 will lose at a minimum 1,200 jobs in the13 City up to 2,000 jobs.14 We care. We understand the15 concerns about education, but what will16 you do in tax breaks for me to keep17 production in the City? I'd be forced to18 look at my New Jersey opportunities and19 my Delaware opportunities to maintain my20 business model. What tax breaks would21 you give me, again, to keep production22 and my employees to have jobs in the23 City?24 My biggest concern and the25 6/16/11 - WHOLE - BILL 110135, ETC.1 concern of those I speak for are, at the2 end of the day when you look for the3 money from this tax, based on the4 estimates that we've heard, they will5 fall very, very short of that number, and6 as testified to earlier, that will be7 law. You'll have to find the money8 somewhere. Where will you go to find the9 money next year when the estimates that10 you're using are not there to go to11 education? That's what concerns us and12 myself about this tax.13 My employees have worked hard14 the last two and a half years for me to15 invest millions of dollars in this plant16 on the Boulevard in this great city. I'm17 about to invest 10 million more dollars,18 which I cannot do if the sugar tax is19 passed. In fact, I would have to20 consider deeply and very seriously the21 amount of families I would impact. I22 will remind each of you, 1,200 jobs at23 minimum would be lost.24 Thank you for your time.25 25 6/16/11 - WHOLE - BILL 110135, ETC.1
We5 will call the list again so that6 everybody that signed up has had an7 opportunity to speak. They may be having8 a hard time getting up to the 4th Floor.9 So why don't we read the names10 of those who we called earlier.11
Bridgett Timons.24 (No response.)25 26 6/16/11 - WHOLE - BILL 110135, ETC.1
Do we13 have anyone else who has not been called14 to testify?15 (Witness approached witness16 table.)17
Good morning.20 Just a short testimony. I'm Shelly21 Yanoff. I'm Executive Director of Public22 Citizens for Children and Youth, the23 region's child advocacy organization.24 The decisions today that you25 27 6/16/11 - WHOLE - BILL 110135, ETC.1 make, that you have to make, are very2 hard. I want to remind everybody that3 every year about 25,000 babies are born4 in Philadelphia. We urge you to find a5 way to say yes, not no, to them and their6 chances and their future. That means7 making the hard decisions that you have8 to.9 Thank you.10 COUNCIL PRESIDENT VERNA:11 You're welcome.12 (Applause.)13 (Witness approached witness14 table.)15
Good16 morning. Welcome.17 MR. McGORRY: Good morning,18 Madam President.19 COUNCIL PRESIDENT VERNA:20 Identify yourself for the record.21 MR. McGORRY: Good morning. My22 name is Francis McGorry. I lead the23 Coca-Cola Bottling Plant in Northeast24 Philadelphia, Juniata section of25 28 6/16/11 - WHOLE - BILL 110135, ETC.1 Philadelphia. Our plant has been located2 in that section and in Philadelphia for3 over 100 years. We employ 750 people out4 of the plant. We employ another 5005 people outside of the Philadelphia area.6 We've been operating in7 Philadelphia for over 100 years, 1108 years to be exact, and we'd like to9 continue operating in Philadelphia for at10 least 110 years. However, any beverage11 tax will be devastating to our local12 business, not just to our business but to13 our retailers' business. Many of you14 heard a lot of the retailers calling,15 Wawa in particular. They stepped up to16 the plate.17 With that beverage impact, a18 significant amount of loss of jobs, not19 just with our Philadelphia plant but with20 all the retailers, and you've heard the21 numbers from the gentleman earlier.22 Hundreds of jobs will be lost just in our23 Philadelphia plant. In the retailers,24 it's probably thousands.25 29 6/16/11 - WHOLE - BILL 110135, ETC.1 Our industry really just2 doesn't understand why we're being3 singled out. We just don't get it.4 We've really been one of the few5 industries in Philadelphia that has6 invested significantly over the last 207 years. We've added jobs. We've added8 investments into the City. And really in9 the end, we need to know should we stay10 in Philadelphia. Should we continue to11 invest in Philadelphia. We just need to12 hear it, and we're not getting those13 signs.14 So I would say in closing,15 we've added jobs. We need to know that16 everyone here wants to support our17 industry and wants to continue supporting18 the people in Philadelphia, the jobs that19 we created and the taxpayers that our20 employees are in Philadelphia.21 So with that, I would just ask22 that we really need your support, and we23 are going to be here for a long time and24 we expect to.25 30 6/16/11 - WHOLE - BILL 110135, ETC.1 Thank you.2
Good6 morning. Please approach the witness7 table, kindly identify yourself for the8 record.9
Good morning,10 Madam Chair and other members of Council.11 My name is Mary Goldman.12 I agree we need to keep jobs,13 but we need to train and educate our14 children for jobs of the future. This is15 a game of chicken, who is going to run16 into the wall, the children or the17 bottling companies. You've got to stand18 firm. I'm not saying we should do this19 tax, but you are the leaders. You must20 come up with a way to make sure that the21 children of this City, who are the22 responsibility of all of us adults, are23 going to get educated properly, and that24 means watching this administration at the25 31 6/16/11 - WHOLE - BILL 110135, ETC.1 School District, which has not been2 properly over -- have oversight, but we3 need you to come and find a way to make4 this stuff work. We can't be bludgeoned5 about losing jobs or this or that. We've6 got to work for the kids.7 Thank you.8
Thank9 you.10 (Applause.)11 (Witness approached witness12 table.)13
