Committee Hearing, May 12, 2004

COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE OF THE WHOLE FY '05 OPERATING BUDGET - - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, May 12, 2004 9:45 a.m. - - - - BILL NO. 040255 PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILMAN JAMES KENNEY COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN JUAN RAMOS COUNCILMAN MICHAEL NUTTER COUNCILMAN FRANK RIZZO COUNCILMAN FRANK DICICCO COUNCILWOMAN MARIAN TASCO - - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2 05/12/04 - WHOLE - '05 OPERATING BUDGET

It is my understanding that we have approximately 67 witnesses that have asked to be heard today and we would like to hear everyone testify. With that being said, we will allotting each group five minutes to speak. Good morning. Kindly identify yourself for the record and proceed with your testimony.

Good morning. My name is Joanne Fisher from the Maternity Care Coalition. I'm the Executive Director. I am joined by other Maternity Care Coalition staff, colleagues, volunteers and soon-to-be some clients. I am here to address two important issues: The survival of the MomMobile program in Philadelphia's neighborhoods and the healthcare crisis currently facing our City's childbearing families. In the past three years, 9 out of 33 OB units in Philadelphia have closed, the number of OB/GYN practices serving women on medical assistance was reduced by 27 percent, 3 05/12/04 - WHOLE - '05 OPERATING BUDGET and hospitals that were previously eager to contract with Maternity Care Coalition and City health centers to attract new patients are no longer interested, explaining that OB is too high risk, their institutions are at capacity or that too many families are uninsured. As you know, Health Commissioner Domzalski highlighted many of these issues in his budget address, and we appreciate his strong support for Maternal Child health initiatives. MCC, PCCY and others are ready to work with the Health Department and Council to encourage public hearings specifically on this growing health crisis for child-bearing families. A plan must be developed before market forces create even greater hardships. In this context, it is especially critical to maintain adequate funding for services to pregnant women, infants and families in Philadelphia's low-income neighborhoods. In only the first nine month of this year the MomMobile Program served 2,147 women and 2,256 children, a total of 4 05/12/04 - WHOLE - '05 OPERATING BUDGET 4,403 women and children in the City. Philadelphia City Council and the Health Department established the MomMobile program in 1988 following hearings on infant mortality. Since that the, MCC has leveraged City dollars with other government and private dollars to expand the MomMobile Program to nine Philadelphia neighborhoods. We've been able to triple your about $400,000 investment and serve nearly 5,000 each year. For years you have invested in an 13 infrastructure that has provided a crucial 14 safety net for over 48,000 families. If, as 15 we have been led to believe, the City is unable to fund the MomMobile at the current level, we will be forced to close down two or three MomMobile sites, leaving the residents of those neighborhoods without this important resource. What will that mean? I urge you to read the attached letters. Councilwoman Verna, a constituent of yours writes, "They helped me with maternity clothes when I was pregnant. I wasn't working at the time and really couldn't afford to buy 5 05/12/04 - WHOLE - '05 OPERATING BUDGET any. " Councilwoman Reed Miller, from your district, "I stand as a woman who needs that care, someone to share for I and my child have dreamed to be. Please keep the program running. I don't have anyone to catch us if we fall. From the Latino MomMobile, Councilman Mariano and Ramos, translated from Spanish, "They have been there for me, the mother I never had. When I came to this country, I didn't know anyone. They helped me with the barriers I faced in this country with my language and other obstacles, taught me how to be a good mother and responsible. They directed me on where I could complete my GED and learn English. Councilwoman Tasco, your constituent says, "The MomMobile is important to me and my family because they have all that is needed in the community, such as HIV prevention. Without education, mothers would pass the HIV virus to their newborn baby. To Councilwoman Krajewski, "I am a 6 05/12/04 - WHOLE - '05 OPERATING BUDGET young teenage mother who didn't know much about babies. They gave me great support through all my problems with family members and friends. And from Strawberry Mansion, Councilman Clarke, "I think that if it wasn't for the MomMobile, I would be on the Street living with my newborn. The MomMobile helped me with housing.

In just a couple of months, I will be in my own place with my son. MomMobile also helped pay for the transportation to get back and forth to the clinic during my pregnancy. They helped me with formula when my WIC check ran out. And Councilwoman Blackwell, one of your constituents here today has found meaning in his life after five strokes and terrible isolation when his aunt invited him to visit MCC's Healthy Start Resource Center on Lancaster Avenue. He has been volunteering every since. " In addition to these testimonials, 7 05/12/04 - WHOLE - '05 OPERATING BUDGET independent research indicates that families who participate in the MomMobile program are better able to set goals for themselves, more knowledgeable about healthy behaviors and community resources and see themselves as empowered to take care of themselves and their families. Many of us began this week appreciating our mothers. At MCC, we support and acknowledge mothers every day. We notice when moms put their babies to sleep on their backs, when they take their children for immunizations, when they graduate high school or get a job. We make sure that mothers who have too few resources and too many burdens get the education, support and recognition they need. We are encouraged by our recent discussions with the health department leadership. They recognize the value of the MomMobile and are searching for ways to keep these services available. We ask you to recommit to this partnership at the same level as last year so 8 05/12/04 - WHOLE - '05 OPERATING BUDGET that together we can create healthier communities and strengthen families one baby at a time. Thank you.

Thank you. Any questions from Members of the Committee? The Chair recognizes Councilman Nutter.

Thank you, Madam Chair. Let me just make sure I'm understanding the testimony. Your funding last year, was it the $400,000 for the current fiscal year?

For the current fiscal year in funding from Title 5 and immunization, it was $375,000, but the immunization funding was not for a full year.

And that was out of the Health Department?

Yes.

And you've been notified that it was being completely cut?

We've been notified 9 05/12/04 - WHOLE - '05 OPERATING BUDGET that there's been a shift in priorities and that those funds would not be available. But the Health Department now is in conversation looking hopefully for other sources of funds.

Just one last question. When you said that they explained that there had been a shift in priorities, what was the shift to?

A focus on more intensive case management program for parents of newborns.

For parents and --

Which would serve about 400 families in the City.

Did that have anything to do with the types of services that you provide?

Our programs serves a less intensive intervention for a much larger group of families. Also, our program is for pregnant women as well as new parents.

What's your 10 05/12/04 - WHOLE - '05 OPERATING BUDGET sense of -- when you said the Health Department said that they were going to seek alternative funding, do you have any sense of the possibility of success in that regard?

I'm very hopeful, and we have another meeting scheduled for this week.

Thank you very much.

Thank you.

Thank you. Are there any other questions or comments from members of the Committee? (No response.)

Thank you very much. We appreciate you coming in to testify. Good morning. Please identify yourself for the record and proceed with your testimony.

Good morning. My name is Shelly Yanoff. I'm Executive Director of Philadelphia Citizens for Children and Youth, which is the outside government regional child 11 05/12/04 - WHOLE - '05 OPERATING BUDGET advocacy organization. The City that wants to be a City of readers with its One Book - One Philadelphia Initiative is proposing the cut general fund library services by more than two and a half million dollars. The proud city of neighborhoods, home to more than 400,000 children, many of them at risk, is threatening to cut 62 recreation sites and more than $7 million from its recreation budget. The same city of neighborhoods which is closing recreation centers because of lack of money is increasing its subsidy to the Pennsylvania Convention Center by $5 million. 8 million to one of the new stadiums for maintenance and upkeep to make sure that rich people can come to town and have fun. The city whose movers and shakers want tax cuts to attract people and businesses is planning to provide $1 million over four 12 05/12/04 - WHOLE - '05 OPERATING BUDGET years to the Chamber of Commerce to conduct a campaign to help them make money for more business. The city that is making news by supporting college scholarships for low-income kids is at the same time cutting its contribution to Community College, the college that most of the City's needy children depend on for post-high school education. The city that is facing a crisis in the availability of maternity care, prenatal care and hospital beds is proposing to cut its outreach efforts to pregnant women. The city that is long waiting lists for outpatient/inpatient mental health treatment for families and increasingly for children is proposing to cut its support for mental health care by a million dollars. The city whose museums provide exposure to art and culture for tens of thousands of children, families and adults and attracts more tourists than its heavily taxpayer-supported teams is proposing to end its vital contribution to the Philadelphia 13 05/12/04 - WHOLE - '05 OPERATING BUDGET Museums of Art, the Atwater Kent Museum, home of the City's own history, as well as to various small community arts and culture programs which are critically important. What's wrong with this picture? Plenty. Yet at the same time, there are many things in this budget that are right. We support the City's contribution of $35 million to our schools. Good schools are vital to attracting families and keeping them here. We support the increases proposed by the Department of Human Services for abuse prevention dollars largely from the state and federal government. It's less costly in both human and fiscal sense to prevent something from happening than to fix it once it's been broken. Particularly when it comes to children, preventing abuse and neglect and strengthening families in our communities is the first and best strategy for children to grow up whole and healthy. We strongly support the Scholarship Fund and urge that it be used for all needy 14 05/12/04 - WHOLE - '05 OPERATING BUDGET Philadelphia students, those in public as well as those in parochial schools. We strongly support the promised allocation of more police to neighborhoods outside of and around our schools. We support the increase funding for domestic violence. Too many of our families suffer. They need more attention. The City needs to increase its capacity to provide safe havens. We support the city's ongoing progress in getting the lead out of our children's lives. And Council has been critical in this, as in all of the other things. And we support the efforts to develop more and better housing for current and future Philadelphians. But as we set and pursue these worthwhile priorities, we must hold our children and families harmless. And the budget doesn't do that. We understand that this is a difficult time, but it is in these times that we need to take extra care to hold on to what's working for people.

From our 15 05/12/04 - WHOLE - '05 OPERATING BUDGET health centers where we need more hours to our pools where kids can find safety and fun to the museums that feed our spirit and attract visitors to our libraries which are beacons of hope in many of our communities, all these priorities are essential to the well being and quality of life for Philadelphians. Our proposal. 8 million in payments they are to receive from the City this year for their publically subsidized new home. Times for the Gas Works are hard. They're also hard for the children and families of our City. We ask you as policymakers to postpone or reject a $6 million increase in the Convention Center subsidy. We ask that the City Council reject any more give-aways to business that then cause an end to services that all of us need. 16 05/12/04 - WHOLE - '05 OPERATING BUDGET We should practice zero tolerance on TIFs and other failed efforts. And we ask the Chamber of Commerce to pay for its Select Philadelphia Campaign. We ask that you find ways to continue to support the arts in our City, including our museums and cultural programs. We believe these are extraordinary times and it's more important than ever to offer safe harbors for children and families. Our kids need to be able to select a pool close to home to swim in this year, a fully staffed and clean recreation center to play in, a health center to be treated in, an art program to participate in, a library to think in. We ask that as Council people you trim expenses with selectivity and care and invest in these scarce resources. We ask that you hold our children harmless. 2 million 17 05/12/04 - WHOLE - '05 OPERATING BUDGET back into the Art Museum. Let's put our upkeep where it belongs. If Council refrain from expanding the subsidy for the Convention Center this year, we could put the $1 million back into Behavioral Health to help decrease waiting lists, add 1 million in to prenatal care outreach as was just testified about so that our babies are born as healthy as they can be with mothers who are prepared to care for them. We could increase the care and hours at our health centers which are the only place the increasing immigrant families can get medical attention. We can put $750,000 back into Community College, make whole the City's Arts and Cultural Funds and increase support for housing initiatives. We know it isn't easy. These are hard times, but we ask you to really do what you can to do this. Thank you very much.

Thank you. Are there any questions or comments from Members of the Committee? (No response.) 18 05/12/04 - WHOLE - '05 OPERATING BUDGET

Thank you again, Shelly. Good morning. Kindly identify yourself for the record and proceed with your testimony.

Good morning. My name is Jane Bogerhoff, I'm Director of Center City Crime Victim Services, and I'm here on behalf of the City victim service agencies. Actually, Frank Servone from Support Center for Child Advocates and Stephanie Mayweather from East Division Crime Victims Services will be speaking to you this morning.

We do have a copy of your testimony which will be the stenographer. It will be transcribed in full, so if you could abbreviate your comments, we would appreciate it.

