Committee Hearing, March 30, 2007

COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON LEGISLATIVE OVERSIGHT - - - Room 400, City Hall Philadelphia, Pennsylvania Friday, March 30, 2007, 2:45 p.m. - - - Resolution No. 060247 - Authorizing City Council's Legislative Oversight Committee to hold public hearings to investigate the Hero Scholarship Fund scholarship award guidelines, the Fund's administrative decision-making, and the status of the 2006 Thrill Show. COUNCILMEMBERS PRESENT: James F. Kenney, Chair - - - V A R A L L O Incorporated Litigation Support Specialists 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 WITNESS PANEL #1 - Cathy Redmond, Widow of John Redmond - Joanne Hayes, Widow of Officer Hayes 16 - Shawn Hayes, Son of Officer Hayes 18 6 - Fran Friel, Widow of Ed Friel......... 25 - Lorraine Craig, Mother of Craig Gleason 30 - Craig Gleason, Son of Officer Gleason 36 - Harry Craig, Father of Craig Gleason 46 PANEL #2 - Karen Boyle, Local Admin. Assist. 55 - Brian McBride, Local 22 President..... 63 11 - Bobby Eddis, FOP President............ 71 - Michale Lutz, FOP..................... 77 12 - Jim Binns, Hero Thrill Show Chairman 87 13 PANEL #3 14 - John McGrath, McKissock & Hoffman 111 15 - R. Sliwinski, Hero Scholarship Pres. 117 16 * * * 17 18 19 20 21 22 3 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247

Good afternoon, ladies and gentlemen. This is the public hearing of the Legislative Oversight Committee on Resolution 060247. Due to the fact that we are not moving any legislation out of this committee today, there's no 9 need for a quorum. So I will get started in the interest of time and in the interest of 2:30 on Friday afternoon to get us moving through the list. As other members come, they're welcome to also hear this. We're here today because over the course of the last few years, I've been getting consistent complaints from individuals who are sitting in the audience who have experienced, I guess, perhaps the greatest loss and tragedy that anyone can experience -- the loss of a spouse in the line of duty. As a result of that, the complaints that were coming into my 4 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 office was related to some of the lack of responsiveness and sometimes outright denial of benefits to children who are trying to matriculate through colleges and universities relative to their interaction with the Hero Scholarship Fund. We have asked people from the Fund to be here today, and they are here, and the way I want to conduct the hearing is, I want to bring up basically three panels so that the people from the Fund can hear some of the concerns that are going to be expressed by the spouses and by the children. And then we'll ask them if they could respond. The goal here is to try to create a situation where people feel that they don't have to, I guess, jump through hoops or climb mountains in order to get something for their children that we all in 1954, as a City Council, established in an effort to 5 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 make up somewhat -- no one can ever make up for the loss of a dad. So with that, I would like to call the first panel of witnesses: Mrs. Cathy Redmond, Fran Friel, Joanne Hayes, Shawn Hayes, and Craig Gleason. Whoever's going to testify, whoever's going to actually speak can go to the microphones. Anyone else over that can take the black chairs to the back, so just come forward. And the second panel will be Bobby Eddis, Brian McBride, Karen Boyle, Michael Lutz, and Jimmy Binns. (Panel members come forward.)

Wherever you're comfortable. You can just fill in the chairs here. And do me a favor. This is an old system, so pull the microphone close to you, and before you testify, please just identify yourself for the record so the record is clear. So I guess, Cathy, if you want 6 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 to start.

Good afternoon.

Good afternoon.

My name is Cathleen Redmond. My husband, John, a proud member of the Philadelphia Fire Department for years, was a willing 10 participant in fundraising activities 11 connected with the Hero Scholarship 12 Fund. Many times, John told me if the 13 unthinkable happened and he was killed 14 in the line of duty, the children would 15 receive a college education. He 16 believed this, and it gave him a sense 17 of comfort. On January 28, 1994, the unthinkable did happen. John was killed in a fire at the Rising Sun Baptist Church. Our four children ranged from 11 to 2 years of age. In the weeks following his death, I received a letter signed by John Street, who was then Managing Director, 7 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 promising that all four of our children would be awarded college scholarships through the Hero Scholarship Fund. What a wonderful promise. I stayed at home and raised our children for ten years after John's death. I felt that John would have wanted me to do this and that the children needed the security and consistency of having me at home. We had promised them that we would never put them in day care, and we always tried to keep our promises. After all, I did not have to worry about paying for college. They had all been promised a scholarship. Together with an investment counselor provided by the City of Philadelphia, I based my financial plan on this promise. My next contact with the fund was with my oldest daughter Kate's senior year of high school. I called and spoke with Mr. Callaghan and told him that Katie was looking at colleges. 8 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 He informed me that she could attend any college in the United States or abroad, and the Fund would pay her tuition. I would be responsible for her room and board. The Fund would even cover $250 towards the purchase of books. If she were to pick a state school, the Fund would cover the entire amount, including room and board. Mr. Callaghan instructed me to send a copy of her letter of acceptance and the original invoice to the Fund, and a check would be forwarded directly to the school. There was no other paperwork required. For four years, it was that simple. Katie attended the University of Scranton and received an outstanding education for which we are both grateful. Three years later, I contacted the Fund and informed Mr. Callaghan that Bridget was graduating high school and looking at colleges. I was given 9 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 the same instructions. Her first three semesters were handled by the Fund exactly as Katie's had been. At the end of December of 2004, I submitted the invoice for Bridget's spring semester to the Fund. She was then in her sophomore year. In January, at which time the invoice was past due, I received a message on my answering machine that the fund would only cover $8,800 of the tuition, and I would be required to file a FAFSA form for financial aid. This left me in the position of having to immediately come up with the additional tuition costs, which were $2,050. I contacted the Fund and was informed by Mr. Callaghan that new regulations had been adopted in August. This was my first knowledge of any such changes -- five months after they had taken effect. Mr. Callaghan promised to send me a copy of the new 10 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 guidelines. I made a few inquiries within the Fire Department to see if I could obtain more information about these changes. It was, and still is, my feeling that if the regulations had changed, I should have been notified in writing immediately, and Bridget should have been grandfathered, as she was already enrolled in the program. I did not receive any further written instructions or a copy of the new requirements from the Fund. In the meantime, my son John graduated high school and prepared to attend Holy Family University. I contacted Mr.