Good morning. For16 the record, my name is Andrew Lofton.17 I'm a concerned citizen, I'm a parent of18 three children, and I'm here today to19 urge you to not overtax the already20 overtaxed citizens of Philadelphia. I21 believe that Council, at its discretion22 and at its power, has other means of23 being able to raise money for schools or24 whatever. An example would be there's25 32 6/16/11 - WHOLE - BILL 110135, ETC.1 more properties on inventory with the2 City that can be at some point in time3 either rented to individuals or move some4 money from City budget in order to rehab5 these properties and then in turn rent6 these properties or potentially sell7 these properties to individuals, much8 like a tax abatement situation. This9 would create revenue for the City, and10 you can use it towards the City schools,11 or whatever else you need to use it for.12 But if we continue to tax the13 City residents, what's going to happen is14 an exodus of individuals from the City to15 the suburbs or to other areas, and then16 what's going to continue to happen is17 those who are already still here, you're18 going to be looking to them for more tax.19 So I urge you today not to tax20 the already overtaxed citizens of21 Philadelphia.22 Thank you.23
Thank24 you.25 33 6/16/11 - WHOLE - BILL 110135, ETC.1 (Applause.)2 (Witness approached witness3 table.)4
My name is Wanda7 Lassiter and I'm school nurse at Martin8 Luther King High School, which has9 recently become a promise academy. 17 So I'm here. I'm not beating18 around the bush. 22 What I want to let you know23 also is what I see in schools. 1 last year, we still had teachers that2 were Xeroxing textbooks. Our children go3 to biology and chemistry and they don't4 have a real lab, you know, whereas other5 schools may have that. They have to6 simply learn by reading the book. 8 They have homework that needs9 scientific calculators to complete and10 they don't have those calculators to do11 the homework. They need to use12 technology, computers. They go to13 libraries and they sign up for 30-minute14 time slots. Certainly not enough time to15 do your homework. 18 But what I want to also say is19 that this is just not a problem that's20 any single individual's problem, that21 everybody has to work together. 1 saying whether or not that's right or not2 right, you know, but what I do say is3 that we all have to own it. It's going4 to be a give and take. This is not a5 win-win. But what I do ask is that we6 not put this on the shoulders of the7 children. They have been stressed long8 enough, that we as adults have to own9 this problem. 10 And instead of us really protesting and11 saying what not to do, we need more12 people to come forth and give some ideas13 as far as what to do. And in conjunction14 with that, we need the politicians to15 listen to those ideas. 19 It is going to take money, but like I20 said, I ask you to please invest in our21 children. 22 The children represent 100 percent of our23 future. )4 MS. McILWAINE: Praise the5 Lord. My name is Mrs. McIlwaine. 7 I'm sitting in the audience now8 and I'm looking around, and I'm 52 years9 old and I graduated from school maybe 3510 or 37 years ago and the education system11 failed me as well. And so I'm looking12 ahead of time and I look around and I13 look at our children, and the education14 system is failing them at this particular15 time. It doesn't have anything to do16 with Arlene Ackerman. She has been a17 blessing since she got here. 21 So I said I wanted to just22 stand here and say that the Lord said23 that children are gifts from God, and we24 are held accountable. 1 accountable for how we treat these2 children on this earth. And so I'm just3 coming on the behalf of education and I'm4 asking you, because I know that God has5 placed all of you in the position. If it6 was not for the Lord, you would not be7 sitting in the seats that you're sitting8 in. 11 God bless you. )13
Good morning.17 First, I bind up every spirit that is18 against our children in the name of19 Jesus.20 COUNCIL PRESIDENT VERNA:21 Excuse me. Identify yourself for the22 record.23
My name is24 Desiree Whitfield and I am a parent of a25 38 6/16/11 - WHOLE - BILL 110135, ETC.1 kindergartner of the Philadelphia School2 District.3 Psalms 127:1 says, Behold4 children are a heritage from the Lord.5 The fruit of the womb is that reward.6 Good morning, Dr. Ackerman,7 Mayor Nutter and the City Council8 members. I stand before you as a parent9 of a kindergartner of the Philadelphia10 School District. This day is history in11 the lives of our children, because what12 you do today, the decision you make will13 forever have an effect on the children of14 our future.15 Education is a right, not a16 privilege. Last week, one of your17 members, Councilwoman Quinones, asked why18 can't we go back to what we did three19 years ago. I can answer that question.20 Thanks for asking. The Bible says at21 Philippians 3:13 and 14, Brethren, I do22 not count myself to have been23 apprehended, but one thing I do,24 forgetting those things which are behind25 39 6/16/11 - WHOLE - BILL 110135, ETC.1 and reaching toward to those things which2 are ahead.3 I press toward the goal for the4 prize of the upward call of God in Christ5 Jesus.6 Under the 2014 plan of Dr.7 Ackerman, here are some of the progress8 of the Philadelphia School District. For9 the first time, more than half of our10 City school students scored proficient or11 better on state-governed standardized12 tests; nearly 100 schools given state13 Keystone Achievement Awards for making14 adequate yearly progress, AYP, two years15 in a row. They have led a Parent16 University under Dr. Ackerman in order to17 give parents of District students the18 opportunity to enrich their education and19 boost their parenting skills. Work20 continues to provide educational supports21 and learning opportunities for parents22 through the use of Parent Resource23 Centers located throughout the City.24 I don't have a chance to read25 40 6/16/11 - WHOLE - BILL 110135, ETC.1 all that has been accomplished within the2 Philadelphia School District within the3 last three years, but I can say that4 since Dr. Ackerman has been here, it has5 been a change in our Philadelphia School6 District.7 I'm asking each and every one8 of you today, do the right thing. This9 is our children. The next President of10 the United States will be a member of the11 Philadelphia School District. Do the12 right thing. Vote for the school tax.13 Vote for the soda tax, because our14 children deserve the education that they15 so rightly deserve.16 Thank you.17 (Applause.)18