Thank you, Madam President and Members of Council. It's good to see you here this morning in this important initiative to listen to the people. We were here on Monday. We heard your concerns. We heard the concerns of the community that costs 19 05/12/04 - WHOLE - '05 OPERATING BUDGET are high, that revenue is down. We ask you to not re-victimize victims of crime by allowing them to fend their way through a system that is so very insensitive to their needs. Ms. Mayweather and I represent -- I'm Frank Servone, the Director of the Support Center for Child Advocates in Philadelphia. Ms. Mayweather will follow me. We together represent victim service agencies from this 11 community who stand with children, with the 12 elderly, with the disable, with those who need companions in the court system. The City provides funding the supplement our charitable dollars to provide services to our client populations, court room 17 accompaniment, advocacy and other services to more than 40,000 victims of crime each year. In this difficult economic climate, both our work load and our costs continue to rise dramatically. I heard with you on Monday complaints about reduced increases in pension benefits to some classes of City workers. I can assure you that most of our agencies have 20 05/12/04 - WHOLE - '05 OPERATING BUDGET virtually no retirement programs. Our salaries are dramatically below the public sector, and we're providing a public function. A cut in our funding will result in reductions of services to our City's most vulnerable citizens. We respectfully urge this Council to maintain support for crime victims at the 2003-2004 levels. You may recall that our funding comes through the District Attorney's budget. She has recommended that our budget be reduced less dramatically than proposed by City government but that she would accept a decrease. She's elected to recommend to this body that her reductions come from personnel, not from victim services. We join her request. In short, we ask for the continued funding of $640,000 in our Class 250 line in the District Attorney's budget. I give you Ms. Mayweather for her brief remarks.

I'll be as brief as I can. 21 05/12/04 - WHOLE - '05 OPERATING BUDGET Most are not aware of victims services of victims rights until they themselves have become victims of crime or someone close to them. We read about these violent acts every day in the newspapers, we hear about these violent acts every day on the news. "Boy shot on way to school. Girl, 9, bites hand of would-be kidnapper. Nun attacked in Germantown. Teen accused of covering up girl's death. Woman sexually assaulted in the Northeast. Mother of five slain, shot to death in North Philadelphia. Cab driver found shot to death in West Philadelphia." That's seven headlines, one for every day of the week. Victim service agencies assists scores of victims who do not make the headlines. We are now seeing an abundance of child victim homicides, children being murdered, shot, stabbed, raped. Innocence slowly disappearing. Since the beginning of this school year, since September, we have seen child homicides, that's 26. There are 22 05/12/04 - WHOLE - '05 OPERATING BUDGET only 52 weeks in a year. That's one child every other week, one child biweekly. Most of us get paid biweekly, so just imagine every time you pick up your paycheck, a child has been murdered. That's children, 26 7 families, 26 communities in crisis. 8 Twenty-six children, that is one entire 9 classroom of children being wiped out by 10 violence in the City of Philadelphia. 11 Now, I'm going to wrap this up. I 12 just want -- I brought a picture today. I 13 just want to show our picture. I want you to 14 brace yourselves because this picture is 15 pretty startling. I'm going to show you a 16 picture. It's a face of a victim of a violent 17 crime in the City of Philadelphia. What it 18 is, it's a mirror. It's a mirror. It's your 19 reflection. It's to show you that you could 20 be a victim of a violent crime in the City of 21 Philadelphia. Thank you. 22

Thank you. 23 (Applause.) 24

When the 25 District Attorney was in, she spoke about her 23 05/12/04 - WHOLE - '05 OPERATING BUDGET budget but she did not elaborate. She did mention some of the programs, but we did not get a dollar figure attached to the program. Were you cut by $640,000?

No. 7

What is your budget this year and what are they reflecting in '05?

From 640,000 to, I believe, around 594,000. Remember, these are -- the DA budget for us or City Council budget, all of our budgets are substantially higher. Your dollars are essentially supplementing our own substantial efforts in fund-raising.

Thank you very much. The Chair recognizes Councilwoman Blackwell.

Thank you, Madam President. This is an area where I have a lot of interest. We've tried to work with Victim Witness directors and the offices closely. So 24 05/12/04 - WHOLE - '05 OPERATING BUDGET many of us have had our share of crime in the City. Unfortunately, too often, several days a week. And we are certainly hopeful that in the final analysis we work things out, because the Victim Witness Service Program is one where victims of crime are contacted and are offered services, everything from counseling to burial to who knows what. We had in the Lex Street murders, the greatest massacre in the City, and we work closely with them across the board. So I'm hopeful, Madam President, that everything gets worked out and so that the Victim Witness Service Program, especially in West and Southwest where we've had some issues, that we can resolve the issues and move forward, because we definitely need service. Thank you for your testimony.

Thank you very much. Are there any other questions or comments from Members of the Committee? (No response.)

Seeing none, thank you so much for coming in. We 25 05/12/04 - WHOLE - '05 OPERATING BUDGET appreciate your testimony.

The next witness is Mark Schweiker, Greater Philadelphia Chamber of Commerce.

Good morning. Welcome.

Good morning, Madam President and Members of Council.

Excuse me. Before you start, do we have copies of your testimony?

Yes. We were here, as you likely know, on Monday, and provided advanced copies.

Yes. I'm sorry we couldn't to you, but I know you were in a hurry. Please identify yourself for the record and proceed with your testimony.

Mark Schweiker, President and CEO of the Greater Philadelphia Chamber of Commerce.

Please proceed. 05/12/04 - WHOLE - '05 OPERATING BUDGET

Thank you. And with me are Joe Mahoney, Executive Vice President of the Greater Philadelphia Chamber of Commerce, and Denise Early who tends so ably to City Hall affairs for the Greater Philadelphia Chamber of Commerce. I come before you today to offer testimony on the Fiscal Year 2005 budget proposal. As you know, the GPCC is 5,500 strong, with each member having their own special needs and demands. In a perfect world, there would be no wage tax, no deficit and no need to think of closing swimming pools and recreation centers. But this is not a perfect world and, therefore, you must make careful choices. The Chamber has always supported fiscally responsible tax reform, tax reform that would entice employers to do business here and their employees to live here. We are pleased to see the proposed continuation of reductions in the gross receipts and wage taxes contained in this budget proposal. Yes, we would like deeper and quicker cuts in these 27 05/12/04 - WHOLE - '05 OPERATING BUDGET taxes and we strongly believe they hamstring the business community, but as long as they continue to spiral downward, we believe the trend is our friend. We are ever hopeful that when gaming is passed in Harrisburg, and I believe and would hope that it will pass, we will get additional relief on the wage and property taxes. The Tax Reform Commission did a stellar job over the summer, and I personally testified on their findings before this Council not once but twice. Again, the GPCC's strong position on meaningful fiscally responsible tax reform remains our mantra. Now, not in a position to pick or choose nor to pit one tax recommendation against the other in the sea of bills before you. We need continued tax reform that will help us grow our businesses and our population. We need jobs. It is my job to shepherd 5,500 members and ensure that the remain in this region. Without meaningful tax reform on the 28 05/12/04 - WHOLE - '05 OPERATING BUDGET horizon, those who can will surely leave. I'm passionate about the need for economic growth in the City and the region. While I fully understand and appreciate there is a big hole in the budget this year, I'd hate to see us cut off our nose despite our face. I'm alarmed that some of the proposed cuts would pose great difficulty on the economy of our great City. Some of the proposed cuts seem shortsighted in that they would reduce the people flowing into Center City to attend cultural and educational events, thereby reducing revenues and generating a negative multiplier effect for the City's bottom line. Although tax reform is a main focus of the Chamber, there are other areas of concern in the budget proposal that I would like to address at this time. It is a concern that the proposed increase in the parking tax will have a negative impact on our hospitality industry -- (Applause.)

-- by convincing would-be attendees that premiere events like 29 05/12/04 - WHOLE - '05 OPERATING BUDGET the Annual Flower Show to stay home, visitors of the life blood of downtown Philadelphia. Increases in the tax can negatively impact arts and culture, sporting events and a host of other industries including shopping. Shoppers can go to suburban mall where parking is plentiful and free. The ripple effect will be real, and increases in parking rates will further the City's high price of doing business perception. I'd like to interject a few words of support for the fantastic service our Philadelphia Community College provides to the local economy. (Applause.)

It should be said, celebrating its 40th anniversary, Philadelphia Community College currently supports 46,000 students. And just last Sunday, they graduated their largest class ever, 1,808 graduates. In a recent speech, Chairman of the Federal Reserve Board Alan Greenspan highlighted the good work of these two-year 30 05/12/04 - WHOLE - '05 OPERATING BUDGET institutions by stating that productivity in the United States has increased generation after generation, creating ever-rising standards of living. Our knowledge-based skills in a business environment have enabled our workforce to create ever greater value added. The avenues to acquiring those skills -- and this is the point. The avenues to acquiring those skills are many. And one effective tool that we have developed to facilitate the transition to a new job or profession has been our community colleges. (Applause.)

Community colleges have been in the forefront of teaching the types of skill that build on workers' previous experiences to create new job skills. I'd hate to see potential students forego higher education due to the rising cost of tuition. , taking approximately 65 of our members to the Capital to here from our delegation on both the House and Senate sides. Interestingly enough, 31 05/12/04 - WHOLE - '05 OPERATING BUDGET Congressman Rob Andrews from New Jersey touted regional cooperation and even used his daughters -- it happened to be Take Your Daughter to Work Day -- as props. His point being that even though he had a New Jersey zip code in southern New Jersey, as we all know, he had a Philadelphia brand. His daughters row on the Schuylkill and perform at the Academy of Music and at the Kimmel Center. , and yes, the home of our very own Smarty Jones. " Now, I sat on the Regional Cooperation Committee of the 21st Century Review Forum chaired by Aqua America CEO Nick DeBenedictis . The overall finding of the Committee is that the strengths and weaknesses of Philadelphia greatly impact the success of 32 05/12/04 - WHOLE - '05 OPERATING BUDGET the region as a whole. The Committee further embraced the need for a regional consortium to meet once each quarter to continue an ongoing dialog on issues of common concern and to encourage the precepts of smart growth. Folks -- and I don't have to convince anyone here about the virtue of this -- we need to shout this message from our rooftops. The City and region are in it together. Thanks to the Administration's early support and your encouragement, the Chamber seeks to hold up its end and spread this regional promotion message through the Select Greater Philadelphia Campaign. Select Greater Philadelphia is a business marketing initiative dedicated to attracting, growing and retaining regional businesses to the Greater Philadelphia Region. This region has long suffered from a poor image as a business location. Often it's seen as a second tier location for businesses and talent. In addition, the region simply has not sold itself. Businesses and visitors who are interested in the region have found it 33 05/12/04 - WHOLE - '05 OPERATING BUDGET difficult to find information, access contacts and get assistance when deciding on whether to locate here. Up until now, there simply has not been a one-stop shopping location for businesses and people to visit which represented the entire Greater Philadelphia region. Select Greater Philadelphia bridges and fills this gap, embracing the full 11-county region while working in conjunction with other economic development and marketing organizations. The goal of Select Greater Philadelphia is to attract growth and retain businesses in the Greater Philadelphia. Through the repositioning of Greater Philadelphia as a first tier business location. In its first 12 to 18 months, the goal is to introduce Select Greater Philadelphia to a regional, national, and international audience, define the regional benefits, differentiate the region, and support local fund-raising efforts. Over a longer term, the goal is to move Greater Philadelphia to the short list of cities, and 34 05/12/04 - WHOLE - '05 OPERATING BUDGET from there, win new businesses to the region. Marketing will be directed to audiences inside and outside the region, including location decision-makers and regional stakeholders. A seven-phase strategy will lead to select success, specifically intercept, entice, inform, fulfill, welcome and entertain, deliver, and ultimately select. Select Greater Philadelphia will capture the intention of the decision-makers, pique their interest, communicate the wealth of the region and this City's strengths and assets, fulfill their needs, bring in prospects for firsthand experiences, tailor their programs and packages to fit their organization, and in the end win their business.

