Thank you, Madam President. Could we please have copies of your testimony, please?
Well, I have only notes, but I will send them over to you.
And to the Concilio rep, thank you very much. Thank you, Madam President. 146 4/1/09 - WHOLE - 2010 CAPITAL BUDGET
Thank you. Our next group of witnesses? MR. McPHERSON: Our next panel consists of: Jonathan Stein, Jessie Brown, Louise Cleveland, Antoine Little, and Sherry Cohen.
Again, I'm going to ask if everyone could please stick by the rules and try to speak for three minutes. (Witnesses come forward.)
All right, Mr. Stein. I assume you're going to be first. Please identify yourself for the record.
Yes. Good evening. I'm Jonathan Stein, and thank you for this great turnout from City Council members and for this opportunity to present testimony on behalf of the many low-income and taxpaying residents of the City that Community Legal Services represents. 147 4/1/09 - WHOLE - 2010 CAPITAL BUDGET Although there appears to be a laudable City Hall commitment to avoid serious cuts in City services, the tax increases proposed to City Council in the Five-Year Plan are unfair to those least able to pay. They allow whole classes of people to avoid paying their fair share of taxes, and they threaten the security of those very people who essential City services are intended to protect. The summary of my comments are as follows, very briefly: We're against the 14 percent sales tax increase that will fall disproportionately on the lowest-income groups of the City, and against any real property tax increase because: One, the current assessment system is so unfair and so arbitrary and so discriminatory. The $271 million real-estate tax increase based upon a floor of a failed assessment system, where studies have shown that low-income and minorities areas bear the 148 4/1/09 - WHOLE - 2010 CAPITAL BUDGET brunt of this unfair system where homes are over-assessed in those areas. There should be not any real-estate tax increase with that system, as well as no real-estate tax increase where we don't have any homestead exemptions or circuit breakers, which are there to -- and could be established through State law to protect low-income, fixed-income, seniors, and disabled in homes. And, finally, there should no 14 real-estate tax increase where we have an overly generous real-estate tax-abatement system, the most generous in the entire country, one which New York City has abandoned and which goes to subsidize wealthy homeowners and developers. We are in favor of revenue increase, though, via the wage tax in two respects. First, to redirect gambling revenues away from wage-tax reductions. This is the City's right to do. The State law -- this requires no State law 149 4/1/09 - WHOLE - 2010 CAPITAL BUDGET change. It's one that the legislature and the Governor anticipated; that is, when your revenues dip at least 3 percent, you have the authority and the duty to pursue other alternatives if you see fit, and you have that opportunity and you should take advantage of it. You should also, we suggest, end the wage-tax differential between residents and nonresidents. And you can do this on a, quote, temporary basis, like the Mayor has proposed some temporary increases. That half-percent differential between (indiscernible) in New Jersey and suburbanite Philadelphia who are paying a half-percent less in wage tax could generate $70 million in wage-tax revenues. And these are people -- let's be clear. They're using our City-funded sports stadiums, they're using our City-funded cultural attractions, their businesses that they're earning money in them have City service supports. 150 4/1/09 - WHOLE - 2010 CAPITAL BUDGET (Timer bell rings.)
And we think, in fairness, they should be paying a fair share that City residents do. Finally, we're in favor of placing the business-privilege tax "on the table," where it isn't quite right now. And we suggest doing this by doing two things at the same time: Creating a small-business exemptions, ending the gross-receipts portion for what would be about 85 percent of business-privilege taxpayers, by exempting a half million of the first gross receipts. Doing that to protect small businesses. At the same time doubling the marriage of the tax for all others. And you will find that those are largely -- larger businesses and businesses who are not based in the City. We have to undo the misunderstandings about business- privilege tax. The gross-receipts tax is the only tax that's paid by cities outside the City, who will never move 151 4/1/09 - WHOLE - 2010 CAPITAL BUDGET into the City, and they should be paying their fair share. And we should both ensure that but also exempt small businesses, which we can do in the same breath. So (indiscernible) there are other reforms that my written testimony suggests, but given the shortness of time, I won't go further. Thank you.
Mr. Stein, we'll give the stenographer a copy of your testimony, and it will be made a part of the record. Good evening.
My name is Reverend Jessie Brown, and I'm here to represent the Coalition for Essential Services. However, before my time starts, 152 4/1/09 - WHOLE - 2010 CAPITAL BUDGET I have a rumor that maybe you can confirm or deny. I've heard that Comcast is going to forego its 95 percent tax abatement for the next three years in order to help us with the City budget. Have you heard such, Madam President?