Callaghan and informed him that John's academic record was poor but he wanted to try attending college, even though we were not sure he would be able to succeed. Mr. Callaghan said it was not a problem: The Fund would contribute $8,800 towards John's tuition, which 11 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 covered the entire amount. I filed the FAFSA forms as directed and submitted the invoices for payment. The Fund did pay $8,800 for each of the children. John attended the fall semester at Holy Family but unable to keep up academically and did not register for the spring semester. On December 16, 2005, I submitted to the Fund the spring invoice for Bridget. On January 15th, I received a letter from Rider University informing me that no tuition payment had been made, and if not paid within five days, Bridget would be required to reregister for all of her classes. Bridget was in her junior year, and the courses she was taking were required in order to complete her major. If she attempted to reregister, the classes more than likely would have been full, and this would delay graduation. 12 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 Bridget was hysterical, and I was embarrassed and bewildered. I was forced to arrange immediate in the payment in the amount of $9,495 to avoid further difficulties. A few days later, more than one month after submission of the invoice, I received a letter from the Fund stating that the invoice could not be paid until the Fund received Bridget's grades in the sealed envelope from Rider University. This was the first time I had heard of this requirement. I had not been asked to do this the previous two semesters. Bridget obtained the grades as instructed and mailed them to the Fund. I received no further communication from the Fund or Mr. Callaghan. On March 13, halfway through the semester, I wrote a letter to the Hero Scholarship Fund requesting reimbursement for the spring tuition, as it was my belief I had fulfilled all 13 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 of the requirements necessary. I expected either a check or instructions as to what additional information the Fund required. The response I received was a vile, insulting, and disrespectful letter signed by Mr. Callaghan informing me that the Fund's auditors had advised him that no more monies would be made available to the Redmond family due to lack of cooperation. I still had not received the guidelines, and there was no instruction as to how I could put myself in compliance or any offer of assistance to do so. We were simply cut off. I was astounded. I had fulfilled every request communicated to me. I have had to pay for five of the eight semesters of Bridget's college tuition, and in two years, will also need to provide for Nora's college education. You can imagine what this has 14 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 done to my financial plan. Both Bridget and Nora are excellent students, and Nora is currently being considered for induction into the National Honor Society. Mr. Callaghan's letter also demanded information as to what had happened to the tuition paid for John. What is he suggesting? The Fund paid for one semester; John attended one semester, and the tuition was paid directly to Holy Family University. My husband was a good fireman, well respected in the Fire Department. This is evidenced by the award given in his name. He was also well respected in the community, and many organizations give scholarships in his honor, scholarships that his children are not eligible for. He was a role model and mentor for many young people through CYO sports; yet his children have had to grow up without his guidance. 15 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 I have spent the last 13 years trying to do the right thing. I have worked extremely hard and devoted myself entirely to raising my children, and they are people I am proud of and respect.

We have dealt with a lot of heartaches along the way -- sporting events, father/daughter dances, graduations, birthdays, the reception of sacraments, all without John's presence. I have experienced the grief of all four of my children, attended many counseling sessions, comforted children awakened by nightmares, and tried to console the inconsolable. We have dealt with many uncertainties, but college tuition was supposed to be a given. This was a no-brainer. All four of my children were promised a college education. All four of them have paid quite a price to receive that education. Neither they nor I should 16 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 be made to beg or fight to have that promise kept, nor should we have to endure this total disrespect for John's sacrifice to this city. I intend to do whatever it takes to see that the promise made to my husband and my children is fulfilled. It's my hope that you will assist me in this matter. Thank you.

Thank you for your testimony. Whoever would like to go next, please just identify yourself for the record.

