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Minutes

Committee Hearing, May 6, 2009

Philadelphia City Council Committee HearingsMay 6, 2009

People mentioned

Names our system found in this transcript. Automatically extracted, so it can include anyone named in the record, not only officials or parties.

Organizations mentioned

Council President Verna

Thank22 you.23 The Chair recognizes Councilman24 Jones.25 103 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441

Councilman Jones

Yes.2 Miss Sherrod?3

Councilman Jones

Did I hear5 you correctly say you were the Treasurer6 of Smith playground?7

Ms. Sherrod

Yes, I am.8

Councilman Jones

I had an9 opportunity to go out there several weeks10 ago, to its reopening, and the wonderful11 things that are being done, the12 improvements that are being made, and, in13 fact, mentioned it to my colleague -- it14 might have been yesterday or today.15

Councilman Green

It was16 today.17

Councilman Jones

It was18 today, that it's probably one of the19 best-kept secrets in my district,20 although I share it more with Councilman21 Clarke because it abuts the district, and22 he had to give me instructions on how to23 get there the other day.24

Council President Verna

It's25 104 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 a different Smith Playground.2

Councilman Jones

It's in3 South Philly? That's in your district?4

Council President Verna

It's5 mine.6 (Laughter.)7

Councilman Jones

Never mind.8

Ms. Sherrod

No, what you said9 is true. It is one of the best kept10 secrets.11 COUNCIL PRESIDENT VERNA:12 Claudia, we listened to your testimony13 very intently. Let me ask you a14 question.15 In order to keep all of the16 pools open and make certain that there17 are no further reductions in the18 Recreation Department, needless to say, I19 think there will be reason for increasing20 some type of tax or taxes.21 In your opinion, would you22 rather see a real-estate tax increase or23 a sales tax increase?24

Ms. Sherrod

To be quite25 105 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 honest, I think the sales tax increase.2 But if we have to deal with the3 real-estate tax increase, if it's going4 to be temporarily, and it won't be5 changed from the temporary status, I6 could go for that, because I know once7 the sales tax go in, it's not going to8 ever change.9

Council President Verna

Thank10 you.11

Ms. Sherrod

You're welcome.12

Council President Verna

Good13 afternoon.14

Mr. Pereles

I'm Ed Pereles,15 the Chair of the Seeger Playground16 Advisory Council at 10th and 11th,17 Lombard and Rodman.18 I'm here in many capacities,19 not the least of which is as a senior,20 who has been active in the playground --21 a senior now who's been active in the22 playground for nearly 20 years.23 We are classified as a C24 center, and yet, we have nearly 100,00025 106 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 users -- that is, people who cross the2 threshold of the playground -- each year.3 Our resources have been cut4 back, as have many of the C centers. And5 yet, we don't look at, as a city, how6 many people live in the area, how many7 use the playgrounds, and for what8 purpose.9 We think that the Council ought10 to at least address that. And we've11 asked the Rec Department to address that,12 and I think Commissioner Slawson has, in13 fact considered it, because the14 evaluation of whether it's an A, B, or C15 playground tends to reflect the size of a16 building located on the facility.17 Our playground has many18 activities, and it is critically19 important in Center City to support all20 of the playgrounds, and throughout the21 City, to support the playgrounds because22 of the needs of not just the children,23 but the families and the grandparents who24 are caring for the children and the25 107 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 community as a whole.2 And we ask Council to no3 longer -- to not reduce the resources to4 the Rec Department so that they may5 consider, even under the new system, a6 the combination -- a more effective use7 of City funds.8 Thank you.9

Council President Verna

11 Mr. 12 MR. 14 See, Mr. Hellman's not sitting15 next to me, he's not nudging me. I said,16 you know, it's a tough life when he's not17 here. 19 It's been a very tumultuous first year20 under this current administration for21 almost everyone, but particularly for our22 young people. 5 There was a back-to-basics6 approach to focus on the satisfying,7 solidifying and improving the delivery of8 our core services. 14 At that time, a group of us met15 with the Mayor, and we expressed our16 expectations and concerns pertaining to17 the merger, and he assured us that it18 would have no detrimental effect on the19 level of basic maintenance and services20 that we offer, an he also made it clear21 that we would play a role in the merger22 discussions. 24 Through all of this, we25 109 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 continue to partner with the Rec2 Department and offer delivery of our3 usual large variety of necessary services4 through the summer. By the end of the5 summer, whispers of a $100 million budget6 shortfall sent flying rumors about7 closing facilities and layoffs. Through8 the fall, we continued to assist in the9 delivery of these vital services. 12 Two days after the election and13 passage of the merger referendum, Mayor14 Nutter dopped the impending bombshell on15 us that the City was in a current project16 deficit of $108 million that year and17 800 million in the Five-Year Plan. 18 It was clear to us that the19 Administration utilized that information20 while putting together the proposed21 FY '10 budget due to the fact no22 Libraries would be closed and 50 pools23 would open, with no reduction of hours at24 any facilities. )4 MR. McCREA: We've followed the5 budget hearing over the last six weeks,6 and during the process, we heard7 reference to a Scenario B on several8 occasions. After getting a copy of it,9 we noticed that it was put together in10 the case of many tax increases were not11 approved. 18 It's hard to imagine that19 anyone would propose such draconian cuts20 to a vital service to the City's youth,21 again, from our perspective, considering22 that we provide over 90 percent of the23 onsite program dollars citywide. We have24 to wonder if it's a lack of respect or25 112 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 just being taken for granted. 3 Through all the years' ups and4 downs, the Recreation Department5 continues to offer a host of programs and6 activities, and our partnership with them7 continues to thrive. It's a living8 testament to the dedicated staff and9 volunteers that continue to provide these10 vital services to every community across11 the City. 17

Council President Verna

Thank18 you very much.19 I see that we have written20 testimony here from Mr. Hellman. Is he21 here?22 MR. McCREA: He's in the23 building, but he's indisposed at the24 moment. It was a little too hot for him25 113 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 in here, and he was a little2 uncomfortable.3

Council President Verna

Is he4 going to return?5 MR. McCREA: He is not.6

Council President Verna

He is7 not. Very well. Then we will give the8 stenographer a copy of his testimony, and9 it will be transcribed in full.10 MR. McCREA: Thank you I11 appreciate that.12 I actually have a question,13 Madam President, if you don't mind. May14 I? A very short one, and I don't know if15 you have an answer to it, but maybe you16 can find out.17 I was looking at the Capital18 Budget for the Department, and I noticed19 that there were a number of items in20 there going back to actually Fiscal Year21 of '95. I'm wondering how correct that22 would be and if there is a reason why23 we're still looking at items in 1995 that24 we haven't paid for yet or we still have25 114 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 money.2 And I was curious as to why3 that was 'cause I am fielding an answer4 of that, and the Capital Program Office5 no longer exists.6 (Indiscernible; parties talking7 over each other.)8 COUNCIL PRESIDENT VERNA:9 You're not asking a question that we10 haven't asked.11 MR. McCREA: Okay.12 COUNCIL PRESIDENT VERNA:13 Mr. McPherson is going to come over to14 speak to you.15 MR. McCREA: Great. Thank you.16

Council President Verna

And17 you can give him any information you18 might have.19 MR. McCREA: Thank you very20 much.21

Council President Verna

Our22 next witness?23 MR. McPHERSON: Andrew24 Thompson.25 115 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 (Witness comes forward.)2

Council President Verna

Good3 afternoon. Welcome. Please identify4 yourself for the record.5

Mr. Thompson

Good afternoon,6 Councilwoman Verna. My name is Andrew7 Thompson, and it's the first time I've8 testified where I just show up and I9 didn't have to wait.10