Select Greater Philadelphia is the first initiative of its kind in the region than and represent unprecedented collaboration to create this initiative. It will be a program that will build over time with the potential of significant returns. Now, one of the cornerstones in our attraction efforts must focus on quality of 35 05/12/04 - WHOLE - '05 OPERATING BUDGET life. The arts and culture community is a large dimension of those efforts. For example, the Philadelphia Museum of Art attracts approximately 1 million visitors annually. 5 million in tax revenues to the City and Commonwealth in Fiscal Year '03. So let me take this occasion to acknowledge the support provided by members of this Council to restore most of the slashed funding for this facility. The Chamber was very instrumental in securing a multimillion dollar grant for new lighting along the Parkway to enhance attendance, not to keep it in the dark. The arts and culture institutions are vital to the City's economic success. 5 million in wages and sales taxes, and supports $564 million spending in the five counties. 2 million. This drop to the arts and cultural allocation is disproportionate as it represents a 64 percent total cut in arts funding. A lively cultural scene contributes to neighborhood vitality in many, many ways. While many public schools are no 12 longer able to provide students with arts and culture education and opportunities, a total of 229 -- and this is remarkable -- a total of 229 area non-profit cultural organizations offer programs and services to the City's children. And research proves that children who study the arts more likely to attend school regularly, to graduate, to earn higher SAT scores, and to continue on to college. Almost 60 percent of young college graduates living or working in Center City viewed Philadelphia's arts and cultural events as a comparative strength versus other cities. We win because of the robust in art and 37 05/12/04 - WHOLE - '05 OPERATING BUDGET cultural sector in Greater Philadelphia and in this City. Fortune Magazine rated Philadelphia third as the best City in the US in which to work and live, citing the regions arts and cultural assets as key to that standing. Let me give special thanks at this point and acknowledgment here for your support of the ACE INA TIFF bill that received final passage on April 22nd. This is a prime example to keeping 1,000 good-paying jobs in the City, thereby continuing the tax revenue stream generated to the ACE INA to this City. In other good economic news for the City, a biotech firm, AppTec Labs, a pharmaceutical manufacturing business has moved in at the old Philadelphia navy base, employing at this point 160 full-time high-end jobs. , one of the largest employers in Center City, has decided to keep its corporate headquarters at Liberty Place through 2016; CIGNA employees, a total OF 3,000 in the Philadelphia area. It would be nice, however, to not need special incentives 38 05/12/04 - WHOLE - '05 OPERATING BUDGET to keep major employers in town. Again, meaningful tax reform would eliminate the need for these special perks. I was heartened by the Mayor's plan and interest in development of miles of 7 waterfront property that will establish 8 Philadelphia as the New River City in America. 9 Not only will this be good as a tourist 10 attraction which will benefit the hospitality 11 industry, it also will surely enhance property 12 values throughout the City. 13 Let me also say the Chamber looks 14 forward to working with Commerce Director 15 Stephanie Nadoff this summer on the economic summit with high hopes of retaining and winning new employers for this City and region. As I finish up, just inclines me to mention a popular say, as Philadelphia goes, so goes the region.

Finally, me say that the Mayor has taken a bold step forward in his efforts to right-size government by proposing to close or sell some facilities in order to balance the 39 05/12/04 - WHOLE - '05 OPERATING BUDGET budget. The Chamber has long been a proponent of asset sales and right-sizing of government as a means of increasing revenue, particularly in light of the escalating deficit. May I also suggest that the City be more strident in the collection of taxes and fees. And I know that other organizations have addressed the need for that development. I believe one of the findings of the Tax Reform Commission was that if collections went up by just 1 percent, the City could realize $20 million in annual revenue. And, Madam President, thank you so much for the opportunity to be heard today.

You're welcome. And thank you for coming in. (Applause.)

The Chair recognizes Councilman Kenney.

Thank you, Madam President. Governor, thank you for your testimony. I agree with you. Two of the probably craziest things we can do is raise 40 05/12/04 - WHOLE - '05 OPERATING BUDGET the parking tax in Philadelphia. (Applause.)

Which obviously is too high now and drives people to suburban malls and especially gives us a bad reputation when it comes to special events in the City because some gouging does go on, as is expected. And the other thing is the reduction in operating subsidy to the Art Museum, which probably brings in more -- it does bring in more visitors and hotel rooms and spending than the four sports teams combined. What I'm a little bit confused about is the Chamber's position on the Tax Reform Commission's recommendations. Is the Chamber recommending that I as a Councilmember vote for all the provisions that are represented in the bills introduced by Councilman Nutter or not?

Well, it's not easy to provide you a simple to what is -- you folks live it every day when you examine budget, a complex question and a complex 41 05/12/04 - WHOLE - '05 OPERATING BUDGET budget. Our preference is that as it relates to tax reform, that while the possibility of all of it being installed within the budget in '05, probably is difficult to achieve. With some action toward that end this year and not abandoning the idea of improving the City's tax model in years to come that we could live with here.

I've been here since 1992. And I guess in --

Let me add one, Councilman Kenney. It's probably a year ago, I probably on behalf 5,000 businesses would have given you a more strident response. But the economic reality that seizes this City's revenue collection performance cannot be ignored. There's been a slow-down. It makes it tough, given that economic backdrop to plow ahead and install all of the suggested reforms. You know, some things got to be give picture. And someone who has -- I've got a good 15 budgets under my belt. I was not a legislator. I was in the executive branch every step of my public career way. It ain't 42 05/12/04 - WHOLE - '05 OPERATING BUDGET easy, and this year is not easy. And to that end, ours is a measured response. It would be wonderful if revenue collections were up and growing in double digit ways and we could install some of this reform this year, but it is not the picture.

I guess the other dilemma is that since I've been here and since we've been instituting incremental tax reductions both on the wage and business tax side, we've continued to see a growing loss of population and jobs. So it seems that the incremental kind of reasonable tax reform that the Administration touts just does not work. And my concern is -- I asked this question to David Thornberg the other day. I don't see this government, with its shrinking population tax base or City and its growing population of people of need, how we ever get a point in our history going forward where it will ever be the right time to take the measures necessary to take this City from a City that employs people through government and institutions to a City that employs people through the private 43 05/12/04 - WHOLE - '05 OPERATING BUDGET sector. If the private sector does not return and continues to leave, we have a self-fulfilling prophecy of death. And it is hard, it's going to be hard for the Mayor, it's going to be hard for Members of this Council, it's going to be hard for the government in general to deal with the fallout of what happens if we do what the Tax Reform Commission is recommending. But I think at some point in time if we don't do it or we try to inch our way into it, we're never going to the effect that we need to turn the government around.

I wouldn't quarrel with your assessment and your anxiety about what future awaits us. Like you, my wife and I are raising our kids here and we want them to be here and feel a sense of promise about the City and the region. So it concerns me, too, and I'm the voice to close to 6,000 member businesses that have the same kind of concern. But these are folks that make budgets every year, and they too realize that their top line has diminished. Expenses creep 44 05/12/04 - WHOLE - '05 OPERATING BUDGET up, and it just makes it tough. I don't think -- that's why I mentioned a moment ago, in a perfect world with rising revenue collections maybe this was the year to just install impressive recommendations brought forth by the Tax Reform Commission. Hopefully, there will be a more supportive set of economic circumstances in years to come to be more aggressive.

The problem is, I don't see that because we went through probably one of the greatest booms in this country's economic history, and we still did not benefit as a City the way other regions and other cities benefited, a lot because of the structure of our government and spending.

Well, that has to be discussed categorically. I mean, depending on the industry sector, there was profound growth, even with some questionable public budgeting practices. And, yes, some industry sectors have weakened for sure. But I would, just to add in some remarks as it relates to the tax model of the City, you know the 45 05/12/04 - WHOLE - '05 OPERATING BUDGET prospect of the wage tax reduction being financed by the gaming legislation half a point is not an insignificant development. I think it's a very significant development. And I would hope, and you're all involved in political prognostication as I am, you don't know what the State Legislature will do. But we're ever so hopeful that that half a point drop comes to pass. That would be significant.

I think that happened in the future that would be tremendous adjust our budget and our tax reduction issues to match that extra income. But I think to kind of wait for that to happen, as you know, sitting at the front of that Senate for as many years as you have, you can see that things sometimes don't happen. And I just want to end by saying, part of the dilemma here is that the people who proposed this tax reform are sometimes pitted or portrayed as they don't care about the issues of providing for social services and other things. I think the contrary is the 46 05/12/04 - WHOLE - '05 OPERATING BUDGET case. I think that if you provide tax reform which grows the private sector economy, there will be plenty of money to help with libraries and schools and keeping families here and paying for rec centers and paying for social services when the only area of revenue for those social services in a diminishing tax base that's continuing to go, we're not doing those poor and needy people any good at all by not changing the way we look at our government. (Applause.)

The reality of those who have to make decisions on the budget, whatever public position, is that a question has to be answered, "Will they manifest in this fiscal year --

Probably not.

And I think under the heading of routine prudence which is what is expected of public office holders who literally raise their hand to take an oath and back a budget that genuinely is in balance, that its expenses won't out run what you 47 05/12/04 - WHOLE - '05 OPERATING BUDGET expect to collect in revenue, and parenthetically, that revenue level comes from tax rates. If that exercise doesn't create a balance and you and sincerely so believe that that's going to occur in the next months, 7 then it makes it questionable. Perhaps people 8 could be hurt. Is that possible in this 9 particular fiscal year? It makes it very, 10 very tough, and that's my observation that 11 it's a tough decision for Members of Council 12 as well as the Mayor.

And I will end on this. I think the people are being hurt now. I think the tax policies of our government over the past years have hurt 17 people tremendously. And in the 12-month 18 period of pain compares nothing to the pain 19 that's been going on for the last 20, 25 20 years.

I don't want to quarrel with your assessment. The Chamber sees itself as a proponent of improving the stage for creating the circumstances that lead to significant 48 05/12/04 - WHOLE - '05 OPERATING BUDGET economic growth, whether it is advocacy for a more attractive tax model to the Select Greater Philadelphia. Let me just mention this to you, Madam President, we're the fourth biggest metro area in the country. We're still a mighty economic force, with the fifth biggest city, which may lose that status soon as we know. However, in terms of promoting ourselves, as we talk about the potency of Select Greater Philadelphia, we don't behave like the fourth biggest region. We don't promote ourselves. We don't have a marketing effort like a place like Charlotte or Atlanta, or Phoenix Scottsdale employs. And in part, it explains our economic weakness. I'm not suggesting for one moment that we ignore the fundamentals of hard tax policy that make us unattractive. But perhaps I could answer it or finish up the comment this way. Could you imagine the fourth biggest airline trying to conduct itself nationally or internationally do business and not market itself? Well, they would not. They'd go out of business. It's 49 05/12/04 - WHOLE - '05 OPERATING BUDGET preposterous. Well, friends, here we are, the fourth metro area, and we're doing just that. I mean, Charlotte's not only beating at Lincoln Financial Field for the NFC Championship, they're beating us on the figurative field with economic and job growth, and in part because they spend 5 million per year promoting their place as a profitable area to do business. And so there are other ways we can create the economic stage and one of them is promoting our region.

I think we'd probably have to make the City a profitable area to do business before we advertise it as such. Because from the region, I understand, from the City's perspective, it's a pretty hard sell when you talk about economic advantage when it's really not here within the city limits. Thank you.

Every City has its blemishes, keep that in mind, across the country. But we can accent the positive and generate economic growth.

Thank you. 50 05/12/04 - WHOLE - '05 OPERATING BUDGET The Chair recognizes Councilwoman Brown.

Thank you, Madam President. Good morning, Mr. President. One background informational question for me. And if you don't have it, if you could please forward a profile of the membership of the Greater Philadelphia Chamber, the percentage of those members that reside in Philadelphia and the surrounding counties, types of businesses that they generate, that would be very helpful.

We can do that.

Just a point of information on the net analysis. On top of what the Councilwoman has asked for, could you talk about the number of employees, the number of jobs within the City that your Chamber members represent in addition to the number of residents?