Okay. My name is Joanne Hayes. My husband was killed in 1993. I went through many, many things with my children. First of all, Father's Day was one of the days that their father was either killed or shot. Graduation was the same. My children have been in and out of the hospital 17 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 and -- having many problems. The only good thing I got out of this was that my children were going to receive their scholarships. And it was really, really a rough time. When my son Ryan went to take his time to go to get his scholarship, I was given a very, very hard time. I was told that -- it was really crazy. I keep -- I'm sorry I keep on getting upset. When I called him and said my son Ryan was going to receive -- my son Ryan was going to go to school, he told me I had to fill out all these papers and then he could go to school. Well, at first, the papers didn't come in on time and we were deciding what to do. Now, just like the other ones I gave up my life to stay home for my children, and I tried to do the best I know how. And I fully feel that, you know, scholarships are very important because this is the one thing my 18 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 husband wanted, was for the children to have those scholarships. So I went through so much with this man. He hung up the phone on me, he slammed doors in my face, and I just don't believe he's for real. When -- when a husband is killed in the line of duty, especially when we're told this at the Thrill Show, we should not have to go through what we're going through. Now, I didn't just go through one of my children. My second son here would like to tell his story, and then I will tell about my third son.

If you could just take the opportunity to change seats. Please identify yourself for the record.

My name is Shawn Hayes, son of Officer Robert Hayes. I was trying to attend Holy Family University for a radiology program. When I called Mr. Callaghan 19 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 and told him I wanted to attend school, he gave me numerous excuses why I could not attend, that I was not eligible for the scholarship. First of all, it was that I was too old for the program 'cause at the time, he said, I would be 21. I was not. I was and I would be in 10 school two weeks before I turned 21, 11 which would mean I would still meet the 12 'cause I would be in school before age 13 21. 14 Second was that I could not 15 attend because I would not be out of 16 school in time. You have to be out of 17 school by age 23. My program was only 18 two years for radiology program, so I 19 still would have met the guidelines. 20 The third one he told me was that I was married. He considered me married because I had a child out of wedlock. It's not a marriage, I told him. He hung up the phone on me, I called him back and told him if he 20 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 doesn't handle the situation, I'm going to go to the press and they're going to help me out with this, and I'm going to explain to them all of the guidelines and show 'em that I meet everything. Then I hung up on him. He called me right back and then he said, "We'll work something out." During my time attending Holy Family University, I had a complication with my hand where I was in a cast for my thumb. I missed a lot of school running back and forth to the doctors and also going to rehab. I talked to my instructors. They advised me the best thing to do was to withdraw from the courses. I contacted the school immediately and advised them what I was doing; they said okay. They never informed me that I had to come up and sign papers. No one ever called me from school saying I was missing class, or I would have handled the situation right 21 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 away. Eventually, I got a letter in the mail saying that I was kicked off the scholarship because of academically. Later on, I was told by my mother that Mr. Callaghan had called her and said that he had accused me of stealing the money for the tuition. He also called Mr. Mike Lutz and Bobby Eddis and told 'em that I had stolen the money. He never called the school to check to see that they never gave me the money back for the tuition. That could have really affected me in life. I could have lost my job, saying that I stole money. I could have had a hard time finding a job. It's not something you accuse someone of doing without checking into it, especially over $8,000. That's a lot to say someone has stole. So I sat down with Mr. Mike Lutz. We talked then with the board of Holy Family University. I explained my 22 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 situation, I brought my medical records in to them, showed them the situation. Within a few weeks, they agreed to give back the money to the Holy Family -- for my tuition. They also changed all of my grades from F's to withdrawals, showing that I was withdrawing from the program. We sat down with Mr. Callaghan one day at the FOP with the check, and we asked him about reinstatement, and he advised that he would not be able to reinstate me; he didn't even consider reinstating me into the program. He only cared about coming to get this check. At the time, I was still attending Lincoln Tech, where my hand had recovered from it, where I was going to be an automotive technician. I was currently -- I had a 4.0G PA average, and I had a perfect attendance at the time. I finished Lincoln Tech 23 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 October 13th with a degree in automotive. My GPA was a 3.87, and my attendance was a 97.5. That's all I have to say right now.

Thank you very much for your testimony. Would you please identify yourself for the record are you through? Joanne, are you through?

I'm sorry. I wanted to come back and tell you about my third son.

Okay. I'm sorry.

His name is Bobby. He was a learning-disability child. Now, I went to Mr. Callaghan once again and said, "Look, I know there's scholarships out there for learning-disability children. Is there any way could you look into it?" He 24 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 said, "No, there's nothing out there, there's nothing we can do." I said, "You know, once again, I'm going to tell you: My husband died in the line of duty. When we went to the Thrill Show, they told us there were scholarships out for us. I don't think this is right what you're doing to me." "Well," he said, "that's just the way it is." Okay. So then I kept on saying, "This isn't right." I did come to Councilman Kenney, which is my friend, and I really appreciate you for helping me to try to deal with what is going on. And to tell my son Shawn also that he had stole money really broke my heart because I know this is not my son. My son is a very good son. He works a job at AAA, he takes care of two children. And this is a person that they didn't want to let go to college? There's something wrong. 25 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 I don't think this man should be on the board. Thank you.

Thank you for your testimony.