Council President Verna

Great.11

Mr. Thompson

So thanks for12 the timing today.13 My testimony concerns,14 obviously, the Recreation and Parks15 Commission as well as the libraries. I'm16 here to point out that throughout my17 review of the budget presented by the18 Mayor and throughout the debate about it,19 there has been an overarching theme of20 trying to rectify the fiscal crisis we're21 in, but at the same time, it's22 (indiscernible) ambitious goals that we23 had when Mayor Nutter started, and some24 of those goals seemed to have been25 116 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 sacrificed -- rightly so, as we do face2 an economic crisis.3 However, in November, when the4 edict came down to close some of the5 libraries, one of them was my branch6 library, in my neighborhood.7 The thing that came to mind for8 me was a saying my grandmother, and I'm9 sure everybody else's grandmother, said10 was: An ounce of prevention is worth a11 ton of cure. And, unfortunately, I don't12 believe that our city invests too much in13 cure for what ails our city.14 We have a systemic level of15 violence, of non-participation in youth16 activities that is consistently17 underfunded at every level of government,18 unless a child is arrested or placed in19 DHS care.20 My children, and the children21 of probably a lot of the people who are22 testifying today, thankfully, are outside23 of this scope. And until we start24 investing a little bit more money into25 117 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 those things that those children can have2 to supplement their schooling and their3 extracurricular activities, we're going4 to see more and more kids slide into the5 cycle of violence that we're in now.6 And I say that because -- and7 I'll point to Councilman Kenney 'cause --8 and Councilman Greenlee, when you guys9 were kids -- and I'm that old, but when I10 was a kid, we all -- and the Republican11 Councilmen and Councilwoman Sanchez as12 well -- we had jackets for the youth13 activities we were involved in. I had a14 Fishtown (indiscernible) jacket, and it15 was a big deal to have a jacket, it was a16 big deal to be involved in your local17 sports organization.18 I can point to at least ten of19 these organizations that don't exist in20 the decade-and-a-half since I was playing21 ball, that aren't in existence now. I'll22 point to some of the organizations like23 the Kensington Ramblers; Simpson AA,24 which exists in a much smaller fashion25 118 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 than it used to.2 And people will say, Oh, these3 organizations have fallen by the wayside4 because parents don't want to be5 involved, but I think what this Council6 needs to recognize, and I think the7 budget needs to recognize, is that there8 is an opportunity for this body to9 appropriate funds to go and reinitiate10 these programs in these neighborhoods11 that do not have it anymore.12 And it shouldn't take a child13 getting arrested or his parents harming14 him or her to get them involved in some15 sort of state-sponsored solution for what16 they're supposed to be doing with their17 time when they're not in school.18 And I think when I say that an19 ounce of prevention is worth a ton of20 cure, a million dollars transferred --21 and this is just a -- from the budget22 that we use the on the top end to marshal23 the kids who are in trouble, spent when24 those kids are eight years old on25 119 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 positive things will -- I don't know --2 will have a tenfold investment gain ten3 years down the line.4 And I think everybody5 recognizes that, but nobody wants to say6 that, nobody wants to do it. And when we7 went through the thing with the8 libraries, the one thing that I said to9 everybody was, "These are the kids who10 are going to the library." I mean,11 that's the sentence. We're taking away12 the opportunity from the kids who are13 going to the library.14 And, you know, there's budget15 concerns --16 (Timer bell rings.)17

Mr. Thompson

-- to deal with18 that, but I'll just say that again.19 These are the kids that are20 going to the library. Give them an21 opportunity and continue to do so.22 Thanks for your time.23

Council President Verna

Thank24 you very much. Thank you.25 120 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 MR. McPHERSON: The next panel2 consists of Katherine Gomez and Michael3 Vogel.4 (Witness comes forward.)5

Council President Verna

Good6 afternoon. Kindly identify yourself for7 the record.8

Ms. Gomez

Yes. Good9 afternoon. My name is Katherine Gomez,10 and I'm the Managing Attorney of the11 Family Advocacy Unit of Community Legal12 Services.13 For over 30 years, the Family14 Advocacy Unit has provided legal advice15 and representation to hundreds of parents16 involved in Philadelphia's child welfare17 system. We essentially help parents18 preserve and reunite families where19 possible.20 You might have heard some of21 our clients testify a few -- some of our22 former clients testify a few weeks ago23 about the importance of DHS services. As24 you may know, the vast majority of our25 121 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 clients are low-income, single parents2 who love their children, and are3 committed to safely caring for them, but,4 at some point, need help.5 The type, intensiveness, and6 duration of the help they need is7 different, as families are different and8 have different strengths and needs.9 It's, therefore, important that DHS is10 able to offer a variety of different11 types of help, from prevention services12 to reunification services.13 I'm here as a family advocate.14 We're concerned that any cuts made to the15 DHS budget may compromise those very16 important preventing programs, such as17 parenting classes, as well as enhanced18 reunification services, as well as other19 programs that our most vulnerable20 families so desperately need and rely on.21 In terms of prevention, I just22 want to give you some ideas of what23 happens at these parenting classes and24 why they're so important. Many of these25 122 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 parenting class are offered on a2 voluntary basis, so you do not even need3 to be further involved with the DHS or4 court system.5 In our experience, many of our6 clients benefits -- especially from7 parenting classes that are targeted:8 Teen parents, parents of young children,9 or parents of teenagers, parents of10 medically-needy children, parents who11 themselves have mental health issues, or12 some type of specific disability.13 We have numerous clients who14 were able to take care of their children15 completely appropriately, their child16 hits adolescence and, all of a sudden,17 chaos ensues, you know, as I'm sure18 you're aware that the number of families19 seeking to place their teenager children20 is on the rise. So it's so important21 that there are parenting programs to help22 parents adjust to this change in their23 child and help parents appropriately24 parent a teenage child.25 123 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 Just as it's difficult to2 parent a teenage child, it's extremely3 difficult to be a teenage parent of an4 infant, and DHS offers specialized5 programs for those teenagers, and we have6 kind of a subspecialty at CLS, where we7 represent numerous teenagers in child8 welfare proceedings, and we find that9 these parenting classes geared towards10 teenagers are really, really important in11 helping teenagers deal with their own12 adolescence and deal with issues that are13 particular to them.14 We also have parents with15 disabilities who feel very isolated, very16 vulnerable, and very incapable, even17 though with accessible help, they can18 parent appropriately. So having19 accessible services is key.20 (Timer bell rings.)21

Ms. Gomez

I'll leave you with22 the rest of my testimony, which talks23 about some of the key, really important24 reunification services that DHS provides.25 124 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 And, essentially, please don't look to2 the DHS budget to make cuts. It's so3 very important for our most vulnerable4 families.5 Thank you6

Council President Verna

Thank7 you very much.8 Good afternoon.9

Mr. Vogel

Good afternoon. My10 name is Michael Vogel, and I'm the Chief11 Executive Officer of one of the nonprofit12 organizations that delivers some of the13 prevention programs you were just hearing14 about.15 (Indiscernible) strives to16 build stronger families within the City17 of Philadelphia by focusing on vulnerable18 and underserved populations. Whether19 we're assisting teenage mothers or20 struggling families or relatives, we have21 assumed the duties -- who have assumed22 the duties of absent parents, the23 ultimate goal of our programs is to24 prevent the abuse and neglect and to25 125 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 empower children and families.2 Our clients come to learn that3 they are not alone when they find4 themselves in challenging situations that5 might have otherwise broken their family6 unit.7 As an example, I want to tell a8 story of a woman I'll call "Mrs. B.,"9 who, as a 53-year-old recovering drug10 addict, Mrs. B. found herself caring for11 her two grandchildren, at ages 8 and 10.12 Hoping to provide a more stable life for13 the children, Mrs. B. attempted to file14 for custody. The petition was denied,15 however, because Mrs. B. did not have16 adequate housing.17 This news coupled, with the18 daily struggle to maintains her sobriety,19 left her under a great stress, but she20 knew that without the custody of her21 grandchildren, her grandchildren's22 biological parents could legally come and23 take them back at anytime and put them in24 a more harmful environment. It came25 126 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 clear to her that she had neither the2 support nor the resources to handle her3 situation on her own.4 In their time of distress,5 Mrs. B. and her family turned to the FAST6 Program, which stands for Families and7 Schools Together -- some of you, I know,8 are familiar with it. There, the staff9 was able to connect Mrs. B. with housing10 assistance, child custody resources, and11 drug and alcohol support programs. She12 also received encouragement from peers in13 the program.14 Today, she acknowledges that15 the FAST Program was her rock, and16 eventually, she was able to secure17 appropriate housing, and went on to18 obtain full legal custody of her19 grandchildren. A proud graduate of the20 program, she states that the FAST Program21 was there for her in her time of need and22 never left her side.23 Because of the services that24 Mrs. B. and her family received through25 127 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 FAST, the children are now being raised2 in a stable environment and can focus on3 their educational development and growth.4 It's no secret, ladies and5 gentlemen, that people who are under6 stress tend to engage in irresponsible7 behaviors. It's also no secret that our8 economy is in the midst of a financial9 crisis. Parents or caregivers who are10 met with financial difficulties -- the11 loss of a job or other triggers -- turn12 to drugs or alcohol, putting their13 children at a greater risk for domestic14 violence and neglect.15 Abused and neglected children16 have a tendency to recycle these17 behaviors as they approach adulthood,18 costing taxpayers millions of dollars for19 drug and alcohol abuse services, more20 police officers on the street, and for21 the cost of incarceration. In22 Philadelphia, as I'm sure you're aware, a23 prisoner costs taxpayers $27,00024 annually.25 128 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 These expenses undeniably dwarf2 the cost of prevention programs like3 those offered by our organization Turning4 Points For Children. Nurturing and5 supporting vulnerable children and6 families now --7 (Timer bell rings.)8