Good19 morning. Please identify yourself for20 the record.21
Good morning.22 My name is Brian Armstead. I'm Director23 of Civic Engagement for the Philadelphia24 Education Fund.25 41 6/16/11 - WHOLE - BILL 110135, ETC.1 I guess to members of Council,2 on the one hand I don't envy the decision3 that you have to make today. It's a very4 difficult one. But on the other hand,5 this is an opportunity for you all to6 really make a serious commitment and7 demonstrate a serious commitment toward8 the children of Philadelphia.9 One point that I don't want to10 be overlooked again today is that if you11 all commit to making a serious12 investment, increased investment, into13 the children of Philadelphia right now,14 one point that shouldn't be overlooked is15 that also will help us leverage16 additional funds from the state. So,17 again, don't even just think about what18 you're doing today, because it will19 actually mean even more money if you do20 the right thing and have a significant21 amount coming into the District right22 now.23 But what will those things be24 used for? Right? So we've talked about25 42 6/16/11 - WHOLE - BILL 110135, ETC.1 priorities that the District can use this2 money for. So one thing that will be key3 is yellow bus service, right? For a4 family that has two children, absent your5 investment, it will probably cost them6 upwards of $1,600 a year. So 1,600 extra7 dollars a year for a family with two8 children to send their kids to and from9 school, which in effect is a tax on those10 children without actually your having to11 say so. So if we're talking about extra12 expenses, that's an extra expense.13 And if we're talking about14 alternative schools and accelerated15 schools, your constituent services16 constantly have people coming through17 your doors asking how they can recover18 from having dropped out of school, and19 when you dropped out, having bleak life20 chances. This is your opportunity to say21 to them, We care about you. We want to22 fund these accelerated schools that will23 help give you the opportunity to come24 back and maybe reverse a mistake that you25 43 6/16/11 - WHOLE - BILL 110135, ETC.1 may have made before, but to give you an2 opportunity to come back, get a diploma3 and have some real opportunities in your4 life.5 I mean, this is what we're6 talking about. This is not just about an7 extra 25 cents, or however people want to8 spin the numbers on soda taxes. This is9 about the very real effects on very real10 people's lives, and we have to keep those11 things in mind.12 Again, I don't envy your13 choices, but I do think that you're in an14 opportunity to make a dramatic stand and15 really show that you care about the16 children and families of the City.17 Thank you.18
Good morning. My24 name is Dorothea Graham. I'm speaking25 44 6/16/11 - WHOLE - BILL 110135, ETC.1 for the students. I want to share2 something with you what we have the3 students read --4 COUNCIL PRESIDENT VERNA:5 Ms. Graham, can you pull the microphone6 closer to you, please.7
Good morning. I11 want to -- I'm pleased to be here to12 share something what we have the students13 read every day in our academies. They're14 reading it, and they want to believe it.15 We, the students of16 Philadelphia Promise Academy, promise to17 achieve and succeed. We will believe in18 ourselves and in one another. We will19 act responsible and honestly, with20 self-respect, self-reliance and concern21 for others. We promise to take our22 studies seriously, complete all23 assignments and make no excuses for not24 trying. We will be dedicated, committed25 45 6/16/11 - WHOLE - BILL 110135, ETC.1 and self-confident students. We promise2 to never give up if we falter or fail.3 Instead, we will reach out, get help and4 keep going. We will lift thou, dream big5 and aim high. And after we graduate from6 college, we will work hard to make this7 world a better place.8 I want to say that what is a9 promise? A promise is to make a10 commitment to agreeing to do something in11 the future, grounds for feeling hopeful12 about the future and to make a prediction13 about it.14 I think here in Philadelphia we15 easily point the fingers at parents who16 are not doing their job in parenting, but17 I would like to remind you here I guess18 at this time you have a decision for the19 future of the children to act upon it.20 It is not just jobs, future workers. You21 are parents, too. Jobs are important,22 but it is the future for our children.23 We want them to do well and to believe in24 it, but they need our support, because25 46 6/16/11 - WHOLE - BILL 110135, ETC.1 you say education is the future and here2 is the time for you to act upon it.3 Thank you very much.4
Thank5 you.6 (Applause.)7 (Audience members yelling.)8
Wait9 a minute. You're not at a football game.10 Please.11 Are there any other witnesses12 before we hear from the Administration?13 (No response.)14
All15 right. Members of the Administration can16 come up to the witness table.17 (Witnesses approached witness18 table.)19
Good morning,23 Council President Verna and members of24 Council. Ms. Rhynhart and I are just25 47 6/16/11 - WHOLE - BILL 110135, ETC.1 going to do a short introduction and then2 there are some other members of the3 Administration who are here to talk and4 specifically wanted to talk about the5 impact of shifting a fund balance to the6 School District.7 The number we heard was $308 million. Shifting $30 million would9 create deficits in our Five Year Plan10 beginning in FY13 and growing after that.11 As a result, we would have to make cuts.12 We have a few Deputy Mayors here to talk13 about what those cuts would mean.14 So unless there are other15 questions specifically for us, we'll ask16 them to come up.17
Thank18 you.19 Before you introduce yourself,20 I would like to make an announcement.21 Council sessions will be held at the22 conclusion of our public hearing.23 So please proceed. Anybody24 that's here for the Council session.25 48 6/16/11 - WHOLE - BILL 110135, ETC.1
