Committee Hearing, April 1, 2009

COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE OF THE WHOLE Temple University, Ritter Hall, Walk Auditorium Wednesday, April 1, 2009, 5:15 p.m. Res. 090226 - Revised 5-Year Plan Approval. Bill 090212 - 2010-'15 Capital Program adoption. Bill 090213 - FY '10 Capital Budget adoption. Bill 090214 - FY '10 Operating Budget adoption. Bill 090215 - Increasing fees for certain Code-violation notices. Bill 090218 - Revising real-estate tax rate. Bill 090219 - Amending Sales and Use Tax and Hotel Occupancy Tax by revising rate of tax. Bill 090220 - Re fees charged by Comm. of Records on Reg. of Individual Conduct and Activity Code. Bill 090221 - Requiring certain businesses and property owners to provide waste and recycling disposal services. (Full text of all legislation contained herein.) COUNCILMEMBERS PRESENT: Anna C. Verna, Chair Curtis Jones, Jr. Blondell Reynolds-Brown Donna Reed Miller Darrell L. Clarke Frank Rizzo Wilson W. Goode, Jr. Maria Quinones-Sanchez Bill Green Marian B. Tasco William K. Greenlee - - - V A R A L L O Incorporated Litigation Support Specialists 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2 4/1/09 - WHOLE - 2010 CAPITAL BUDGET

Good evening, everyone. This is a continued public hearing of the Committee of the Whole. I would ask Mr. McPherson to please read the bills before us. MR. McPHERSON: Resolution No. 9 090226, providing for the approval by the Council of the City of Philadelphia of a revised five-year financial plan for the City of Philadelphia covering Fiscal Years 2010 through 2014. Bill No. 090212, an ordinance to adopt a Capital Program for the six Fiscal Years 2010 to 2015, inclusive. Bill No. 090213, an ordinance to adopt a Fiscal 2010 Capital Budget. Bill No. 090214, an ordinance to adopt the Operating Budget for Fiscal Year 2010. Bill No. 090215, an ordinance 23 amending Chapter 10-700 of the Philadelphia Code, entitled "Refuse and Littering," to increase the amount that 3 4/1/09 - WHOLE - 2010 CAPITAL BUDGET must be paid in response to certain code violation notices to avoid initiation of further proceedings, under certain terms and conditions. Bill No. 090218, an ordinance 7 amending Chapter 19-1300 of the Philadelphia Code, entitled "Real-Estate Taxes," by revising the real-estate tax rate, under certain terms and conditions. Bill No. 090219, an ordinance 12 amending Chapter 19-2700 of the Philadelphia Code, entitled "Sales and Use Tax and Hotel Occupancy Tax," by revising the rate of tax, under certain terms and conditions. Bill No. 090220, an ordinance 18 amending Section 10-1001 of Title 10 ("Regulation of Individual Conduct and Activity") of the Philadelphia Code relating to the fees charged by the Commissioner of Records by modifying the amount of such fees, under certain terms and conditions. Bill No. 090221, an ordinance 4 4/1/09 - WHOLE - 2010 CAPITAL BUDGET amending Chapter 10-700 of the Philadelphia Code, entitled "Refuse and Littering" to require certain businesses and property owners to either pay a fee for City waste-hauling or demonstrate that the business or property owner has a private provider of waste and recycling disposal services, all under certain terms and conditions.

Thank you. At this time, the Chair recognizes Councilman Clarke.

Thank you, Madam President. Welcome to North Philadelphia. Madam President, I just want to say that I would like to thank you for agreeing to bring City Council to this particular neighborhood. I understand we have a series of neighborhood budget hearings. I've had said -- and I know all of us have said -- it's important to 5 4/1/09 - WHOLE - 2010 CAPITAL BUDGET maximize opportunities for all of the citizens to be heard, to speak to their government, and to make sure that they're included in this budget deliberation. So I just want thank you and all of the members of Council for coming to the first one. Fortunately, this is in the Fifth Councilmatic District. (Applause.)

Just a coincidence, guys. I had nothing to do with it. But I just want to thank you so much. And to the citizens and the residents that showed up tonight, we want to thank you all for coming out in inclement weather, and we hope we have some spirited discussion particularly as it relates to you expressing your needs to your government, and we will be extremely receptive. And this is a public record, so we will take it in 6 4/1/09 - WHOLE - 2010 CAPITAL BUDGET extreme measures of seriousness. Thank you.

Thank you, Councilman. And we thank you for your kind invitation. At this time, the Chair recognizes Councilwoman Sanchez.

Thank you, Council President. And, again, I guess I want to echo the words of my co-host this evening, Councilman Clarke, in bringing this important discussion and presentation to North Philadelphia. As folks know, the Administration has been working very hard under very difficult circumstances with the financial situation that this city, this state, and this country find themselves in. The Mayor made a budget presentation with some very hard choices for us in City Council, and he called this "The People's Budget," and we 7 4/1/09 - WHOLE - 2010 CAPITAL BUDGET thought it was appropriate that the folks see the fruit of their input during the deliberations that have happened over the last four or five months. And as Councilman Clarke alluded to, that people had an opportunity to comment specifically since now we know what the budget looks like and what are the revenue enhancements and -- the revenue enhancements and the tough decisions that we have to make on the services side. I would be remiss not to acknowledge Temple University for hosting us this evening. I believe Bill Bergman and some of the other Temple team was here -- Bill, are you still here in the room? -- for hosting us here, at Temple University. In the -- in trying to maximize time, there will be some ground rules for this evening session. We'd like -- if you are a speaker and scheduled to testify and you haven't registered at the 8 4/1/09 - WHOLE - 2010 CAPITAL BUDGET desk in the back, please do so, so that we can make sure that we know you are here and call you up during your panel presentation. So, speakers, if you haven't registered in the back, Joe Fernandez, the gentleman with the pink shirt, will take your name. And, as is the case in Council, there will be a three-minute rule. People will have -- Charlie McPherson will have the clock. And we ask people to adhere to that. If you did not register to testify but you do want to testify, also register in the back so that we can make every effort to accommodate you this evening. So with that, I'd also like to thank my Council colleagues for joining us this evening at Temple University. It is in its 5th but abuts the 7th, 'cause I abut many districts. Thank you. 9 4/1/09 - WHOLE - 2010 CAPITAL BUDGET

Thank you. At this time, we'll here present the Administration.

Good evening, Council President Verna and members of City Council. I'm Clarence Armbrister, Chief of Staff to Mayor Michael A. Nutter. And on behalf of the Mayor, I am pleased to provide testimony on the FY '10 proposed Operating Budget and the proposed FY '10-FY '14 Five-Year Financial Plan. And if I might also take a point of personal privilege. As many of you know, I toiled here at Temple for about four years prior to joining the Administration, so it is always nice to be home and work very closely with Councilman Clarke in this district regarding issues regarding Temple. So I've seen a lot of friends here tonight, and I'm glad to be in another one of my professional homes. 10 4/1/09 - WHOLE - 2010 CAPITAL BUDGET As we said earlier, balancing this five-year financial and strategic plan for fiscal years 2010 to 2014 has presented this administration with a set of complex choices and challenges, many of which you've heard about before. In response, the Administration has set forth a plan that preserves the City's core services to ensure that the City' economy is not permanently damaged by the economic downturn, while ensuring that our most vulnerable citizens are afforded an adequate safety net to weather the current economic storm. Accomplishing this will require shared sacrifices from our City workforce and our residents. 4 billion in operating shortfalls from FY '09 through FY '14 primarily caused by revenue losses from the recession and pension payment increases required 11 4/1/09 - WHOLE - 2010 CAPITAL BUDGET because of severe losses in the stock market. 4 billion represents roughly percent of the total projected 5 General Fund expenditures over that time 6 and almost 25 percent of discretionary 7 spending. 8 The Administration carefully 9 weighed options for balancing the FY '10 10 through '14 budget and placed them in the context of the difficult actions that were implemented to close the first billion-dollar budget shortfall in November of 2008 rebalancing plan. Along with reductions in funding for crucial departments, we temporarily suspended, with the support of this Council, rate reductions in the City's wage and business-privilege taxes that raised $230 million in revenues to help close that November shortfall. As we considered steps to address the projected shortfalls in FY '10 through FY '14, we kept in mind those actions already taken, like the temporary suspension in wage and 12 4/1/09 - WHOLE - 2010 CAPITAL BUDGET business tax reductions, to balance the first sizeable shortfall. As we did in November, the Administration has prioritized the collection of unpaid and delinquent taxes and the implementation of efficiencies in the delivery of services to residents and workers who commute into Philadelphia. However, the deepening recession had made it impossible to close the emergent budget shortfalls solely through actions designed to make Philadelphia's government more effective and efficient. Just like state and city governments across the country, we've had to pursue savings in personnel costs, reductions in services, and increases in taxes. 8 billion budget gap in Fiscal 2010. Atlanta Mayor Shirley Franklin has laid off 372 employees, eliminated over a thousand positions, furloughed city employees four hours a week, and closed fire department ladder companies to close a $140 million FY '09 gap and another $50 million gap in FY '10. In addition, Mayor Franklin has temporarily closed of the 31 recreation centers in 13 Atlanta and delayed opening of nine 14 swimming pools. 15 This plan anticipates that our 16 employee unions will make important 17 contributions to preserve our core 18 services by foregoing wage increases, 19 volunteering for unpaid work days, 20 generating savings through changes in work rules, and agreeing to changes to their pensions and health care.

The Administration is seeking over $300 million in labor cost reductions and salary freezes from the City's employee 14 4/1/09 - WHOLE - 2010 CAPITAL BUDGET unions in the Five-Year Plan, which will certainly influence our labor negotiations. However, these efforts alone are not enough to balance this Five-Year Plan. The depth of the downturn will require the City to pare back services further, although it will be done without closing any facilities. 4 million in increased fee revenues, totaling over $290 million over the five-year period. Again, these actions are in addition to steps the Administration took to close the first billion-dollar gap in November the 2008. Unfortunately, the savings generated over five years from implementing these two actions is insufficient to eliminate the City's projected shortfall. Consequently, the 15 4/1/09 - WHOLE - 2010 CAPITAL BUDGET Administration must raise targeted taxes to close the remaining portion of the shortfall. The decision to raise taxes was not taken lightly. In this administration's view, the damage to the City's economy that would occur as the City closed the remaining gap with additional and severe service reductions would be devastating and long-lasting for so many of our citizens. Effective and efficiently provided public services are just as important to the health and vitality of a city as reasonable tax rates. Closing the gap soley with expenditure reductions will require an additional $222 million in annual reductions in FY '10 and '11, which would decimate the City's core services and irretrievably damage the City's economy. The Administration has made the preservation of the City's core services its priority in order to ensure that 16 4/1/09 - WHOLE - 2010 CAPITAL BUDGET Philadelphia is posed to thrive economically when the current recession ends. The Administration did consider wage and business-privilege tax increases because of our commitment to explore all options. We, nevertheless, strongly rejected recommending any increases in these two taxes because of the significant potential long-term damage that would be done to Philadelphia's economy. As previously stated, we have already temporarily suspended rate reductions and the wage tax and business-privilege tax as part of the actions taken in November 2008 to address the first billion-dollar shortfall. Any increase in these taxes to address the FY '10 through '14 shortfall would only serve to drive businesses away from Philadelphia. The Administration believes that temporary increases in sales and property 17 4/1/09 - WHOLE - 2010 CAPITAL BUDGET tax provide the best option to preserve Philadelphia's core services until national and local economies rebound and revenue growth returns to some measure of its pre-recessionary levels. The temporary increase in rates and sales and property taxes will limit the damage that would otherwise be done to long-term economic growth if deeper service reductions or higher wage and business taxes were enacted. Furthermore, the Administration remains committed to a continuous examination of services and use of facilities to ensure that the City is operating at the highest level of efficiency so that taxes are not higher than necessary to provide the services that citizens require and deserve. Specifically, the Administration is proposing a three-year percent sales-tax increase from 7 to 8 percent over the FY '10 through FY '12 period. In FY '13, the sales-tax rate will revert 18 4/1/09 - WHOLE - 2010 CAPITAL BUDGET back to 7 percent. The City estimates that it can generate over $340 million in revenue through this temporary increase in the sales tax. The Administration is also proposing a two-year real-estate tax increase by mills in FY '10, and 12 9 mills in FY '11. 5 percent in FY '11 13 compared to FY '10 levels. 64 mills. The City states it can generate over $270 million in revenue through this temporary real-estate tax increase.