Mr. Vogel

-- instead of9 picking up the pieces later is not only a10 safe and healthy choice, it's the one11 that makes the most sense for our fragile12 economy.13 My testimony goes on to14 describe a teen parenting program, which15 my co-presenter was referring to, and I16 just want to end by saying a couple of17 things.18 I know that you have a very19 difficult situation here; I do not envy20 you. However, somebody has to deal with21 the situation, and, unfortunately, maybe22 you're the ones, sitting in the chairs23 right now.24 I am also on the Pennsylvania25 129 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 Crime and Commission Juvenile Justice and2 Delinquency Prevention Committee, and3 when I first joined, a very wise judge4 that I met from York County told me that5 part of what we should be doing is trying6 to make our children into taxpayers and7 not tax consumers, and I think these8 prevention programs that you're hearing9 so much about in the testimony this10 afternoon do just that.11 And I urge you to please12 consider resisting the temptation to make13 short-term cost cuts that will cost us14 more than in the future.15 Thank you.16

Council President Verna

Thank17 you very much. Thank you for coming in.18 Our next witness?19 MR. McPHERSON: Helen Gym.20 (Witness comes forward.)21

Ms. Gym

23 My name is Helen Gym. I'm a24 Philadelphia public school parent. 2 And here's why we think that3 makes the most amount of sense and that4 is something that could change a lot of5 things now. There are 80 full-time6 clerks on staff at the School District of7 Philadelphia. We believe that is about a8 third to 40 percent of the number of9 people within the BRT agency. Under the10 School District, the BRT expenses have11 grown by 18 percent this year from the12 previous year, and will grow nominally13 again next year. 16 Because of City ethics laws,17 the School District is the place where18 the most political hires end up. 5 million for next year. 5 million worth of public17 school money. 20 Only in public schools, we believe,21 at this point have a Philadelphia school22 librarian, and very few of them are in23 elementary schools24 It could go towards a number of25 133 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 any other initiatives that we, as2 parents, have been fighting for years,3 but what we don't want it go for is the4 kind of stuff that's been detailed in the5 papers6 The second issue I wanted to7 address is some concern about the City's8 Five-Year Plan from an education9 perspective. 18 And that commitment is one of19 the reasons why I am here today, because20 I'm worried about that commitment being21 somewhat in jeopardy22 As you know, the total amount23 that the City of Philadelphia will24 deliver to the public schools next year25 134 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 is $10 million less than last year and is2 at its point in three years. )17

Ms. Gym

Are we committed to a18 60/40 split.19 And the reason why that's so20 important, obviously, is because property21 taxes are the bread and butter of school22 financing; there isn't a whole lot of23 other areas that we can go to get money24 for it. We beg and scrape for anything25 135 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 else, and we have to go to the State for2 it, and that's not a very friendly place3 to be.4 We also note that the best5 thing that this Mayor did was to speak6 strongly about being a regional7 cheerleader for the Philadelphia public8 schools and for public school funding in9 general. But we don't think you can be10 an effective cheerleader when the City11 itself doesn't -- or could be seen at a12 difficult time as not appearing to invest13 as much in its own team. So we hope and14 urge that you'll think about that.15 My last statement is just that16 the City of Philadelphia -- as you take a17 look at the ten-year tax abatements, that18 you consider the dramatic impact that it19 has had on school funding. According to20 the Inquirer, it's our belief that the21 City of Philadelphia at its peak, in22 2016, will have seen a decline of23 $143 million in public school funding,24 and that's according to eConsult numbers,25 136 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 which only counts one-third of the2 property taxes, assuming that two-thirds3 of the property wouldn't have even been4 built.5 So according to our studies,6 already, the School District has lost7 $108 million in property tax revenue. By8 2016, it will lose $143 million, and9 we'll only begin to see profits in 2025,10 when we'll get a first check for11 1.2 million.12 So my urgency is that I have13 three kids in the system, one of which is14 a kindergartener. I'd like to not see15 this be a lost generation for public16 school funding. As you talk about the17 tax abatements, I urge you to consider18 the impact on schools.19 Thank you.20

Council President Verna

Thank21 you very much.22 MR. McPHERSON: Our next23 witness is Dan McElhatton.24 (Witness comes forward.)25 137 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441

Council President Verna

Good2 afternoon, and welcome.3 MR. McELHATTON: Good4 afternoon, Madam President and members of5 Council. My name is Daniel P.6 McElhatton, M-C-E-L-H-A-T-T-O-N. And7 with the President's agreement, I would8 submit my written testimony to be9 incorporated into the record in its10 entirety.11 Is that permissible, Madam12 President?13

Council President Verna

Yes.14 Thank you.15 MR. McELHATTON: And, Madam16 President, I would like to take the three17 minutes allotted to just make some18 remarks on the District Attorney's19 budget, as proposed by the Mayor. As you20 know, I am a candidate for Council -- for21 Council -- that was a long time ago.22

Council President Verna

A23 long time ago.24 MR. McELHATTON: A candidate25 138 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 for District Attorney, and I come to2 Council today in that capacity.3 And it has been interesting4 over the last several months, after the5 Mayor proposed the budget. We would be6 asked at every forum we would go, What7 will you do to manage the DA's Office8 with the 22 percent budget cut? And,9 universally, I said, it will not happen,10 it cannot happen, and it won't.11 And the Council session12 yesterday was a reaffirmance of the13 position that I've been advancing. And14 that is that I knew, because of my own15 personal experience with Council and also16 knowledge of the current membership, that17 Council could not, and would, not accept18 those kinds of draconian cuts to the19 criminal justice system, because as, I20 again, have used the analogy, the system21 is one similar to an automobile.22 And if you were to say, We're23 going to cut 22 percent of an automobile,24 well what do you take? Do you take the25 139 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 engine? do you take the transmission? do2 you take the wheels? And if you take3 those systems out of a car, the car won't4 work.5 The same thing is true with the6 criminal justice system.7 And I think that what we have8 seen here is the reflection of two9 strong-willed personalities over the last10 17 years who've really not gotten along11 very well, and I think that we need to12 look behind us and then determine how13 we're going to go forward.14 And I would ask Council to use15 its judgment and use its experience and16 accept the recommendations of the17 Criminal Justice Advisory Board. I think18 that that is a clear reflection of a19 consensus, an agreement by the parties in20 interest.21 And that existed before, as you22 well know, Madam President. I happened23 to serve on the Criminal Justice Advisory24 Board, when I was a member of Council,25 140 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 and so, I know what the collaboration is,2 how it's necessary, why it's necessary,3 and I submit that that the next district4 attorney, if I am fortunate enough to be5 in that position, I commit to this6 Council and the Administration that I7 will be collaborative.8 I have called for the9 reestablishment -- and now it does10 exist -- of the Advisory Board. And the11 discussions have to be at that highest12 level. It cannot just be designees; it13 has to be the District Attorney, the14 President of City Council, the Mayor, the15 Chief Justice of the Supreme Court, and16 certainly the President Judge, the17 Sheriff, the Clerk of Quarter Sessions,18 and all of the parties in interest, so19 that we don't get into a situation where20 the Council chambers is used as a vehicle21 where there's acrimony and discord.22 I don't mind discussion, and I23 can be as engaging in a heated debate,24 and have done so on this floor, but I25 141 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 think there are times when that's2 appropriate. I think the budget for the3 criminal justice system and the DA's4 Office should start with the DA and the5 Mayor and Council in October of this year6 for next year's budget so that when the7 budget is proposed next year, the8 District Attorney -- and hopefully it9 will be me -- can come back in front of10 you and say, "Madam President, members of11 Council, if you have any questions, I12 will be glad to answer them -- "13 (Timer bell rings.)14 MR. McELHATTON: " -- but I15 recommend the adoption of the budget as16 submitted."17 That's what I hope we will18 have, in a spirit of cooperation and19 collaboration.20

Council President Verna

Thank21 you very much. Thank you.22 MR. McELHATTON: Thank you,23 Madam President.24 COUNCIL PRESIDENT VERNA:25 142 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 You're welcome.2 MR. McPHERSON: Our next3 witness is Amy Dougherty.4 (Witness comes forward.)5