Thank you,8 Madam President. I'd like to question9 Mr. Dubow.10 COUNCIL PRESIDENT VERNA:11 Certainly.12 Councilman.13
Mr. Dubow,14 how much in new spending was proposed for15 Fiscal Year '12?16
How much in19 new spending was proposed for Fiscal Year20 '12?21
So there was24 $20 million more -- I believe it was $2525 49 6/16/11 - WHOLE - BILL 110135, ETC.1 or $30 million.2
About $305 million in new spending was proposed over6 Fiscal Year '11; is that correct?7
Well, new General8 Fund spending. Some of that was to9 replace grants that expired. So, for10 example, there was 2.4 million for11 probation officers. That would12 replace --13
I'm just trying to16 differentiate between General Fund and17 new spending. So, in other words, it's18 not new spending to the government. It's19 new to the General Fund.20
I'm actually21 going by the Budget in Brief that was22 presented to Council.23 How much was presented to24 Council in new spending for Fiscal Year25 50 6/16/11 - WHOLE - BILL 110135, ETC.1 '12?2
For the General3 Fund, it was $30 million. Some of that4 was replacing grant funding. So it's5 not --6
So how much7 of that are you willing to not spend in8 order to contribute to the School9 District?10
Thank you,16 Madam President.17 Thank you, Mr. Dubow.18
Thank you,21 Madam President.22 This question is also for Mr.23 Dubow. We just heard testimony from two24 bottlers that are currently in the City25 51 6/16/11 - WHOLE - BILL 110135, ETC.1 of Philadelphia that they will likely2 leave if we pass the soda tax or put our3 foot in the door with respect to a soda4 tax. That's 1,300 direct jobs and5 thousands of indirect jobs. In other6 words, Teamsters from Delaware or New7 Jersey would be hauling the soda instead8 of Teamsters from Philadelphia, and I can9 go on and on in terms of the support10 services and other things, the businesses11 that are built up around those plants to12 service those plants, to clean those13 plants, et cetera.14 So the question is, is that the15 result the Administration wants?16
Obviously losing17 jobs is not the result we want. We don't18 know what will actually happen. We do19 know that --20
We do know that the25 52 6/16/11 - WHOLE - BILL 110135, ETC.1 School District just sent out 3,4002 layoff slips. So we know those are jobs3 that are being lost if we don't do4 something.5
And we know6 that all those jobs, most of those jobs7 will be lost no matter what we do,8 Mr. Dubow. We're talking about net jobs9 here.10
Right, but we know11 that if we put money back into the12 District, that there will be jobs saved.13
That's14 right. That's exactly correct.15 So the next question is, I want16 you to imagine a scenario where we don't17 have bottlers in the City of Philadelphia18 and both Coke and Pepsi are looking for a19 place to expand and grow their business.20 What would Alan Greenberger be telling21 them about what the business climate is22 going to be in the City of Philadelphia23 if they create 1,300 direct jobs here and24 thousands of indirect jobs here? What25 53 6/16/11 - WHOLE - BILL 110135, ETC.1 would we be selling them about the City2 of Philadelphia?3
Well, I mean,4 there's a lot to sell about the City of5 Philadelphia. We could talk about our6 workforce, which is -- and we would want7 to be able to talk about our education8 system --9
-- because that's12 an essential element of what people look13 for when they move to cities. We could14 talk about our plans for wage and15 business tax reduction. There are a lot16 of things that you can talk about.17
Okay. But18 one thing that's very important to that19 industry is that there are not the20 beverage taxes, sugar-sweetened beverage21 taxes. Delaware doesn't have one. If22 I'm the Governor of Delaware, I'm picking23 up the phone and saying, I'll pay to move24 you.25 54 6/16/11 - WHOLE - BILL 110135, ETC.1 That's what you're doing.2 You're telling businesses, one at a time,3 that we're not a business-friendly city,4 one industry at a time. The reason we5 have empty buildings in neighborhood6 after neighborhood after neighborhood in7 the City of Philadelphia where there used8 to be well-paying jobs is because of tax9 decisions made by the City of10 Philadelphia, and you're asking us to11 make another very fateful, very poor12 decision about jobs and emptying two more13 factories in more Philadelphia14 neighborhoods. That's the problem.15 (Applause.)16
I just want to17 respond. I mean, what we're actually18 asking you to do is invest in the School19 District and the children of the City. I20 know that there are trade-offs, and we21 think it's essential that we fund the22 District.23
Madam24 President?25 55 6/16/11 - WHOLE - BILL 110135, ETC.1
We have a4 choice, for example, that would cost the5 average Philadelphia family in certain6 Councilmanic Districts $40, that would7 cost the average Philadelphia family in8 certain districts about probably on the9 citywide average $180 per household to10 invest in children, which is the Mayor's11 other bill before City Council. The12 question is, why we wouldn't make that13 choice rather than a choice that is14 destined to fallow plants and eliminate15 well-paying jobs?16
Thank you,21 Madam President.22 Mr. Dubow, in your experience23 with the Commerce Department as we start24 to talk about firms that want to locate25 56 6/16/11 - WHOLE - BILL 110135, ETC.1 in the City of Philadelphia, it is my2 recollection in testimony that one of the3 number one concerns that a firm4 interested in Philadelphia has is not5 just its marketplace, it's not its crime6 statistics, but it is where CEOs will7 send their children to neighborhood8 schools; is that correct?9
In12 Philadelphia, how many schools are there,13 public schools?14 Let me help you, 291 -- 264.15
And in17 Pennsylvania, how many state and federal18 prisons are there? Okay?19