In addition, it should be noted that businesses are not exempted from the burden of this tax. Approximately 43 percent of all real-estate taxes are paid by commercial establishments. The City of Philadelphia will 19 4/1/09 - WHOLE - 2010 CAPITAL BUDGET need significant legislative assistance from the Commonwealth of Pennsylvania to successfully the Mayor's FY '10 through '14 proposed plan. The Mayor's proposal does not ask for direct financial assistance or support; instead, the Mayor's asking the Commonwealth to provide the City with authority to implement two changes: One, new funding assumptions for its pension plan, which would save over $330 million over the Five-Year Plan; and Two, to enable the City to impose a temporary increase in the City's sales tax from the afore-stated rate of 7 to 8 percent for the next three fiscal years. Without Commonwealth approval of these two initiatives, the City will have to dramatically deeper reductions in services, totaling an additional $405 million over the Five-Year Plan. These reductions include, among other things, cuts in the size of the 20 4/1/09 - WHOLE - 2010 CAPITAL BUDGET police force, reductions in the number of firefighters, less frequent trash collections, and a permanent percent 5 increase in the City's property tax rate. 6 Just as the Commonwealth of Pennsylvania needed the assistance of the federal government to withstand the current downturn, the City of Philadelphia will need the legislative support from the Commonwealth to help weather the economic downturn and avoid the devastating cuts included in the contingency plan. These are unprecedented times, and they require tough choices and extraordinary approaches. The Administration looks forward to working with City Council to move forward with a fiscally responsible budget that will prepare us for economic renewal in the future and will preserve critical services to Philadelphians. I thank you for your support, and I appreciate this opportunity to 21 4/1/09 - WHOLE - 2010 CAPITAL BUDGET provide testimony regarding the Mayor's proposed Five-Year Plan and the Fiscal Year '10 proposed operating budget. I'll be happy to answer any questions that the Council may have regarding my testimony. And I would like to acknowledge that I am joined at the witness table with by my colleague Rob Dubow, Director of Finance.

Thank you. Are there any questions from members of the committee? The Chair recognizes Councilman Rizzo.

Thank you, Madam President. Chief of Staff, did we hear something tonight that you haven't said before?

What's that?

Could you go back to the concessions from the labor unions and restate what you said? 22 4/1/09 - WHOLE - 2010 CAPITAL BUDGET

The plan anticipates our employee unions will make important contributions to preserve our core services?

No, the part about no increases?

No, that's -- that's not something I've said be -- that's something I've said before.

That's something you've said before?

Yes, sir.

No increases.

In the Five-Year Plan, we have not provided for any increases.

Okay.

That's correct.

Any other questions or comments from members of the committee? The Chair recognizes Councilman Green.

Thank you, 23 4/1/09 - WHOLE - 2010 CAPITAL BUDGET Madam Chair. I would just like everyone here to know, first of all, thank you to the Administration for coming out here and testifying. But I'd like everybody to know that during public hearings last Wednesday on the Five-Year Plan, the City Council asked numerous questions in order to determine the impact of the Administration's proposed tax increases on Philadelphians. These questions include: What is the current tax delinquency rate for residential real estate tax bills? What is the relationship between tax delinquency and home value and the relationship between tax delinquency and household income? What percentages of tax delinquencies lead to foreclosure? And whether the Five-Year Plan takes into account costs from tax-related 24 4/1/09 - WHOLE - 2010 CAPITAL BUDGET foreclosures. The number of homeowners in Philadelphia who are senior citizens, low-income folks, or people on fixed incomes? What protections are now in place for low-income and/or fixed-income homeowners with respect to increased property-tax bills? What is the Administration's plan for protecting these homeowners from the potentially devastating consequences of significant increases in their property-tax bills? Before City Council can vote on the proposed budget, it needs to receive answers to these and all of our other questions. We're thankful to the citizens who have come out tonight to provide their input. We take your concerns seriously and are dedicated to passing a responsible, thoughtful budget that is tailored to the needs of our citizens, 25 4/1/09 - WHOLE - 2010 CAPITAL BUDGET especially those most needy, in the City of Philadelphia. And I respectfully request that all options remain on the table in this discussion. Thank you, Madam President. (Applause.)

Thank you. The Chair recognizes Councilman Clarke.

Thank you, Madam President. I just want to say for the audience: We will probably not ask as many questions of the Administration tonight as you would expect. The reason for that is that we want to make sure that the citizens have an opportunity to speak. Believe me, we could very easily have these gentlemen here until 12 o'clock at night. So I don't want you to think that the limited number of questions that 4/1/09 - WHOLE - 2010 CAPITAL BUDGET we ask is based on anything other than that than we want to make sure that all of you have an opportunity to speak. But I do have a couple of questions. And I will limit it. One of the issues -- and Councilman Green actually talked to it at the end of his statements -- that during the course of these discussions, as we've gotten closer to the size of the problem, the magnitude of the problem that we had, and actually, during the course of some of budget workshops that were had throughout the City, the Mayor continued to say that all options are all on the table. And then when we received a budget, I know a number of us asked the Mayor how come only, as it relates to the most well known taxes -- the real-estate, business, and wage -- only the real-estate tax was put on the table. And to some of us, that obviously causes -- although all of them 27 4/1/09 - WHOLE - 2010 CAPITAL BUDGET cause a problem, but real-estate taxes, frankly speaking, will hit all individuals who own property, many of whom don't have a job or, as Councilman Green said, don't fall within that window of opportunity for the senior citizens tax-relief program. In addition to which, my understanding, in those forums, the budget forums that you had, that consistently, in the budget forums, it was said that there should be some sort of combination of wage- and real-estate taxes and possibly business. And that's what came out in the City stats in the presentation that was at the MSB. So, with that, why aren't some of the other taxes not on the table, as both stated by the Mayor and then what came out of those budget forums?

I'll start. I think Mr. Dubow is going to finish. Councilman, during the course of the deliberations, as you know, which 28 4/1/09 - WHOLE - 2010 CAPITAL BUDGET went on for several weeks, we, in fact, did consider all options for both expenditure reductions and revenue- raising. I think, after a lot of discussion within the Administration, it was determined very strongly that any increases -- well, first of all, number one is that we had, in fact, reduced or suspended the reductions in the wage taxes in the first instance in the November rebalancing plan. So that was $230 million, and including the business taxes, which I'm reminded of by Mr. Dubow. So we had, in fact, in effect, suspended those taxes, did not allow the residents and businesses to take advantage of those reductions that had been planned to the tune of about $230 million in November.

You equate that to an increase?

I didn't say 29 4/1/09 - WHOLE - 2010 CAPITAL BUDGET "an increase."

-- 'Cause some folks in Washington say --

I didn't say "an increase." I said --

All right.

-- we suspended those reductions.

Okay.

I didn't say it was an increase.

All right.

I was very careful not to say that. So it was not an increase, but it did provide $230 million towards the rebalancing that we did -- you know, almost percent, if you will, of the 20 rebalancing that took place in November. 21 So on top of that -- and we're 22 looking now for this second billion -- 23 we're very concerned, quite frankly, 24 about the impact of adding additional 25 taxes to that that would, in effect, we 30 4/1/09 - WHOLE - 2010 CAPITAL BUDGET think, adversely affect the business climate in Philadelphia. We -- our administration is about trying to --

No, if you don't mind me jumping in real quick, just to set the table and the sequencing of all of this, the statements by the Mayor about everything being on the table in the budget forum were after that suspension of the wage tax; am I correct?

Clearly.

So that --

I'm not saying --

So we did that last year, so I just didn't want you to --

Well, it wasn't -- it wasn't -- yeah --

-- take credit for something that was done prior to this most recent problem as it relates to our budget. 31 4/1/09 - WHOLE - 2010 CAPITAL BUDGET

You said we shouldn't take credit for it?

Well, I'm saying -- we're talking about the May -- I define the Mayor's statements in the budgets forums, 'cause the Mayor said this was The People's Budget --

Right.

-- and in The People's Budget, they said they would like to see a combination. And he also said everything was on the table.

Right.

So what we did as it relates to suspending the wage-tax cut were done prior to both that statement --

Oh.

-- in those forums.

Yeah, I -- clearly --

So you're -- 32 4/1/09 - WHOLE - 2010 CAPITAL BUDGET (Indiscernible; parties talking over each other.)

No, but -- but you certainly, in looking at what you're trying to do, going forward, have to -- you can't ignore the fact that that happened. And one of the principles that we talked about, and we've said before this Council and we've said publicly, is that it's been our interest to make sure that we don't make short-term decisions that adversely affect us for the long term. It really -- it really is our belief, our very strong held belief, and it's been supported by others, economists and others, that further increases, we think, in the wage and business taxes would really be one of those things that, although in the short term, might be okay, in the long term, we think it would hurt Philadelphia. We think that it would result in the stagnation of 33 4/1/09 - WHOLE - 2010 CAPITAL BUDGET economic activity in the business front. This administration is about economic development and jobs. And there have been various economists who have stated as such, that increases over the years in wage and business taxes has been a chokehold on the City's development of economic activity, especially job creation. In fact, it has been just the reverse: It has caused us job loss. So that was really our long-term interest. The fact that it had been a $230 million down payment, if you will, on those business and wage taxes, we looked at that in consideration as we went forward and really felt that it was in the long-term interests of the City not to further increase those taxes.

This is one of those occasions when I could actually go back and forth with you until 12 o'clock tonight because you gave me -- you know, that response was as expected. But it was somewhat misleading 34 4/1/09 - WHOLE - 2010 CAPITAL BUDGET because, similarly, one of the things that cause people to consider the City of Philadelphia, both residents and businesses, is the fact that our real-estate tax is some of the lowest in the region. New Jersey right now is experiencing some of the largest real-estate tax increases in the region. And when people opt to come to Philadelphia, it's because of the wage tax. So I don't want to minimize the fact that we're looking at a percent 15 wage-tax cut, and I know we continue to 16 reference millage, but the average person 17 has no idea what "millage" means. 18 You say a 19 percent increase. 19 That is -- I think that is equally as important as it relates to the discussion about whether or not people opt to come to the City of Philadelphia. But, again, I won't be belabor the point; we can continue this in City Hall. Thank you, Madam President. 35 4/1/09 - WHOLE - 2010 CAPITAL BUDGET

Thank you. The Chair recognizes Councilwoman Tasco.

Thank you. Good evening, everyone. AUDIENCE: Good evening.

It's really a pleasure to have you here. I think we should have more hearings in the community; we get more participation. So thank you so much for coming out in the rain. (Applause.)

And I won't belabor it. Thank you for the applause, but I just wanted to say thank you. But I want to just add to the comments to Councilman Green about the real-estate tax. As I came in, one of my constituents, who came down here from up in East Oak Lane, and then the other day, I was doing a walk-through in Logan, and some of my constituents are telling me 36 4/1/09 - WHOLE - 2010 CAPITAL BUDGET that they've gotten reassessments, and their taxes are being raised. Have we taken that into consideration as we look at the millage and the increase of the real-estate taxes? Because the Board of Revision of Taxes is doing its things, and so people's taxes -- real-estate taxes are being raised as we speak. And some were raised last year. So we really have to look at that as we move forward because you're really taxing them far more than just the percentage that you're putting forth. So that's a serious concern. (Applause.)

The only other thing I want to add to that is, I agree -- I mean, we have talked about the wage tax and the business-privilege tax and how, in a normal economy, the notion that the increase in those taxes would have an economic impact on the City. But we are in a crisis mode now, 37 4/1/09 - WHOLE - 2010 CAPITAL BUDGET and so we have to consider that also.

Thank you. The Chair recognizes Councilman Jones.