I didn't think so. I thought it was just a dream or a nightmare. The Coalition for Essential Services is an organization that has grown up around this budget crisis and that it represents labor organizations, community organizations, civic organizations, church organizations. And at the current moment, the number is 35 groups and counting as we continue to move through this budget process. It's looking for five principles that it's using to look at this budget. Number one, there must be no 153 4/1/09 - WHOLE - 2010 CAPITAL BUDGET cuts to essential services. And service cuts in the last year must be restored to pre-crisis levels. And that kind of speaks to Councilman Rizzo's point. Any tax increases must be broad-based and fair -- and I underline "fair" -- placing more burden on those individuals and entities who are able to pay. Number three, City workers must get fair and just contracts. And reductions in the numbers of City workers must not result in a reduction of essential services. And, four, there must be no 17 fees, no fees, for low-income people without insurance at our City health centers. And five, the budget process should be transparent and include forums in every district such as what we have at least started here tonight, in this project. I'm only going to raise two out 154 4/1/09 - WHOLE - 2010 CAPITAL BUDGET of the six points, and then I think, Councilwoman, you may have 'em up there already, and you can read the rest of those, or some of my colleagues will touch on a number of these. But one of these is that with these criterias in mind, we believe that the package of taxes adopted this year should not raise the sales tax. In essence, it's a double burden already. Here, we're going to charge folks for property tax, and the very same people are also going to have the burden of having to pay the sales tax in order to meet the crisis. Where is business? And then should we raise property taxes, they should be made more fair, as Jonathan has already alluded to, so I'm not going to repeat that one again either. But the point to all of this is that the taxes need to be fair and they need to be broad-based. (Timer bell rings.) 155 4/1/09 - WHOLE - 2010 CAPITAL BUDGET
And business ought to be a part of the solution in the City and not remain the problem that they have been when it comes to dealing with the crisis here in the City.
Thank you very much, Reverend. Thank you. (Applause.)
Thank you. Thank you, Councilpeople, for having this hearing in North Philadelphia tonight. I'm also from the Coalition for Essential Services, and I just want to raise a couple -- or review a couple of other points that our colleague Jonathan Stein has also touched on.
156 4/1/09 - WHOLE - 2010 CAPITAL BUDGET Shelly, I'm sorry. Would you please identify yourself for the record.
Okay. I'm sorry. My name is Sherry Cohen, and I'm with the Coalition for Essential Services, along with Reverend Jessie Brown. And I want to focus on the gross-receipts tax and the wage tax. And as Reverend Brown was discussing, you know, where is business in the package of taxes that the Mayor is proposing? Business has been given a free rein. Yet we know that in the last 13 years, there has been a tremendous -- there has been tremendous cuts in the business-privilege tax, leaving the City over $1 billion in tax revenue behind. That's just the cuts in the business- privilege tax alone over the last 13 years. Now, that's business-privilege tax and wage-tax cuts. Now, as to the wage-tax cut, the wage tax is, by far, the City's biggest 157 4/1/09 - WHOLE - 2010 CAPITAL BUDGET source of tax revenue. And if the wage-tax cuts were partially rolled back for only a few years, to their 2004 level for residents and in a 2000 level for nonresidents, the City would raise approximately $120 million. This rollback could be coupled with the original forgiveness program for low-wage, working families that's modeled after the State's income-tax forgiveness program. And it would still net the City about $112 million next year. So, when we're talking about a gap of about $200 million a year in our City budget, if we just roll back the wage-tax cuts to the 2004 rate, we would have $112 million per year. Now, also on the business- privilege taxes, as Jonathan was discussing, the gross-receipts tax, if we rolled it back to its 2003 rate, we would raise $36 million per year -- (Timer bell rings.)
-- even while 158 4/1/09 - WHOLE - 2010 CAPITAL BUDGET exempting small businesses entirely from the tax. This is because 90 percent of all of the revenue raised from the gross-receipts tax is paid by percent 6 of the companies that pay it, those with 7 sales of more than $500,000. 8 So if we exempt the first 9 $500,000 of sales from the base that is 10 subject to the tax, you would -- 11 everybody with sales of that magnitude 12 would pay no tax. 13 And if your sales are greater 14 than that, you start paying the tax only 15 for the amount of money that your sales are greater than the $500,000. So if you have sales of $500,001, you would just be paying tax on the $1. So, again, eliminating $500,000, saving the small businesses of our City from the gross-receipts tax would eliminate liability for about 85 percent of all businesses currently paying the tax. So that's our main points. And 159 4/1/09 - WHOLE - 2010 CAPITAL BUDGET we've been fighting for essential services, and we're going to keep fighting for that as well as fair taxation, which we define as: Those who can afford to pay should pay the tax so that we can all have a high quality of services that Philadelphians deserve. Thank you.