Ms. Dougherty

Good afternoon6 Council President Anna Verna and members7 of City Council. My name is Amy8 Dougherty, and I am not running for9 office.10 I am the Director of the11 Friends of the Free Library of12 Philadelphia, a nonprofit since 1973,13 whose mission has been to support the14 Free Library of Philadelphia through15 patron volunteers.16 Thank you for holding these17 hearings today on the 2010 General Fund18 budget.19 I know this is a really tough20 year, and my aim today is to clarify the21 Library's present General Fund allocation22 and what the Administration is proposing23 for 2010.24 As you know, the Library took a25 143 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 20 percent cut in the rebalancing of the2 2009 budget. And while all libraries3 remain open, more or less, the 20,000 --4 or $8 million reduction has created an5 enormous strain on library personnel, has6 precipitated about two unscheduled7 library closures per day, and has8 significantly reduced the number of9 programs, which is a vital branch --10 which is very vital to branch functions.11 To help clarify where we've12 been and where we are now, I just want to13 give you a brief history.14 City Council approved the 200915 Library budget of $40,245,000, which was16 a reduction of about $300,000 from 2008.17 The proposed FY 2010 General Library18 budget is $32,968,000, and this maintains19 the $8 million, or 20 percent, reduction20 to the budget that you approved.21 If this is approved, this is22 what will happen:23 Staffing. Library personnel24 will remain reduced by 85 positions and25 144 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 will remain at 628, which is down from2 713 positions in 2008.3 The materials budget has been4 cut by 25 percent, which means that no5 new purchases of children or adult books6 have been made this year and why the7 library is currently in the middle of a8 10,000 Books drive for summer reading9 materials for children. By the way,10 Friends of the Free Library donated11 $25,000 towards that book drive.12 The operating hours. The13 proposed operating hours are for five14 full-day-per-week service, instead of six15 or seven, and the Central Library will16 remain open for 65 hours in order to17 comply with State Aid to Libraries18 So what we believe about this,19 the Administration's proposed budget, is20 that it is a very good stopgap measure.21 It maintains accessibility to the Free22 Library for all communities. It is what23 we were hoping for, it is the best thing24 that we can do, and that is that all25 145 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 communities will continue to have library2 services.3 So we've come a long way since4 November 8th -- or November 6th, from the5 proposed permanent closure of libraries,6 to keeping all 54 branches open. And I7 want to thank members of Council, I want8 to thank the citizens of Philadelphia for9 once again letting it be known that we10 need and love our library11 So in the short term, five-12 days-per-week service and a $32 million13 budget for the Library is okay. So for14 the first time in the history of my eight15 years of testifying before you, I am not16 asking you for an increase to the17 Administration's budget.18 (Timer bell rings.)19

Ms. Dougherty

So I appreciate20 your support. And if you have any21 questions about the specifics of where22 we've been or where we're going, I'm23 happy to take them.24

Councilwoman Tasco

Thank you25 146 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 very much.2 Any questions for the witness?3 (No questions.)4

Councilwoman Tasco

Thank you5 for your testimony.6 MR. McPHERSON: Our next7 witness is Linda Womack.8 (Witness comes forward.)9

Ms. Womack

Good afternoon.10 My name is Linda Womack, and I am11 currently an employee at the Department12 of Licenses and Inspections, and have13 been with that department for a little14 over 28-and-a-half years. I have served15 in the capacity as a clerk typist16 trainee, a clerk typist 2, a service rep,17 an interim information officer, and a18 housing inspector 1 and 2, an enforcement19 officer 1 and 2, and now I currently hold20 the position of code administrator 1 for21 the Code Violation Unit.22 I'm here this afternoon to urge23 City Council to consider not cutting any24 money out of the budget for the25 147 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 Department of Licenses and Inspections;2 and, in fact, give them more money to do3 a job that is so needed in our city.4 In my tenure with the5 Department, I have been afforded the6 opportunity to take classes at Drexel7 University in property management and8 property maintenance with the9 Commissioner of the Upper Darby10 Department of Licenses and Inspections,11 and he was pointing out to us that the12 most -- the most that he does is all13 because he -- his county and other14 counties surrounding Philadelphia, they15 see clean neighborhoods, they see16 buildings that are maintained because of17 their efforts and enforcement.18 What I currently do for the19 Department of Licenses and Inspections20 is, I go to hearings on behalf of our21 department, representing L&I, and sit in22 as an intermediary to resolve cases23 relative to people who, for whatever24 reason, do not comply with the building25 148 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 and property and maintenance codes as2 well as the business codes in3 Philadelphia.4 What is going on at this point5 is I think that people who, like myself,6 have been in the Department for many7 years and have been a taxpayer and lived8 in the City, lived in the area where9 there's much blight, we are the best10 people who can represent the City of11 Philadelphia Department of Licenses and12 Inspections in these hearings, because we13 live in these communities, we know what14 goes on.15 And as an inspector for at16 least nine years in the Housing Unit, I17 saw from throughout the City what the18 problem really is. And we do need nor19 enforcement. And to dismantle the Code20 Violation Resolution Unit would be a21 detriment to the City because we are the22 people who make sure that people comply23 with the law.24 And if we want to see our city25 149 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 safe, buildings maintained, neighborhoods2 clean, we don't need to get rid of people3 who enforce the law relative to the codes4 as it pertains to property maintenance.5 And that's why I'm here today,6 and I'm asking you all to please find the7 money to keep our jobs stable in the Code8 Violation Unit. Our commissioner is9 doing a very great job. She's trying10 very hard to live within the budget that11 the Mayor has allotted to her, but it's12 very difficult for her to maintain a high13 level of service without the funding.14 Thank you very much for your15 time.16

Councilwoman Tasco

Thank you17 very much for coming out to testify.18 Appreciate it very much. And thank you19 for the work you do.20 MR. McPHERSON: Our next panel21 consists of Dr. Kay Kinsey and Eudora22 Burton.23 (Witness comes forward.)24

Dr. Kinsey

We have a fair25 150 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 number of materials. Be prepared.2 To all the members of Council3 and to Council President Verna, thank you4 for hearing our testimony on behalf of5 young families who are participants in6 the Philadelphia Nurse Family Partnership7 Program.8 Three NFP staff are here today.9 I'm Dr. Kay Kinsey, the Nurse Family10 Partnership Administrator. I provide the11 oversight and direction to12 (indiscernible) the public nursing13 program.14 Also on the agenda is15 Miss Eudora Burton. And in the audience16 is our newest NFP nurse, Miss Jane P.17 Shore.18 The Philadelphia NFP began in19 2001 with a cadre of thirty nurses and20 support staff, and the distributed21 materials will explain further the22 program locally and nationally.23 NFP serves first-time,24 low-income pregnant and parenting mothers25 151 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 and their children until age 2 years.2 It's a evidence-based, intensive nurse3 home-visit program. The goals are to4 improve pregnancy outcomes, improve child5 development, improve families' economic6 self-sufficiency.7 The program founder, Dr. David8 Olds, began his research in 1977, and9 that's one reason why we're so committed10 today.11 Consistent program findings are12 improved prenatal health, fewer childhood13 injuries, increased intervals between14 births, increased maternal employment,15 improved child school-readiness, and less16 involvement with the juvenile and adult17 justice systems.18 And, in fact, NFP saves19 dollars.20 (Timer bell rings.)21

Dr. Kinsey

It is the largest22 NFP replication model in Pennsylvania.23 We serve the entire city, and there are24 some maps in your materials that you can25 152 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 look at where we serve predominantly our2 young babies at this point in time.3 In the Commonwealth, there are4 more than 40 counties that have nurse-5 family partnership programs.6 What about our families here in7 Philadelphia? We've had more than 18008 participants who have received one or9 more of the services on average upon10 enrollment.11 We have an 18-year-old unwed,12 low-income mother to be.13 Our outcomes also are14 significant. Presently, we have a15 statistically significant reduction in16 cigarette-smoking during pregnancy as17 well as reduction in marijuana use and18 domestic abuse.19 When the babies are born,20 they're born to mothers who really care21 about their babies, and 63 percent of our22 mothers begin breastfeeding, which means23 a lifelong legacy of a healthier baby and24 a healthier child.25 153 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 Our babies are tested for lead,2 and 4 percent of our babies have tested3 positive and have been treated. More4 than 90 percent of our children are fully5 immunized at age 2 years. And our moms6 can go back to the workforce earlier than7 their national counterparts, and during8 the first year of the baby's life, are9 back on the job for more than six months.10 In addition, our mothers continue in the11 workforce during the second year of the12 baby's life13 Of those mothers who enter14 without a GED or a high school education,15 we have found that 57 percent, at the16 time of graduation, are still in school17 or have completed their education. And18 we are particularly proud of the fact19 that 20 percent of our mothers in NFP20 continue on for school afterwards, and21 several of them have received full-22 college scholarships.23 But what are our challenges?24 And that's the reason that we're here25 154 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 today. We have noted that inadequate,2 substandard housing and the absence of3 affordable, safe, permanent housing in4 Philadelphia jeopardizes the health and5 well-being of our mothers and babies In6 addition, our participants move7 frequently. We call them "nearly8 homeless."9 Three years ago, I undertook an10 analysis of housing and homeless status11 of our enrolled and graduated families,12 and our documented findings validated the13 nurses' anecdotal accounts and further14 verified the challenges our families face15 About 30 to 40 percent of our16 families move at least once or twice in17 the course of two years. However, 3018 percent of our families move five or more19 times. One new mother had to move five20 times during the first week of her son's21 life.22 Close to 40 percent of our23 families do not have a stable, permanent24 address. They live in multi-generational25 155 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 households with relatives, friends,2 others, and too often, they make3 uninformed decisions about moving from4 one place to another. The housing issues5 for our families and, I suspect, many6 Philadelphians --7 (Timer bell rings.)8