Sure, we can generate that.

Thank you. 51 05/12/04 - WHOLE - '05 OPERATING BUDGET

Thank you, Madam President.

Thank you. The Chair recognizes Councilman Nutter.

Thank you, Madam Chair. Good morning, Governor Schweiker. Governor, I'm trying to reconcile a couple pieces of information. I read through your testimony and I also have Mr. Mahoney's testimony, which I think both of you were maybe trying to give on Monday. Sorry for the compressed schedule. I listened to the testimony, I read the testimony, and I heard your responses to a couple questions. We are at that point where the real decisions have to be made, and we've had a Tax Reform Commission, we've had a 21st Century Review Forum, we've had hearings in general back in February on the tax matters which, again, your testimony actually reflects that you testified at. What I'm trying to resolve, at least for myself, is I see the statement 52 05/12/04 - WHOLE - '05 OPERATING BUDGET that talks about fiscally responsible tax reform that you're certainly pleased with the current reductions that are proposed in the budget. I guess what I'm still trying to reconcile is, the Chamber had a member which Mr. Mahoney's testimony recognizes Mr. Vandenbrul, and before the merger, Greater Philadelphia First also appointed a member Stuart Weintraub, a well-known attorney and a bit of a tax expert in his own right and there have been also meetings, I think, of the Tax Committee within the Chamber. I can't speak for my colleagues, but I have had a number of business people, small and large, indicate that they need further relief in order for Philadelphia to progress. And Mr. Mahoney's testimony reminds us that there was a letter from the CEO Council. I mean, these are big name companies, big name people signed a letter indicating that they supported the recommendations of the Tax Reform Commission. You mentioned your own service on the 21 Century Review Forum and there were many other well-known people 53 05/12/04 - WHOLE - '05 OPERATING BUDGET involved with that. What I'm hearing in the testimony is certainly different than what I read in the letter from the 40 plus CEOs which said pass the tax reform package. At the announcement of the package, there was great support for it in many members of the business community. And now I'm hearing almost you, "Well, you should just keep doing what you've been doing because you can't do anything else." And I guess I'm concerned about that message, given all that has happened and certainly the critical role and position that you hold. The two members appointed by the business community have been very strong, vocal proponents who I think you know and respect for their work. So I need, I guess, some clarification.

Sure. Hopefully, when I'm finished, Joe Mahoney can give his remarks and then perhaps there can be more extended exchange on this. But Councilman Nutter, I think whether it's the CEO Council for Growth or myself, one particular 54 05/12/04 - WHOLE - '05 OPERATING BUDGET preference and outlook doesn't change. We're encouraging the Council in tandem with the Mayor to pursue all that's doable. I think that sometime during the beginning of the year absent the growing deficit number, I don't think anyone had a good handle on what would be the off referenced deficit number during the budget creation season for the City what it would be back then. Yes, without a doubt, once the Tax Reform Commission was culminated that everyone was clamoring for let's get these installed. And I don't think anyone was of the mind that the economic weakness would descend upon the City's revenue performance to the extent that it would be. Thus, the belief and the preference that you do what is doable this year, that doesn't change the Chamber's preference that we pursue tax reform; it's when you do it.

Well, I appreciate that, but it also doesn't change the underlying imperative for all the circumstances and conditions that caused the Tax Reform Commission to say what they said or 55 05/12/04 - WHOLE - '05 OPERATING BUDGET the Century Review Forum, or anyone else. I would also suggest back, and you and I have a great working relationship, that I think we're at a point where we can't just do what we think is doable. I think we have to do what is required of us. (Applause.)

The one thing we 10 know for sure is if we keep doing what we've 11 been doing. 12

You keep getting 13 what you've always got. That's a Texas -- 14

Is that where it 15 came from? I never got far out of West 16 Philly, so I don't know about that. 17 I mean we can't continue on the same 18 path. It will absolutely, positively, 19 guaranteed as we are sitting here get us what 20 we have gotten, which is the largest loss of 21 population of any county in the United States of America since 2000, the largest amount of job loss, biggest population loss possibly in the last 40, 50 years as a City. You mentioned earlier, the data is coming up 56 05/12/04 - WHOLE - '05 OPERATING BUDGET according to a professor at the University of Pennsylvania, I think next Thursday, May 17th, we're supposed -- as if it's the prediction of the eclipse of the sun, we're supposed to possibly slip into sixth place. Part of the reason we ended up here was because of the Greater Philadelphia Chamber of Commerce. Two years ago, come the 23rd of last month, we concluded one discussion and started another. That's when the wage tax bill got signed, after tremendous activism and public encouragement and support by the Greater Philadelphia Chamber, and we want to maintain that kind of working relationship but also advocacy. I mean --

So you're of the mind that this all has to be done this fiscal year?

There are matters that need to take place this fiscal year. They probably should have taken place last fiscal year. I think notwithstanding much of the discussion and writings and you can take it to the next step of even 57 05/12/04 - WHOLE - '05 OPERATING BUDGET propaganda, I mean, the City is not going to fall apart based on this first year in the package or anyone's version of the package. (Applause.)

I need to clear up the record first. I'm not a package person. There are bills, there are a 9 variety of other bills. At the end of the 10 day, our names are going to get called and 11 you're going to vote on each one of those 12 bills. It's not like, vote once and it's 13 over. And publicly on record saying I'm probably not going to do all of them, but the overwhelming majority of them do need to be done. I will say again as I said on Monday, I expect that all of us take our jobs in this body very seriously. And just because you put a set of scenarios in place or set a train on its particular track, it doesn't mean that you can't stop at the next station. We will be right back here next year having budget hearings and we'll hear about the fiscal condition of the City, maybe we'll hear about it in January or whenever the budget comes in. 58 05/12/04 - WHOLE - '05 OPERATING BUDGET And if things aren't working, then I expect that the responsible people in this body 4 and the responsible person in the Mayor's 5 office downstairs, Mayor Street, we will have 6 another conversation. And if things are not 7 going right, I expect that we will adjust 8 ourselves. We cannot act like we're out on a 9 boat somewhere on a particular course and even 10 though the wind has shifted and we're about to 11 capsize that we're just sit there and say 12 "Well, you know, we set out on this course and 13 that's the course that we're going to take 14 there's nothing we can do about it. And if 15 the place burns up, well, that's just the way 16 it goes. That's irresponsible. 17 Because I was a person who criticized former Mayor Rendell in 1995 about the first set of cuts in the wage tax. He was right; I was wrong. I've told him personally and I've said the publicly. But when the announcement was made that we would stop the increment tax cuts, the dollar a month, what people didn't care about, they wouldn't miss it, it wouldn't matter is what caused 59 05/12/04 - WHOLE - '05 OPERATING BUDGET thousands of people to take a short hop from Walnut Street to City Hall because somehow we realized that it did matter. The time to start is now. We can't continue to do what's doable. That's a part of the problem in this City. We're always willing to accept second best, we're always willing to take what we can done, we're always looking for what can I get, 9 votes, 12 votes, what's the best deal that I can get as opposed to what is the right thing to do. (Applause.)

I think we're just beyond doable; we're at what's required.

Can I respond.

Sure.

I would like to remind our witnesses and my colleagues that we do have 67 witnesses to testify. If we can be as brief as possible, I would appreciate it.

The witness has been well within his time. I took him way over 60 05/12/04 - WHOLE - '05 OPERATING BUDGET

Councilman, I'm some who held public office for sometime. And when you hit important days like this, you ought to have the opportunity to offer extended remarks. And without exception, respect that privilege and certainly your position. I have tremendous respect for command of the issues. Now, obviously I wasn't -- during that budget season with the march and everything, President and CEO, I had another job. Perhaps I could say to make the point, that was then, this is now. Let's contemplate the circumstances that led to that vitriol and that kind of response, literally a march, the one and only time in the 203 history of the Greater Philadelphia Chamber of Commerce was such a measure and action taken. The idea was not continue with reductions. That was wholly unacceptable. That was then and you had that kind of reaction. Now, albeit small, the reductions continue. The prospect of a half point drop exist by virtue of that gaming legislation, and that's what's going on now. 61 05/12/04 - WHOLE - '05 OPERATING BUDGET The dedication to that, whether it's on the part of the Mayor or this Council still exists. So staying with this overarching response of, "that was then, this is now," I think you do what you can this year in a fiscally prudent way. Economic circumstances have changed. But what hasn't changed on the part of the Greater Philadelphia Chamber of Commerce is our belief that the work of the Tax Reform Commission should have been convened. This did important work. They've offered some important suggestions. The question is, what can be activated in this fiscal year? And it seems that the economic distress that defines the budget-making this year is such a point that it makes it tougher. Now, your a smart guy. You've been through budget-making. If you are going to reduce revenue perhaps in the short run -- and we all can agree that if there's a question mark as to whether or not you can really juice greater revenues through a more affordable tax model in this next 12 month period, in this next 12 month period, if you're going to do 62 05/12/04 - WHOLE - '05 OPERATING BUDGET that, what slashing do you do on the expense side? So very respectfully -- and I don't think that's the job of the Greater Philadelphia Chamber of Commerce. What cutting do you do? I don't think that's only the Mayor's job.

I understand.

That's the 10 members of the Council. It's a "something's 11 got to give" picture. And in that regard, 12 what is it? And then we would like to look at 13 that. If that's something you would 14 circulated -- I'm not saying if you -- if you 15 buy that kind of an assessment. It ain't 16 easy, friends. This is a tough, tough year. 17 I don't want to lose any credibility by saying that you can go and install all these reforms in 2005. Mathematically, it seems very tough to accomplish, even though it would be outstanding in terms of creating interest of doing business in the City.

I understand.

I might add, Madam President, for the record, we do wish for all 63 05/12/04 - WHOLE - '05 OPERATING BUDGET the bills to be voted. The membership does prefer that this year.

Thank you. I appreciate that. Thank you, Madam Chair. I apologize.

Madam President, we've got a big gathering.

I know. That is why we called you immediately upon your arrival. Are there any questions of Governor Schweiker? (No response.)

Thank you. Thank you very much.

Thank you, Madam President. Thank you, Members of Council.

Our next witness.

Rob Zuritsky.

Good morning. Kindly identify yourself for the record and proceed with your testimony. 64 05/12/04 - WHOLE - '05 OPERATING BUDGET

I'm Robert Zuritsky with Parkway Corporation,

I'm Alan Blake with Central Parking.

Cory Cutler from Rittenhouse Row.

Good morning, My name is Robert Zuritsky, and I am here representing the Philadelphia Parking Association. We are a group of nine operators managing 90 percent of the Philadelphia's parking facilities. The parking industry employs 2500 people, many of them you have seen in recent days and most of them City residents, myself included. There seems to be a perception that increasing the parking tax 33 percent and real estate taxes over a hundred percent with the land value tax for parking facilities is not something that we should be concerned with. This is because we can always just pass on the additional cost to the parking public and they will stand for anything. I think we all learned from experience that you can tax people too much 65 05/12/04 - WHOLE - '05 OPERATING BUDGET and chase them away from your City and from your business, which is precisely why we are here to lower the cost of doing business in Philadelphia. The parking industry is already the highest taxed industry in the City. Roughly 30 percent of every dollar that we charge our customers today goes to the City in one form of tax or another. The parking operators are not alone in their concern. Monday, Controller Jonathan Saidel voiced his concern. Today, you heard from the Governor Schweiker from the Chamber of Commerce. The cultural arts are concerned. Rittenhouse Row is here. And we believe Center City proprietors will be also joining us later to voice their concern. None of our customers visit the City to park their cars. They come to work, live, see their doctor, see a show or exhibit, stay at a hotel or eat at one of our wonderful restaurants. The parking tax is already an added cost that affects people's decisions whether they choose to invest their time and 66 05/12/04 - WHOLE - '05 OPERATING BUDGET money the City. But that is not the only issue facing the parking industry. The land value tax threatens to increase parking lot real estate taxes over 100 percent in the coming years. The theory from this Henry George who lived over 150 years ago was to force landowners to develop their land or be punished. This might have worked when your City was all farmland, but in a developed city it doesn't seem like a great idea. The cities that have embraced this tax are Allentown and Harrisburg, neither of which has been the center of increased land usage or increased capital spending. I encourage you to compare the activity on Center City streets and sidewalks on a Wednesday night or a Sunday afternoon with either of those two cities and then decide if you want to take the risk of transferring the tax burden of our tallest buildings onto the backs of the tenants of our low-rise buildings that maintain the walkable character of our fine City. 67 05/12/04 - WHOLE - '05 OPERATING BUDGET The land value tax will also punished to 30 percent of our City's 4 residents simply because they will have the 5 misfortune of living in an up and coming 6 neighborhood and actually eliminate 7 the 10-year tax abatement for new row house 8 development. 9 As a developer, I can tell you that 10 no development has ever taken place as a 11 result of a threat to increase your real 12 estate taxes a hundred plus percent. By 13 contrast, most development in the City has 14 taken place because of the alignment of 15 business conditions and City incentives. For 16 instance, the current building activity is due 17 to Philadelphia's 10-year tax abatement and 18 the success of the residential market. The 19 project at Jefferson square is a great example 20 of this. There was an article in the Sunday 21 Inquirer. There were people camping out to 22 get these new homes. I don't think that the 23 demand would be as strong if there wasn't a 24 10-year tax abatement for these new residence. 25 This morning I received a letter 68 05/12/04 - WHOLE - '05 OPERATING BUDGET from the head of the Pittsburgh Parking Authority, Steve Irwin (ph).