My name is Fran Friel, and my husband, Ed Friel, was killed in the line of duty on May 30. At the time, my son, Daniel, was four years old, and my daughter, Kathleen, was six months old. Like the others, they have endured the pain of not having their father, and for them being so young, not even remembering their father. When they reached school age, there was a small measure of comfort because I could tell them that in honor of their father, the City of Philadelphia was paying for their college tuition through the Hero Scholarship Fund; that their father, for his call to duty, and they, for the sacrifice they were forced to make, 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 were not forgotten. I have a letter to my son in May of 2000, when he graduated high school saying, I quote: "I offer you the Hero Scholarship Fund for 2000. This is will entitle you to a full-paid scholarship covering tuition and expenses as well as a bookstore account at any college of your choice worldwide." While my son only attended college for one year, my daughter, after her high school graduation, applied to and was accepted at Loyola college in Baltimore. We filled out the Hero Scholarship Fund Committee application, which, I was told, was only a formality because my husband had been killed in the line of duty, and so there was no question of our eligibility. From the time in 2000 through 2004, when my children started college, 27 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 we filled out the necessary forms, included FAFSA and PHEAA forms. We were never told we had to apply for grants or other scholarships. We had earned the Hero Scholarship, and it was not a last-dollar award but a full scholarship. I believe it was in January 2005 that I was sent a registered letter with a regulation handbook and told the amount -- maximum amount to be paid would be $8800. This announcement was made with no prior warning. Kathleen already attended Loyola, and I would not ask her to now leave because we no longer received a full scholarship. I received a letter on February 11, 2000, from Jerry Callaghan indicating that he had received the Loyola invoice for $13,525 and that the maximum $8800 would be paid after we had applied for all financial aid. I had applied for FAFSA and 28 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 PHEAA forms. We did not qualify for grants or loans. They told me in this letter that if I did not adhere to their regulations, Kathleen would be dropped from the program. I thought we had a adhered to the rules and regulations needed to qualify for this scholarship: Kathleen lost her father in the line of duty. I was made to feel like I was trying to get something that I was not promised and, unfortunately did, not qualify for. Let me state clearly: I would give up every penny of this money if I could have Ed back and my children could have their father. While I can understand, in this day and age, when the cost of college education has risen beyond expectations, I can appreciate asking students to apply for any other possible grants or scholarships. I 29 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 absolutely do not feel it was right or fair to us, in the middle of Kathleen's education, to no longer pay her tuition in full as promised. I have paid to Loyola since that spring semester $27,725 that was supposed to be paid by the Hero Scholarship Fund. I am grateful to the Fund, but it is not what I was promised -- a full college education for my children. I know that City Council cares about this city, but I ask you, would there be a city if it was not for its firefighters and policemen? My daughter is finished with her education in a month, and I beg you to do whatever is necessary to revive the integrity of the Hero Scholarship Fund for those in the future that will pay the ultimate price. Thank you.

Thank you very much for your testimony. 30 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 Is there anyone else here to testify? If could you change seats with someone, please. (Witnesses come forward.)

Good afternoon.

Hi.

Please identify yourself for the record.

My name is Lorraine Craig. I'm the mother of Craig Gleason. This is my son. The fact that he is my son is bittersweet. His father died in the line of duty when he was three months old, and his mother was my husband's sister, so we are not his original parents. And when his mother died, he was three years old. The oldest was 18. There were six children. My experience with Jerry doesn't go back very far. My husband became so frustrated with Jerry that he 31 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 asked me to deal with him in the end, recently. So I can just...

Please recount what you --

... talk about my experience.

Please.

It's been very short. My experience with Jerry has only been in the last few months. My husband, Harry, became exhausted with him, so the job became mine. The first time that I called Jerry, I left several messages before he returned my call. During that first conversation, he stated that my son Craig left him voice mail message the previous spring that he would probably be dropping out of school. I told Jerry that there could be no truth to this, as Craig had no 24 intention of quitting Drexel. In addition, I told him that Craig loved 32 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 Drexel and that he enjoyed what he was studying and had every intention of continuing. In addition to insisting that Craig had left him a message to inform him that he would no longer need the scholarship, he also went on to tell me how much he helps the students and bends over backwards to assist them. He told me that although he had had a stroke, he would continue in his volunteer position with the Hero Scholarship Fund because he only wanted to help the children. At some point in that conversation, Jerry hung up the phone on me, and I can't tell you at what point; he just hung it up. He called me back about a half an hour later to tell me that he had checked his records. The only written correspondence that Jerry seemed to have had been sent via certified mail by my son the previous year. 33 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 According to Jerry, no one from my family had mailed him anything nor had they attempted to contact him except for the voice mail message from Craig stating that he was quitting school. This, I knew, was not true. When I suggested to Jerry that perhaps we could agree to disagree on the matter of Craig quitting and move on to getting his bill paid, Jerry again hung up the phone on me. Before hanging up on me, Jerry told me all of the items that he needed regarding Craig and Drexel. He stated that Drexel would be paid within two weeks of receipt of those items. I said that we would get them together and get them to him. Jerry sent a letter to Craig with the same information. The items have been gotten together; the bill is not paid. My son managed to get all of the documents that Jerry requested. I 34 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 called Jerry several times before he returned my call. I said that we would like to personally deliver the documents since they never seem to get there. " I said that that was not a problem, could we set up an appointment? And in an abrasive manner, he told me that we could not come to his place in Delaware; just mail everything. I stated that I had concerns about everything being received by Jerry; could we set up an appointment to meet in Philadelphia when he came up next? He said that he never comes to Philadelphia. He further stated that I was not to send anything certified mail. My son Craig took pictures of all of the paperwork that mailed. From his cell phone, he took pictures and sent them regular mail to Jerry. Several weeks and numerous 35 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 unanswered phone calls went by before Craig received a letter from Jerry stating that nothing would be paid on his account at Drexel. Craig has that letter. I called Jerry, leaving messages several times. He has not returned any of those calls. I would just like to state that -- that life has not been easy. It has not. I mean, it was not my spouse who died, but it was my brother-in-law who died, and it was Craig's father who died, and it was his brothers' and sisters' father who died. And they were all promised the Hero Scholarship Fund. And we have had a great deal of problems dealing with the problems of these kids losing both of their parents. And it is not been easy. It's been -- it's been very, very difficult. And of all the things, we did 36 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 not think that the college would be a problem, you know, getting that paid.