There are 6721 in the county, eight that are federal and22 30 that are state.23 How much does it cost on24 average to educate a young person in the25 57 6/16/11 - WHOLE - BILL 110135, ETC.1 City of Philadelphia? It's $16,462 a2 year, if my memory serves me correctly.3 To incarcerate someone, it is $26,650 a4 year.5 (Applause.)6
People in7 this Chamber do the math. We pay now or8 we pay later.9 Thank you, Madam Chair.10 (Applause.)11
Thank you,14 Madam Chair.15 I agree with both Councilman16 Green and Councilman Jones, and while17 we're doing the math, I'd like someone to18 give me a figure on what it costs to send19 700 kids to an enhanced summer program20 for 18 days at $23 million. Could21 someone give me that number? Because it22 seems like an awful lot more than it23 should be for 700 children to have that24 experience for 18 days when the25 58 6/16/11 - WHOLE - BILL 110135, ETC.1 Superintendent is talking about2 increasing class size and stopping3 transportation and is not even discussing4 the possibility of delaying that program5 for one year at $23 million for 700 kids6 for 18 days. That's what we're talking7 about. That's what we're talking about,8 40,000.9 Now, I want enhanced summer10 experience for our children and I also11 want them to get to school on the bus12 every day. Now, if I got to make a13 choice between the two, it will be the14 bus and not the summer camp, and that's15 why it is really annoying how this School16 District Administration has couched these17 issues. I think it's disgraceful to tell18 parents that we as a Council are cutting19 their buses and increasing their class20 sizes when they won't consider one21 program to be delayed for a year that22 would save $23 million. Now, when we23 have that discussion, I'll talk about24 raising additional revenue, but until25 59 6/16/11 - WHOLE - BILL 110135, ETC.1 that time, I'm getting increasingly angry2 about the way in which this is being3 couched.4 We're not cutting anything.5 The District sets its priorities with the6 money that they have, and if that's their7 priority, an 18-day $23 million program,8 and their priority is to increase class9 size K to 3 by three kids a class, that's10 their decision. It's not our decision.11 We're providing a lot of money to this12 District, and we're going to provide some13 more by the time we're done today. And I14 don't like the way this is being couched,15 because it's unfair and it's untrue.16 Twenty-three million dollars17 for 18 days, I couldn't spend that in18 Europe if I went to the best hotels and19 stayed in the biggest cities in Europe20 for 18 days. I couldn't spend $2321 million.22 UNIDENTIFIED SPEAKER: It's not23 700. It's 40,000.24
Well,25 60 6/16/11 - WHOLE - BILL 110135, ETC.1 that's not -- oh, we're going to have a2 debate from the audience?3 UNIDENTIFIED SPEAKER: Do you4 want one? The number is 40,000.5
The number6 is not 40,000. It's about 700. That's7 who shows up.8 Thank you, Madam President.9 COUNCIL PRESIDENT VERNA:10 Councilman Green.11
Thank you,12 Madam Chair.13 I couldn't agree with14 Councilman Kenney any more. I did get a15 response from the District on some of the16 information requests. There were only --17 there were 24,000 children that attended18 16 days last year. According to the19 District, about 19,000 or 20,000 are20 people who have to move up grade level,21 and we can save about $10 million if we22 eliminate the extra programming for23 people who aren't at grade level. I just24 received that information the other25 61 6/16/11 - WHOLE - BILL 110135, ETC.1 night. So it wasn't available to us. So2 we're still -- whether it's $10 million3 or $20 million, I completely agree with4 the point. I just see Mr. Masch there5 and wanted to say that.6 But the question here really on7 the table is about even if we do revenue,8 we're making choices between different9 revenue options, and I haven't gotten a10 clear answer from Mr. Dubow or the11 Administration about why they would12 rather risk well-paying good jobs and13 sending the wrong message to the business14 community versus proposing a real estate15 tax increase. That's the choice they're16 making, and I don't understand that17 choice.18 Thank you, Madam President.19
I think what we20 said is that while we prefer the sugary21 drinks option, that our main objective is22 to get revenues to the District. We23 introduced two bills.24
The25 62 6/16/11 - WHOLE - BILL 110135, ETC.1 Chair recognizes Councilman Jones.2
Madam Chair,3 I'm really afraid in this Chamber today4 that Bill Green, Councilman, and5 Councilman Kenney actually agreed on6 something. This is scary.7
Well, not10 necessarily. They can be doubly wrong.11 But let me say this, that I12 absolutely believe that both of them care13 deeply, deeply about the future of14 education and the future of this City.15 That is not in question.16 What is also not in question is17 whether this is a referendum on Dr.18 Ackerman and her administration. What19 this is is a referendum about what our20 commitment is to public education and21 whether we're willing --22 (Applause.)23
-- whether24 we're willing to do the heavy lifting.25 63 6/16/11 - WHOLE - BILL 110135, ETC.1 I grew up in a time where the2 cowboy movie was King, and there's always3 that time when we're going into the4 desert and the wagon master has to make5 tough choices, but when they start6 choosing to throw over the piano, I'm7 okay with that choice. And we looked8 into the school budget to get rid of the9 waste of the piano. And then when they10 start looking at throwing away grandma's11 dresser, I'm okay with that too. But12 when they start looking around, because13 times got rough, at the kids, that's an14 unacceptable choice to me, and we better15 figure something out today because we're16 running out of runway. We can have all17 the rhetoric and do analysis paralysis,18 but September is coming and those kids19 got to get to school.20 Thank you.21 (Applause.)22