Good evening, Madam President. Good evening, City Council.
I'm honored to be able to say my little piece in this. My name is Louise Cleveland. I've been on the 17th Ward, 9th division, and ACORN, and we have been fighting for some of these things that you're opposing here tonight. One of the main things was the foreclosures we struggled to help get on 160 4/1/09 - WHOLE - 2010 CAPITAL BUDGET board. I've lived in the City most of my life. I raised three children, and I struggled a little bit. But this tax -- I'm here to discuss the tax abatement. For the life of me, I can't see why this burden is so lopsided, it seems to me. Maybe I'm the only one that thinks that way. But I took walk down to Two Liberty just to see why -- how those people live and why they get a ten-year break, and we have to pick up the tax. I'm struggling with my taxes, and I know this raise is going to affect me in some way, as also some of my colleagues. I belong to a senior citizens center, GOSP, and everybody's concerned about this. And I really got upset. I also belong to Germantown Friends of the Library. And when they told me that the libraries was being cut, well, we were devastated. But I was so 161 4/1/09 - WHOLE - 2010 CAPITAL BUDGET glad -- thanks to you guys -- that we got a little reprieve. And I have all the confidence that my Councilpeople is going to look out for your constituents, 'cause if we ever needed you, we need you now to walk with us through this. And a week ago, I went with the coalition out to Jeffrey Lurie's house out in Wynnewood. We rode out there to try to wake him up a little bit. (Laughter.)
And this guy is strutting around here, he owes the City all this money. And in today's paper, he's talking about he made some kind of deal to keep a million. Well, I know you guys are not going to fall for that. I know you going to pick that up and put it in the box so I can leave here with confidence that that will be taken care of. (Laughter.)
And these people that getting all this tax rebates, they 162 4/1/09 - WHOLE - 2010 CAPITAL BUDGET have money more so than the average citizen, so why not pay. We all in this together. So everyone should pay they fair share. I don't mind struggling, which I've been struggling all these years, to put a little bit more on the table, but let them pick up their share. And let's see this thing through. And everybody's in this together. (Timer bell rings.)
And we don't need to put the load on all of the little backs. And I say again thanks to City Council. I know you have our backs, and I know we can call on you at any time, and so many of you will take the time to listen. Thank you.
Thank you. (Applause.) MR. McPHERSON: Our next panel 163 4/1/09 - WHOLE - 2010 CAPITAL BUDGET consists of Anthony Langford and Penelope Giles. (Witness comes forward.)
Good evening. Please identify yourself for the record.
My name is Anthony Langford. First of all, I want to thank the Honorable President Anna Verna, Council President, and esteemed members of City Council and Councilman Clarke for giving -- being given an opportunity to give a testimony on what I think is a very important endeavor and project that the City would be remiss if they let it be foregone after this year. As I said earlier, I'm president of the Friends of East Park, and our organization is a park-associated organization. I don't know if anyone's familiar. I'm not quite sure that we are all familiar with the land-care -- Vacant Care Initiative in Philadelphia. The 164 4/1/09 - WHOLE - 2010 CAPITAL BUDGET official name is Community Land Care Program, or CLC. In past years -- I believe it started in 2005. In past years, it was funded under the NTI Grant money, for this Fiscal Year, 2007-2008. For FY 2009-2010, it's funded under the City of Philadelphia Department of Commerce and the Office of Housing and Community Development. And this is in affiliation with the Pennsylvania Horticultural Society. So, you see, this grant money is important. But first of all, let me explain the program to you so we'll all be abreast on what this actually covers. The land care program is -- there's thousands of vacant lots in Philadelphia, and the program was conceived to supply and provide monies and grant monies to the communities so that some of these vacant lots could be maintained from March to November -- or, excuse me, March to October of any given 165 4/1/09 - WHOLE - 2010 CAPITAL BUDGET year. I have in front of me a contract with the Community Land Care Program, and this contract covers 100 lots in our immediate vicinity of Strawberry Mansion. The program starts in March and runs to October of each year. We believe that this is a very vital program. Last year was the first year that the Friends of the Park became a part of this, and it was a complete success because we were able to keep the vacant lots cleaned and maintained. And we also had enough monies to be able to do in-kind lots and service some of the constituents in our immediate area with clean or vacant lots on a regular basis. And so, it became very valuable to see our lots in our neighborhoods being cleaned on a regular basis, with all of the trash and debris that's being dumped in our neighborhoods. This service -- (Timer bell rings.) 166 4/1/09 - WHOLE - 2010 CAPITAL BUDGET
If this service is taken away from our neighborhoods, the urban blight would be very much -- you know, it would be largely unimproved, I should say, to a great deal in that community. So I urge the City Council to consider any programs that have a benefit to a community in the line of maintaining and cleaning vacant lots, housing, urban blight. They're extremely important that these programs stay intact and not be cut. And I thank you for your time.