Thank you, Madam President. And I want to thank my colleague Darrell Clarke for having us in the 5th Councilmatic District -- in his district, but I would also organize that it borders on 33rd Street, the 4th Councilmatic District. And some of my constituents are here as well as tonight. I would only state that I understand and recognize that it is difficult enough to manage City government when you have a surplus of funds; I recognized that. And I understand that it is almost impossible to manage it in a way that is effective, without shared pain, when you have a deficit in your treasury. 38 4/1/09 - WHOLE - 2010 CAPITAL BUDGET But I echo the sentiments of my colleagues when we say, have we analyzed the fact and taken into account that we are, in the City of Philadelphia, experiencing the highest number of sheriff's sales in its history, and that a real-estate tax goes right to that and would only increase our expense side of the budget by ways of homelessness, by ways of social services that cost us in another line-item of the budget. So as we start to be penny-wise, I'm just cautioning us not to be pound-foolish. And the other aspect of this is if shared pain -- (Applause.)

I'll take your props but I'd rather stay focused on this mission. And that is, if shared pain is truly what we're talking about, then all things have to be at the table. If all people are at the table, all things must 39 4/1/09 - WHOLE - 2010 CAPITAL BUDGET be on the table. And I think the wage tax is not sacrosanct. I hear people in my district, Councilwoman, whether we're in the far 21st Ward or in the bottom end on the 4th Ward, and they say equally to me that when we start talking about tax abatements that are ten years -- and I understand economic development and how it has helped to change our skyline -- that it is time for to us consider all things and understand that, you know, everybody has to feel this. And it seems as though -- and I got this -- (Applause.)

I got this comment right out of the barbershop. And they said, "Well, we saw Wall Street get bailed out, and we even heard about Main Street getting bailed out, but when is my street going to get bailed out?" And so, we need to share this pain a little bit throughout the various 40 4/1/09 - WHOLE - 2010 CAPITAL BUDGET categories without killing the goose that laid the golden egg. I am not anti-business; I am pro-business. I've spent the majority of my life starting businesses. But I also understand that there are sections in this town that have been totally decimated by sheriff's sales. And whatever thing we do, there's an equal and opposite reaction to it. So I would caution us to be careful as to our most vulnerable populations. Thank you.

Thank you. The Chair recognizes Councilman Goode.

Thank you, Madam President. Good evening, gentlemen. I don't disagree with anything that any of my colleagues have said so far, but I simply want to offer a 41 4/1/09 - WHOLE - 2010 CAPITAL BUDGET slightly different perspective 'cause we could talk about raising wage taxes and we could talk about raising real-estate taxes, business taxes, real-estate transfer tax sales, sales tax, or any tax we decide. In fact, we can introduce our own legislation to change and rebut what the Administration has proposed. Nonetheless, for the record, Mr. Armbrister or Mr. Dubow, either one, what you're actually is requesting from us in the end is roughly $2.5 billion in tax revenue for Fiscal Year 2010; is that correct?

That's correct.

And in terms of estimated tax revenue for this year, it's roughly a quarter of a billion less than that; is that correct? For Fiscal Year 2009, for the current year, it's 2.246.

Right, right.

And so, essentially, if we do not have the 42 4/1/09 - WHOLE - 2010 CAPITAL BUDGET additional quarter of a billion dollars in tax revenue for Fiscal Year 2010, can you explain the type of things that would need to be cut?

Yeah. We -- in our plan, in addition to the proposals that we're making as to what we want the plan to be, we have a contingency budget that shows the kind of cuts that we would have to make if a number of things don't happen. We actually put it in here mostly to show what would happen if we don't get the State authorizations that we are seeing, but we'd have to go to the same kind of things if we don't get revenue that you're talking about. So, among the types of cuts that we would be looking at -- and I should just preface this by saying these are things we really, really don't want to have to do -- would be: Deactivation of three engines, two ladders, and three medic unions. Reducing hours at libraries. 43 4/1/09 - WHOLE - 2010 CAPITAL BUDGET Freezing hiring in the police department. Laying off 256 recruits. We would be looking at scaling back hours at recreation centers. Reducing the frequency of trash collection. So there are a number of things that we really don't want to have to do.

So regardless of how we decide to do it in the end, because essentially, the ball is in our court, the bills are actually in City Council right now, if we want to introduce alternative bills we can introduce alternatively bills. But at the end of the day, if we don't have a quarter of a billion dollars more in revenue for 2010, those are the types of things that will happen.

Correct.

And so, we can decide to raise the wage or the real estate, we can decide which taxes we want 44 4/1/09 - WHOLE - 2010 CAPITAL BUDGET to raise, but at the end of the day, we need to get to $2.5 billion in tax revenue in order to provide the vital services that the citizens deserve.

That's right. We either have to increase our revenues or reduce our expenditures.

Thank you.

Or some combination of both.

Thank you. Thank you, Madam President.

You're welcome. The Chair recognizes Councilman Green.

Thank you, Madam Chair. I just wanted to also just take a brief second to reframe the debate for the benefit of the citizens who came out tonight. And that is, if you look at, say, a wage-tax decrease off FY '08 of significant amount of money, but it would 45 4/1/09 - WHOLE - 2010 CAPITAL BUDGET be a slight uptick in FY '09, but it would be a continual wage-tax decrease throughout the Nutter Administration through the next five years off of the FY '08 base because of State gaming money, if we look at just a small 0.5 increase, we can actually increase -- we can add $200 million to the Five-Year Plan while still keeping our commitment to lower wage taxes over time, which is a significant savings for people. And that will cost, say, the average homeowner in Philadelphia -- and I'm using rough numbers 'cause we didn't have all of the data because it wasn't one of the options on the table, so we have to do this sort of back of the envelope, but that would cost somebody about $30 to $50 a year if they're low-income or middle-income in the City of Philadelphia, and a property-tax increases, or even increases for renters, which is represented in a chart that you have, as a result of the property-tax 46 4/1/09 - WHOLE - 2010 CAPITAL BUDGET increase for those same families, it would be between, say, $300 and $500 a year. That's a real difference in money, and I just think people need to understand that as we go through this debates. Thank you, Madam President.

Thank you. Any other questions from members of the committee? (No further questions.)

Gentlemen, thank you. Our first panel will be... MR. McPHERSON: Angel Rodriquez, Ken Scott, Nilda Ruiz, Jim Piazecki, and John McDonald. (Witnesses come forward.)

Good evening. Kindly identify yourself for the record and speak into the microphone so that the stenographer can also hear 47 4/1/09 - WHOLE - 2010 CAPITAL BUDGET you. Thank you.

Good evening, Council President Verna and members of City Council. My name is Angel Rodriguez. I am the executive director of the Empowerment Group. The Empowerment Group is a nonprofit organization based here in Philadelphia. And our focus and mission is to accelerate economic growth in distressed urban communities by cultivating local entrepreneurship. I also have been invited here to speak on the issue of green jobs and green-job development in Philadelphia. I'm co-chair of the Job Training Committee for the Green Economy Task Force. To that end, the Green Economy Task Force was convened by the Sustainable Business Network in February of 2008. Since then, the task force has grown to include a coalition of more than 130 stakeholder groups, including green 48 4/1/09 - WHOLE - 2010 CAPITAL BUDGET businesses, workforce development agencies, nonprofit organizations, local government, labor representatives all working together to develop a comprehensive green-collar job strategy for Philadelphia. In this coalition, we consider the Office of Sustainability and Commerce partners. The definition we use for green-collar job here is blue-collar jobs in companies that improve environmental quality. They can include anything from solar-panel installers to manufacturers of green-building products such as windows. We're committed to preparing the region and workforce for a greener future. It's important to note that the Sustainable Business Network and the Green Economy Task Force has gained funding from the John S. and James L. Knight Foundation to create a green-jobs corps here in Philadelphia. So over the past year, the Green 49 4/1/09 - WHOLE - 2010 CAPITAL BUDGET Jobs Training Committee has put together a plan to leverage already-existing infrastructure here in the City in an effort to maximize the opportunity presented to us through the Recovery Act. We're aware that these monies will eventually produce a vast array of green-job training opportunities in Philadelphia. So the first part of our plan is to develop a template, or a model, for green-job training programs that would incorporate the best practices in the field. The second part of our plan is to develop an orientation for existing providers to allow them to add green components to the existing infrastructure. Our goal is to have this completed by June of this year. It's important to note that we do have a strong job -- (Timer bell rings.)

Is that for me or the last guy? 50 4/1/09 - WHOLE - 2010 CAPITAL BUDGET

For you.

I'm done?

Just conclude your statement, please.

Okay. The one piece I would venture to say is that there is a rush to utilize a lot of the Stimulus monies coming in here. One thing I would caution the City Council is that, while we're spending a lot of dollars on job training, we're not creating enough jobs. Our biggest fear is that we will have over, you know, hundreds and hundreds of people going through service providers, and at the end of it, maybe six to eight weeks of training, there's still no job in Philadelphia for them. And given the population and the fact that, you know, research has been done, over half -- what we're projecting is that half of the jobs that are supposed to be created by Stimulus 51 4/1/09 - WHOLE - 2010 CAPITAL BUDGET require a college degree. And in Philadelphia, you're talking about only percent of the population hold a 5 college degree. 6 And so we need to think of some 7 innovative and alternative programs and 8 maybe start focusing on, you know, 9 homegrown small businesses and those 10 businesses that can be green and hire 11 local residents. 12 Thank you. 13

Thank 14 you, thank you. Our next person to testify?

Thank you. Good evening, Councilmembers, and thank you for inviting us to speak to today. My name is Nilda Ruiz, and I am the president and CEO of Associación Puertoriqueños (indiscernible), and as the president and CEO of my agency, that has been around for over 40 years, part of my job is to listen to the voices of the community that I serve and to bring 52 4/1/09 - WHOLE - 2010 CAPITAL BUDGET to your attention the desires and needs of our residents and clients. These are troubling times, as you have all said, and APM recognizes that our constituency is finding it difficult to navigate this time of uncertainties. Therefore, our role, as a health and human services and community development agency, is to support our residents and clients by ensuring that services they will require will be secure for the future. Funding for the following programs need to be above level, or at least at the current level funded: Behavioral-health issues do not disappear in this in downturned in the economy; in fact, they increase. Parents continue to need access to Head Start programs, daycare, and intervention programs. Children must come first. A healthy community is one that addresses and brings the resources to assist its residents so that they can 53 4/1/09 - WHOLE - 2010 CAPITAL BUDGET continue to reach their highest potential. Homelessness is something that should not be touched. We need to provide beds in targeted communities that have no access or limited access due to language barriers and cultural competencies. APM is the only agency that has provided this service in the past. Children and youth from the DHS. Services must meet the people where they are. Children -- it -- they must provide services that are bilingual, culturally sensitive, and that are important to fund to ensure the safety of our children, families, and neighborhoods. Early intervention. APM has one of the only bilingual and bicultural programs of this kind, and it serves over a hundred children in the City's neighborhoods. Head Start and daycare. APM operates a national accredited and 54 4/1/09 - WHOLE - 2010 CAPITAL BUDGET (indiscernible) certified and a four-star program that serves 110 families. HIV/AIDS funding. The cases of HIV continue to rise in our community. Early-intervention programs are a must. Behavioral health. APM operates some of the mental-health clinics, and we see this increasing as the economic uncertainty -- (Timer bell rings.)

Oh, I -- I didn't realize I had a time limit, but I will hurry through this. And then the last thing I wanted to say is that community in our neighborhoods, creating and maintaining healthy communities. By adopting community plans and leveraging what the community has already done in our neighborhoods. Sometimes we see new plans coming about that don't take into consideration what already has been done. Affordable housing is a must, especially in these days. 55 4/1/09 - WHOLE - 2010 CAPITAL BUDGET So right on to the tax issues that have been brought up. Preserving our neighborhoods through the basic systems repairs. These are homeowners that have been in this community that have a stake here, and I think we should look for programs or something that gives them an incentive and rewards them for staying in this city. So neighborhood preservation is important. Land-banking. Transit-oriented development that advances mixed use and creates jobs in our areas. Housing counseling is really important. Of all of the housing counselings that we have done over the last five years, over 500, we've only had one foreclosure. And most of the foreclosures in the City have been in areas that this has not been available to them. And job creation. We must build 56 4/1/09 - WHOLE - 2010 CAPITAL BUDGET jobs, and it has to be for our community and to bring our people up. So anyway, I just want to -- I want to thank you all for your service to our city and a special thanks to Councilman Clarke that's in our area and Councilwoman Maria Quiñones, and part of our (indiscernible) is also with Councilwoman Tasco. So thank you very much for your service to the city. (Applause.)