Dr. Kinsey

-- is at a crisis9 level.10 So I will skip the next11 paragraph. I know you'll put it into the12 document.13 But in response to this evident14 need, I sought additional support for15 housing specialists/social workers to16 develop our Opening Doors Project. Miss17 Eudora Burton NFP housing specialist and18 will briefly describe our experience and19 short-term outcomes to date.20

Ms. Burton

I'd like to say21 good afternoon. My name is Eudora22 Burton. I'm the Housing Specialist/23 Social Worker for the Nurse Family24 Partnership Opening Doors Program.25 156 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 We are committed to working2 with City Council and others to reduce3 the homeless experience of our families4 and others throughout the City. Being5 homeless, with the only option of a6 shelter admission for a new mother and7 baby, can be traumatic, stressors that8 puts the family on an uncertain life9 trajectory.10 I use the definition of the11 McKinney Veto Homeless Act that is also12 used by the School District of13 Philadelphia and other organizations.14 It' is the only major federal legislation15 response to homelessness. The definition16 includes the lack of fixed, regular, and17 adequate nighttime residents sharing18 housing with others due to financial19 hardship and et cetera.20 The challenges that the Nurse21 Family Partnership nurses and I have22 found include need for enhanced life23 skills for young families, including:24 Independent living decisions.25 157 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 I must work with the Nurse Family2 Partnership nurses to address, I realize3 are, at times, unrealistic short-term4 goals.5 Lack of proof of income.6 Stressful social relationships.7 No positive role models.8 Lack of self-esteem, and9 others, including abusive environments,10 substandard and dangerous housing11 environments, limited options for housing12 placement.13 For example, a pregnant woman14 is not considered a family until the baby15 is born, and there is limited housing16 available for a single person in shelter17 or in transitional housing. There are18 long waiting lists for subsidized19 housing, unsafe neighborhoods.20 Short-term outcomes include our Nurse21 Family Partnership participants have a22 (indiscernible) appraisal conducted by23 the Nurse Family Partnership nurse, with24 referral to a housing specialist, which25 158 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 is myself.2 I have at least 140 referred3 (indiscernible) since July of 2008. I4 refer the clients to job corps5 placements, achievability programs, group6 education sessions, 101 Counseling7 sessions, School District liaisons,8 career wardrobe opportunities, housing9 resource guide, housing provider,10 connections for shelter and transitional11 housing places.12 In conclusion, our goals are to13 work together to prevent homelessness and14 shelter admission and readmission,15 dialogue with others regarding housing16 options for young families, including17 designated housing for approved Nurse18 Family Partnership, pregnant and19 parenting mothers, including the Housing20 First model, monitor the status of our21 families over time regarding health,22 social, and educational well-being, and23 citizen involvement in reference to their24 housing situation, improve the quality of25 159 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 life in Philadelphia, and to have our2 young families remain here to raise their3 children and be taxpaying citizens, have4 our city be a vibrant, attractive,5 appealing place to live and work in 20156 and beyond.7 (Timer bell rings.)8

Ms. Burton

As City Council9 makes difficult decisions during this10 time of economic uncertainty, we, on11 behalf of the Nurse Family Partnership12 families and others, urge you to consider13 that the decisions made about children's14 services and housing will be the future15 of our city.16 Thank you very much for hearing17 us and for your time.18

Councilwoman Tasco

Thank you19 very much for your testimony. It's nice20 to know about what you do and the21 services you provide. And we appreciate22 your coming out this afternoon to23 testify.24

Ms. Burton

Thank you so much.25 160 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 Have a blessed day.2

Councilwoman Tasco

Any3 questions?4 Do you have questions,5 Councilwoman Blackwell?6

Councilwoman Blackwell

Madam7 Chair, I wanted to say thank you as well.8 During these times when there's so much9 need for the housing, for the services10 you described, and when people are in11 such need, we thank you for taking the12 time to be here and giving your13 testimony.14 And thank you for the15 information too.16 PANEL MEMBERS: Thank you.17

Councilwoman Tasco

Just a18 second before you leave.19 Councilman Jones?20

Councilman Jones

Don't go21 away. Sit down.22 I was here, talking to23 Councilwoman Blackwell, who is the Chair24 of Housing and Homelessness and has been25 161 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 a long-term advocate for making sure that2 people had adequate housing in all3 different sections of the City of4 Philadelphia. And I had a few questions,5 being on the committee sale.6 One, what has the economy done7 to the demand for subsidized and8 low-income housing? And what has been9 your observation?10 And I don't expect you to11 answer it as an economist, but just what12 your observations have been.13

Dr. Kinsey

I can tell you14 that our clients now -- we started eight15 years ago, so we have cohorts of mothers.16 Like every three years, they graduate and17 we have a new cohort come in or be18 admitted.19 They're poorer, they have less20 income over which they can negotiate any21 sort of opportunities.22 But they're also23 unsophisticated, as Eudora can explain.24

Ms. Burton

What we're trying25 162 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 to do is not just get moms to look at2 subsidized housing and PHA housing; we're3 looking to help moms establish market4 value housing as well.5 And in order to do that, I've6 connected with programs like7 Achievability Housing, where the person8 is required to have a job and go to9 college, because we don't want them to10 get stuck in a low-level paying position,11 where they can't pay rent.12 And our average rents are13 running about $650 a month for14 one-bedroom apartment. And, you know,15 they -- for a two-family, for like a16 mother and a baby, if they're on public17 assistance, they only get $316 a month.18 It's no way that they could pay that type19 of rent.20 Because these families are not21 recognized through the regular shelter22 system that we have in place, well, then23 they can't go into a program like24 Transitional Housing; they have social25 163 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 services. So that they're out of that2 loop.3 What we hope to have happen is4 that the door becomes open to these new5 moms that are really focused on improving6 their life, becoming self-sufficient, and7 obtaining affordable housing.8

Councilman Jones

One of the9 things that I would ask your group to10 take a look at is that there are two11 converging demographics coming together12 with the same need.13 What I've experienced in my14 district, in the 4th District, is a high15 number of seniors that don't want to be16 in assisted-living facilities, that could17 parent -- or partner with single parents18 that are willing to do care provisions in19 a limited way.20 But we want to try to work with21 PHFA at the state level to come up with a22 duplex, if you would, where the single23 parenty maybe lives above the elderly24 grandparent may live or non-related25 164 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 senior may live below, with a specific2 social contract to provide certain3 things, like to make sure that that4 senior ate and working with the Meals on5 Wheels program or making sure that they6 made their monthly doctor's visit or7 whatever that individual needed during8 the course of a month.9 And in a way, the savings could10 be found through not putting a senior in11 assisted facilities that cost you upwards12 of $50,000 a year and not putting a13 mother in a homeless shelter, which costs14 over, I want to say, $60 a day, trying to15 find an economy of scale, if you would,16 for the both of them that make sense.17

Ms. Burton

I love it.18

Councilman Jones

And we need19 to be a little more creative, I think --20

Councilman Jones

-- in trying22 to solve our more vulnerable population's23 housing needs.24 And would love to, if you would25 165 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 provide the Chair and this Council, with2 ideas to that end, all right?3

Dr. Kinsey

Thank you.4

Ms. Burton

Oh, we love that5 idea. We would love to work with you6 with that.7

Dr. Kinsey

I can assure you8 Eudora will be at your door.9

Councilman Jones

All right.10 Thank you, Madam Chair.11

Ms. Burton

Thank you.12 MR. McPHERSON: Our next13 witness is Virginia Brown.14

Councilwoman Tasco

Virginia15 Brown, are you sleeping back there?16 Don't be taking a nap.17 (Witness comes forward.)18