Thank you,25 64 6/16/11 - WHOLE - BILL 110135, ETC.1 Madam President.2 Good morning. I completely3 concur and support all of what Councilman4 Kenney stated. I think many of us -- and5 I will not say majority, Councilman Bill6 Green -- many of us acknowledge that7 based on my observation and listening to8 testimony, a number of missteps were9 cited in the testimony presented by the10 School District. That's been clearly,11 clearly evident. But as Councilman12 Jones -- at the end of the day, Madam13 President, it's not about the City of14 Philadelphia making decisions. The 17 of15 us in this City Council are confronted16 with making important decisions today.17 We're the ones who have been elected to18 do, as Councilman Jones said, do the19 heavy lifting. So I really don't care20 about the answers to Bill Green's21 questions on jobs and et cetera. The22 decision is going to rest with us on what23 we're going to do to find the dollars to24 support the School District, period.25 65 6/16/11 - WHOLE - BILL 110135, ETC.1 Underscoring what Councilman Jones2 said -- and Jesse Jackson said it3 first -- we're going to pay sooner or4 later. We can pay 17,000 now per kid or5 be faced with the decision of doubling6 that to $26,000 12 years later.7 So I appreciate Bill Green's8 request of the City, but it doesn't9 matter what those answers are. At the10 end of today, we will have to make11 decisions about where we find those12 dollars. And, yes, I submit the City has13 to do its part and share in this heavy14 lifting and City Council has to do ours.15 Thank you, Madam President.16 (Applause.)17
Thank18 you.19 You never did -- I'm sorry.20 Councilman Green, your light is on. Did21 you want to be recognized?22
Thank you.23 I just want to say for the record, I'm24 not sure what we're debating about25 66 6/16/11 - WHOLE - BILL 110135, ETC.1 anymore. We all, I think -- sorry,2 Councilwoman. Most of us have committed3 to providing additional resources to the4 District. The only question is, how much5 and what's the vehicle. That's all we're6 talking about today.7 So before we leave, since we8 have Dr. Ackerman and Mr. Masch here9 today, I would like to know whether they10 are willing to now say they are not going11 to spend money on new promise academies,12 which will save 19 million, and whether13 or not they are willing to eliminate the14 SLAM program for people who don't need to15 go to next grade level, before I take a16 vote on any tax.17 Thank you.18
Good22 morning, Council President Verna and23 members of City Council. 1 and it is a pleasure to be with you this2 morning. The purpose of my testimony is3 to give you a brief summary of the4 consequences of reducing the City's fund5 balance by $30 million in each of the6 next five years. Shifting this level of7 funding to the School District could have8 a very grave consequence for public9 safety in the City of Philadelphia. 14 I will just add parenthetically15 that I've asked and I'm happy to16 acknowledge the presence of First17 Assistant Ed McCann on behalf of Seth18 Williams. 1 investments in the Police Department,2 specifically our plans for a new police3 class, the sworn strength of the4 Department will fall to the lowest level5 since 1995. 4 million investment in the13 Courts this coming year. If we can't, 5214 probation officers would need to be laid15 off. Obviously this would cause an16 increase in the numbers of offenders the17 remaining probation officers will be18 required to supervise. 5 For the District Attorney's6 Office, I will only say before Mr. 9 million10 investment in the District Attorney's11 budget. The anticipated impact of this12 reduction would be the elimination of13 assistant attorney positions. 5 million investment in our21 Youth Violence Reduction Program next22 year. It currently employs 35 probation23 officer/street worker teams. 1 school would push us to eliminate 132 teams, along with four supervisory staff,3 with the result being seven fewer4 targeted patrols per week. Overall, this5 is a 37 percent reduction in staff and6 316 fewer youth partners being served7 each day. 15 And in Prisons, finally the16 proposal offered by Councilman Green last17 week will reduce the Prison budget by $918 million, 4 million from Class 100 and 519 million from Class 200. This proposal is20 tied to a $4 million increase in the21 budget of the First Judicial District,22 ostensibly for hiring parole officers and23 the purchase of electronic monitoring24 bracelets. 19 Additional parole officers would need to20 be hired at a cost of $2 million, for a21 total program cost of over $4 million22 annually. providers, which is our most expensive2 form of service, because our first3 obligation would be to reduce triple4 celling. million9 annually. 811 million annually. 13 A total reduction in $4 million14 in Class 100 funding would mean a15 reduction of overall workforce by16 approximately 80 positions. The Prisons17 has already reduced their budget officer18 positions by 50 to account for the19 population reductions over the last two20 years. Our current prison population is21 approximately 7,800 to a little over22 8,000, depending upon the day. 1 7,600. 6 The proposed cut of $5 million7 in Class 200 funding would have8 far-reaching effects, causing us to9 significantly reduce or eliminate outside10 housing contracts or programming. 14 Outside housing projections have already15 been reduced for Fiscal '12's submission16 and are at near minimum levels at each17 site. If we reduce housing contracts,18 those inmates would have to be triple19 celled in our main prison complex, most20 likely the House of Corrections. Moving21 inmates into triple cell housing at the22 House of Corrections is not a viable23 alternative. 1 celling inmates. Any increase in the use2 of triple celling would spur new3 litigation from inmates challenging their4 conditions of confinement on5 constitutional grounds. Work release6 housing and the vocational training7 program would be reduced in scope and8 effectiveness. 13 The overall conclusion for14 Prisons is that a combination of reduced15 staff and increased census at our16 facilities would exacerbate the overtime,17 sick time, officer fatigue and employee18 turnover. 20 I would ask the District21 Attorney would actually join me at this22 time just to briefly talk about the23 impacts to him.