Thank you. Our next speaker?

Thank you.

Kindly identify yourself for the record.

My name is Jim Piazecki. I'm a corporate assistant director for Resources for Human Development, which is a nonprofit agency located in Philadelphia, serving a number of people in various social-service 57 4/1/09 - WHOLE - 2010 CAPITAL BUDGET settings. Good evening, Councilmen, Councilwomen, and other citizens of Philadelphia. Resources for Human Development manages two large emergency- housing centers in Philadelphia: One is the Ridge Center, at 1360 Ridge Avenue, which we've been managing since 1995. It's the intake for all single males within Philadelphia, as well as emergency housing for 340 men. We also oversee the Woodstock Family Center, which is at 21981 North Woodstock, where there are 210 women and children that we work with on a daily basis. We also manage behavioral-health services funded through the State of Pennsylvania and the Philadelphia Department of Behavioral Health directly in 13 shelters or emergency-housing sights. I think it's also of interest that we employ over 120 Philadelphia 58 4/1/09 - WHOLE - 2010 CAPITAL BUDGET taxpaying citizens in the facilities that I've just mentioned. Basically, I'm here to talk about the budget cuts and how we fear that it may affect our nonprofit, but more importantly, how it could possibly affect the homeless, housing and services network in Philadelphia. The future budget cuts for the people we serve would make service-only shelter and basic food, with minimal, minimal services. It would also likely reduce our ability to shelter 100 to 115 men at our current shelter or emergency housing. The budget cut that happened already was a bit trouble -- was more than troublesome for us and definitely for the men we serve in that it discontinued case management and our focus on housing by cutting five case managers and two supported staff at the Ridge Family Center. Philadelphia's homeless housing 59 4/1/09 - WHOLE - 2010 CAPITAL BUDGET and service network has been developing for over years. We are at a point 4 where there is a positive and fruitful 5 coordination of services among 6 nonprofits, City-funded Office of 7 Supportive Housing, primarily the 8 State-funded Department of Behavioral 9 Health, and most recently, public housing 10 administration in their providing of 400+ 11 housing units to reduce homelessness. 12 The current collaboration over 13 the years of work has led to a system 14 that has women freeing themselves of 15 abusive partners, children receiving 16 health care, men and women receiving 17 health care, often through federal 18 dollars rather than through State dollars 19 and City dollars. 20 (Timer bell rings.)

Also, at the Ridge -- and I apologize -- the men are more medically fragile often from recent emergency hospitalizations. With the assistance of Jeff Hope, Fairmount Health 60 4/1/09 - WHOLE - 2010 CAPITAL BUDGET Center, LaSalle Nursing, we're reducing emergency-room visits and hospitalizations. Use of behavioral- health services reduces individuals with major mental health conditions from ending up in jail or has a mortality statistic for Philadelphia. I'm just suggesting that some possible solutions would be: Maintain the Mayor's proposal to retain the Office of Supportive Housing Budget. To use the Economic Stimulus investment and homeless prevention and rehousing program, CDBG grants, home investment partnership, and other sources to support the homeless budget. Recognize that the homeless budget will shift costs to hospitals and also to other more expensive (indiscernible) funded support services and social systems. And, lastly, that the range of savings of $3 million to $11 million by a 61 4/1/09 - WHOLE - 2010 CAPITAL BUDGET cut to the Office of Supportive Housing in an overall City budget of $3.4 billion does not solve the fiscal crisis and does put the Philadelphia homeless and housing services network in some jeopardy. Thank you.

Thank you. Our next speaker?

Good evening, Councilmembers and City administrative staff. I'd like to thank Councilman Clarke and Councilwoman Sanchez for hosting this budget here, in North Philadelphia. So welcome to North Philadelphia. I'm Kenneth Scott, the president and the CEO of the Beach Companies. The Beach Companies is a nonprofit series of organizations located here, in north central Philadelphia, on Cecil B. Moore Avenue. The Beach Companies was established in 1990 as a William Penn Foundation company to spearhead the 62 4/1/09 - WHOLE - 2010 CAPITAL BUDGET revitalization in north central Philadelphia. The programs of Beach resolve around a holistic approach to community development. This includes empowerment of residents by promoting homeownership and rental opportunities through rehabilitation, new construction, education, job placement, economic development, human services, and the beautification of open spaces. Since Beach's inception, we have successfully carried out a mission to revitalize the Cecil B. Moore community, to promote community empowerment, neighborhood revitalization, entrepreneurship, and to advocate for the needs for housing and homeownership. Community groups, city, state, public, and quasi-public agencies have joined forces during Beach's tenure to enhance the quality of life in north central Philadelphia. As the recession hits hard, it 63 4/1/09 - WHOLE - 2010 CAPITAL BUDGET hits hard to people that most need the government's support. You know the saying "A sign of a great city is how well they treat their most vulnerable citizens"? Now is the time when the government is needed most to invest in projects and programs to help meet the needs of its citizens via education, employment, and health care. Any funding cuts in services are a step backwards in growing and improving our city. Over the past years, 15 nonprofits, in partnership with the City, have brought in over $1 billion to the City in new investments and have created several thousand new jobs. Now is not the time to increase taxes while people every day are losing their homes through foreclosure. This would be a setback in encouraging homeownership and keeping families in their homes. However, now is the time for creative thinking and sensitivity in 64 4/1/09 - WHOLE - 2010 CAPITAL BUDGET providing City resources to those in need of assistance. I would encourage the Council and the City Administration not to cut services and not raise taxes on the people who can least afford to pay the tax increases. In closing, I'd just like to thank the Councilmembers and the City Administration for sitting here and hearing my testimony today. And I also encourage you people who haven't been around this part of north central Philadelphia who, are familiar with the developments, and to see the economic development, which is our number-one goal with Beach, of the movie theater and the shopping center and look at all of the beautiful new homes for low- and moderate-income families in this family. And it would be a travesty really to -- it would go against everything that the City has worked for over the past 20 years and in growing 65 4/1/09 - WHOLE - 2010 CAPITAL BUDGET this community and in growing homeownership. And I thank you. (Timer bell rings.)

Right on time.

Thank you.

Right on time. (Applause.) (Witness comes forward.)

Good evening. MR. McDONALD: Good evening, members of Council. I'm John McDonald. I'm the president and CEO of IMPACT Services Corporation, located in the Kensington section of the City. We are a community development corporation. I have six items. The budget is rather vast, so I'll try and restrict my comments. Concerning public safety in the 66 4/1/09 - WHOLE - 2010 CAPITAL BUDGET various communities that impact service, including the areas surrounding the intersection of K&A, any cutbacks in police or fire service will extremely affect our community. IMPACT supports the maintenance of a full contingent of police and fire in Philadelphia neighborhoods, not only for this year but the balance of the Five-Year Plan. Secondly, the training. IMPACT maintains an employment-training program for welfare recipients, veterans, and ex-offenders. If the City employment and training programs for difficult populations are reduced, it will severely reduce the flow of qualified applicants for entry-level positions for businesses throughout the region. IMPACT's highly successful program for ex-offenders reentering the workforce after prison has already been severely cut back due to the budget cutbacks in the City's program fir ex-offenders. Meanwhile, the population 67 4/1/09 - WHOLE - 2010 CAPITAL BUDGET for ex-offenders in IMPACT's targeted area has been increasing over time. This year, only 400 individuals will be serviced across the entire city that are returning from prison to the community. This is almost 2,000 less prisoners that will be served this year. The Housing Trust Fund. The trust fund is taking a major hit in the economic crisis we face. Between the reduced fees generated due to the slowdown in land transfers and the cuts from the City Operating Budget, the Trust Fund is severely reduced in scope. In its short life, IMPACT has benefited three times from the Trust Fund: Our dual-diagnosis expansion program, 32 beds for transitional housing for homeless veterans, with both mental illness and drug-abuse problems. The creation of the Twins at Powder Mill, a new three- and four- bedroom housing development for mixed-income families in Juniata Park. 68 4/1/09 - WHOLE - 2010 CAPITAL BUDGET And, thirdly, the Hancock Manor renovation, a 45-unit apartment building, a former YWCA, that provides housing for homeless veterans and reunited formerly homeless families. Without the Trust Fund, IMPACT would not have been able to build these projects over the last three years. IMPACT is poised to build the IMPACT Family Housing, a 20-unit facility for formerly-homeless families, and the IMPACT veterans-housing piece, a 150-unit facility providing permanent and transitional housing for homeless veterans and their family. These projects will not go forward with a depleted Trust Fund. (Timer bell rings.) MR. McDONALD: Ah-ha. I'll jump to the one that Maria likes the best, Councilwoman Sanchez. I'll finish with the acquisition of properties. Previously, IMPACT received direction and funding from the 69 4/1/09 - WHOLE - 2010 CAPITAL BUDGET City of Philadelphia for the demolition of vacant and derelict houses in the vicinity of Kensington and Allegheny. A (indiscernible) of houses were demolished, using NTI funds from the City. It is expected -- it was expected that IMPACT would receive funds to rebuild these houses; however, subsequent changes in policy and cutbacks in funding have now left 80 vacant lots in the neighborhood. IMPACT would like to see the City address the vacant lots created by NTI with a policy that would include replacement of housing rather than just vacant-lot maintenance. The proposed budget would not support such an effort. Thank you.

Thank you all very much. MR. McPHERSON: Our next panel consists of: Doris Berris, Cubia Harris, Donna Swanson, Keysher Mason and Miss 70 4/1/09 - WHOLE - 2010 CAPITAL BUDGET King. (Witnesses come forward.)

Hello. Please identify yourself for the record.

Hello, everyone here my. Name is Keysher Mason. I would like to start by saying I'm a parent, and I'm here because I would do anything so you don't cut the budget for DHS. I'm definitely a positive product of DHS. A couple of years ago, my daughter (indiscernible) at the age of one-and-a-half, and DHS (indiscernible) my daughter and gave me the option to let her go live with her grandmother while I get myself together. I had a drug addiction. And from that the legal services -- the Community Legal Services that provided me with parenting classes, which I have done and finished. They provided me with wraparound services for myself at my children at Broad Street so 71 4/1/09 - WHOLE - 2010 CAPITAL BUDGET I could see my daughter. They provided me with family reunification, which I have done. I've done a drug and alcohol program at Spring Garden Street called the (indiscernible). I have went and finished it for eight months, and I finished it. I'm now in school for the Philadelphia Institute of Technology to become a RN. I start April the 10th. I'm back with my children. If it wasn't for DHS, I would have never got the chance to become the person I'm supposed to be today. (Applause.)

And so, basically, I would just like to say DHS is a wonderful program. And you can get yourself together and they're only here to help us. It wasn't easy in the beginning, but I got myself together. So that's why I'm here today. Thank you.

Great. 72 4/1/09 - WHOLE - 2010 CAPITAL BUDGET Thank you so much. (Applause.)

Good evening. My name is Doris Berris. And I would like to thank the Councilmembers for having this opportunity to speak. I am a lifelong resident of North Philadelphia. I am here tonight representing the Women's Community Revitalization Project, where I am a volunteer. I am also a member of Temple Presbyterian Church. Both WCRP and Temple Church are proud members of the East Northern Philadelphia Coalition. For the past 35 years, I've lived on the 1500 block of Ninth Street. I want to thank my councilman, Councilman Clarke, thank you and Councilwoman Sanchez, thank you for holding these hearings here. And thank you, President Verna.

Thank you for being here.