Thank 167 4/1/09 - WHOLE - 2010 CAPITAL BUDGET you.
Good evening, Council President and Councilmembers. My name is Penelope Giles. I am the founder and executive director of the Francisville Neighborhood Development Corporation. I've been invited to testify here tonight by Councilman Clarke on the importance of the Community Land Care Program as it relates to organizations like ours and communities' ability to reduce blight and crime through the cleaning and greening of the natural environment. Having completed a comprehensive, neighborhood-driven development plan in August of 2007, one of the first things our plan called for was the cleaning and greening of the neighborhood to increase the marketability and improve the quality of life for existing residents. Last year, we received a 168 4/1/09 - WHOLE - 2010 CAPITAL BUDGET contract to clean and maintain 100 lots within the neighborhood boundaries, not nearly enough to address the more than 400 vacant, blighted, and trash-strewn lots. However, we leveraged the funding and successfully cleaned over 90 percent of all the vacant land in Francisville, removing tons of debris, eliminating and discouraging short-dumping, and turning them into sprawling, green fields and visible opportunity for development and permanent green space. I was able to employ individuals from the neighborhood to participate in the transformation. Not only was the employment needed, but the experience changed lives, created better citizens with newfound appreciation for their community and the natural environment. This year, the program was slated to be discontinued. However, the Mayor did decide to continue the program. 169 4/1/09 - WHOLE - 2010 CAPITAL BUDGET I would urge City Council to work with Mayor to find a way to ensure that this program continues to be funded year after year. If our goal is to attract new residents and businesses to Philadelphia, more residents and businesses equal more tax dollars and will decrease our deficit. The Community Land Care Program is a means to an end and well worth the tax dollars allotted to the program. Lastly, preserving and creating green -- permanent green space in our neighborhood is imperative to our quality of life and the preservation of the planet. Green equals oxygen, and oxygen is what all humans needs to live. Green reduces our carbon emissions and reduces our are carbon footprint. The grant gives us an opportunity to remove -- (Timer bell rings.)
The grant gave us an 170 4/1/09 - WHOLE - 2010 CAPITAL BUDGET opportunity to remove the filth from our diamond, which is Francisville, and reveal the beauty of our little piece of the planet. Every distressed and disadvantaged neighborhood in Philadelphia should have the same opportunity. Thank you very much.
Madam President, one quick question, since you told everybody that I invited you. (Laughter.)
Miss Giles, one of the things that's important from my perspective is that you're able to give employment. Can you tell about the employment, who you were able to employ as a result of that program and some of the other things associated with that.
I think 171 4/1/09 - WHOLE - 2010 CAPITAL BUDGET that's important.
I don't know why I get so nervous when I get in front of a microphone. I do it this for a living.
But this is just out of context for me. Well, yes, you know, we were able to employ individuals who were -- are -- are not as readily employable as somebody with a, you know, with a college degree or a high school diploma. Some of these individuals had issues with recidivism and, you know, that kind of thing. So it's a great program because it is a -- it's an introduction into the green-collar jobs initiative, entry level. So it -- and it teaches these people a skill, it introduces them to basic landscaping concepts. And, you know, it provides a way for them to actually grow and to gain skills that can 172 4/1/09 - WHOLE - 2010 CAPITAL BUDGET make them even more employable.
Thank you. Our next witnesses? MR. McPHERSON: Our next panel consists of: Anna Crozier, Aaron Lloyd, Valerie McKriff, James Royal, Mr. Pinky and Eric Butler and Vivian Van Story. (Witnesses come forward.)
Good evening. Please identify yourself for the record.