And it has and it's all because of Jerry. That's all I have to say.

Thank you. Please identify yourself for the record.

Thanks. My name is Craig Gleason, son of Daniel Gleason. My dealings with Jerry have been very few. Of the many phone calls I've given to him, only one has ever been returned. I guess I'll start off by reading what I have here. Or, actually, I'd like to say a little something before that. Like, as I was growing up and I was attending high school and you begin to start thinking about your future education, I was always promised that I never had to worry about where I wanted to pick, for it was taken care of. 37 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 You know, when I was younger, I knew this, but I didn't know all the reasons of it. As I grew up, I was told it was because my father was killed in the line of duty, there was a Hero Scholarship Fund set up in his name and in all the other names of the officers and firefighters, and that I would never had to worry about it. So as I grew up and I go to high school and I'm thinking about my colleges and I started to get into a mindset where I want to go to an engineering school -- it's what I want to do -- I ended up picking Drexel University, a local university known for its engineering program. I did not know that picking that specific school would be such a bigger problem for the way they deal with their semesters and their billing issues. I guess I'll start reading. My correspondence with Jerry 38 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 was exceedingly difficult. It started out with my father making all dealings with Jerry. And when I started college in September of 2004, I submitted all of the necessary paperwork for Jerry to process my scholarship. He made the first payment required that year with no difficulty. The second payment didn't get paid, and Jerry claimed he never received the bill. When trying to call Jerry at the office located on JFK Boulevard here in the city, I was never once able to talk to a person; I was always referred to an answering machine. These calls were almost never returned. And the one time he did return my phone call -- I'm sorry. When he would return phone calls, it would be directed towards my father and not to me, even though I asked him to call myself back on my personal cell phone. I finally started leaving multiple messages in the same day, and 39 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 that's when they finally got returned -- once. And when he did, I was informed he never received the bill, and it ended with him hanging up on me. Eventually, I was able to get Drexel to send him this other bill, and it was paid eventually. It's hard for me to tell the exact date that these items were paid because Drexel is very used to dealing with scholarships, and when they know a scholarship is owed, they just post it to your account so it doesn't reflect in your statement. I eventually have to call to verify that it's been paid. So, again, I repeated this process in the next school year. This time, you know, Drexel, like I said, knew I was dealing with a scholarship, posted the amount when I showed them the letter that I was a granted a certain amount. They posted the amount to my account, so I really had no idea 40 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 or no reason to think that these weren't paid. When I found out that these weren't paid and we tried to contact Jerry, at this point, the bill had backed up to my account to a total of over $50,000. This is when Jerry sent me the letter that my mother referred to that I needed three very specific items. These three specific items were so specific that Drexel doesn't have the specific paperwork. I had to attend meetings with members from the Bursar's Office and the Registrar to get them to fabricate this paperwork that he needs.

Can you give me an example of what the paperwork was?

It wasn't unreasonable. I needed transcripts for my grades, a student enrollment verification, and...

We have 41 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 everything here.

Sorry. One second. Oh, and the invoices. But the problem is, with Drexel, it doesn't break its invoices into two clear semesters since it's on a quarterly system. Some people might refer to it as trimesters. That's what made it exceedingly difficult. Eventually, after a month and a half to two months of dealing with Drexel, who, in itself, is very difficult to deal with, irregardless of what's going on here today, I was able to get this paperwork, and I sent it to Jerry at his address in Southern Delaware, in Felton, Delaware, and I also sent it with a letter clearly detailing everything that was contained in the package I was sending him and asking him to please call me immediately as he receives it just so I know that he has it. I never received this phone 42 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 call, and phone calls were made towards him to see if he received it.

We both called.

Yes, we both called. During all of this, I have a hold on my account at Drexel. I can't do anything. I can't even tell what you my grades are now because I can't even look at them anymore. Sorry. It's a little frustrating.

That's okay.