We also recognize 73 4/1/09 - WHOLE - 2010 CAPITAL BUDGET what tight times we live in. As someone who struggles to make ends meet, I appreciate the challenges the Mayor and City Council face in putting together a fair and humane budgets that is also a balanced budget. Given these circumstances I want to implore Mayor Nutter for protecting our city's essential services. I was at City Hall, just a few feet away from the Mayor, when he announced this news. The tears in the room reminded me of the vital role City services play in our lives, these services to protect our health, create places for us to learn together and to provide safe and affordable housing for everyone. While I'm here tonight to thank you for protecting essential services, I also want to talk about the challenges I would face if some of these proposed revenue increases take effect. Before 1989, I was a certified nursing assistant. I worked in nursing 74 4/1/09 - WHOLE - 2010 CAPITAL BUDGET homes, in hospitals around Philadelphia. Health problems forced me to stop working. Now both me and my husband, who is disabled, rely on SSI to make our ends meet, which is a meager end. I was lucky to inherit my mother's home on Ninth Street. Although it is in need of an incredible amount of work, and yes, the City of Philadelphia put in a new electrical system and a heating system for my home. I still lack such things as a kitchen floor, several of my windows are damaged, several of my doors are damaged. My husband is unable to move around comfortably in the house because it is not wheelchair-accessible. I don't have ramps or he can't use our upstairs. To top all this off, the taxes on my home rose from $148 to almost $200 last year. A double-digit increase literally threatens my ability to stay in my own home. (Timer bell rings.) 75 4/1/09 - WHOLE - 2010 CAPITAL BUDGET

I know the City needs to raise revenue, but I'm asking you to spread these costs among people who can pay and protect people like me who are struggling to keep our heads above the water. I have been happy to hear various Councilmembers raising this same concern. And, once again, I would like the thank you for this opportunity and for holding these hearings where I could make it.

Thank you. (Applause.)

Good evening, Councilmembers. My name is Hyacinth King, and I live and work at Project H.O.M.E. We are a local nonprofit that helps people find affordable housing, employment, medical care, and education. I would especially like to thank Councilman Clarke and Councilwoman Sanchez for hosting these hearings 76 4/1/09 - WHOLE - 2010 CAPITAL BUDGET tonight to get input from the community which houses so many shelters in their district. I'm here tonight because I don't want to see budget cuts to social services which improve quality of life for homeless and low-income people. I know what it is like to be homeless and not know where you will be sleeping or where your next meal is coming from. Now that I have housing, I give back because I was once there. Today, I am employed taxpayer, and I have a job helping others to get off of our City streets and into housing and shelters. I know homelessness is a solvable problem. I mean, look where I once was, living in my car or in a cardboard condo. Because of the increased amount of people living on the streets, Project H.O.M.E. opened up an overnight respite in our basement at 1515 Fairmount Avenue, where we serve women on a daily basis. 25 I've been working there overnight, 77 4/1/09 - WHOLE - 2010 CAPITAL BUDGET serving meals, making sure the people are comfortable. Instead of sleeping on the streets, these women have a chance to come in, sleep, shower, wash their clothes, and get connected to housing services. Just today, we had one woman moving out of our respite and into her own apartment. Shelters should be temporary for people in crisis and are not a permanent housing solution. While this temporary solution helps to meet the basic needs of homeless women in our community, the City of Philadelphia must continue to find solutions to address the larger affordable housing needs of our community. City Council, you can help create more affordable housing through inclusionary housing and the Housing Trust Fund. The Mayor's budget proposes cutting up to $9 million previously committed for affordable homes. This funding was used to build new affordable 78 4/1/09 - WHOLE - 2010 CAPITAL BUDGET homes, support home repairs, and prevent foreclosures, eviction, and eventual homelessness. Please restore funding to the Housing Trust Fund now and pass the second half of the inclusionary housing bill to ensure that developers have the incentives they need to provide affordable housing. Also, I hope that City Council will follow the Mayor's proposed budget and make sure that essential services are protected in our city. Even a minimum 10 percent cut to the Office of Supportive Housing budget -- (Timer bell rings.)

-- would have dire consequences, with little savings. A 10 percent cut would mean up to 852 homeless people would lose their beds in Philadelphia shelters over one year, and the City would save only $3.2 million out of a $3.4 billion budget. The savings would be small, but 79 4/1/09 - WHOLE - 2010 CAPITAL BUDGET the pain and suffering homeless women, men, and their children suffer would be tremendous to endure. I don't want to see more people living on our streets, and I know you don't either And please remember, if you see someone on the streets, you can always call our homeless outreach hotline at 215-232-1984, and we will send an outreach team to help connect the person to shelter and services Thank you for protecting these essential services as you consider the Mayor's proposed budget so that people have a place to go when our homeless outreach teams try to help our most vulnerable citizens find shelter and housing. Thank you. (Applause.)

Hi, good evening.

Hi.

My name is Donna Swanson. I want to thank you for 80 4/1/09 - WHOLE - 2010 CAPITAL BUDGET inviting me here to speak. I am also a parent. Let me speak a little bit about me. June the 2nd of '07, I had a baby girl. At that time, I was homeless. DHS was brought into my life because I didn't have a forwarding address to give to Temple Hospital. Prior to that, I was incarcerated. I was caught up in a world of addiction since the age of 13. I do have a 15-year-old son that I have not seen since the age of one because I chose my addiction. DHS really helped me out. It helped me open up my eyes to want to be a mother to both of my children. To not only my one -- I'm nervous.

Please don't be.

DHS helped me a lot. Through DHS, I came in with Community Legal Services, which did give me reunification back. I thank Community 81 4/1/09 - WHOLE - 2010 CAPITAL BUDGET Legal Services, 'cause as of today, my DHS case is closed. (Applause.)

Thank you. Through DHS, they give me services, which is called Shelter Plus, which I'm not homeless today. I do have a beautiful two-bedroom apartment, so I can have my daughter. My son is now 11 years old, and because of Shelter Plus, 12 my son wants to be a part of my life 13 because I have a place to live, not just 14 a place to call home. 15 I'm regaining visitation with my son. I have my daughter. I'm becoming somebody today. I do attend outpatient four days a week at Twelfth and Callowhill, at Chances I do have 20 months sober as of today. 21 (Applause.) 22

And this is all 23 because DHS helped me open my open up my eyes to see that a child is more than just born into the world; A child 82 4/1/09 - WHOLE - 2010 CAPITAL BUDGET deserves a mother. I am that mother of both my children, no matter who raised 'em. My daughter now is months old, 5 and she most knows me to be Mommy. 6 And I'm grateful to DHS and 7 Shelter Plus and Community Legal Services. 8 Thank you. 9 (Applause.) 10

Hi. My name is 11 Madeline Shikomba. I'm glad to sit 12 before you today, and I'm glad to see 13 that most of City Council is here, 14 although it would be nice to have 15 everybody here from City Council. 16 I understand from what one 17 Councilperson said about sharing the 18 pain, and I'm here to make some 19 suggestions about their sharing the pain 20 or asking 'em questions about sharing 21 this pain. 22 One of the questions is: Is 23 City Council going to share our pain? 24 (Applause.)

I mean, we were 83 4/1/09 - WHOLE - 2010 CAPITAL BUDGET asked about reducing the cost of services. I understood that someone said that was a tool. My attitude is that if an employee can't afford the tool anymore (indiscernible) and not the City of Philadelphia taxpayers, the tool should be gotten rid of and let somebody else use the car.

Madeline, your mouth is too close to the microphone.

Okay. I'm saying that I think that -- we're asking to -- everybody share the pain, and I think City Council should also share the pain by giving up some of its perks and things that they have, because we, the taxpayers of City of Philadelphia, are paying for that. Also, I'm glad to see that there is something in the budget about asking the City workers to share the pain, which they should, since they are being paid by taxpayers of Philadelphia. 84 4/1/09 - WHOLE - 2010 CAPITAL BUDGET As far as the business tax -- in terms of reducing the police hours, where does the Stimulus Package come in this place? I thought the Stimulus Package would pay so that we wouldn't have to reduce police hours; at least that's what Obama was talking about when he passed it. So where's the money from the Stimulus Package? What's (indiscernible) the pain in the City budget, or it's not being figured into the City budget. Okay? And also, this business tax. Mayor Nutter's talking about eliminating the business tax. Bogus. And then (indiscernible) create jobs. You saw what AIG did with the Stimulus money; they paid bonuses. What do you expect people to do with the business tax? You think they going to hire workers? They going to use it for the bottom line, profit. And I'm going to have to pay for their profits? You must be out of your mind. 85 4/1/09 - WHOLE - 2010 CAPITAL BUDGET (Laughter.)

(Indiscernible.) Do not get rid of that business-privilege tax. Everybody has to share the pain. They're not going anywhere. And if they do, bye. (Laughter.)

Okay, another thing. Also, the oil companies, they got billions of dollars. What do they do? The next thing they turn around and they laying off workers. Why? Because they want to make more profit. And they talking about getting rid of the business-privilege tax to help business? Please. Now we get to the real-estate tax. I'm one of those that's going to be seriously hurt. I live in a house and been living there almost 40 years. Currently my tax is 30,000 -- or the house is worth 30,000. (Timer bell rings.)

I'm paying 86 4/1/09 - WHOLE - 2010 CAPITAL BUDGET 800-and-some dollars. You're not even talking about full value. Houses in my neighborhood have been selling for 300-and-some thousand dollars. If they (indiscernible) the full value of 300-and-some thousand dollars, my tax is going to be ten times more than what it is. And you're going to add 11 percent on top of that? I'm going to end 12 up paying you 3,000-and-some dollars a 13 year if you add the 19 percent on top of 14 that. I can't afford that. 15 And my last thing is tax 16 abatement. That's got to go. 17 (Laughter.) 18

Okay? 19 (Applause.)

The annual bill 21 for a person with a tax abatement for an older home equivalent to what mine would be, at 350,00, if I come to full value -- and I don't think the house is worth that much; I've been in there for 40 years. 87 4/1/09 - WHOLE - 2010 CAPITAL BUDGET It's $54 they pay out of a total savings to them of $2,450. I'm not getting that. And if I could add a deck to my house, I would qualify, which some people have done, added a deck, and they get the full abatement. That's not fair to us who can't add things to it and don't have the money. The tax abatement has got to do. Sales tax. You going to lose money. People are not going to pay you 2 percent more, when they can go out there in Upper Darby or Bala Cynwyd and get stuff for 6 percent, or even go down to Delaware and get it for zero. (Laughter.) (Applause.)

We have several people from the Administration here. I would ask that they please stand so that they could be acknowledged. Would you please stand. (Administration staff people in 88 4/1/09 - WHOLE - 2010 CAPITAL BUDGET audience stand.)

Thank you so much for being here with us.

Give 'em a hand, guys. (Applause.) MR. McPHERSON: Our next panel consists of: Alice Robinson, Tracy Gordon, Larry Ginetti, Judith Robinson, Ronald Armour, and Cora Turpin. (Witnesses come forward.)

I would ask if everyone could please abide by the rules that we've set and stick to the three minutes. It would really be appreciated. Thank you. MR. McPHERSON: And the panel after this, just so they can get ready, is: Pat DeCarlo, Robert Santiago, Colleen McCauley, Nick Torres, Amy Dougherty, and Gina Koo.

Thank you. 89 4/1/09 - WHOLE - 2010 CAPITAL BUDGET

My name is Ronald Armour, a concerned neighbor of Philadelphia, a City retiree, and a voter. I have an obligation and a responsibility to give back to the City, but I'm here tonight to represent a homeowner that's in my family. She lives in the 2800 block of Poplar Street. Her taxes have just been raised 3,000-and- some dollars. That's what she's paying now after the last tax increase. She's 77 years of age. With the new percent tax 16 increase, it is (indiscernible) these 17 persons almost into another life. And I 18 know this. 19 When they heard Councilman Green stand up in City Council the other day and went on the record and saying that he was totally against this, and at the same time, be willing to work in conjunction to solve this, the people in the street heard this. I'm out there each and every 90 4/1/09 - WHOLE - 2010 CAPITAL BUDGET day, talking to hundreds of people. I come to this administration, to the City Administration, I come to this City Council with no malice. But I come to them to say to them: We're know you're going to do your homework, you're going to do what's the best you can do. And when I heard Councilman Jones talk about a stimulus package, I said to you, Councilman: Why don't you get a committee, a group of people of concerned neighbors, retirees, (indiscernible), and many others to go to Washington, D.C. to say to the administration: This City of Brotherly Love, this city that must be saved, and to relieve some of the pressure off our Councilpeople, off the City itself, Let us say to you, Mr. President, give us emergency funding for this. We know that the PICA Board will be involved in this, those of us that understand the political government. And 91 4/1/09 - WHOLE - 2010 CAPITAL BUDGET So what we are saying, the citizens, when we have people like Councilman Green, the people hears what he said. It wasn't the political posturing that someone may have said. It was the thing to say, because percent will make people activate this 8 registration card and say to them -- say 9 to the Council, not vindictive, we want 10 people that will take a position. 11 We know things are tough times, 12 we have tough times; We have always had 13 these type of tough times. 14 It's very important that the 15 PICA Board work along with City Council 16 to make sure that the citizens of this 17 city is able to live their lives, the 18 ones that own their properties, with 19 integrity and dignity. We have an obligation to hold people accountable. You all have the position of bringing into existence to solve these problems that we're facing. Thank you, my beloved. (Applause.) 92 4/1/09 - WHOLE - 2010 CAPITAL BUDGET

Good evening.