Yes. My name is Ann C. Crozier, Ph.D., MBA. I don't belong to any organizations but I e-mailed all of City Council and the Mayor's Office yesterday about my ideas about the budget. Basically I think Mayor Nutter is right in not wanting to raise the wage tax and not wanting to raise the business-privilege tax. The business- 173 4/1/09 - WHOLE - 2010 CAPITAL BUDGET privilege tax would be hard on small business. I've talked to a few small business owners. The first nine years of my life, I grew up under small business. I know how tough it is. All the money goes back into the business, and it's hard to make ends meet. And it would really be tough on small business. Hopefully, you won't raise that. If you raise the business franchise tax, you will need to exempt small business. The wage tax. I'd starve if you raised the wage tax. I work as a customer service rep at Independence Blue Cross. And this year, I bring home $1,095 a month. But last year, many weeks, I had $10 to $12 a week for groceries. The three weeks right around the November election, I had $6 or $7 a week for groceries. The Tuesday of the election and Monday and the Sunday 174 4/1/09 - WHOLE - 2010 CAPITAL BUDGET before, I had 89 cents in my savings account and 59 cents in my checking account. Had I not worked on Obama's campaign, I really would have starved. A lot of people have it far worse. There's a lot of people, the working poor, who are maybe bringing home $500 or $600 a month. It's going to hit them really hard. Mayor Nutter is very much a man of compassion; I know this from my political action committee. He cares very much about the down and out and the needy; I know this for a fact. And also, I wanted to say that Mayor Nutter is right in wanting to get rid of that Drop Program and the City cars for elected officials. Basically in Philadelphia, I'd say less than -- about half of the population cannot afford a car. I've turned down $50,000- and $60,000-a-year jobs because I cannot afford a car. I turned down a job with New York Life. 175 4/1/09 - WHOLE - 2010 CAPITAL BUDGET And one of Mayor Nutter's classmates from prep school is an insurance agent in the suburbs, and he said, "Based on how I do inside sales, I'd be making a $100,000 a year as a field insurance agent, but I can't afford a car." And then also the pensions. I don't have any 401(K) at all; I can't afford it. Most of the people I work for, the customer service reps at Blue Cross, none of them have a 401(K) either. I'm going to have to work full-time until I'm 85 or 90 old 'cause I'm going to be in that doughnut hole in Part B Medicare plan. I'm not the only one. I think Mayor Nutter is right in raising the sales tax. About the only thing I buy is groceries, which is exempted from sales tax, and a few dollars on toiletries. I've lost 40 pounds under the George Bush weight-loss plan -- (Laughter.) 176 4/1/09 - WHOLE - 2010 CAPITAL BUDGET
-- because you can't afford groceries. And the wage tax, I'd starve if you raised the wage tax. Well, I think a lot of other people would. But I just to let you know that Mayor Nutter is a very beautiful human being, he's very caring and compassionate. A lot of people don't see him that way, but I know for a fact he is a truly beautiful human being.
I'm still here. My name is James Royal. I'm a member of the United Block Captains Association Incorporated in the North Philadelphia 177 4/1/09 - WHOLE - 2010 CAPITAL BUDGET area. I'm going to try to get right to mine quickly. December the 10th, at Ben Franklin High School, the Mayor was having the budget critique. And we explained to him that the way that the City was spending money had to change. So he told me to talk to Mr. Altman. And we so did and sent letters to him and others around Christmastime. And to date, we still haven't met Mr. Altman in order to start that process. I'm going to a point. Last month, we saw the Mayor at Strawberry Mansion School. We also brought it up again, about not meeting with the Commerce Department to show how the City can turn itself around. Now, staying up late at night, I found out -- that's why I can find out what happens in Council and City departments and the Planning Commission, and so I've learned to stay up till or o'clock in the morning. But I found, 178 4/1/09 - WHOLE - 2010 CAPITAL BUDGET by watching the Managing Director's Office, that was a real eye-opener. The point I want to make to the Council is, I asked the Mayor last month, how in the world the projections are being made before the Managing Director of the dollar-amount job increases, growth, everything is going (indiscernible) this way, but the debt was going up. And I said, "If everybody's going to take a hit on this," I said, "what about these consultants and lawyers and accountants that's making 2, 3, 4, $500 a hour, they going to get cut." Well, his response to me was, "Well, they got a contract." Well, everybody that gets elected has a contract that the people that voted them in office expect them to carry out. So if we all are going on a straight line but the debt increases, that means that we are -- that's involuntary servitude basically. 179 4/1/09 - WHOLE - 2010 CAPITAL BUDGET And so, I'm saying to the Council that we need to think about those things only because if everybody's going to suffer, as I keep hearing everybody say -- I saw the 10, 20, and 30 percent cuts and even the Mayor cut the police commissioner off at percent 9 (indiscernible) go to 30. 10 But what happens to us when we 11 get in a hole and can't get out? We fall 12 behind. Either we get sued or we go to 13 foreclosure, we lose our house or we go 14 to jail because we acting stupid. So we 15 go to bankruptcy. 16 So I'm not suggesting that the 17 City needs to go to bankruptcy, but the 18 bottom line is, while all the cutting is 19 going on, there's no plan being laid for 20 growth out of the cuts. (Timer bell rings.)