So basically, with these dealings, I found out the exact balance between what Hero Scholarship is supposed to pay and what is my own personal contribution and was able to pay the balance, and the balance left over would be four payments for the two years that were unpaid of $8800, the same amount that you've heard everyone else, times four, 43 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 which is $35,200. That, to this day, is unpaid, and I cannot register for classes, which start on Monday. Anyway, I want to go back to what I was saying with the package I sent to Jerry with everything that he needed. He never called me and never sent correspondence to me. And the first I found out that this was not getting paid is when I was talking to the Bursar's Office at Drexel, trying to get my account unlocked, for it was a tuition -- it was a scholarship issue and not a personal fund issue. That's when I was informed by the Bursar at Drexel that Jerry had contacted Drexel and told them that he was not paying. That's how I found out about it. About a week and a half later, I received a letter from Jerry saying that I did not meet the requirements. 44 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 I was not a full-time student and my GPA did not meet the requirement. I don't know how that's possible. I have always been a full-time student. My only guess in that is he does not know how to read the paperwork that Drexel supplied to him. I don't know if anyone's familiar about how Drexel works. I'm in a five-year program at Drexel, and even though the scholarship only pays for the five years, I've conceded to the fact that the fifth year will be personally on myself. The way it works is, they have a co-op program, and they have a school portion of it. You know, your freshman year, you attend school, you have a summer break. Then half the year you spend in co-op and half the year you spend in schooling. And it flip-flops back and forth for four years, until the fifth year, when it's a complete 45 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 year of schooling again. This is the same equivalent amount of schooling you would have in any other school; it's still 6 semesters of schooling. So it accounts 7 to being full-time in the same amount 8 of time. 9 All right. I'm sorry I'm a 10 little bit all over the place. 11 I'd also like to point out a 12 note that Jerry cannot be contacted at his contact phone number in the JFK Boulevard office down here in Center City, and there is no one there to meet with. His office is all over. Wherever he corresponds out is all the way out of Felton, Delaware, and I'm just curious as to why there isn't any other sort of contact information for him other than a P.O. box that the only way I got it was because it was on the bottom of a paper he sent to me.

I'm curious too. 46 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247

Okay. That's all I have to say about my dealings with him.

Please identify yourself for the record and just pull that microphone closer.

I'm Harry Craig, CJ's uncle/father, "Craig," as you call him -- or you call him. We call him "CJ." I'm not as organized as the Redmonds were and some of the other people here, and I appreciate the time that they took. In the beginning, like many other people here, the scholarships came, paperwork was minimal, promises were met. As the years progressed, I don't have a chronological statement. CJ's older sibling Amanda was in her third year of Chestnut Hill. Judy would have been starting her second year at LaSalle, and CJ was just now starting to get his paper processed 47 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 for Drexel. It was at that time that we got notification that they were going to cap the fun at $8800, but not to worry about Judy because she's grandfathered in, and don't worry, whatever the amount they're paying now they'll pay then. Amanda's was under the $8800. That was not going to be a problem. Down the road, talking with Jerry, he said that the grandfather clause would not affect, that Judy would still be capped at $8800. Something was better than nothing; we were grateful. And Judy finished college. CJ, obviously, would not have that ability. He would be capped at the $8800. Jerry first started getting a little iffy when Judy and Amanda started school, and he says, "What's this room and board? This is a 48 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 hardship fund. If they have money for room and board, they have money to pay tuition. The board at the Hero Scholarship doesn't like that." I said, "Jerry, if someone in the family or someone scrapes together money so that they can have a normal college life, that's the Hero Scholarship's -- it's none of their business." That one got put aside. That bill got paid. As time went on with Judy --

You weren't asking for payment of room and board?

No. 19

Oh, okay. You --

No. He said that the board did not like the fact that the we had money to put out for room 24 and board, that we should be using that money for tuition. 49 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247

So you would interpret that as saying that --

We have money; therefore, they shouldn't have to pay the bill.

Okay, thank you.

You know, the board did not like it. It's a hardship fund. You know, if you have money for board, then, you know, you should be able to put money towards tuition was the implication. And the last year Judy was in school -- she's a student teacher. Her last year, as many student teachers -- or she went for secondary education and special education. She then basically was a full-time teacher. So, therefore, it showed one class with twelve credits. He tried to say that she's not a full-time student 'cause she only has one class. Well the class was teaching all day. 50 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 We went round robin with that. That one eventually got paid.

It took forever.

But it did take forever. Judy's account was frozen. As a matter of fact, she almost wasn't able going to be able to walk her graduation walk because money wasn't paid. And, again, it's wear and tear. I mean, I don't know about you, but when you're frustrated with different things, it affects the rest of the family and everyday life.

I've had my conversations just like this. That's why we're here.

And I'd say, "Well Jerry, can't we meet with the board? Isn't this a public board meeting that the public can come and interview and plead our case as to, you know, why these things aren't being met and why this is such a hardship?" 51 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 "It's none of your business." I said, "Wait a minute. You take public funds. Where's the balance on your accounts? I should be able to go get public records of this." "No, it's none of your business." I said, "You have a" -- what is it, a 503 --

A 501(c)(3).

Yeah. You know, I said, "Everyone should be able to see that."

It is.

You know, what about the board? "It's a closed board meeting." I said why? "Well, that's the way it is." So if you take public funds, we should be able go there and plead our case just like any other fund. He says, "No, it's a closed 52 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 door." Okay. On many cases, when these conversations would take place, I said, "Jerry, that's okay. I know the phone number for the media." Click, he would hang up. There are other cases where he would raise his voice at me. I would say, "Jerry, you can yell at me, but if I get a little upset, you're going to hang up the phone on me." "That's right. You just deal with it." I said, "Jerry, you're not in that position. You're supposed to helping people here."