1 working together is that the CJAB2 partners actually do not only work3 together, but it's as a result of that4 that it has come to work. 7
Thank you,12 Madam President. I'd like to question13 Deputy Mayor Gillison before anyone else14 speaks.15 Deputy Mayor, how much does a16 police class cost?17 DEPUTY
You threw20 out the figure of a $30 million fund21 balance reduction. If we reduce the fund22 balance by $25 million rather than 30,23 will you continue with the police class?24 DEPUTY
That25 76 6/16/11 - WHOLE - BILL 110135, ETC.1 is -- I'd leave that to the Finance2 Director. I'll be able to talk after he3 would.4
A $25 million shift5 would still create holes in our Five Year6 Plan and so --7
Will you8 continue with the police class if we9 reduce it by $25 million rather than 30?10
If we reduce13 it by $20 million rather than 30, will14 you continue with the police class?15
Well, could we go16 back, kind of go to where I think you're17 going. Before you said kind of what18 shift would work. I think if we were in19 that kind of 5 to 10 area, then we could20 be able to keep the class.21
So at what22 level of fund balance reduction will you23 continue with a police class?24
Again, in that 5 to25 77 6/16/11 - WHOLE - BILL 110135, ETC.1 10 range.2
Thank5 you.6 Councilman Green, did you want7 to be recognized at this point?8
Thank you.9 Mr. Gillison, since you10 characterized my proposal, I thought we'd11 correct the record a little bit. We're12 not assuming -- my proposal does not13 assume $10 million in savings just from14 electronic monitoring. For example,15 there are currently 1,100 beds that we16 pay for from the Prison system in case we17 have overflow in the Prison system, and18 that costs us -- I can't remember exactly19 how much. I know if we eliminate 700 of20 those beds or 600 of those beds, we can21 save $6 million a year.22 Even taking your very low23 estimate on electronic monitoring24 savings, which the Courts have testified25 78 6/16/11 - WHOLE - BILL 110135, ETC.1 and sent back-up material saying it's $242 million, even taking that together3 between eliminating the excess beds and4 because we'll have fewer prisoners, that5 won't happen.6 Also, I want to say -- so there7 is 8 million bucks right there. Call it8 8, call it 10, whatever. It's there in9 the Prison system today. Even without10 electronic monitoring, we can save 5 by11 eliminating those beds.12 Secondly, today the DA doesn't13 have the people that you're discussing,14 and today we've been reducing backlog and15 we've been lowering the Prison system, et16 cetera. So that's just a red herring.17 It's a false statement. It can't be18 true, because these people don't exist19 and we've lowered the Prison costs.20 We've lowered the thing every year.21 And, finally, every year for22 the last three years, the Administration23 has said we couldn't get the savings in24 the Prisons that City Council said we25 79 6/16/11 - WHOLE - BILL 110135, ETC.1 could get, and every year we have2 exceeded the savings in Prisons that the3 Administration came and testified and4 said was impossible, and we can do it5 again this year if we just give it that6 old college try.7 I really don't have any8 questions.9 DEPUTY
Would I10 be permitted to respond to the11 Councilperson?12
On the14 anticipated savings that you just talked15 about with the Prisons, we have already16 negotiated that we pay for most of those17 minimum contracts and we do not pay for,18 quote/unquote, the excess that is not19 used. It is a result of CJAB and our20 working together with our partners that21 we are able to have moved things in the22 way that we've gone, number one.23 Number two, the idea that we24 are currently -- that we could take25 80 6/16/11 - WHOLE - BILL 110135, ETC.1 another $8 million out of the Prison and2 still get the kind of things that we've3 been able to testify to and also come4 here and tell Council what we were doing5 and how we were doing it and how we were6 achieving, that is a hallmark of success7 of this Administration and working8 together with all of our partners, not9 one that says that we thought it was10 impossible. We were the ones that11 actually started the "possible" in this12 discussion and we're maintaining that,13 because we believe in collaboration.14 That's why I believe that the investments15 that we are suggesting for the District16 Attorney's Office is one that I'm not17 going to speak for how it would hit.18 That's why I've asked Mr. McCann to be19 here to basically tell you what I know,20 but something that I think that you need21 to hear from the DA and not assume that22 what you're suggesting is actually true.23
Councilman24 Green.25 81 6/16/11 - WHOLE - BILL 110135, ETC.1
Thank you.2 Well, it's my understanding3 that the Court's, for example, budget4 can't be cut based on what we5 appropriate. They're an independent6 agency. They get their money. They7 spend their money. Same thing with the8 DA. We have no -- I have no intention of9 cutting the DA's budget. I don't know --10 maybe that's a choice you would make with11 fewer dollars, but it's not a choice City12 Council would make.13 Once again, it gets back to the14 choices people are making. The School15 District is making some choices. Your16 choice would be to cut the DA. Mine17 wouldn't.18 Thank you.19