Everything is cut, cut, cut, cut, cut, but what is being put in its place so that there is a floor so that everyone can live? 180 4/1/09 - WHOLE - 2010 CAPITAL BUDGET So that's where we are still waiting to meet with the Mayor or Council or Mr. Altman. I'm only raising his name 'cause the Mayor gave me his name and I wrote him letters and talked to his office. And I saw what was happening.
I know he's here. But seeing the managing directors in that profile, with the debt going up -- and I'm saying this to Council, because he's saying to me it's a contractual arrangement. Well, we made an agreement with them. Well, heck, we made an agreement with a lot of people. I made an agreement with my wife. (Laughter.)
Thank you, Council President. Good evening Councilmembers and also Administration officials. Thank you for the opportunity to speak tonight. 181 4/1/09 - WHOLE - 2010 CAPITAL BUDGET My name is Aaron Lloyd. I'm here to represent the Henry George Foundation of America, a local nonprofit here in Philadelphia that assists in work with governments across Pennsylvania and across the country on fiscal policy and tax reform. And hearing all of the comments tonight, I understand a lot of these concerns revolve around how this is going to impact, you know, homeowners, residents, workers. The Henry George Foundation understands the deep connection between land and tax policy and the issues of housing and unemployment problems, all with other challenges the City's facing. This is why we advocate for the land-value tax policy as a solution to the budget challenge. I've handed out a brief talking-points point that you all have for your information. And then our website is at the bottom, which we are 182 4/1/09 - WHOLE - 2010 CAPITAL BUDGET continually updating with new analysis as the budget process continues. What I would like to do is just briefly go over some of these points to further orient you. I know that our organization has met with your -- a lot of your offices personally, and we look forward to further discussions as this process unfolds. But I just want to go over some of these points so you have a clear understanding of what our proposal will provide. And I'll try to be as quick as possible. A land-value tax is a progressive property tax. Under it, compared to the Mayor's proposal, almost three-quarters, 75 percent, of residential properties are going to see a reduced tax hike, and I can explain that to you in detail with our charts. But essentially, their tax burden is going to be much lowered than under the 16 mill proposal of the 183 4/1/09 - WHOLE - 2010 CAPITAL BUDGET property tax alone. A land-value tax can be used as well with the current assessment system. We study the BRT data day in and day out; I get tired of looking at it, honestly. But I can tell you that there are two parts to the assessments: There's the building assessments, which are very bad; and there are the land assessments, which are not that bad and are much more uniform. And if the majority of the property tax falls on the land assessments, it actually makes the assessment system that we currently have -- and we're going to have for a property tax unless we repeal it -- much more fair. So we could work under this current system, and it can also help to transition to the full-value system to make it even that much more fair. The land-value tax, to address the hardship issues, can be enacted along 184 4/1/09 - WHOLE - 2010 CAPITAL BUDGET with a homestead exemption on a certain percentage of the median building value. And for extreme cases, extreme hardship cases, we can provide a deferral program so that the person doesn't pay until they're time is up. (Timer bell rings.)
And I have many more many more points that I'd love to go over with during testimony, during the hearings. And as I said, our website has very close detail about this analysis. And we will be stopping by each of your offices to provide updated analysis that follows the current budget. Thank you very much. (Applause.)
Just a moment, please. The Chair recognizes Councilwoman Tasco.
Yes. I'd just like to say that we did meet with Mr. Lloyd, and we plan to introduce a 185 4/1/09 - WHOLE - 2010 CAPITAL BUDGET resolution to have hearings on this. We did before, sometime ago, when I first entered Council. And so rather than run all around to our offices, you'll have an opportunity to bring your show to Council.
Thank you. And just for your own, you know, research, all of our PDFs on the site will give you very clear details in the meantime. Thank you very much.