I have not go through what you have gone through, but I've been hung up on too, so...

Sorry to hear that.

You're not special.

I'm sorry to hear 53 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 that. But here we are today. Craig has to start school Monday and the payment was still not paid back. (Addressing Mr. Callaghan.) That's right, Jerry. Hide behind the hat. That's where we are today. So anything you can do, Councilman, we appreciate it. Thank you for taking the time.

I appreciate you taking the time to come here. This is the end of the first panel. I'd like to apologize for your experiences. I think that there -- there's no possible excuse for them, but I would also like to apologize because I introduced this resolution in March of 2006, and I went around and around and around with some of these cases for months prior to March 2006 54 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 and was persuaded, I guess, because I thought we could negotiate and work something out so we wouldn't have to be here. So I owe you an apologies for not bringing this to a head a year ago and trying to resolve something then. I feel badly about it and hopefully --

And least you took the initiative, and we thank you for that.

I should have trusted my instincts and took this bull by the horns a year ago, but I appreciate your coming in and testifying. Thank you. Panel No. 2 is Bobby Eddis, Brian McBride, Karen Boyle, Michael Lutz, and Jimmy Binns. (Panel members come forward.)

I assume no one's going to stop Karen from going first. Is that a safe assumption? You're the one who actually deals with 55 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 this on the front line, so I give you the courtesy of identifying yourself for the record.

My name is Karen Boyle. I'm the administrative assistant of Local 22. I am here to tell about my experiences with some of our widows and also with my experiences with Hero Scholarship. My first experience started in realizing that there was a problem when Mrs. Friel called me in 2005 in a terrible, terrible state of mind, crying terribly and very upset about her child Katie's tuition and the problems that she was having in trying to get it paid. She was told that they would not pay -- by Mr. Callaghan, she was told that they would not pay her tuition, the $8800, until she complied with the rules and regulations. And here's my point. I'm 56 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 making a point. My point is that they expect too much from these families. They are inundated with paperwork that they should not be inundated with. They are asked to divulge their income, which they should not have to do. The Hero Scholarship Fund was a promise and it was a gift. Their spouses gave the ultimate sacrifice, their children were promised this scholarship, and they should not have to do this paperwork. It's not fair. They should not be asked to answer these questions. It's not fair. It should not be a part of this program. So that was my first experience. I tried to get a hold of Mr. Callaghan and had a very hard time, found out that they were no longer at City Hall. I was told that they were thrown out of City Hall by Mayor Street. That may be true; I don't 57 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 know. That very well may be true. When I did find Mr. Callaghan, he was at a post office box, and it was a Delaware phone number, which I found out also was his cell phone. I don't know how they operate without an office. It makes no sense to me. I will also add that Mr. Callaghan is not the only party in this. There is a Miss, I believe, Slowinski, and there is also accountants. That's what I have been told by Mr. Callaghan. This is the board. That's it. Makes no sense to me. Again, no sense to me.

Let me just interrupt and tell you that as far as the most recent information I have, which is a little old -- it's 2003, it's a directory. The officers of the cooperation are Ruth Sliwinski, President; George Nyes, Treasurer; Honorary President Milton Eisenberg; 58 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 Associate Treasurer Commissioner Harold B. Hairston, which, of course, I assume, is now Commissioner Ayers; Vice President Norbert McGettigan; Associate Treasurer Commissioner Sylvester Johnson; Assistant Vice President Sandra Kenton; and the secretary is David L. Rhode. And that may be different now because, obviously, Hairston is no 12 longer there. But I also understand -- and I'll try to get some of this information as we go to the next panel -- is that there's also a sign-off process where the Council President, the Police Commissioner and the Fire Commissioner and, I believe, the Chairperson of the Committee on Public Safety signs off formally on the scholarships themselves in some format. But in my conversations with Council President Verna, it's been it's like it's a formality signing. I don't 59 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 really review any of the applicants. I just kind of sign off on it 'cause I want to get these kids the money. And it's usually all done at the same time. So I don't know if there is a process, but the people who helped create this -- or the body that helped create this and the ex-officio members of it, I think, would be absolutely assured have no idea that any of this is going on.

I agree with that. I'm sure you're right.

Okay. Thank you.

Yes.

Please proceed.

I would also like to mention my next experience. My next experience was with Mrs. Charlene Taylor, whose husband, we all know, perished in a drug house. Anyway, Mrs. Taylor not well. 60 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 Mr. Callaghan knows that she is not well. She has a lot of difficult times with detail. And I have been a go- between for Mrs. Taylor and for Jerry Callaghan mostly because Mrs. Taylor cannot handle his abrasiveness.

How many children are involved in this?