Good evening, Council President and members of Council. My name is Larry Ginetti. I represent the Second Police District Advisory Council, which is a community organization of volunteers that is basically the liaison between the community and the Police Department. I was invited to speak for the Community Life Improvement Program, better known as CLIP, which is very active in Northeast Philadelphia. Prior to 2002, there was no 17 CLIP. CLIP was formed with the idea of dealing with violations of tall grass, weeds, trash, green swimming pools, vandalisms, abandoned vehicles, animal violations, graffiti, litter, and nuisance rental properties. They have been extremely effective in doing this and improved the quality of life of Northeast Philadelphia. 93 4/1/09 - WHOLE - 2010 CAPITAL BUDGET The way CLIP works, when they receive a complaint, they go out to the property and they issue a violation if, of course, the claim is founded. At that time, they take pictures. They give the resident or the homeowner, um...

A citation?

A citation and a time period of about days to correct 12 the violation. 13 If it's not corrected, they then 14 come out, take pictures, and then send a CLIP team out to abate the violation. When this is done, the homeowner now has a fine for the violation. In addition to that, he's charged for the cleanup. Thus, CLIP produces revenue. They may not be self-sufficient, but I'm sure that their fee structure could be adjusted in some fashion to make them more self-sufficient. You know, in the past several years, Northeast Philadelphia has been 94 4/1/09 - WHOLE - 2010 CAPITAL BUDGET inundated with rental properties -- absentee landlords and landlords that do not take care of their property and property managers that don't take care of their property. I can't imagine what the properties in Northeast Philly would look like without CLIP. I have seen properties with tall grass, broken garage doors, broken fences, furniture in the front yard, furniture in the backyard, green swimming pools. And CLIP has been totally responsive in doing this. They've also addressed the business properties on Castor Avenue and addressed the litter, the overflowing Dumpsters, which can be a health hazard, and have dealt with the graffiti and the abandoned autos in these areas. The other issue that CLIP quickly handles -- (Timer bell rings.)

-- is snipe signs, another issue which is my pet peeve. 95 4/1/09 - WHOLE - 2010 CAPITAL BUDGET These are illegally signs posted on telephone poles and so forth. There is a fine for each of these signs that is posted. CLIP removes 'em, fines the individual, producing more income and more benefit and revenue for the City. Thank you for allowing me to testify today.

Thank you, sir. Thank you. Good evening.

Good evening. Members of City Council and citizens of Philadelphia, thank you for the opportunity to address the issue of providing quality education to the next generation of Philadelphia, which is based on --

Excuse me. Would you identify yourself, please.

Cora Turpin, 5th Ward, 23rd Division Committee Person.

Thank you. 96 4/1/09 - WHOLE - 2010 CAPITAL BUDGET

Quality education at whatever cost needs to be the focus of any budgetary considerations. We are in a time of great difficulty, not only financially but also educationally. The ills of our public schools are astounding. There are not enough science teachers to man the classrooms, even as four out of five of the professions in the near future will require science knowledge. Our charter schools have resegregated public schools and drawn monies, a proposed $253,906 this year from public schools funds that are generated from the State. There's no one person in charge anymore of our schools because we no 20 longer have a superintendent over the schools. Our charter schools are separate. This has resulted in varied levels of academic achievement and expectations. Music, physical education, and 97 4/1/09 - WHOLE - 2010 CAPITAL BUDGET art have been eliminated from many schools in this city of creative prominence. One in three Pennsylvania high school graduates enrolled in State universities or community colleges needs to pay for makeup courses for material they should have learned in high school. For Philadelphia, the statistics are worse. Technology in many schools is minimal in an area of nationalized technological growth. Cyber schools are inaccessible to low-income students whose parents and teachers lack the supportive dollars, technology, and knowledge to make this a viable option to them. Librarians, libraries, school nurses, counselors, and other essential supportive services have been eliminated or provided on a part-time basis. School violence has altered teacher dedication, staff utilization, resource distribution, and school attendance. 98 4/1/09 - WHOLE - 2010 CAPITAL BUDGET This list is but a sampling of public school issues that need to be addressed by providing adequate resources. The problems exist despite our mayor, our mayor's commitment to increase the number of college graduates in this city, despite Governor Rendell's education budget for 2009 that focuses on improving education statewide, despite President Obama's millions of stimulus monies that will go primarily to Philadelphia public schools. (Timer bell rings.)

The message to the citizens of Philadelphia is that we must accept increased taxation just to maintain the poor quality of public education that we have. There must be other recourses. This message comes to citizens who have already experienced the doubling of parking-meter fees and fines, increased real-estate taxes on decreased housing values, and increased 99 4/1/09 - WHOLE - 2010 CAPITAL BUDGET foreclosures, reduced City services that require us to pay more for less, the confiscation of our vehicles by the Parking Authority, predisposed through leveling exorbitant fees and fines for towing, storage fees, hearing fees, filing fees, court fees, in addition to the fines for the transgression. Our vehicular sales are not even credited to any of the charges made on these citizens' accounts. Philadelphia citizens are threatened with the closing of our public libraries, their recreation centers, and our pools. We must live in fear when an already-inadequate police and fire department have further reduced our protection in our areas. These citizens that we are talking about, who live here, are driving home over potholed, trashy streets. Perhaps many of the financial solutions --

I'm 100 4/1/09 - WHOLE - 2010 CAPITAL BUDGET sorry.

Okay. I wanted to understand that there's been a restructuring now. A line-by-line review of the budget by the president is perhaps something that we might consider. And We also might consider the consolidation of our school administration, which often duplicates the services so that the other funds are not available. And I can give this to you so that you can see the other kinds of things that I have gleaned, after going to many meetings at the city, state and federal level.

We'll make that a part of the record.

Sure.

Thank you. (Applause.)

Thank you very much. 101 4/1/09 - WHOLE - 2010 CAPITAL BUDGET (Witness comes forward.)

Hi. My name is Tracy Gordon. I'm a block captain, and I am here to represent the residents of the 2nd Councilmatic District, which is Council President Anna Verna's district. I'm a block captain, a active block captain, but I'm also a committee person. And please give CLIP they money. I root for CLIP in the Northeast. Please, 'cause I'm trying to get CLIP in southwest Philly. If you need the proof of how CLIP is going to be devastating, just come to southwest Philly and take pictures. And then, you know, maybe you all will restore CLIP. But Mayor Nutter and his administration recently cut both trash removal, abandoned tire pickup, weekly street cleanup in pilot locations. And To any decent and concerned resident civically and the block captains, we know how much of a detriment this is to our 102 4/1/09 - WHOLE - 2010 CAPITAL BUDGET urban rowhouse community. It's blight, blight, and more blight. These cuts was made without proper public notification, flyers, press releases, public hearings, task force reviews, and even despite our mayor knowing that trash and blight was a major problem when he ran for mayor. Recently, the Pew Trust reported that the second concern of Philadelphians was the major trash problem we have; safety was first. Still, despite these findings, the Mayor, who promised to be the reformer, he chose to ignore these cries and went behind closed doors, without a sound from City Council, and made these detrimental cuts. Our mayor did not even come to us publicly and announce and let us understand that the City would no longer be responsible to assist us when negligent outsiders dump tires, trash, items such as couches, dressers, refrigerators, or anything a sanitation 103 4/1/09 - WHOLE - 2010 CAPITAL BUDGET worker deems too heavy will no longer be collected and will be the property owner's sole responsibility to bring to a designated location between working hours. Most people are not aware of these cuts, and now I see (indiscernible) of trash all along sidewalks through my neighborhoods. Now we going to be bombarded with people dumping on abandoned lots, alleys, abandoned properties, corners, railroad tracks, parks, streets, rivers because they either don't have the means of a vehicle to take the trash to these designated locations or they simply don't care. Here's where the health issue becomes evident. Dumping attracts rodents, mosquitoes, cats and dogs and their waste, stench, disease, blight, fires, hazards, accidents, and will not only deteriorate our stable neighborhoods but will decrease the value of our properties, affecting our health, welfare 104 4/1/09 - WHOLE - 2010 CAPITAL BUDGET quality of life, and well-being -- (Timer bell rings.)

-- which leads me to address this preposterous real-estate tax, and percent. How in God's 7 name did the Mayor -- who advised him 8 that he's going to raise our taxes and, 9 at the same time, cut our services. 10 My question is, that we need -- 11 that Council needs to renegotiate that. 12 I agree. I will -- I know we're in a 13 state of emergency. My taxes did get 14 raised. I'll agree to (indiscernible) 15 some real-estate taxes. Unfortunately, I 16 can't afford it, but I'll agree. But 17 restore those cuts. 18 And I wonder why the health 19 department and the sanitation commissioners and the managing director haven't spoken out against these cuts. I want to thank you for sending your staff. We had somebody from the Managing Director's Office. They picked up 27 tires off a corner, and one was a 105 4/1/09 - WHOLE - 2010 CAPITAL BUDGET tractor-trailer tire. When I called the City and they said that I had to get the neighbors with cars and pick them up. And the young lady who needed community service, I had to go on a four-block radius and gather tires and put 'em on the corner, and I begged one of your program managers, and he said, "This is the last time we going to do it." I said, "What I supposed to do? What's the solution?" He said that I had to put 'em in my car and take 'em to a designated location. Finally, the 3-1-1 system. I was -- I was -- I remember when Kenney proposed that, and I was so happy. I was like, yea! You know, it is the worst system -- (Applause.)

-- that we have. They need to bring the 686-1776 number. They picked up the phone the second ring, they knew it, they transferred you. Now at 3-1-1, I'm on my cellphone, it's 20 106 4/1/09 - WHOLE - 2010 CAPITAL BUDGET minutes. It's unbelievable. And this is what Kenney said to me, and he said it very sarcastically. He's not here. He said, "Well, give it a chance." We don't have time for chances. That 3-1-1 system is -- 9-1-1 is a joke, 3-1-1 is a joke. It's horrible, it's broken. The people that they have staffed there, they don't know what they talking about. I mean, I'm not trying to be smart about it, but they don't know -- they don't know what they're doing, they don't know what to do. They transfer you to the number. They are not solving our problems. But I'm just saying that this blight program, these mosquitoes, and all this kind of stuff, it's a mess. Please don't cut CLIP, and it's not even in my neighborhood, but please, we going to try to get -- but please don't hurt that man, please. Thank you. 107 4/1/09 - WHOLE - 2010 CAPITAL BUDGET (Applause.) MR. McPHERSON: The next panel consists of: Pat DeCarlo, Roberto Santiago, Colleen McCauley, Nick Torres, Amy Dougherty, and Gina Koo. And then the next panel after that will be: Jonathan Stein, Jesse Brown, Louise Cleveland, Harriet Gaige, and Antoine Little. (Witnesses come forward.)

Who's going to testify first? Please identify yourself for the record and proceed with your testimony. MS. McCAULEY: Good evening, City Council.