Thank you.20 Would you identify yourself,21 please, for the record.22 MR. McCANN: Yes. Thank you.23 I'm Acting First Assistant District24 Attorney Ed McCann from the Philadelphia25 82 6/16/11 - WHOLE - BILL 110135, ETC.1 District Attorney's Office. Thank you,2 Councilwoman.3 The DA is out of the country or4 else he would be here today.5 I just want to say that we're6 certainly not here to advocate one way or7 the other of the decisions Council has to8 make to increase revenues or shift the9 fund balance for the schools. That's10 clearly the decision that this body will11 make. I just want to talk very briefly12 about if cuts were made to the District13 Attorney's Office, what the impact would14 be on the DA's Office.15 I'm certainly appreciative of16 the Mayor, the Deputy Mayor and Council's17 support for us up to this point and18 partnering with us to implement justice19 reforms we've begun to put in place. Any20 cuts to this budget could have a21 significant impact on our ability to22 continue these reforms, and cuts to the23 DA's Office sort of have a ripple effect24 throughout the system into the Court25 83 6/16/11 - WHOLE - BILL 110135, ETC.1 system, into the Prison system, and at2 the end of the day, any cuts to the DA's3 Office could cause significantly more4 issues for the City in terms of revenue,5 particularly in things like the Courts6 and the Prison system.7 It's our position that we8 should continue the great start we have9 made with the Administration, with the10 CJAB -- Councilman Green's a part of11 that -- and the Courts in reinvesting in12 the criminal justice system that we've13 done up to this point. We've made a lot14 of progress and we hope to continue to15 make that progress and not take a step16 back from where we've been.17 Thank you.18
Thank you19 very much.20 Are there any questions of this21 witness?22 (No response.)23
Our next testifier25 84 6/16/11 - WHOLE - BILL 110135, ETC.1 is Deputy Mayor Don Schwarz.2 DEPUTY
Good5 morning.6 DEPUTY MAYOR SCHWARZ:7 Councilwoman, members of City Council, my8 name is Donald Schwarz. I'm the Deputy9 Mayor for Health and Opportunity. Thank10 you for this opportunity to testify11 regarding the impact of any cuts to the12 City's Fiscal Year 2012 budget and the13 impacts on services in the departments in14 my area of government.15 As you know, in each of the16 last three years, health and opportunity17 agencies have received cuts to our18 budgets, both from the City and from the19 State. I'm here to say that we've20 reached a point where there is no longer21 room to cut. Our homeless system is on22 the edge. We are barely able to keep up23 with the continued impacts of the24 recession and unemployment on the number25 85 6/16/11 - WHOLE - BILL 110135, ETC.1 of individuals who need shelter every2 night. Our family shelter beds are full3 today. Our single clients no longer have4 case managers in sufficient numbers to5 help them move on to permanent housing.6 Even a 1 percent cut to the OSH budget7 will mean the loss of close to 408 emergency and transition housing beds9 that house over 100 people during the10 year. These cuts to the homeless system11 will mean more people will be living on12 the streets of Center City and more13 people's lives will be compromised by14 having to survive on our streets.15 We've asked City Council this16 year to support investments in our17 obesity and tobacco programs, since the18 Health Department cannot support these19 programs when federal support ends. As20 you've heard, tobacco alone is now21 responsible for the deaths of more22 Philadelphians than homicide,23 tuberculosis, HIV and infant mortality24 combined. In our neighborhood, 7025 86 6/16/11 - WHOLE - BILL 110135, ETC.1 percent of our children are either2 overweight or obese. The programs we've3 created this past year are bringing fresh4 produce to our neighborhoods through5 farmers' markets, corner stores and6 bodegas. We're supporting better food7 and physical activity for our school8 children, are helping after-school9 programs provide exercise programs for10 our children, and are educating retailers11 to reduce the selling of tobacco to12 minors and helping bring tobacco13 cessation to more than 300,00014 Philadelphia smokers. We need these15 programs to continue. We must continue16 to make these important investments in17 our neighborhoods.18 I ask Council to find a19 solution to the school funding issues20 that doesn't throw the burden back on21 City departments that have had to22 shoulder these burdens of the recession23 both in terms of the increased need for24 our services now for more than three25 87 6/16/11 - WHOLE - BILL 110135, ETC.1 years. Having our budgets shrink during2 this time period is deleterious to the3 health and welfare of Philadelphians.4 We've done our best to get by during this5 time. We will not be able to do so with6 further cuts at this time.7 Thank you, and I'm happy to8 answer questions if there are any.9
Thank10 you.11 The Chair recognizes Councilman12 Goode.13
Thank you,14 Madam President.15 Dr. Schwarz, how much of the16 money that would be cut would be in17 contracting dollars?18 DEPUTY
Not the19 majority, I can tell you that. I can20 give you a number. I don't have it off21 the top of my head, but it's not the22 majority.23
Let's talk24 about your contracting dollars.25 88 6/16/11 - WHOLE - BILL 110135, ETC.1 DEPUTY
What4 percentage of your contracting dollars go5 to businesses owned by women and people6 of color?7 DEPUTY
Of all8 of the dollars, these dollars in9 particular from OSH, where the majority10 of dollars that are contracted, go to11 women and people of color.12
The14 particular contract cuts that we would15 see are related --16
That's not17 the question I asked you. And you are18 Deputy Mayor for Health and Opportunity.19 DEPUTY
So I'm not22 just asking about your particular23 department. I'm asking about health,24 human services and everything else. Do25 89 6/16/11 - WHOLE - BILL 110135, ETC.1 you actually use your dollars fairly?2 DEPUTY
I3 believe we do, and we've had this4 conversation before.5
Thank you,14 Madam Chair.15 Dr. Schwarz, how much money did16 you get from the federal government for17 anti-obesity programs last year?18 DEPUTY
And how much21 did you get last year, or was the whole22 26 last year?23 DEPUTY
It's 2624 over two years, 26 million over 2425 90 6/16/11 - WHOLE - BILL 110135, ETC.1 months.2
So have they3 paid us the whole 26? How much did we4 actually receive from the federal5 government last year?6 DEPUTY
We7 received about half of it, half of it8 each year for two years.9
And we're10 getting another 13 million this year?11 DEPUTY
No.12 That's included. So it's 13 in the first13 year, 13 in this year.14