Hopefully, this will be published in the paper coming up, and I just want read one paragraph of it. "As chairman of the Public Parking Authority of Pittsburgh, I have firsthand knowledge of how serious the impact of the increase is and will be. First, the tax is bad for business. It sends a terrible message to suburbanites who choose to or need to work in downtown, to organizations considering holding conventions here or businesses thinking of relocating. It deters shoppers from coming into town and tourists from staying here. The added cost and inconvenience caused by the tax just makes their options more enticing. Like Philadelphia, we need to bring people into this City, not chase them away. Driving up the cost of doing business in downtown Pittsburgh does little to support efforts to keep stores and companies here and attract thriving and growing businesses in the future. " In conclusion, the parking operators support tax reform because it will make the City more competitive but believe the land value tax should stay in Allentown. I respectfully ask the City Council to look for further cuts in spending rather than raise the parking tax or land tax and risk damaging the few remaining strengths of our local authority. Thank you for the opportunity to present our views. )

Thank you. Good morning. Please identify yourself.

Once again, I'm Alan Blake with Central Parking. I'd like to thank you for the opportunity to speak today. As the general manager for Central Parking System for Philadelphia, I would like to voice my concern over the proposed increased parking tax. 70 05/12/04 - WHOLE - '05 OPERATING BUDGET Over the past three weeks, a wide cross-section of Central Parking field employees and their parking patrons have written to Councilmembers and the Mayor on this same issue. They are adamantly opposed to a 33 percent increase on the parking tax. My employees understand that people pay for parking. And if drivers perceive prices have escalated beyond what the market will bear, then they will choose an alternative plan. Fewer drivers translate into fewer employees required to provide parking services. Between our Center City, airport, and stadium operations, 1,021 men and women are currently employed by my company. A large percentage are full-time workers with health and retirement benefits who also happen to be residents of Philadelphia. Central Parking has a vested interest in the continued success of this City. We operate 58 parking facilities which, excluding the airport, generated nearly $10 million annually to the City in parking taxes collected. We are presently the highest tax 71 05/12/04 - WHOLE - '05 OPERATING BUDGET industry, and any additional increase that we would have to pass on to our parking patrons will have a negative ripple effect. It is my opinion that the City would not raise projected $11 million it hopes to gain from this increase. Less people will drive. Between escalating gas prices with no 9 end in sight and parking taxes higher than any other northeast city, why would you continue to drive? For patrons outside of Philadelphia, a switch to public transportation is either not an option available to them or one that they are not comfortable in choosing. An increased parking tax only serves the throw up one more road block for not visiting Philadelphia. With less expensive alternatives available, the end result will be less visitors to a City. In closing, a 20 percent parking tax impacts every type of business in the City. Restaurants, hotels, commercial buildings, tourist attractions and retail stores all depend heavily on drivers from the surrounding region. City residents themselves are also 72 05/12/04 - WHOLE - '05 OPERATING BUDGET impacted, as this increase will be passed on to their monthly charges. The parking industry provides an important service to a diverse population who are the key to sustaining Philadelphia's economic recovery. It is my hope that Councilmembers can find alternative means to close the City's short-term deficit without further shifting an unfair tax burden on to parking patrons. Thank you. (Applause.)

Thank you. Please identify yourself for the record.

My name is Cory Cutler, I'm the Executive Director of Rittenhouse Row. I represent a non-profit consortium of 200 businesses, shops, restaurants, hotels, galleries, salons and services businesses located between Market and Spruce Streets from the Avenue of the Arts to 21st Street. Our goal is to attract more visitors to our area by promoting the area of the destination. On behalf of these 200 members and 73 05/12/04 - WHOLE - '05 OPERATING BUDGET our Board of Directors, I'm here today to report the proposed tax increase would be very detrimental to the economic vitality of our destination and will have a tremendously December negative impact. Thank you.

Thank you. (Applause.)

Can you give you an estimate as to how many employees the parking lots and garages,

We have in the parking industry --

I heard you said that you have a thousand?

I have a thousand just with my company, but within the Parking Association which represented 90 percent of the parking lots here in Philadelphia, that number is 2500.

So the less usage, you would have less employees, would you not?

That's correct. There's less services to provide. Most of my 74 05/12/04 - WHOLE - '05 OPERATING BUDGET employees are doing valet parking. The less cars to park, I wouldn't be able to keep as many employees.

Thank you. The Chair recognizes Councilman Nutter.

Thank you, Madam Chair. I'll be brief. This is certainly an intriguing situation. I understand everything that you testified to and share a number of the concerns that you have raised, and I'll get back to that in a second. But I do feel somewhat compelled to at least to put on the record, and we've had a little bit of this conversation at least in the hallway not too long ago, you certainly be aware that -- and this is more related to the parking tax proposal. I'm assuming you've also talked about the land value tax. I was away from my chair during your testimony. I mean, there are certainly, I think, more than a general perception that parking rates in Philadelphia are pretty high 75 05/12/04 - WHOLE - '05 OPERATING BUDGET and that at times, and especially under a variety of circumstances, we even get complaints that there may possibly be even some gouging going on related to specific events, all of which does not necessarily maybe generate significant amount of sympathy toward the parking industry in general. On the other hand, it would seem to me that raising the parking tax is probably not one of the ways to address that particular issue. But I would like to ask you as leaders in the industry if at a subsequent point in time we might have some opportunity either in my general capacity as a Member of this City Council or as Chair of the Transportation and Public Utilities Committee, the need for a serious parking plan and discussing about parking mainly in Center City but there are certainly other areas where parking is an, both from a transportation standpoint as well as a cost factor standpoint, as well as when the witness talks about the impact on Center City business and whether people come downtown or not because they either can't find parking 76 05/12/04 - WHOLE - '05 OPERATING BUDGET or they feel like there's almost a bit of a ransom to get their car back after spending sometime in City, I think, are all very complex issues. And I'd like to hear from you with regard to any amount of commitment you'll be willing to make to have further discussions about those issues which I think we can work on which are to the positive benefit of the citizens of this City.

We would welcome the opportunity to sit with you. We think there are transportation traffic issues that were brought up the other say. We have been talking about traffic issues and concerns about those issues for many, many years and brought it to many different people through the years. As far as rates in the City, as we said before, we are already the highest taxed industry in the City. We're already paying 30 cents of every dollar before all your expenses and rents and labor costs and all those things, so we feel -- we would love to have a discussion about all parking issues with you 77 05/12/04 - WHOLE - '05 OPERATING BUDGET and we welcome that.

All right. We'll follow up on that. Thank you very much. Thank you, Madam Chair.

The Chair recognizes Councilman Kenney.

Thank you, Madam President. It's appropriate that Councilman Rizzo come over and have a chat with me because I think we had a meeting or two with the parking industry, and you were very gracious to meet with us to talk about short-term parking issues and also some of the other issues related parking. And as I remember, correct me if I'm wrong, it was understood when we left the meeting that Center City District and the Parking Authority were going to come up with some numbers that we could crunch to figure out what was going on and what needed to be done, including even perhaps a reduction in the parking tax in an effort to subsidize the reduction in short-term parking rates. Our calls to the 78 05/12/04 - WHOLE - '05 OPERATING BUDGET Center City District, our calls to the Parking Authority, nobody is interested in doing it. I don't know whether or not someone got to somebody and told them to drag their feet or what happened, but all I know is that we've been waiting for numbers from those entities which apparently are not coming because they were instructed or asked not to do it, and now we're back to square one where we were. And that was the result of legislation that we introduced that the industry understandably was upset with, and I understand that and they should have been upset because it was an attempt to get everybody to the table. Once the bill or the specter of that bill was removed and a cooperative effort was established, the cooperation went away. I know you would love to have a conversation with Councilman Nutter and I'd like you to have a conversation with us, but we've had this conversation and the entities that were supposed to help us get the data necessary decided they weren't going to do it. So if the Center City District which is an 79 05/12/04 - WHOLE - '05 OPERATING BUDGET important entity and a very good entity for gathering that information and the Parking Authority isn't willing to do it, I don't know how we get the numbers and data we need to even have a discussion about this. Do you have insight into how this process got sidetracked, so to speak?

I know THAT we looked at things and we had further discussions. It's a complicated issue, rates. I'm not sure we have any solutions. As I recall we did meet because there was some concerns about some of the shows that had happened and some things that happened, and I believe that there was some change in some operators' policies and some of those problems have gone away. You know, rates in the City go up and go down as market conditions allow them. One of the best locations in the City, one of my competitors, I just noticed this month their rates just came down at their facility. It's 15 Street, one of the best streets in the City. Rates, it's a very pure market supply and demand business. 80 05/12/04 - WHOLE - '05 OPERATING BUDGET

But the problem is our market supply and demand analysis is juxtapose with the zero cost of parking at the King of Prussia Mall. And while I understand it's what the market will bear and we shouldn't as a government be involved in regulating rates from a philosophical standpoint, if it cost you $15 to park for two hours to go shopping at Lord and Taylor, how are we serving Lord and Tailor or the employees of Lord and Taylor or the employees of the restaurant that shopper may go to or not go to ever again? The same issue comes up with the Flower Show or Car Show. If I drive in here from Reading to go a Car Show and park my car and I realize that once I've made the trip it's going to cost me $30 to get my car parked or $25, I'm going to pay that money. I'm going to go in and enjoy the Car Show. And when it's over, I'm going to get back in my car and I'm going to thumb my nose at the City and leave and never come back again. And that's the kind of comments you get. 81 05/12/04 - WHOLE - '05 OPERATING BUDGET So regardless of what the market bears, there's other markets that are affected by it like restaurants, like shows, like hotels, like other things. And we really tried to have this conversation. And I would like to have it again, but I do need some assurance somebody provide the data which certainly Councilman Rizzo and I are not equipped enough to go around and figure out data necessary to determine what we hope was a reduction in the parking tax. If we could have figured out a way to reduce the parking tax and allow you to subsidize the short-term shopper, that would have been a great solution. But we never got off first base because --

We looked at it for a long time. We will get together with you again and we'll talk about it some more.

I don't want to monopolize because I know Councilman Rizzo wants to say something about that. I don't want to go back at this in an adversarial situation. I don't want to have to introduce 82 05/12/04 - WHOLE - '05 OPERATING BUDGET a bill that will talk about regulating rates from a government perspective and have everybody upset, we have a big meeting and then we realize we're not on a different page, we're on the same page. You want to do your business and employ your people, the people you employ you pay decent wages, a lot of immigrant employment in the parking industry in Philadelphia. We don't want to hurt anybody, but I also want to drag some of those cars out of Cherry Hill and Deptford and King of Prussia and get them down here to Walnut Street and have them shop here.