Good evening. MS. McCAULEY: I'm Colleen McCauley, and I'm the health policy director at Public Citizens for Children and Youth, or PCCY, the region's lead child advocacy and policy organization. But I'm also a 22-year resident 108 4/1/09 - WHOLE - 2010 CAPITAL BUDGET of Philadelphia, having fallen in love with this city after I came here to go to nursing school and decided to stay and be a part of this vibrant city and trying to find a way to contribute to it. On top of that, I'm also the proud mother of an energetic and, if I might say, adorable six-year-old son who started kindergarten in a Philadelphia public school this year. I would very much like my son to have the same experience that I've had, to love the place in which he lives. And to foster this love, he needs ample opportunity to learn and play and grow and one day give back to the city that gave him so much. And, as you can imagine, I wish this not only for my child but for every single child in the city. And that is why, during this current budget season, I urge you to ensure that funding for programs and services for children and families be 109 4/1/09 - WHOLE - 2010 CAPITAL BUDGET maintained and not a penny sacrificed to offset budget deficit. Children's needs are great, and if that means that you, members of City Council, are going to have to raise taxes, then I, for one, am willing to pay a little bit more. PCCY has operated a help line for a number of years, and we help parents get health insurance and find health-care providers to get services. In this last year, we have experienced an increase of -- a 40 percent increase in the volume of calls. More and more parents are calling us because more and more families are struggling. We continue to hear from parents who have used the safety-net system, who need help reapplying, who are familiar with programs. But I have to tell you, now we are also hearing from more and more parents who have lost longstanding jobs and who are, for the first time, trying to figure out if their children 110 4/1/09 - WHOLE - 2010 CAPITAL BUDGET are eligible for these vital safety-net programs. For example, we recently took a call from a widowed father of two teenage girls who needed help applying for health insurance. He had recently lost his job at Tastykake and was having a hard time finding another job. His younger daughter had painful dental problems, and he couldn't afford to pay out of his pocket, so we did help him get insurance and get his daughter the care that she needed. His oldest daughter is a great student and is set to graduate this year from Franklin Learning Center, and she had planned to attend college, but Dad said, you know, their savings are gone, and she won't be heading off to college in September. And I could easily sit here and tell you more stories, and we've heard stories already tonight of families who are struggling, and I know that your own 111 4/1/09 - WHOLE - 2010 CAPITAL BUDGET constituents are talking to you about their hardships as well. And because of these very difficult economic times, you know, we expect the calls to keep coming into our office. And it's not just PCCY, it's not just our organization that is hearing from struggling parents. We are partnering with organizations and individuals throughout the City and have formed the Kids Budget Campaign to help kids and families. ) MS. McCAULEY: The campaign includes advocates, policy experts, and service providers. And we believe that it's incredibly important that the City budget fund programs and services for children and families. And we are heartened by the fact that the Mayor's budget proposal preserves the most essential services, including libraries, rec opportunities, health centers, after-school, and 112 4/1/09 - WHOLE - 2010 CAPITAL BUDGET child-welfare services, because most of these programs have already experienced cuts in their funding in the recent past.

The property tax the Mayor proposes will cost the vast majority of Philadelphians from $20 to $60 extra a month; and for some lower-income Philadelphians, this increase might break their monthly budget, and we've heard that. So we must add exemptions for people living on fixed incomes. 50 a week. However, we support any --

Excuse me. We have a number of witnesses that we would like to recognize this evening. If you would try to conclude your remarks, I'd appreciate it. Thank you. MS. McCAULEY: So we would support any tax increase or alternative revenue-raising plan to close the budget 113 4/1/09 - WHOLE - 2010 CAPITAL BUDGET deficit that is fair and affordable, which includes looking hard at wage and business taxes. And in the interest of fairness, the ten-year tax abatement should end immediately, and tax delinquents who can afford to paid need to pay. And so I'll end. The bottom line is kids -- any cuts to kids and family services will damage the City badly. I want my son to grow up in a city that thrives and that he could give back to, and I want every kid to have the ability for the city to grow their full potential.

Thank you very much. Thank you. Our next witness? (Witness comes forward.)

Hello. I haven't seen you in a long time. MS. DeCARLO: Yes. Good evening, members of Council and members of the Administration. 114 4/1/09 - WHOLE - 2010 CAPITAL BUDGET I want to thank the administration for -- STENOGRAPHER: I didn't get your name. MS. DeCARLO: I'm sorry. Patricia DeCarlo from Norris Square Association, otherwise known as Pat DeCarlo. STENOGRAPHER: Thank you. MS. DeCARLO: I want to thank the City Administration for holding the hearings and the visits to hear what people thought were essential services that shouldn't be cut. And then I want City Council for having these hearings to hear from people about the proposed revenue that they don't want to see happen, because I think in listening to the population, it's how government works best. So thanks to both. Now, I think this is a time of crisis like we have never seen before. We only know about it in historical fact; 115 4/1/09 - WHOLE - 2010 CAPITAL BUDGET it's known as the Great Depression. I've noticed that most politicians have refused to use that word. I think of it constantly. It is a great threat to the economy of this country, but it is also a great opportunity to bring us back together as a nation. We were becoming -- and are still on track -- to become a nation divided by those with too much income and those growing with not enough income to survive. You have seen the anger demonstrated by the general population at the millionaires who have taken the bonuses. Trust me, that is not going away; it is going to get worse. So I say today that we all, all need to figure out how we give back. " We all need to figure out how do we give back. So maybe we need to give back the cars, or maybe we need to figure out 116 4/1/09 - WHOLE - 2010 CAPITAL BUDGET something about the DROP Program, or maybe there are some other perks. Something has got to give. Citizens, we need to give back too. So for those who were concerned -- and I agree with you about the tires 'cause we certainly get dumped on like that -- maybe that's what we can contribute. Maybe we, the citizens, can pick up the tires and provide our pickup trucks in the neighborhood, and you make sure that you give us the places where they're going to get dumped and are not far away so that we can dump them. And that maybe in our community, I know a lot of people have survived by picking up trash and selling it or recycling it. So for people who dump furniture in the street, refrigerators, et cetera, could you please make it easy -- don't go around giving them a ticket or asking for a license, because these are people that might be new jobs. They can pick it up, they can sell it, 117 4/1/09 - WHOLE - 2010 CAPITAL BUDGET they can recycle. Make sure that when they do the citizen's duty, you don't charge them for taking it to the right place. ) MS. DeCARLO: But let's get creative about how we get the taxes, the revenue. One last thing: Whenever revenue is spoken about, it is really, really unfair unless we take into account people's income. A percent property 14 tax for somebody making good money, $20 a 15 week, a month. For somebody on a fixed 16 income, they're going to lose their 17 house. 18 So let's look at how we're going 19 to do that and not make people hurt more than they already have. ) MS. DeCARLO: And on the abatement, some people with the tax abatements (indiscernible) housing. We just built 48. They have tax abatement 118 4/1/09 - WHOLE - 2010 CAPITAL BUDGET for affordable housing. If you eliminate that tax abatement and tax them, the people who are buying it as an affordable house may not be able to buy it. So make sure again that the tax abatement gets cut for the multi-million-dollar homes 'cause they can afford it. Thank you. ) CONSILIO REP: Dear Madam President, Councilwoman Maria Quiñones-Sanchez, Councilman Darrell Clarke, and all City members of the Council, thank you very much for this opportunity.

My name is Carla (indiscernible), and I'm the assistant director at the Council of Spanish-Speaking Organizations, or Concilio, as it is better known. It is the oldest Latino organization in the Commonwealth of Pennsylvania. We've been around since 1962. Concilio's mission is 119 4/1/09 - WHOLE - 2010 CAPITAL BUDGET to ensure that equitable social, educational, health, and cultural services are available and accessible to everyone. I speak to you tonight with regards to our concerns of the actions to terminate the program known as SCOH, Services to Children in Their Own Homes, my Philadelphia's Department of Human Services on several grounds. The consolidation strategy, if implemented by DHS, removes safety nets from our children, dangerously threatens the viability of our organizations, and promises with absolute certainty the loss of dozens of jobs, if not hundreds, across the 30 former SCOH providers. First, the Latino community, especially our children, do not travel across neighborhoods to access services. They're deeply rooted in their neighborhoods, and relationships are built throughout the years with their neighbors, community organizations, and 120 4/1/09 - WHOLE - 2010 CAPITAL BUDGET churches. Those are the institutions they go to for assistance. The fact is that in the last 40 years, a network of Latino CBOs has evolved and today serves as a safety net for poor families in our community. Some of these organizations have developed service models geared at specific targeted neighborhoods that, for years, were completely abandoned or without adequate access to City services. Consolidating services within one organizations to represent the entire communities clearly places our families at risk. Second, the dismantling of most prevention programs dealing with at-risk preteens is very troubling for our community as we consider that we have the highest dropout rate in the City. Spiraling unemployment just enhances the concentration of poverty, which characterizes a growing sector unemployment just enhances the 121 4/1/09 - WHOLE - 2010 CAPITAL BUDGET concentration of poverty, which characterizes a growing center of our community -- I apologize. Given the state of the economy, we can only assume that unemployment and survival will become harder, tensions will increase, as will the prospect of violence. The thought that a survey and two focus groups is the extent of community input on the future of prevention programs concerns us greatly. Worse yet, most of our organizations, including Concilio, were not asked to participate in the survey or in the focus groups and were not even contacted for input during the blue-ribbon panel study that led to this decision. I'll skip point three. Four, throughout the past eight months, a deficient level of communication, a lack of qualitative input, and (indiscernible) found to have many glitches and unpredictable changes in administrative and financial protocols 122 4/1/09 - WHOLE - 2010 CAPITAL BUDGET have created a contract process that, in our view, has been a constant state of flux. ) CONSILIO REP: The good news: We believe DHS does want to create a system which previous greater access to City services. It is important to communicate that we understand and appreciate that DHS is trying to breathe new life and reform a bureaucracy that, in recent years, has been the subject of adversity and public scrutiny. The new programs have made a great effort to emphasize the importance of treating people with dignity and making sure that services are customer-oriented. We are prepared to partner with DHS to serve as a source of Council's support to ensure that quality and needed services are delivered to all children. We truly believe that working together, we can make the right choices for our 123 4/1/09 - WHOLE - 2010 CAPITAL BUDGET communities, families, and, most of all, our children. Thank you.

Thank you, thank you. (Applause.)

Good evening.

Good evening, Council President and members of City Council and members of the Administration. My name is Gina Koo, and I'm the manager of the Child Care Facilities Fund, which is administered by the Nonprofit Finance Fund. Thank you for taking the time to hold this public hiring tonight highlighting the importance of protecting children's services particularly in these dire economic times. I would like to take this opportunity to express my deep appreciation to the esteemed members of City Council for your continued support of the Facilities Fund. 124 4/1/09 - WHOLE - 2010 CAPITAL BUDGET In addition, I would like to specifically thank Councilwoman Reynolds-Brown, Councilwoman Tasco, and Councilwoman Quiñones-Sanchez for continuing to be ardent champions for the early care and education of Philadelphia's children and sustaining critical benefits to our city's youngest residents. I am surely so proud to live and work in the City of Philadelphia, a city that prioritizes children and youth issues, as evidenced by the City staff budget, which shows that most core services for kids have been preserved. As you know, the Child Care Facility Fund seeks to strengthen the quality of nonprofit child care and after-school programs in Philadelphia by addressing capital and management needs, the very organizations that serve our most vulnerable kids while parents are at work. National research shows us that 125 4/1/09 - WHOLE - 2010 CAPITAL BUDGET the quality of facilities has a direct impact on children's learning and a measurable impact on children's and teachers' comfort and performance. A study conducted in a Connecticut child-care center documented how quality facilities result in more one-on-one teacher-child interaction, more productive play, with fewer conflicts among young children, higher staff morale, and lower staff turnover, all of which are established indicators of program quality. So why, then, are so many of Philadelphia's children spending the majority of their day in substandard building, with little to no natural light, poor air circulation, obvious safety hazards, and no outdoor play space. Many of us know of the potential long-term advantages that can be reaped from investing in the programmatic needs of the educational activities. In order to fully realize the benefits of early 126 4/1/09 - WHOLE - 2010 CAPITAL BUDGET education, however, we must invest in creative and maintaining quality facilities that house these important programs. It is, therefore, perplexing that a budget cut has been proposed for the Child Care Facilities Fund for each of the fiscal years 2010 to 2014. This distressing news comes at a time when the City is implementing a new after-school strategy, which features an emphasis on licensed programs. Out-of-school-time programs have historically had a difficult time becoming licensed without technical assistance and external financial support. At NFF, we have observed that more than half of publicly-funded after-school programs have significant facility challenges that will hinder them from achieving licensure without assistance. While I understand the City's challenges to address our growing 127 4/1/09 - WHOLE - 2010 CAPITAL BUDGET deficit, I respectfully recommend that the federal funding from the American Recovery and Reinvestment Act be used to cover the budget gap. (Timer bell rings.)