Ms. Brown

Good afternoon.19

Councilwoman Tasco

Good20 afternoon.21

Ms. Brown

My name is Virginia22 Brown, and I speak to you today as a23 long-time resident of Philadelphia, a24 former Health Department worker, but,25 166 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 most importantly, a mother and2 grandmother.3 I'm an active member of the4 Philadelphia Parks Alliance, and, until5 recently, was the chairperson of the6 Board of Directors of Citizens For7 Pennsylvania Future.8 Here is what I know. I raised9 my children in West Philadelphia, and I10 was able to raise healthy children,11 thanks, in large part, to the Cobbs Creek12 Park. It's where we played, walked,13 read, had fun, and were safe.14 I live -- I still live in my15 home, but the park is no longer safe and16 welcoming. Many children now play on the17 street, and I drive to Yeadon every18 morning to exercise. And that's not19 right; we can do better.20 If we continue to neglect our21 parks, as we have for decades, do we22 expect that our children will be healthy23 and happy? We're smart and we know that24 we will pay for our supposed savings in25 167 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 other ways like increased crime, police,2 prison, medical bills, and neighborhoods3 that do not serve our basic needs.4 I know these are tough times,5 and my own blood pressure has gone up6 just watching my retirement savings go7 down. But when are we going to make the8 hard choices and the right choices?9 For many Philadelphians, our10 parks are where they vacation, recreate,11 exercise, socialize, particularly in12 these hard financial times. When13 families can't afford trips to Disney14 World or Sesame Place or to the shore,15 where will they go?16 East and west parks -- the17 Wissahickon, Pennypack, Cobbs Creek,18 Malcolm X, Cloverleaf Park, FDR, and19 Hunting Park, these are open spaces,20 playgrounds, ball fields, hiking trails,21 all the more used, more valuable, more22 essential in times like these.23 I thank Councilmembers24 Reynolds-Brown and Clarke and all of25 168 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 Council for your support of the2 much-needed park reform and for the park3 budget increase you supported for Fiscal4 Year 2009.5 Please restore that increase as6 soon as you are able. There's nothing7 left to cut.8 The citizens of Philadelphia9 need your creative thinking on how to10 increase funding for parks and11 recreation. They are so fundamental to12 our health and well-being and the future13 of our children.14 And please know that many15 citizens, the Parks Alliance, and many16 others stand ready to help.17 Thank you very much for your18 time.19

Councilwoman Tasco

Thank you20 very much.21 Are there any questions or22 comments?23 (No questions.)24

Councilwoman Tasco

Thank you25 169 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 very much for your testimony.2 MR. McPHERSON: Our next3 witness is James White.4 (Witness comes forward.)5

Mr. White

Good afternoon and6 thank you for the opportunity to testify.7 My name is James White, and I am the8 Policy Coordinator of the Philadelphia9 Association of Community Development10 Corporations.11 I would ask at this time, given12 the hour, that I will just briefly13 summarize my testimony, but get the14 entire testimony to be transcribed into15 the record.16 Today, I would like to focus my17 testimony on three issues that are18 critical to me and the needs of19 Philadelphia's residents and fostering20 successful revitalization of our21 neighborhoods.22 PACDC is pleased to come before23 you today to address issue of restoring24 funding for the Philadelphia Housing25 170 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 Trust Fund. The Trust Fund is a flexible2 funding source, providing CDCs, the City,3 and its partners with a range of4 affordable housing needs, while5 leveraging outside resources, creating6 jobs, putting vacant and blighted and7 abandoned properties back into productive8 use, and expanding the City's tax base9 Since its creation in 2005, the10 Trust Fund has assisted in the11 development of 1500 affordable homes,12 helped more than 1200 families with home13 repairs, prevented over 800 families from14 becomes homeless, while leveraging over15 $346 million in additional dollars for16 the City17 Given the City's extensive18 housing needs and budget crisis,19 investing in housing production, home20 repair, and homelessness prevention is a21 very wise investment. However, as you22 may recall, the Housing Trust Fund's23 projected revenue will only be half of24 the $15 million that it was budgeted for25 171 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 this fiscal year due to fewer deed and2 mortgage recordings, and the Mayor's3 decision in November of 2008 to cut4 7.5 million in committed funding from the5 General Fund to the Trust Fund over the6 Five-Year Plan.7 At a time when we need new8 homes, home repair, homeless prevention,9 as well as an economic stimulus to keep10 our city growing, the City should restore11 the Trust Fund for the 7.5 from the12 General Fund.13 We also support using federal14 Economic Stimulus Recovery funds that the15 City is receiving either through CDBG or16 the Energy Efficiency Block Grant to help17 fill the gap in rental developments that18 have been applied for under the Low-19 Income Housing Tax Credit Program of the20 Pennsylvania Housing Finance Agency21 To maximize leveraging outside22 resources, we also encourage that the23 City look at supporting transit-oriented24 development projects that incorporate25 172 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 affordable housing as well as to upgrade2 and increase the energy efficiency of3 existing and affordable rental-housing4 development throughout the City.5 Another issue for us is the6 reform of the City's property acquisition7 and disposition system. The long-term8 challenge of assembling vacant and9 blighted and abandoned properties in10 Philadelphia in a timely manner has11 served to deter new development for too12 long. We are encouraged by steps being13 taken by the City Council --14 (Timer bell rings.)15

Mr. White

-- and the16 Administration to improve the property17 acquisition and disposition process.18 We encourage the City to look19 at reforming the sheriff's sale process20 that will allow the City to pull21 properties from the process designated to22 them to redevelopers for a specific23 purpose.24 In addition, reforming the25 173 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 City's property acquisition and2 disposition system will reduce the time3 and cost of development, enable efficient4 use of limited resources, expand the5 range of housing opportunities in the6 City, and advance revitalization of7 Philadelphia's low-income communities.8 Finally, we applaud the Mayor9 and City Council -- and, in particular,10 the leadership of Councilman Goode -- for11 expanding the City's CD Tax Credit12 Program from 25 to 30 partnerships which13 will leverage tens of millions of dollars14 in private and public investment to15 attract new businesses to our16 neighborhoods and create new jobs and to17 grow the City's tax base.18 Thank you for your time.19

Councilwoman Tasco

Thank you20 very much.21 Any questions?22 Councilman Jones.23

Councilman Jones

How are you24 this afternoon?25 174 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441

Mr. White

Oh, I'm recovering2 from the flu, but other than that, I'm3 okay. I'm not contagious, but go ahead.4

Councilman Jones

All right.5 I mean, I'm far enough.6 And I want to thank you7 publicly for what you have done. I have8 been here only 15 months, but I must have9 seen you testifying for a wide variety of10 issues, all of them connecting back to11 affordable housing. So whether it's12 green housing or at least energy-13 efficient housing or what things that you14 may perceive as barriers to developing15 them, I've known you to be a honest16 broker for the issue, and I appreciate17 what you do.18

Mr. White

Thank you,19 Councilman.20

Councilman Jones

I wanted to21 ask you also -- we're going to rely on22 you a lot, this body, in tough times to23 kind of give us ideas about ways we can24 do innovative things like Councilman25 175 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 Goode's bill and other things. And we2 are listening and want to implement more3 resources for a population that otherwise4 are going to get priced out of housing.5 So I mentioned it to the prior6 group, I'll mention it to you. As we7 start to create, eventually we're going8 to get acquisition dollars again from the9 Redevelopment Authority; at least that's10 my prayer and wish.11 But at that point, we need to12 not just do what we've done in the past.13 We need to find creative ways to deal14 with the new poor, new aging populations15 that find themselves under-invested in16 their pensions and now need affordable17 housing.18 So we need to kind of take a19 page from the past but kind of look to20 the future, with different products that21 we can offer them.22

Mr. White

Mm-hmm.23

Councilman Jones

So I'm24 looking for your guidance is what I'm25 176 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 asking you to do.2

Mr. White

Well, we're always3 willing, ready, and able to serve the4 City of Philadelphia and particularly the5 Council on these issues of community6 development, affordable housing.7 I'm always impressed by your8 ability, as a group of leaders, to9 listen, learn, and act accordingly, and10 sometimes very swiftly on innovative11 issues.12 The thing that I'm always13 interested in hearing is, I hear a lot14 about what's happening in Baltimore, in15 Washington, and as somebody that goes16 there frequently, I always say that we17 can do these things and probably better.18 I do believe that part of our19 problem is getting a lot of the blighted20 properties back online, either through21 the NSP or using the funds that we will22 receive from the Federal Recovery Act in23 a strategic way.24 I believe that Dr. Ed25 177 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 Schwartz's plan, some of it works. And I2 know that some of our federal partners3 are listening, and particularly4 Congressman Fattah's office, so that5 there's opportunities to funnel more6 funds.7 I think if we stick to this8 course, we'll make it. I think we have9 to stick together, though. And that's10 the thing that concerns me, is that we11 stick together and move forward and don't12 get pulled apart. And that's Council, us13 as residents and community, and the14 Mayor.15