Thank you, Councilman. I would like to remind my colleagues and witnesses again, we do have 67 witnesses to testify today. So, again, I'm going to ask that you try to be as concise as possible.

Can I make a comment on that?

This is a very important issue.

That's not the 83 05/12/04 - WHOLE - '05 OPERATING BUDGET issue. I think the it's important to the people who are witnesses here who have been waiting and have to come back day after day should recognize that we should have had this budget in mid-January. We would have had a regular list of hearings dates. I mean, for us to get the budget in mid-March and have it done basically by the end of May and to have all these people jammed in with just a short set of hearings, we didn't do that. We didn't do that. The second floor did that. (Applause.)

With that being said, we still have 67 witnesses today. So I would again ask that we try to be as concise as possible. The Chair recognizes Councilman Rizzo.

I want to add to Councilman Kenney's comments on the meeting that we had at the Chamber offices. And I think everyone knows that it was a result of potential legislation that could regulate the parking industry. I was very motivated at 84 05/12/04 - WHOLE - '05 OPERATING BUDGET that meeting, and as Councilman Kenney described, it just went away when the threat of that legislation was pulled back. We discussed again short-term rates to get people in and out. We discussed a myriad of issues at that meeting. And it just went away. So again, we appreciated the attention when that legislation was pending, but I think that now with the severe circumstances that we're experiencing, that we truly, truly need to get back to that table with all of those parking lot operators to see what we can do to encourage people to come to the City and not have to spend 15, bucks to 16 grab a quick lunch and maybe shop for an hour. 17 So I would appreciate you addressing that. 18 I know we fixed some things at that 19 meeting; the venues at the stadium, et cetera, 20 the parking rates, which you've been very cooperative with. At least I know your company has, but I'd like to get back to the table. Thanks.

Thank you. The Chair recognizes Councilman 85 05/12/04 - WHOLE - '05 OPERATING BUDGET DiCicco.

Thank you, Madam President. Good morning. I apologize that I was not here at the beginning of your statement, so if the question I'm about to ask has already been answered, I'll just wait and look at the notes of testimony. I was at a community meeting in South Philadelphia from 9:00 this morning. The proposed 5 percent increase for the parking tax, if that becomes a reality, what does that mean to the average customer in terms of an increase? Because I have to assume that that's going to get passed onto the customer, or at least a portion of it.

On a regular, let's say, $15 daily ticket, that's 75 cents, and on a monthly customer, anywhere from maybe $15 a month.

So if that were to become a reality and the land tax were to become a reality, what would that number come to? I mean, that get's passed onto somebody. 86 05/12/04 - WHOLE - '05 OPERATING BUDGET Has any calculations been looked at as to what the cost of parking today versus what the cost of parking tomorrow would be with the percent 5 and the land tax value as an industry?

The land tax is something that I've been looking at for two years as this discussion started, and I honestly don't fully understand it yet.

Neither do I.

I remember hearing Mr. Glancey mentioning it too, it's a radical surgery with this tax. I think the average parker for the parking tax would pay $100 to $200 more a year. The land value could be another $200 to $300 a year. It's hard to really justify. What happens is, we have to raise our rates to pay the tax. What that means is we're going to lose business for raising the tax, for raising that rate. It means we have to raise the rate a little bit more just to make up for the loss because we have our mortgages and our rent payments and so forth. So the real impact is fairly dramatic. 87 05/12/04 - WHOLE - '05 OPERATING BUDGET

I don't think I have any other questions. I just want to echo the comments of Councilman Kenney. I know there are some people who were here on Monday from my district in the Wash West community, Washington Square West community, who were complaining to my staff that they never got a chance to testify, although I think it was in the newspaper on Monday that the public would testify later that day. There was some complaint that we were grandstanding up here. This is not grandstanding. This is important business. That's what we're elected to do, to have these hearings, get as much information as we can so that we can make hopefully the right decision when it comes to these matters and other matters. So I just wanted to echo the comments of Councilman Kenney. This is crunch time for us. We didn't create this situation. This all came to us very, very late. And unfortunately, the public for whatever reason doesn't understand that because they're not involved in the 88 05/12/04 - WHOLE - '05 OPERATING BUDGET day-to-day politics that we are. We do apologize that they have to keep coming back. But this is by no means grandstanding. We're all running from one meeting to the another and it's put a strain on of all us. Thank you for being here.

Thank you, Councilman. Thank you, gentlemen. We appreciate your coming into testify. (Applause.)

The next panel is a group of recreation people. Mike McCrea, Jim Hellman, Irene Russell, Tiffany Green, Karim Lewis, Aileen Bunch and Frank Barnett. Will you come to the table, please?

Are you going to have one or two spokespersons, or are you all going to --

We're all on the list so we kind of decided to go together.

Well, as I said, we're on a time limit. Who's going to testify first? 89 05/12/04 - WHOLE - '05 OPERATING BUDGET Please identify yourself.

Good morning. My name is Irene Russell. Good morning, Madam President, Members of Council, other guests and speakers. My name is Irene Russell, and I thank you for allowing my input on this very important matter today. I sit here today as one who is actually on the front lines of public recreation, interacting with the children and community. I sit here today because I can speak firsthand of the difference that I have seen recreation programs have in the lives of children and families within a community. At Stinger Square Park, where once there was no activity and no maintenance, there is now a vital place for the entire community to come together and enjoy varied programs and events. The involvement of people who care about this park has made it a model, not just for Philadelphia, but for other cities as well. They now host a complete season of events and have an Internet presence as well. 90 05/12/04 - WHOLE - '05 OPERATING BUDGET At Donald P. Finnegan Playground, where some of the same conditions existed, there is now constant activity and programs and a community who is pulling together around this facility. There is a drill team, sports teams, regular trips, an after-school program and literacy programs, not to mention summer day camps at both sites. There are people coming and going all the time at Finnegan, and parents coming to thank us for giving their children a place that they want to go. Yes, children want to be at Finnegan Playground every day because there's always something there for them to do and be a part of. Children are signing up for Youth Works and parents are already asking for day camp registrations at both sites. I have seen young boys who used to hang on the corners pick up a drum and never miss a practice for the drill team. Others have joined the SMBL league and played heartily for the basketball championship. I have seen children pick up books and read them voraciously. And I have seen children tell me how they feel safe there. 91 05/12/04 - WHOLE - '05 OPERATING BUDGET Across this City there are places just like Finnegan and Stinger Square that don't need to have their doors closed, but rather need someone to go in and open those doors with programs and exciting things for kids to do. Everybody benefits from these programs, not just the children who attend them. The Mayor has promised that there will be no child left behind in Philadelphia. I ask that the Members of City Council, along with the children of Philadelphia, hold him to that promise by keeping parks and public recreation alive in Philadelphia for generations to come. Thank you. (Applause.)

Thank you. Ms. Russell, I believe you cover Stinger Square and Finnegan. MS RUSSELL: Yes. Donald Finnegan.

Am I correct in my understanding that you do have a number of volunteers at Finnegan.

Yes. 92 05/12/04 - WHOLE - '05 OPERATING BUDGET

And that the Finnegan family has actually contributed 400 or 500 books.

Yes. They donated a library.

How many children would you say go to that center a day.

Well, the drill team has 40 children enrolled. The SMBL has, like, 36 children enrolled. We have a summer baseball league starting up, and we already have a strong enrollment for that. Our after-school program has enrolled at least 30 children. There are people already signing up. We already have at least about 15 going on registrations for camp, which doesn't 19 even start until July. We have game nights on 20 Tuesday with 25 kids coming to that. We have karaoke night on Friday, and we have 25 kids coming for that, not to mention spectators who come in. The don't want to sing, but they come in and watch. So we have a great number of children and adults now coming to the park. 93 05/12/04 - WHOLE - '05 OPERATING BUDGET We have a spark of volunteerism that's taken place that's just phenomenal. A fellow opened up a water-ice stand across the street because he saw the numbers and so he created a business around those numbers. So we're even sparking new business in the community through the activity at Donald Finnegan Playground.

Thank you very much. Our next witness.

Good morning, Council President Verna, Councilmembers, guests and other speakers. I'm honored to be here this morning to strongly protest cuts to the recreation budget.

I'm sorry. Please identify yourself.

I'm sorry. My name is Aileen Bunch. I'm here today to strongly protest the cuts to the recreation budget, recreation center closures City-wide, and specifically Sacks Playground located at 4th and Washington. I'm also the Co-Chair of the 94 05/12/04 - WHOLE - '05 OPERATING BUDGET Friends of Gold Star Park, which until about two years ago was a pretty blighted park on the 600 block of Wharton Street. My family purchased our home, our very first home, south of Washington because we couldn't afford anywhere else. We moved right across from a broken down playground. Well, to make a long story short, the neighbors got involved, got the park cleaned up, and now it's just one of the most wonderful parks in all of Philadelphia. We have a lot of volunteers that come out and help out. And to think that maintenance services will be cut to our park is just devastating. We can't do without just basic maintenance services. But regarding Sacks, it's very infuriating to think that this is on the chopping block. For all intents and purposes, Sacks has been closed for years because the Department of Recreation hasn't properly maintained it. They have not properly funded it. There's no full-time staff there. All we have is a 6-month seasonal maintenance 95 05/12/04 - WHOLE - '05 OPERATING BUDGET attendance. This is a facility that is an entire City block with ball fields, with two basketball courts, with a building, a swimming pool and a broken down tot lot that is just a disgrace. We really would like to see changes and improvements and we would like to be a part of a process to get changes and improvements at Sacks Playground, and not to be threatened with closure, especially when four recreation centers north of Washington Avenue and east of Broad Street will be allowed to remain opened, fully funded with adequate programming, et cetera, et cetera. And those facilities in particular are Hawthorne, Palumbo, Seger and Starr Gardens. It's a disgrace when all of these facilities will be allowed to remain open and operable and funded and only be within two to four blocks of each other, and yet Sacks and Chew will be closed because they're south of Washington in minority, low income neighborhoods that can't advocate for them as strongly as north of Washington can. Eighty percent of the facilities on 96 05/12/04 - WHOLE - '05 OPERATING BUDGET the chopping block are in low income, minority neighborhoods. All I see around my neighborhood is growth, growth, growth. Zip Code 19147 is just experiencing so much growth, and we need to improve our facilities for our children, not close them down. (Applause.)

Thank you. And I will shout from the roof tops. All the Councilmembers and the Mayor's Office got my letters of protest, so it's all in there. You know, there has been a lot of good around Sacks for a lot of years. In particular, the Nesmitt (ph) family, who's run programs out of their own pockets, who have garnered volunteers to clean up the facilities, who worked with Bruce Springstein, you know, to get his video filmed there. They've done a lot of good, but now we all jump in and help them and to bring our facility up. It's just sickening to me -- and this is the last thing I'll say, the last thing I'll shout -- but it's just absolutely 97 05/12/04 - WHOLE - '05 OPERATING BUDGET disgusting when you have $200,000 plus new construction going up. And actually most of the new construction going up around us is starting at $700,000. And yet you want to close down the rec center right across from the housing projects, right across from George Washington Elementary School. Our kids need this facility. That's all I'm going to say. (Applause.)

Thank you very much. Good morning. Please identify yourself. Councilman DiCicco.

I just want to make a comment or two. You and I and three or four other folks from your community had a meeting about a month or so ago, and I was very candid about what the proposal was as it pertains to Sacks, talked about some possible alternatives. Although I wasn't recommending them, some discussion pointed to them. I'm still waiting to have further conversations with you and 98 05/12/04 - WHOLE - '05 OPERATING BUDGET your association. But you did mention that Sacks was being closed and the other four facilities just north of Washington Avenue were not. Just for the record, Seger is also on that list of proposals to be closed as well.

I heard it was removed from the list.

Well, I haven't seen the list. There is a new list, I am told.

It's not on there anymore.

I don't know if it is or isn't because I've not seen it. I never even saw the first list. What I said at the time --

Maybe Ms. Bunch could tell us what's actually on the list at the present time.