Good evening, ladies and gentlemen and Councilman Darrell Clarke. Thank you for the opportunity of being here because you started me in '83, with our commission pilot program. My name is Vivian Van Story. I'm president and CEO and founder of We 186 4/1/09 - WHOLE - 2010 CAPITAL BUDGET the People. In order to form the more perfect union, we had to establish a community land trust corporation here in Philadelphia. It took us years to get our 7 credentials. We became a land bank. In 8 Harrisburg -- that's why we wanted to use 9 the word "trust," in order to save the 10 quality of life in North Philadelphia. 11 We became a charitable by 12 Decker. We can receive 15 percent of any 13 federal dollars that come through. We 14 became a charity by Ballard, Spahr, 15 Ingersoll. Right today, our budget is zero. I've been in business at the Guardian Civic League for 11 years. The quality of life in North Philadelphia is deplorable. I've seen services where people have wasted the money and then they sit here and say they want more money. But our organization has survived off of volunteerism. We endowed our organization 187 4/1/09 - WHOLE - 2010 CAPITAL BUDGET through Philadelphia Foundation. We own 13,441 square feet of one type of land, and we manage blocks of land, working with the Department of Corrections. But we're here today to say that the community is stabilized here, and we're ready for the Obama money. I don't know if you are, but we are. The community is ready. We was in the house at the Convention Center at Go Green Expo, educating the people about stainability, the quality of life. If you would turn these lights down right now, you would save some money. Open your windows. Put a timer on your hot-water heater. If you would just do common-sense things, we wouldn't be spending all of this money here; we wouldn't have to. We buy cars because they're new. They do the same things as the old cars but you have to pay for 'em every movement. Common-sense things. 188 4/1/09 - WHOLE - 2010 CAPITAL BUDGET But I'm just here to tell you the community is in the house. Have a good evening.
-- members of the City Council. My name is Maddy Pinkney, and I am the executive director of Agape Community Outreach Services and the pastor of Agape Baptist Church, both located in the Mt. Airy section of Philadelphia. I'm here to just advocate for two things tonight. Recognizing that there is a lot that we all have to do in order to bring this kind of catastrophe into some kind of liveable, arranging situations, we in Mt. Airy want to plead with City Council to please keep as much money as possible available to our 189 4/1/09 - WHOLE - 2010 CAPITAL BUDGET children. First and foremost, they are our only means of future. And many of them are -- and especially the children that I deal with, many of them don't have any other outlet except for what we provide. And we are praying. I'm a praying woman. We're praying that the City will find a way to make absolutely sure that when the budget is all said and done, that the children do not suffer in terms of their life development and growth, not only in their educational endeavors, but also in their health and in their family situations. Many of our parents in Mt. Airy are losing their jobs. It's straight up. They're just losing their jobs. And when we decide that because the parent is no 21 longer working that the children no 22 longer need care, that is a very big mistake to make because parents are stressed out, and many of them, in their stressful situations, are not exactly, um 190 4/1/09 - WHOLE - 2010 CAPITAL BUDGET -- I don't want to put in it a negative term, but they're worried about food, they're worried about housing, they're worried about clothes. And the community has to also take up some of the mantle of making sure that our children and their families fare better than they would if -- if their families were still employed. (Timer bell rings.)
The last thing I just want to mention is the taxation that's going on throughout the City. We recognize that there has to be some taxation, but it needs to be a back-to- basics kind of taxation. We are taxing ourselves to the point where, after a while, none of us are going to be able to afford it, none of us will be able to afford it. So I ask that you look at basics, what are the basics needs of our city, and then think about how we might cover those as opposed to trying to 191 4/1/09 - WHOLE - 2010 CAPITAL BUDGET consider doing everything and wasting taxpayer dollars. Thank you.
Are there any other witnesses? MR. McPHERSON: No, I have none.
Is there anyone else who would like to testify? Seeing no one, this committee will stand in recess until Monday, April the 6th, at 10 a.m. Thank you. (Witness comes forward.)
I'm sorry? All right. Well, please identify yourself for the record.