The Child Care Facilities Fund is measurably increasing the quality and safety of early learning environments. I urge you to keep all services for children intact and to reconsider the proposed cut to the Child Care Facilities Fund. Thank you for your time.

Thank you Thank you very much. (Applause.)

Good evening.

Good evening, members of City Council. My name is Nicholas Torres, and I serve as president of Congreso de Latinos Unidos. I want to thank Councilman Clarke and Maria Quiñones-Sanchez for the 128 4/1/09 - WHOLE - 2010 CAPITAL BUDGET opportunity to express our viewpoints on essential services that ensure our communities do move forward in these economic times. Congreso has been providing high-quality services in eastern north Philadelphia for over 30 years as part of our mission to strengthen Latino communities. During this time, we have compassionately served tens of thousands of people with education, employment, health, and supportive services. In July of 2007, we launched a focused strategy, understanding that only through the obtainment of education credentials or workforce competencies can an individual have a sustainable impact and, therefore, become financially independent. At the core of this strategy is the philosophy that financial stability will serve as a catalyst for improved health and safety. In Philadelphia, the Latino population has increased dramatically 129 4/1/09 - WHOLE - 2010 CAPITAL BUDGET over the last years and now approximately comprise about 10 to 12 percent of the population. In our constituents that we serve, we found that Congreso's clients have annual incomes of less than $10,000 to $12,000. In addition, approximately 50 percent of Latinos in Philadelphia are unemployed or not in the labor force. Among Latino youth, the outcomes are the worst in the City. A recent study indicates that only 40 percent of our youth in public schools graduate from high school on time. So with less than -- with many of our adults earning less than $10,000 annually, most are not only able to live day-to-day without much hope for moving their families out of poverty. Our young people face similar challenges. Many of our young people have dreams of attaining graduating from college but are unable to do so when faced with the reality of the community, 130 4/1/09 - WHOLE - 2010 CAPITAL BUDGET family, and financial constraints. While some adults and young people are able to get connected to career opportunities or make the sacrifices that enable them to attend college, for the majority of individuals, career opportunities do not exist, and the sacrifices are too large to make these dreams a reality. The struggles of our community become more pronounced during the severe economic crisis we are experiencing now. As a result, we all have to make tough decisions. These decisions should not be based upon our wants but based upon the needs of our residents. These financial decisions should be with the purpose of maintaining the community gains we have made over the years and preventing families from falling into economic crisis. As such, we recommend a three-tiered strategy: First, we must protect the most 131 4/1/09 - WHOLE - 2010 CAPITAL BUDGET vulnerable by ensuring their most pressing needs of food, shelter, safety, and social stressors are addressed. These include strategically investing in the prevention of health disparities through health education. (Timer bell rings.)

Second, we must build towards the future of all of our residents. This means focusing our existing resources on the most vulnerable, where the need is the greatest. An example is the out-of- school slots for the after-school programs should be targeted for those schools that are most disadvantaged, targeting those youth who are statistically going to fail. It is only by raising up our most vulnerable that we are going to all be successful. And, third, we must invest our dollars strategically. Our dollars cannot be invested in service models that 132 4/1/09 - WHOLE - 2010 CAPITAL BUDGET are not aligned with what the community cares about most. In a survey of (indiscernible) clients in enrolled in Congreso services, we determined that the primary goal and interest of most of our community members is the workforce and educational gains, again tied to economic stability. So whatever service dollars needs to be invested, they should be in line with educational outcomes, high school graduation, and employment opportunities that are not just about low-paying jobs. Thank you for your time.

Thank you. (Applause.)

Good evening.

Good evening.

Good evening Councilman President Verna and Sanchez. And thank you. And Darrell Clarke and 133 4/1/09 - WHOLE - 2010 CAPITAL BUDGET other members of City Council. My name is Harriet Gaige. I'm 85 years old. My husband of 51 years' philosophy is that if one person is more capable of earning a living than the other, that's the one who ought to work. And he retired years ago and I'm still 9 working. 10 (Laughter.) 11

I don't think this 12 marriage is going to work. 13 (Laughter.) 14

I'm a real-estate 15 broker/salesperson for 46 years and 16 created the Art Museum area in 1963. 17 Hopefully, the proposals I make will 18 increase the incomes of Philadelphia and 19 relieve the budget crisis. 20 So I'll just read these off. 21 These are 15, and I have lots more, but 22 just 15. 23 Under the Stimulus Plan, set up 24 a factory to manufacture lamp posts with 25 solar lighting for Fairmount Park, 134 4/1/09 - WHOLE - 2010 CAPITAL BUDGET Pennsylvania Avenue from City Hall to the Art Museum. Leave the present streetlights in case of emergency. The above will employ people and save electricity. And if satisfactory, then all of the City can be lit by solar lighting and set up an example for the world. I will say that there's a little town in Italy, and all they have on the streets is solar lighting. And I'm willing to go there at my own expense -- there's good-looking Italians there. (Laughter.)

And I'll check the factory out and see how they do it. And then they can have the Philadelphia lamp posts throughout country. All right. The other thing is: Lease Fairmount Park houses to restaurants. There are two such restaurants in New York City Central Park. Make a film showing historic 135 4/1/09 - WHOLE - 2010 CAPITAL BUDGET sites -- the Art Museum, other museums, and the Zoo -- and have it viewed on TV. And supply information to travel agencies and hotels with a very attractive brochure. I mean, you see "Come to Ocean City, New Jersey." Well, how about coming to Philadelphia and not just stay the day. Suspend -- have hotels run weekend specials with no charge for children under years old. 13 Suspend parking-meter fees on 14 Wednesdays and weekends to encourage 15 people to come to Philadelphia to dine 16 and go to the theaters and visit historic 17 sites. 18 (Timer bell rings.)

Have City employees and private employees work four days a week and the Stimulus Plan pay for the fifth day in the form of a voucher which must be spent that week. (Laughter.)

This will avoid 136 4/1/09 - WHOLE - 2010 CAPITAL BUDGET layoffs and not deprive workers of health insurance and pension-plan benefits. Have a weekly lottery for Philadelphia residents for five tickets for one dollar. Place a 6 percent tax on real-estate investors' transactions on the part of seller. If the seller proves he is losing money, refund the tax. But they have that in New Jersey, at the seashore. I know they got hold of me, and I think we ought to get a hold of them. (Laughter.)

All right. Research and list all of the properties the City of Philadelphia owns which are not in use and sell them. Now, I called City Hall and spoke to the very nice lady and asked her if I could have a list of City-owned properties not in use, and she said, "We don't have a list, but I'll give you another number to call." 137 4/1/09 - WHOLE - 2010 CAPITAL BUDGET I called the other number, and I got the same answer, that the City of Philadelphia doesn't know what it owns. And let's get rid of it and get the money and get taxes coming in and let the commission be paid by the buyer. Deepen the Delaware River to accommodate cruise lines and ships. Governor Rendell has been trying to do that for a long time, and I think that would help us tremendously. Close the pools one day a week, and make sure the libraries are open the same day the pools are closed. (Laughter.)

Have college students teach arts, crafts, language, exercises, and other subjects in the summer pool campus fronted by the Stimulus Package. On new construction, reduce the ten-year tax abatement to five years. Feature Grandma's Day once a month, with no sales tax or parking-meter 138 4/1/09 - WHOLE - 2010 CAPITAL BUDGET fees. Have an entertainment tax of $1 on tickets for sporting events. I know there's a tax on it now, but do another dollar; it won't matter. Regarding the City employees' pension plan, I'm not quite certain of that, but I believe that the Mayor wants to make up the money that was lost in the stock market. All of us have suffered from the decline in the stock market. I do not see why City employees should be excluded from this unfortunate situation. Have the stockbrokers' firm in charge of the City employee pension plan and figure another way to replace the loss. I mean, they were so smart in investing the money; let them be smarter in getting the money back. (Laughter.)

By imposing expensive parking tickets and increasing sales taxes and real-estate taxes, you 139 4/1/09 - WHOLE - 2010 CAPITAL BUDGET discourage people from shopping in Philadelphia, and more businesses will shut down, leading to more unemployment and less income for Philadelphia. And that's a very important point. People will shop at malls outside of Philadelphia, and real estate will become more available in the surrounding counties and less valuable in Philadelphia. And I would just add something to it, that I've been writing to President Obama and Governor Rendell, and I have suggested that people who are very good in paying mortgages on time be encouraged to have a 40-year mortgage at 5 percent interest or less, with the proviso that the difference in money that they save every month be spent. We've all got to get out there and spend money, and I'm very good at it. (Laughter.)

Even though I don't have it. 140 4/1/09 - WHOLE - 2010 CAPITAL BUDGET (Applause.)

Thank you. Thank you very much. Good evening.

Good evening. Thank you President Anna Verna and Councilman Clarke and Councilwoman Sanchez and everybody who is present today. My name is Amy Dougherty, and I'm the director of the Friends of the Free Library of Philadelphia. Well, the library's in the news almost every day. We're in the news, it's national news, the Philadelphia library stories in the national news. It's in the Wall Street Journal, it's in the venerable weekly publication called The Nation, and a whole host of other publications. And the reason that our library story, and the nation's library stories, is in the news is because, across the country, library patronage is up by 141 4/1/09 - WHOLE - 2010 CAPITAL BUDGET 65 percent. And Philadelphia is no 3 exception to that. So I want to thank all of City Council who have supported the library over the years and Mayor Nutter and his current budget staff who have not asked for further cuts in the 2010 budget to the libraries. And -- but I mostly want to thank the citizens of Philadelphia, who, once again, have come out in the thousands to support library services. They came out in 2005, they came out in the 1990s, and they came out again this year, with 11 -- you know, with our various public forums, our rallies, our petitions. But in case you missed the story, I'm going to give you a briefing. This is what we learned about the library: That the libraries are community centers. They're places where school 142 4/1/09 - WHOLE - 2010 CAPITAL BUDGET children go because there are very few libraries in public schools or charter schools or parochial schools. Libraries are places where over 50 percent of those on the wrong side of the digital divide get access to the Internet and use computers. They are places where people go for job searches and job training. And they are places for literary educational, informational, and cultural enrichments. They're safe havens for children, for adults, for seniors, for all of us. So we know this, but a piece of the story that really isn't well known is that the 418 library staffers that are remaining in our library system are doing an extraordinary job with their day-to-day commitment, in trying to keep the 54 library-branch system going right now. The library staff members 143 4/1/09 - WHOLE - 2010 CAPITAL BUDGET have -- the number of staffers have been reduced by 110. This was based on Michael Mayor Nutter's interest in shutting library branches. 6 (Timer bell rings.) 7

So we're 8 concerned that this is not a sustainable 9 model. 10 And in the 2010 budget, what 11 we're looking for is a little bit of an increase. Instead of a 20 percent cut or $8 million, how about 10 percent? how about 12 percent? How about we turn the $8 million cut into a $4 million cut so that our already-stretched library staff can continue to do the job that we need them to do. Thank you for your time.

Thank you. The Chair recognizes Councilman Rizzo.

During your presentation, you may have addressed 144 4/1/09 - WHOLE - 2010 CAPITAL BUDGET this, but the Administration keeps telling, at least me and maybe some of my colleagues, that the library is being restored to where it was. What does that mean?

Well, I don't know because I don't actually speak -- I don't speak for the library, but I don't know what means.

Did you hear what I heard? I think we've heard that that the cuts aren't going to occur. Were there cuts made that are not going to be restored?

Well, that's not -- well, I've actually read the 2010 budget in the Mayor's current Five-Year Plan over three times. And that is not true. The cut right now in the proposed 2010 budget is a continuation of the 20 percent cut to the library system. It was $40 million. And after the rebalancing, and in the 2010 budget, 145 4/1/09 - WHOLE - 2010 CAPITAL BUDGET it is at 33 million, just a little bit less than 33 million.

So there are cuts.

So there's an $8 million cut, correct.

Okay, thank you.