I was told as of this past Friday that the new list now includes Rizzo Ice Skating Rink to be closed as well. I don't pay attention to all those 99 05/12/04 - WHOLE - '05 OPERATING BUDGET rumors and lists that are going on. This something that this Council will have to deal with collectively when it comes to the Department of Recreation. I think you know where I stand. You're right. Sacks has for a number of years been lacking in capital improvements, and there are some reasons for that, which we discussed, and it certainly will be on my agenda to keep Sacks open. There are some facilities that I've agreed with the Administration that I will seriously look at either closing or selling or what have you. But Sacks is not one of them. And now that you are there and your organization I'm much more comfortable in my fight to keep that place open because we really didn't have that much of a well-organized effort there over the years. I'm not pointing fingers. It's a different day. The Jefferson Square Housing Development has been completely sold out as of last week. Another 90 some-odd new families are moving into the Jefferson Square area, 100 05/12/04 - WHOLE - '05 OPERATING BUDGET which is just adjacent to the Sacks facility, and that gives me more reason to fight to want to keep Sacks open. I just want to get that on the record.

I want to make it clear that we really appreciate Councilman DiCicco's efforts in our community. You really are a friend of parks and rec centers in the 1st District. I often hear other names mentioned in the parks revitalization program. Jannie Blackwell, Councilman Nutter, et cetera, et cetera. And I could be all day praising you all for all the wonderful work you've done for our communities. Thank you.

Thank you. Our next witness, please identify yourself for the record.

Hi. Good morning. My name is Betty Finnegan Fox.

Hello. MS FOX: President Verna and Members of the City Council, as I said, my name is Betty Finnegan-Fox. I am a resident and homeowner in the Grays Ferry community and 101 05/12/04 - WHOLE - '05 OPERATING BUDGET daughter of the late Donald Finnegan, for whom the playground at 30th and Oakford is named after. By the way, I did supply packages of my talking points, and of course because we believe in our playground, it's in the folder back on that table. I also have a Power Point presentation that I hope everybody can look at and see the good that has been done there. Today I speak on behalf of the community and the Finnegan family to request that Donald Finnegan Playground does not close, but is given the budget to continue the services that are so vital to our community, such as providing the staffing and the resources to keep the building open and available to the Grays Ferry children, teens and adults. Over the last year, under the leadership of Irene Russell and her two part-time staff members, I witnessed the vitality and community involvement that has been lacking at the playground for many years. She not only sees the future of the Finnegan 102 05/12/04 - WHOLE - '05 OPERATING BUDGET Playground as a safe and welcoming environment for the children of the community, but the programs and activities that she has pursued and offered engage all races, ages and creeds from our community. This past year has been challenging with the news that the Donald Finnegan Playground may close, but good in many ways as we watch the community involvement. This past year produced some remarkable highlights for our community. The first annual Martin Luther King Day of Service I had, it was nearly 200 people from the community of the Grays Ferry area coming together to celebrate the spirit of Dr. King, both old and young, of all backgrounds work together to clean the playground. Speakers shared their thoughts on volunteering and lunches were served to all who attended that day. We did have many other events that day, but that's the high point. The second annual One Book One Philadelphia project -- and as you know, this is a project of the Office of the Mayor, John 103 05/12/04 - WHOLE - '05 OPERATING BUDGET Street, and the Free Library of Philadelphia. We held that, and there were door prizes for the children consisting of materials that will help to enhance their reading and writing skills. We had also given out six copies of the book, The Color of Water by James McBride. That was this year's One Book selection. As I mentioned, a book corner was dedicated in Donald's memory at the playground with, gosh, more than 150 new books, and that has gone up, and nearly 300 used books, and that has gone up recently for children and teens, which include fiction, non-fiction, reference books. And we have just added GED materials, as well as for the collection six copies of The Color of Water. The first read-a-thon, where savings bonds were offered as an incentive for the most books read and the best book report. One young boy, God love him, he read 40 books and did a book report on each that we had to read, which we did, because he gave it that extra effort. And needless to say, he was the top winner. Even though only several children received the 104 05/12/04 - WHOLE - '05 OPERATING BUDGET savings bonds, all of the children were winners just for entering the read-a-thon to show them that each child received a gift certificate and a special gift at our awards ceremony. The Finnegan family also received $1,000 in contributions from individuals to provide new sports equipment. And as Irene said, sign-up has already begun for the summer league. And this baseball league will take place, and we expect the children to enjoy the luxury of competing on, if not the best, one of the best fields in the City.

The second to none Precision Steppers Drill Team had their first try-outs in September 2003, and on January 3, 2004 they competed at Delaware State University, placing fifth and sixth out of 40 other teams. Fund-raising has taken place to ensure they have the materials they need to compete. The programs and activities that take place at the playground revitalized the playground, bringing components of literacy, music, sports and just plain old fun to our community. I have attached a list of 105 05/12/04 - WHOLE - '05 OPERATING BUDGET activities and programs that do take place now, as well as what we're looking forward to in the future. In addition to the programs and activities already in place at the playground, other activities are being planned to enhance the scope of the programs for children and adults. The staff is now in the process of creating a Web site. We are working on a GED program for those adults and young adults who wish to get their high school degree. When I return home from work in the evenings the number of children and adults in the playground astound me. Whether they're on the basketball court, in the play area, on the ball field, inside the building reading, practicing for the next drill team meet or participating in one of the activities, the need is clear that Donald Finnegan Playground needs to stay open for the community. Whenever I stop at the playground I am reminded when my father went to the trouble of bringing the playground back to life, not for personal glory, but for the community, 106 05/12/04 - WHOLE - '05 OPERATING BUDGET especially our children. Finally, the Finnegan family has committed themselves to helping in the financing of the programs and activities with a variety of fund-raising projects taking place. We had to stop our fund-raising projects when we heard we were closing because it is not ethical to continue soliciting. We will go to area businesses, which we have done. We have a flea market planned. We have all exciting programs upcoming. " The Donald Finnegan Playground has the staff in place giving more than a little extra effort. The children and adults in the community are getting that. Irene Russell has also made the Finnegan family feel welcome yet again to participate in the activities at the playground while giving back to the community. Just as the staff of the playground is doing, the Finnegan family, working as a team with the staff, plan on giving the Donald Finnegan 107 05/12/04 - WHOLE - '05 OPERATING BUDGET Playground more than a little extra effort in whatever way we can. Closing the playground will not help our community. The spark has been lit, and going backward will only deny the community a thriving and active recreation center offering services in a safe and welcoming environment. While most people have negative thoughts about inner-city communities, we have optimism because this is our home and the children are our future. Thank you. )

Thank you. Mrs. Fox, I can see that you are really fulfilling your father's dream, and I congratulate you for that. It's wonderful. The next witness. Your name, sir?

My name is Frank Barnett, 300 block of Titan Street, 1st Councilmanic District. I want to thank you for allowing me to speak today. A lot of my points have been taken today fortunately by Councilman DiCicco and 108 05/12/04 - WHOLE - '05 OPERATING BUDGET Aileen Bunch. I'm here to voice my opposition to the closing of any recreation center in Philadelphia, but in particular Sacks Playground at 4th and Washington. There was a list of recreation centers that was printed in the paper. I think one of the problems is that, as Councilman DiCicco alluded to, there seems to be a lot of rumors going around. There's not an official list, so that people in these neighborhoods who are affected by the closures of these rec centers are actually unaware that their neighborhoods may be targeted for closure. In terms of Sacks, the criteria for the closing of some of the rec centers has been reported; physical condition, programming, staffing, proximity to other rec centers. As far as Sacks is concerned, when you're at the bottom of funding, you're of course going to be at the bottom of the list for physical condition. And I would challenge Commissioner Richard to come up with the name of the staff person at Sacks Playground because we haven't 109 05/12/04 - WHOLE - '05 OPERATING BUDGET had one for years. I'm a recent newly moved-in resident to the neighborhood surrounding Sacks Playground, referred to as Jefferson Square area. It's been mentioned before, of course, in the tax hearings previously. We've got people waiting out in line for homes in the area, and yet two blocks away, the Department of Recreation plans to in effect pull the rug out from underneath these new people, and essentially do the same for the people who have been displaced, gone through losing their homes and having homes torn down next to them, people who have been displaced from the housing projects who have been moved into nicer homes, but now in effect are going to have the recreation rug pulled out from underneath them. Again, I'd like to voice my opposition to any of the closings, and I came today to speak about Sacks Playground, but I want all the Councilpersons today to think about the rec centers in their districts and to think about the people who use them. Use is also one of the criteria supposedly used for 110 05/12/04 - WHOLE - '05 OPERATING BUDGET closing some of the rec centers. I went down to Sacks Playground, and within half an hour I collected 50 signatures on a petition. And this was in half an hour. These are from parents, not even from the children they were with. So I think if the Councilpersons think about the people and the children who are actually using the rec centers in spite of the conditions, I think they would need to think again about proper funding and not closing or selling any of these rec centers.

Thank you, Mr. Barnett. (Applause.)

Who is our next witness? Mr. Hellman, please identify yourself for the record. Do you have written testimony, sir.

Yes. Good morning, Members of City Council.

Good morning. Please proceed. 111 05/12/04 - WHOLE - '05 OPERATING BUDGET

My name is Jim Hellman. I'm a resident of Grays Ferry, and I'm very active in my community, particularly with public recreation. Before I begin my actual testimony, I want to take a moment to greet our 2nd District Member of City Council. Hello, President Verna.

Good morning. President, the Committee of Concerned Citizens Forgotten Bottom Neighborhood Association, friends of Stinger Square, Grays Ferry Community Council, Martin Luther King's Village Neighborhood Association, South Philadelphia Rainbow Committee, Point Breeze Network Plus, Point Breeze Civic Association, Point Breeze Community Development Coalition, South Philadelphia Homes Neighborhood Advisory Council, Philadelphia Alliance for Community Improvement and the advisory councils at Vare Recreation Center, Lanier Playground, Finnegan Playground, Stinger Square Park, Wharton 112 05/12/04 - WHOLE - '05 OPERATING BUDGET Square Park, Chew Playground and Smith Playground have all authorized me to tell you two things. One, public recreation in Grays Ferry and Point Breeze has greatly benefited from your support over the years, and all of us do appreciate your support. And two, in Point Breeze and Grays Ferry, the people support the fine job you're doing as President of City Council under very difficult and unusual circumstances. I'm an advocate for public recreation, and I don't apologize for that to anyone. I am convinced that public recreation is vital to the health of our communities and to the well-being of our children and youth. I volunteer my time and energies to advance public recreation in my community and in my City. I am a proud member of the Philadelphia Recreation Advisory Council, or PRAC, where I serve as editor of the PRAC newsletter, member of the PRAC budget committee and chairman of the PRAC legal community. It is in the latter capacity that I testify today. 113 05/12/04 - WHOLE - '05 OPERATING BUDGET We understand that the Department of Recreation has been the favorite whipping boy of mayors gone by. We have never agreed with it, but we do understand it. We know the Department has endured budget cuts in past administrations. We know there have been staffing cuts and there have even been facility closings. But the Department of Recreation and the public it serves has never experienced the wholesale dismantling we are getting from Mayor John F. Street. At the risk of sounding idealistic, the City of Philadelphia belongs to its citizens. We love our City. We choose to live here, to work here, to raise our families here and to play here. We want our City to endure and prosper. But our City has a problem. The problem is that under the subterfuge of cutting the deficit, a deficit that he himself created, Mayor Street wants to close 40 public recreation facilities, 20 swimming pools, 40 summer camps and all five ice rinks. 5 million in 114 05/12/04 - WHOLE - '05 OPERATING BUDGET budget cuts in the last four years. Our City has a problem. With all the closings, the City will save $4 million. $4 million out of a $227 million deficit. That is just 2 percent of the deficit. And who will pay the price for that 2 percent? Mayor Street won't pay it. He can't run for re-election. His salary won't be cut. The budget for his office won't be slashed. In fact, the budget for the Mayor's Office will be increased by 12 percent. Of course, the citizens will pay the 13 2 percent price tag. It is our playgrounds, 14 our swimming pools and our summer camps that 15 will be gone. It is our children and our youth 16 who will have to walk many more blocks on hot 17 summer days to find an open pool in a 18 unfamiliar neighborhood where they might be able to swim. While our children are struggling to do that, Mayor Street will be free to hold his press conferences and attend his galas immune to the difficulties he has imposed on our communities. Our City has a problem. Recreation Commissioner Victor N. Richards sat before the 115 05/12/04 - WHOLE - '05 OPERATING BUDGET City Council and proudly announced there would be no service cuts, just before he announced the closing of 40 summer camps. Aren't summer camps and ice rinks services? What language are officials speaking anyway? Our City has a problem.