My name is Ruth Burchette, and I'm a lifelong resident of North Philadelphia, and I want to thank you for coming here to our community. 192 4/1/09 - WHOLE - 2010 CAPITAL BUDGET I wanted to speak and ask you to be mindful of the people who are already living in poverty in Philadelphia. You're struggling with a budget; we struggle with a budget every day. And. I'd like to ensure that this city's budget doesn't continue to be balanced on the backs of poor people. The assaults that we suffered during the Street Administration with the tickets from Sanitation per bag, $25 per bag, if you put out your trash before 7, when many people weren't even aware that that was an offense is problematic. The towing of people's cars throughout our communities, when there really wasn't any reason to do that. It generates a revenue for the City of Philadelphia but it became a hardship for people in communities. I want to tell you also that the community block grant funds that go to housing development and the abandoned properties that are given to community 193 4/1/09 - WHOLE - 2010 CAPITAL BUDGET development corporations through the Redevelopment Authority, et cetera, while it looks like good on paper, it is problematic in our community when the demolition of our beautiful homes throughout our communities is replaced with substandard housing. When low-income people purchase a home, it very likely is the only home that they will ever buy. And for that home to be built with substandard materials, for houses to be downsized, and for the bricks to be buried in the yard as opposed to being towed away properly is problematic. I describe to you a situation that I've experienced myself, living in a home near here, in walking distance of here, where my family's been nearly 60 years. I had to move out of the home because of the demolition of homes on our block. And the water began to come into the basement and could not stop it. The 194 4/1/09 - WHOLE - 2010 CAPITAL BUDGET water tables have changed in our communities. I bought a house four blocks away through Project H.O.M.E., one of the Bon Jovi houses. He was on Sixty Minutes, walking through the block. Well, guess what? Before I paid my third mortgage payment, there were termites crawling from under the woodwork. I have water in the basement, I have concrete falling off the walls, and I'm told that it's not a warranty claim. I will tell you that it's not just my experience that is -- myself that is experienced this, but others as well. I live in a three-story building. I moved from a three-story building. (Timer bell rings.)
Yet my electric bill is three times what it was at my other home. My three-story house has a side wall that was not finished because 195 4/1/09 - WHOLE - 2010 CAPITAL BUDGET there's a two-story house next door to it. I am told that the owner of the two-story house, the wall, the third-floor exterior wall belongs to the owner of the two-story house, who happened to be an old classmate from Simon Gratz. And so, there are dilemmas that are -- there are situations that have not been handled properly through government because there is much public money put into these homes. And the Redevelopment Authority has a second mortgage on the house I'm in. PNC Bank, Bon Jovi, and a lot of other people have money into this home, but I have to pay my bank back. Rather, the termites eat up this house or rather it caves in, due to water -- due to soil erosion underneath. And so, I say to you that, yes, you have a responsibility as the lawmakers to consider the budget and all of that, but you also have a 196 4/1/09 - WHOLE - 2010 CAPITAL BUDGET responsibility -- and I would call it even a fiduciary responsibility -- to ensure that what you pay for with public dollars you get. You -- people -- poor people cannot afford the hardships that are being created by folk who are making money off of government contracts and screwing community people. It is unfair, it is unjust, and I would even venture to say it is criminal. And I am grateful for the quality of people who sit on this Council, who, I know for a fact, understand business. Curtis Jones, you're new to it, but I knew your daddy and I know you understand business. Wilson Goode, Jr., I know for a fact, understands business. If you all have some trouble getting with this -- and you, you know joke, either. (Laughter.) 197 4/1/09 - WHOLE - 2010 CAPITAL BUDGET
And, you know, let the folk here who understand what needs to get done take the lead. But this needs to be investigated; it's no question about it. There are women on this Council who are mothers, who understand what it is to suffer and try to pay your bills. We about to make a (indiscernible) in this community. We understand it. But North Philadelphia is a government-forsaken community. Our neighborhood has been torn up. And we can't even -- we can't even get jobs when the money comes through. I can clear some corners, I can clear some corners, and get folk to hire -- hired to work the jobs if the unions would get the hell out of the way. (Laughter.)
It is racist. Check the zip codes of the union workers. Where do they live. They don't live in 21 and don't live in 32, and that's what 198 4/1/09 - WHOLE - 2010 CAPITAL BUDGET I care about. And I'm just saying we need -- so it's time to flip the script. We want to work with you. We can work with you. We know how to do the dollars. You know what I'm talking about, all right?
Well, stop saying you know and just try to get something straightened out here. I'm serious. I'm really, really serious. It's an embarrassment. And the Redevelopment Authority expects me to pay for this house. They damn well better come forward and investigate the wrongdoings of the contractors.
As I said earlier, this committee will stand in recess until Monday, April the 6th, at 199 4/1/09 - WHOLE - 2010 CAPITAL BUDGET a.m. Thank you. (Proceedings end at 8:15 p.m.) * * * 200 C E R T I F I C A T E I HEREBY CERTIFY that the proceedings of the City of Philadelphia Council Committee of the Whole are contained fully and accurately in the stenographic notes taken by me on Wednesday, April 1, 2009, and that this is a true and correct statement of same. __________________________________ JOSEPHINE CARDILLO Registered Professional Reporter (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)