Councilman Jones

Well, we'll16 try as best as possible to keep us all17 together, and I think it's in our best18 interest as a city to do so.19 Thank you.20

Mr. White

Thank you.21

Councilman Jones

Thank you,22 Madam Chair.23

Councilwoman Tasco

Yes. The24 Chair recognizes Councilwoman Blackwell.25 178 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441

Councilwoman Blackwell

Thank2 you.3 Let me say that Mr. White4 really is a good person, really trying to5 do the best for low-income folks in our6 city, to try to make housing affordable.7 And I agree. When we work8 together, all things are possible; and9 when we don't, it's every man for himself10 and God for us all.11 So let me thank him for his12 commitment and let him know that I'm13 always happy to work with him.14

Mr. White

Thank you,15 Councilwoman. And I'm always happy to16 work with you.17

Councilwoman Tasco

Thank you18 very much. Hope you feel better.19

Mr. White

I hope so too.20 Let's go Phillies!21 MR. McPHERSON: Our next22 witness is Edward J. Tully.23 (No response.)24 MR. McPHERSON: Robert Davis?25 179 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 (No response.)2 MR. McPHERSON: Judith3 Robinson?4 (No response.)5 MR. McPHERSON: Okay. And6 Robert Forlino.7 Is there anybody else here to8 testify? Do you want to come forward?9 (Witnesses come forward.)10

Councilwoman Tasco

Please11 begin.12

Mr. Vincent

Okay. Good13 afternoon, Madam Chairwoman and14 Mrs. Tasco. My name is Joshua Vincent.15 I'm the Director of the Henry George16 Foundation of America, a nonprofit17 educational foundation that has been18 working on tax policy with cities since19 1926, and we're based at 413 South Tenth20 Street, Philadelphia, 19147.21 We submitted our testimony22 earlier this morning; I hope it's been23 distributed.24 I am here because of our25 180 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 concerns about the very real budget2 gap -- and good afternoon to you, Madam3 President --4

Council President Verna

Good5 afternoon.6

Mr. Vincent

-- and the very7 hard choices that must be made to plug8 that budget gap.9 Because of the varying10 scenarios presented by Council, the11 Administration, and others, there is12 still no clear way forward. Therefore,13 we'd like to put our idea into the mix14 and show how we think it could work.15 Wage taxes are regressive in16 Philadelphia. They should be a last17 option until more low-income protections18 are enacted at the state and local level.19 I think we all pretty much agree on that.20 Sales taxes are regressive, but21 in Philadelphia, they have the advantage22 of exempting food and clothing.23 The property tax appears24 attractive, but only on the surface, as25 181 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 it is the basis of a small percentage of2 City tax, although the main source of3 school tax, yet serious and concrete4 concerns about valuations have existed5 for decades and yesterday and the day6 before, and must be address. The new7 values, while appearing to be a vast8 improvement, are still in the rough-cut9 stage and far from a final result.10 The Foundation would suggest11 that aspects of the Council's and12 Administration's plan could be enacted13 for this year, giving municipal14 government time to establish protections15 from bad tax policy, bad property16 valuation, and too few tools to protect17 poor taxpayers.18 We're proposing a bridge19 between solutions to perhaps broker a20 compromise. That bridge could be the21 sales tax increase. The impact on22 working and poor families can be directly23 ameliorated by adopting the land value24 tax, using the current value.25 182 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 Why and how. It is the recent2 academic study -- the only recent3 academic study -- of land versus building4 values for the residential sector done by5 Drexel University's Economics Department6 in 2002. Professors McKean, Jensen, and7 Meyer demonstrated that the BRT numbers8 for residential land and building values9 were essentially accurate. And I have10 put the quote in my written testimony.11 We haven't acknowledged bad12 system, terrible system of valuation, yet13 both the City and School District have14 used these values year in and year out to15 collect property taxes. The system then16 can clearly be used. We simply want to17 remove the largest part of the equation18 of the valuations that are bad -- the19 building portion of the property tax.20 Therefore, instead of 82.6421 mills on both land and buildings --22 (Timer bell rings.)23

Mr. Vincent

I'll move on24 quickly to my smash conclusion.25 183 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 We want to split the tax rates2 into land and buildings. And I created a3 template for one of the districts. I've4 done all districts to show that the land5 value tax would essentially erase the6 sales tax increase that would be enacted7 by Council to fill the budget gap, and8 I've done every -- we've done every9 district and analyzed the numbers.10 And thank you very much.11

Council President Verna

Thank12 you. Thank you very much.13 The Chair recognizes Councilman14 Jones.15

Councilman Jones

I want to16 thank you guys for doing the analysis.17 I had a opportunity in a prior18 meeting to get a sense of what your style19 of valuation on land as opposed to20 property could mean. And if I understood21 your testimony correctly, by virtue of us22 using this system, whatever increases we23 do in the sales tax would be neutralized24 by what we do in evaluating the land as25 184 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 opposed to property; is that correct?2

Mr. Vincent

For residential3 property owners, yes.4

Councilman Jones

Did you see5 in the Inquirer's analysis of the way6 we're doing it through the BRT, that7 there would be an increase in residential8 property tax but a decrease in values of9 commercial properties? I mean, talk10 about regressive.11

Mr. Vincent

I agree that the12 new values are frightening, but I also --13 we worked with lots of cities east of the14 Mississippi.15 And what's interesting is,16 after a revaluation -- be it Lehigh17 County or New York City or Boston -- the18 residential portion goes up simply19 because so many businesses and industries20 are leaving, and the people that are left21 behind, residential, take those values.22 So the numbers that the BRT23 also provided left out 26,000 parcels.24 And once you get those 26,000 parcels25 185 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 provided to you, we would hope -- and2 we've been looking at the numbers too.3 We would hope that the commercial sector4 would increase more.5

Councilman Jones

Thank you,6 Madam President.7 COUNCIL PRESIDENT VERNA:8 You're welcome.9 Good afternoon. Please10 identify yourself for the record.11

Mr. Lloyd

Good afternoon,12 Madam Chairman. 17 Within the current -- the18 City's current budget crisis is an19 enormous opportunity to lay a new20 foundation for sound and stable fiscal21 policy. 20 Therefore, the property tax will thus21 depend on the current fractional22 assessment system for at least the next23 fiscal year, prolonging a system of24 equity. 11 With that said, we strongly12 urge Council and the Administration to13 consider shifting the existing property14 tax to a revenue-neutral land value tax15 for the coming fiscal year. 4 Much of the irregularities that5 exist in the current assessments are in6 the valuation of the buildings, not of7 the land. 17 Our sister organization, the18 Center for the Study of Economics, has19 already completed a full analysis on the20 impact of a land value tax for21 Philadelphia and is ready to assist the22 City in its implementation. )22

Mr. Lloyd

-- makes a strong23 case for adopting this solid reform,24 without further delay.25 190 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 At Council's request for a full2 hearing on the subject, we will stand3 ready to provide further testimony and4 detailed documentation on this proposal,5 and strongly urge you to consider taking6 this first, but crucial, step necessary7 to fix an inherently broken system. To8 institute nothing but temporary measures9 this year will only prolong and10 complicate the underlying problems.11 Thank you very much.12

Council President Verna

Thank13 you.14 The Chair recognizes Councilman15 Green.16

Councilman Green

Thank you,17 Madam Chair.18 Thank you for your testimony,19 gentlemen.20 I just have a favor to ask you21 guys, and that is, I understand you have22 the current data about BRT full value?23

Mr. Lloyd

(Nods head.)24

Councilman Green

And I'm25 191 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 wondering if you could run a couple of2 scenarios and provide it to the Chair. I3 very much doubt we'll be able to do4 anything this year, but I'd like to look5 at what it would mean for residence and6 commercial property owners with a 257 percent homestead exemption -- I mean a8 $25,000 homestead exemption, a $50,0009 homestead exemptions, in terms of what10 the percent rate would have to be, we'd11 have to charge to be revenue-neutral.12 And then also do that with a13 couple of land value tax scenarios,14 50/50. And, you know, your normal15 5-to-1. And, you know, break it down by16 neighborhood.17 And thank you very much.18

Mr. Vincent

Thank you. We'd19 be happy to do that.20

Mr. Lloyd

Yes. The data that21 we got is, as of yet, still incomplete.22 It's been documented by the BRT that they23 are still working on about 27,000 of the24 records. And so, we'd be more than happy25 192 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 to provide that as soon as we get the2 complete snapshot of the data. And we3 will work with your good offices on that.4

Councilman Green

Sorry. What5 -- residential properties -- I missed6 your testimony, I apologize.7 Are residential properties8 missing or commercial properties missing?9 What's missing from the database?10