Some of our officials point out that Philadelphia has far more public recreation facilities and swimming pools than the City of Houston, even though Houston has a greater population. The officials say that is a bad thing and it justifies closing our facilities and our pools. They call it right-sizing. But I say it's a great thing. We can all be proud that Philadelphia provides better for our children and youth than the City of Houston does. )

While we must be concerned with fiscal responsibility, government services by definition must be based on need and not just on population. The real definition of right-sizing is what works and what our citizens need, and public recreation does work in our City. 116 05/12/04 - WHOLE - '05 OPERATING BUDGET As a personal aside, if our City officials are so fascinated with the City of Houston, that they hold it up as a role model for Philadelphia, maybe they should consider moving to Houston. I for one will be happy to pay for the plane fare. One way, of course. Our City has a problem. At a recent press conference, Mayor Street called for dignity during budget hearings. But where is the dignity for our communities? Nobody from the Department of Recreation or the Mayor's Office bothered to talk with our communities on what should be done. We have not had a voice. There have not been any feasibility studies, nor any consultation or discussion with the very people who will be most affected. Where is our dignity, Mr. Mayor? And why don't you hold a press conference about that? Our City has a problem. While cutting public recreation, Mayor Street increases funding for Safe and Sound and the so-called Children's Investment Strategy. Let's take a moment to look at one example of the disparity. 117 05/12/04 - WHOLE - '05 OPERATING BUDGET Donald P. Finnegan Playground at 30th and Wharton Street is targeted for closing. Using the Department of Recreation's own figure, it costs the City just $10,600 per year to operate Finnegan Playground. $10,600. What does the City get for that investment? The City gets an after-school program with 27 enrollments and to children attending 10 each day, 40 children on three teams for the 11 76ers neighborhood basketball league, a first 12 ever read-a-thon with an award ceremony for 20 13 children, a drill team with 50 children, a game 14 night with open play time for some 40 children, 15 a karaoke night with open night for another 40 16 children, a first ever Martin Luther King day 17 of service for over 100 adults and children, an 18 upcoming Phillies rookie baseball league for 19 children, a summer camp for 30 children and 20 much more, all sponsored by the Department of Recreation. With almost 400 participants benefiting from the activities at Finnegan, the average cost to the City is just $28.88 per person, per year. $28.88. Compare that to 118 05/12/04 - WHOLE - '05 OPERATING BUDGET just one private after-school program funded through Safe and Sound. The Gold Medal Karate School Program serves 38 children and receives $78,546 in funding. That's a whopping $2,067 per person, per year. Yet Mayor Street would have us believe that we can afford the $2,067 per person private program, but we can't afford the $28.88 per person public recreation facility. Now, that is isn't simply being counter boneheadedness. That is scandalous and just plain wrong. (Applause.)

We have a problem in our City. While cutting public recreation, the Street Administration is planning to increase funding for private organizations by some $20 million. What exactly do we get for the $92 million the Administration plans to spend. By Safe and Sound's own admission, after three years and more than $100 million, we get results that are, quote, mixed with inconsistent progress, end quote. If private organizations are so much better than public 119 05/12/04 - WHOLE - '05 OPERATING BUDGET recreation, why are we stuck for three years in the rut of mixed with inconsistent progress after spending so much of our money? (Applause.)

To be honest, if Safe and Sound would be a subsidiary of some private corporation, UPS, for example, that corporation would long ago have sold off Safe and Sound for not producing profit commensurate with enormous investment. Yet the Street Administration takes the opposite approach. Funding for private organizations is increased, while public recreation is cut drastically. And this is a good time to point out that public recreation facilities and programs were ineligible to even apply for any Safe and Sound funding for three years. Last year the Managing Director made us eligible to apply for after school funding. However, none of the applications submitted for public recreation programs received any funding at all. In fact, none of the applicants ever even received a written decision, much less an 120 05/12/04 - WHOLE - '05 OPERATING BUDGET explanation as to why no funding was granted. The practical effect of our eligibility for funding is zero. To this day, public recreation programs and organizations are not eligible to apply for Beacon funding or family support funding, even though public recreation facilities have been serving our communities in that capacity for over 50 years. On Monday morning the Philadelphia Recreation Advisory Council filed a civil complaint in federal court. Among the defendants named in the complaint are the City of Philadelphia and Safe and Sound. (Applause.)

PRAC is considering filing a separate complaint against Naomi Post-Street. Although a private citizen, PRAC believes Ms. Post is the chief architect of a scheme to privatize public recreation and remains the driving force behind Safe and Sound. It is PRAC's position that an independent finder of fact should decide whether the Mayor is meeting his obligations 121 05/12/04 - WHOLE - '05 OPERATING BUDGET to properly fund a department mandated in the Home Rule Charter. It is PRAC's position that a finder of fact should determine whether the authority of the Department of Recreation should be restored, including the repatriation of any and all funds misallocated or misapplied to or by Safe and Sound. It is PRAC's position that a finder of fact should examine the evidence and determine whether that evidence supports the conclusion that the Mayor, various other past and present City officials and Safe and Sound are attempting or have attempted to privatize public recreation by denying the voters an opportunity to amend the Home Rule Charter. It is PRAC's position that a finder of fact should decide whether public recreation programs and facilities have been treated fairly by the City of Philadelphia, Safe and Sound, and the so-called Children's Investment Strategy, or whether public recreation programs have been subject to bias favoring private organizations and have been denied reasonable 122 05/12/04 - WHOLE - '05 OPERATING BUDGET remedy through due process. It is PRAC's position that a finder of fact should be given the opportunity to determine whether Mayor Street was exercising proper discretion by creating a semi-private organization with a no-bid contract like Safe and Sound, that is free to spend millions and millions of taxpayer money without legislative safeguards specified in the Home Rule Charter. Is is PRAC's position whether a finder of fact should review the evidence and determine whether PRAC, our local advisory councils, our public recreation facilities and programs, and the children, youth and adults who participate in them have been damaged by the actions of the City and Safe and Sound, and if so, to what amount. (Applause.)

PRAC is looking forward to the discovery period when volumes of documents from the City and Safe and Sound will become available for scrutiny so that the public can finally understand exactly who is doing what with our money. 123 05/12/04 - WHOLE - '05 OPERATING BUDGET PRAC begins this undertaking with eyes wide open. We know how difficult it is to fight City Hall. We know how the wagons will be circled. We know the City will mount an aggressive defense finding whatever funding is needed to do so. The Mayor can always find money when he wants to. PRAC is also aware of Mayor Street's reputation for vindictiveness at anyone's expense. The action of this very Council on January 5th is ample evidence of that. Even so, PRAC will pursue our course with vigor, determination and commitment because the future of public recreation in our City hinges on our effort. Public recreation for the citizens of Philadelphia is worth fighting for. Thank you. (Applause.)

Thank you. Mr. McCrea, I ask you to be brief as possible, please.

Good morning. Thank you again for the opportunity for all of us to testify. I know I came with a big group and we were all here on Monday, so some of us got 124 05/12/04 - WHOLE - '05 OPERATING BUDGET pushed off, so that's why the group is so big today.

I understand.

I do apologize. But thank you for the time. As president of the Philadelphia Recreation Advisory Council, I represent 195 organizations, volunteer organizations, that work out of every recreation facility in the City. It's my responsibility to oversee and represent those volunteer organizations united in the common goal of partnering with the Recreation Department to deliver a wide variety of vitally needed services to every community across the City. Part of that responsibility is to bring us to the Council a message concerning the needs of our communities, including what we all need to do to better meet those needs. It is in that capacity that I testify today. Commissioner Richard testified that he plans to close 40 recreation facilities, 40 summer camps, 20 pools and all five ice rinks, 125 05/12/04 - WHOLE - '05 OPERATING BUDGET essentially turning out that over 500 summer seasonal jobs will be lost in the process of that as well. He seemingly left that out of his testimony. For the last four years, the Commissioner has been saying that there are too many recreation facilities and pools to serve the declining population.

Mr. McCrea, just a moment, please. The noise level is much too high. Anyone having conversation, please do so in the corridor. Please proceed.

Thank you. While the population has declined, truancy, drugs, gangs, teen pregnancy, firearms, homicides and random violence both in schools and on the street has risen precipitously at the same time. Using statistics from Safe and Sound, in the last three-and-a-half years over 60 children a month under the age of 21 have been victims of gunshot violence. As responsible adults and elected leaders, we should be incensed with 126 05/12/04 - WHOLE - '05 OPERATING BUDGET that statistic. It is unthinkable that we would allow this kind of danger and damage to our children and youth while not taking extraordinary steps to reverse that trend. During the same three-and-a-half years our funding and resources have been drastically cut and should be obvious to anyone who lives in the real world that we don't have enough facilities and services to go around. It is clear that the Commissioner and the Mayor also don't reside in the same world that we do. While the Philadelphia Recreation Advisory Council does not support any closings of any facilities, if we actually had to choose, I think that there are more reasonable options than those already presented. Piggybacking on Councilman DiCicco's comments a couple weeks ago, let's consider Camp William Penn, for example. The camp serves a total of 400 children at a cost of $560,000 for just 29 days a year. Located on over 350 acres in the Pocono Mountains, camp property is conservatively worth $25 to $30 127 05/12/04 - WHOLE - '05 OPERATING BUDGET million. The cost of upkeep for that size of property for 29 days per year of use is simply not practical. Those same 400 children could be sent to private camp for considerably less money. Selling camp property would generate ample revenue that could be used to support existing public recreation facilities and services at no additional cost to the City. Another example of poor choice involves the percentage of department cuts that have been proposed. Of the $4 million proposed cuts, 80 percent is being taken from programs, another is being taken from maintenance and 15 administration is being cut just 1 percent. 16 Now, I ask you, if 99 percent of the 17 department's cuts are coming from program and 18 maintenance, why do we need the same level of 19 administrative personnel? The department's main goal has always been and will continue to be to provide services. Given that, programs should be at the bottom of the cut list, not the top. In all my years in volunteer service I have suffered with the Recreation Department 128 05/12/04 - WHOLE - '05 OPERATING BUDGET through the tough times and through somewhat more prosperous times when facilities were reopened and programs were expanded and adapted. Through good times and bad times we always shared the responsibility of delivering services to the community. We have never felt as disheartened as we do today. Public recreation has been under constant attack in the last four years, and it's clear that this Administration is trying to dismantle the Recreation Department and downplay our contributions as equal partners. The Street Administration is doing that by reducing our funding and resources while providing over $200 million to private organizations attempting to provide identical services. The fact is that private and non-profit organizations and advisory councils were specifically excluded from even applying for this funding, simply because we partnered with the Recreation Department. When we tried to address our grievances to various City officials, one City official from DHS told us to, quote, work 129 05/12/04 - WHOLE - '05 OPERATING BUDGET harder and do a better job, unquote, before rudely dismissing us with a flip of his middle finger. That obscene gesture is symptomatic of the Street Administration's attitude toward public recreation in Philadelphia. Public recreation services are what we do and what we will continue to do.

Even through all the unfairness, lack of appreciation and devastating lack of support, Philadelphia Recreation Advisory Council will remain in the forefront of the effort to provide for our children and youth. We do not proceed with our civil complaint lightly. It receives a great deal of thought and discussion, but with the Street Administration's obvious vendetta against public recreation, something had to be done to stop the bleeding. In their blindness, 60 gunshot victims a month may be good enough for the Street Administration, but it is not acceptable to us those of us, volunteers and staff together, who care, who really care. Thank you. ) 130 05/12/04 - WHOLE - '05 OPERATING BUDGET