Mr. Vincent

We believe it's11 mostly -- it looks like it's mostly12 commercial at this point or abated13 properties, ten-year tax abatements.14

Councilman Green

It's mostly15 commercial or abated, so they didn't they16 the abatement data -- they did not17 reassess the abated properties,18 essentially?19

Mr. Vincent

Or they're still20 out there.21

Councilman Green

Okay.22

Mr. Vincent

As we said, we23 got a rough cut. I think everybody did.24

Councilman Green

Okay. Thank25 193 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 you.2 COUNCIL PRESIDENT VERNA:3 Gentlemen, thank you very much.4 PANEL MEMBERS: Thank you,5 Council President.6 MR. McPHERSON: Robert Forlino.7 (Witness comes forward.)8

Mr. Forlino

Thank you for9 your time. Thank you for your time and10 your attentiveness, please. Thank you.11 COUNCIL PRESIDENT VERNA:12 Please identify yourself for the record.13

Mr. Forlino

My name is Robert14 Forlino. I live at the 34th Ward. I'm a15 taxpayer of the City of Philadelphia. So16 is my mother, Rita Forlino.17

Council President Verna

Thank18 you.19

Mr. Forlino

I'd like to20 address, first of all, four good men who21 worked in the City -- well, three of the22 four.23 Frank Rizzo was a great man.24 Wilson Goode was good man who25 194 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 got bamboozled by the MOVE incident.2 John Street was nothing but a3 thief.4 And Michael Nutter has his5 hands full right now with the past eight6 years.7 For the first time in my life,8 I'm embarrassed to be an Italian in the9 City of Philadelphia because of this BRT10 debacle. You have a man named Enrico11 Foglia, who is not college-educated at12 all but who is taking a $100,000 of13 taxpayers' money for what? Assessing the14 values of houses in the City.15 How did he get the job, and16 what was his qualifications? as Mr. Green17 asked him. There was no answer by the18 man because I think the man is an19 incompetent imbecile, okay?20 Bob Brady's a good man, I21 guess, in some people's viewpoints, okay?22 I live in the 34th Ward. He was quoted23 saying in the paper that people with24 criminal records should have a second25 195 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 chance. I reached out to this man about2 seven times in my neighborhood.3 Some people like him, I could4 understand, 'cause he brought a lot of5 money into the City, other people want to6 spit in his face. I, myself, have not7 been able to contact this man.8 One -- I'll tell you one of the9 reasons. St. Donato's, at 65th and10 Callow Hill has a library, Haddington11 Library. I went there the other day to12 do some research. I'm a writer, okay?13 There's a sign on the door that14 says the library's closed due to lack of15 staff, okay? There is a library there16 that needs to be open because of17 educational resources and services to18 children in our city, okay?19 I will work there. I'm a20 college-educated person from Temple21 University, okay? with a degree in22 communications. I'll teach the children23 how to play chess, I'll teach 'em how to24 use the Internet, and I can sure as hell25 196 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 stack books. I don't think it's a rocket2 science job, I don't think it's a heart3 surgery job, okay? And I'd do it for4 between $15 and $20 an hour, and I'd like5 the Mayor to know that.6 Number 2. Vincent Fumo should7 go to jail until he dies for what he did8 to the City of Philadelphia taxpayers'9 money.10 Number three...11

Council President Verna

I'm12 listening.13

Mr. Forlino

Okay. And also,14 I don't know if this is relevant at all,15 but Comcast has a monopoly in the City of16 Philadelphia for people who would like to17 watch their home sports teams on TV. And18 I think that for the elderly people in19 this city, they need a wider variety of20 choices so they can enjoy the city that21 they built, rather than Mr. Foglia, who's22 making a $100,000 for nothing.23 I think City Council needs to24 put a question on the next ballot that25 197 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 says who is responsible for these tax2 assessments, 'cause I'm sure as hell3 going to vote for these guys to get off4 the freakin' job.5 And I think you're doing an6 slept job and I think certain members of7 Council are doing an excellent job, but8 some people are just making a lot of9 money for doing absolutely nothing.10 Thank you for your time.11

Council President Verna

Thank12 you. We appreciate your coming in to13 testify.14 (Timer bell rings.)15

Council President Verna

The16 Chair recognizes Councilman Green.17

Councilman Green

Thank you,18 Madam Chair.19 I appreciate your comments --20

Mr. Forlino

Yes, sir. Thank21 you.22

Councilman Green

I appreciate23 your comments.24 I do want to make clear that25 198 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 the discussion about the BRT is really a2 discussion about accountability and3 having the people who are coming to us4 for appropriations accountable to City5 Council and the Mayor rather than to a6 board of judges.7 In my opinion, this is no8 reflection on Chairman Brady, who is not9 really responsible for picking the people10 on the BRT. That's up to the board of11 judges.12

Mr. Forlino

That's fine.13

Councilman Green

And it's no14 reflection on the hardworking people in15 the BRT who work 40 hours a week often16 for 23 or $30,000 a year.17

Mr. Forlino

Well, I'm sure18 there are some people within the19 organization who do a heck of a job,20 working their butts off, and get paid a21 reasonable salary for their job. And22 that's all -- you know, I mean, I could23 understand that. But there's some people24 that apparently have been given these25 199 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 jobs because of who they know, not what2 they know.3 And I think the corruption in4 the City of Philadelphia, you know, it's5 well known. And right now, it's going to6 be -- Michael Nutter has his hands full,7 and it's a shame because the history of8 Philadelphia should go down as something9 that's positive, not something that was10 made in the backrooms with smoke-filled,11 alcohol-guzzling people.12 And I'm just pissed off because13 my elderly mother pays $93 and $76 a14 month for her residence, and I'd like to15 ask who assessed that? Enrico Foglia?16 And how did he do it? One night, just17 having a shot of Jack Daniels and saying,18 Hey, man, we'll put (indiscernible)19 Avenue at the value of this, while this20 other guy who lives around the corner,21 you know, but he threw some money at me,22 and I'll give him a tax rebate.23 Bullshit! I'm sorry to say that, that's24 all.25 200 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 My mother worked all her life2 to raise five kids without a man. She3 deserves a lot better than what the4 City's being offered her, and so do a lot5 of elderly other people, a lot of6 veterans in this city who deserve to be7 recognized for building the city, laying8 the tracks, gentlemen and ladies, because9 not enough people take responsibility and10 accountability, you know.11 And I know you're a friend of12 Bob Brady's, God bless ya. But I've13 tried to reach out to him. And, I'll14 tell ya, Bob Brady, in my eyes, he ain't15 nothing, because I've reached out to him16 about certain issues, and he says, you17 know, and I go back to him, and if I see18 him in the street, he ain't nothing to me19 but a punk who was a carpenter, okay?20 So I appreciate your time. Any21 other questions?22

Council President Verna

Thank23 you again.24

Mr. Forlino

And I'd like to25 201 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 open up that library, and I'd like2 somebody to know 'cause I refuse to fill3 out an application online and wait 154 months for a bureaucracy BS, and then5 what, get turned down? And I can wait to6 teach these kids some things that need to7 be done in their lives rather than8 selling dope on the streets?9 Any other questions? 'Cause I10 want some questions from people.11

Council President Verna

Thank12 you very much. Thank you.13

Mr. Forlino

Thank you for14 your time, ma'am.15

Council President Verna

Thank16 you.17 Do we have anyone else to18 testify?19 (No response.)20

Mr. Forlino

Have a great day.21

Council President Verna

Thank22 you. You do the same.23 Do we have anyone else to24 testify?25 202 5/6/09 - WHOLE - 090212-215, 218-221, 226, 2441 (No response.)2

Council President Verna

We3 have until 5:30, according to our4 schedule. I don't know that we should5 wait.6 Our attorney tells us that we7 don't have to stay until 5:30, since8 people who registered have all been9 heard.10 So we can now be on recess11 until Friday, May the 8th, at 10 a.m.12 Thank you.13 (Proceedings end at 4:10 p.m.)14 * * *15 16 17 18 19 20 21 22 23 24 25 203 C E R T I F I C A T E2 I HEREBY CERTIFY that the4 proceedings of the City of Philadelphia5 Council Committee of the Whole are contained6 fully and accurately in the stenographic notes7 taken by me on Wednesday, May 6, 2009, and8 that this is a true and correct statement of9 same.10 11 12 13 14 __________________________________ 15 JOSEPHINE CARDILLO Registered Professional Reporter16 17 18 19 (The foregoing certification of20 this transcript does not apply to any21 reproduction of the same by any means, unless22 under the direct control and/or supervision of23 the certifying reporter.)24 25