Well, there are two children involved, there are two children, and they both go to college. Sometimes there is a problem with their book -- their fees being paid by Mrs. Taylor, and that sometimes helps keep them from getting to school -- getting into school. And so my point in talking to you about these book fees and my point is that they shouldn't have to pay these book fees, that it was a part of their gift, that was a part of their gift. Mrs. Taylor should not have to be bothered with this, and she should 61 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 not have to be afraid to talk to Mr. Callaghan, but she is because he's an abrasive man. If they are going to keep this board, they need to change their spokesperson, the person who speaks to these families, the person who works with these wives. They don't need this crap, and that's what it is, it's crap. My third experience is with Mrs. Redmond. I know that she received a letter from Mr. Callaghan asking, Where is the $8800 that we paid for your son John? Well, if Mr. Callaghan would have taken five minutes instead of accusing these people of withholding the $8800 because he said John dropped out, if he would have taken the five minutes that I took to call Holy Family College, call the Bursar's Office and spoke to Ann Marie McManus there, he would have known that that boy never dropped out of college. 62 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 He completed the semester. Maybe his grade point average wasn't what they would have wanted it to be, but that boy completed that semester. And she never, ever should have gotten that kind of letter. That was a disgrace. There is a human issue here involved, and that's what's lacking with the people that are running the Hero Scholarship Fund. They have to stop running it like a business and run it like what it's supposed to be. It is a gift. It is a scholarship fund to young people that are -- that deserve it, that were promised it. Where is your compassion and your understanding? Something has to change here. This is not fair. And I know you're not working with a whole lot of students here. How many are we talking about? How many 63 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 are we talking about? Is that hard, is it that complicated? This has to stop, and it has to stop now. Thank you, Councilman.

Thank you. Thank you very much. Either Mr. McBride or Mr. Eddis, whoever. Brian, you have to pull that mic up. MR. McBRIDE: I just want to say that I'm tired of seeing widows cry, I'm tired of hearing Karen running in my office and cry after dealing with these people. It's wrong. It's wrong. The Hero Scholarship Fund was created over 50 years ago after ten firefighters were killed in the line of duties from explosions at the Berg Chemical Laboratories. In the fall of 2005, the Hero Scholarship Fund Thrill Show, I approached Jerry Callaghan, introduced 64 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 myself as the new president of the Firefighters Local 22. He was crying and said he didn't think he could do it anymore. Well, maybe you can. I told him that I was there to help and I wanted to help make the show bigger and better. I gave him my card and asked him to call me after the show. That was the last time I saw or spoke to Jerry Callaghan before today. In late January 2006, I received a phone call from FOP President Bobby Eddis. He asked me if received a letter from the Hero Scholarship Fund; I had not. As a matter of fact, to this day, I have never been invited to a meeting or a function of the Hero Scholarship Fund. Never, not once. Bobby Eddis told me the letter, which was signed by Jerry Callaghan, stated there would be no 24 longer a Thrill Show no longer. It also stated that there was no longer a 65 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 need for a board. We met the next day and discussed the letter and decided that the show must go on. We also decided we should seek the advice of an attorney. We felt that we needed to assume some control of this fund so that we could be a part of the decision-making process and to keep it alive. We had Jimmy Binns send them a letter saying that that was that our intent. I still don't get the part that there's no need for a board. That's just absurd. Who's watching the henhouse, the fox? What happened next disturbed me the most. I received a call from Cathy Redmond, the widow of John Redmond, to whom we dedicated a plaque on May 9, 2006. Cathy was crying on the phone, having just read the letter from the Hero Scholarship Fund and signed by Jerry Callaghan, which seemed 66 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 to be retaliatory against her and her children for acts of myself and President Eddis. He put blame on her for having to be father and mother. This is the mother of four children who were made eligible for this fund when their father gave his life protecting the citizens of Philadelphia. When I read the letter, I was in a rage. I'd like to read an excerpt from it so you all understand. This is from Jerry Callaghan to Cathy Redmond, March 15, 2006. "I am sorry for any embarrassment you may have suffered, but this entire problem seems to be generated and maintained by you. The thrust of the problem is this: You presented us with an $8800 invoice for your son, and we never received another bit of paperwork on him until you simply informed us that he quit and might go to school part time. 67 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 "First of all, what happened to the 8800? " You, sir, are accountable for it. It seemed to me that Mr. Callaghan was taking out his anger on the wife and children of a deserving hero. I wanted to make sure Jerry Callaghan knew what the purpose of the fund was so we have some documents that the Fund had filed, the charitable reorganization statement from the Commonwealth of Pennsylvania. Item 11. Purposes and programs for which the contribution is to be used. Typed in was a reply: Buy a scholarship for the children of police officers and firefighters of the City of Philadelphia who were killed or disabled in the line of duty. This form was design signed by Ruth Sliwinski and Jerry Callaghan on June 15, 2005. IRS Form 990 return of 68 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 an orgranization exempt from income tax, right?

Statement of program service accomplishments: To provide scholarships for the children and police officers and firefighters of the City of Philadelphia who were killed or disabled in the line of duty. The purpose is clear. To not make every effort to fulfill the Fund's prime purpose is not living up to the promise. It seems as if now the Fund's purpose is to make it difficult for the families who have paid the price. The Fund has set up strict guidelines that some of the families do not even get a copy of. Letters that deny benefits without a chance of appeal and so untimely that the children lose their course selections that they have made. Letters that are callous and mean. " Find a way to help the families 69 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 and stop trying to find ways to deny them. It's not your fund; it belongs to the children of our fallen heroes. Live up to the purpose, live up to the promise. Thank you.

Let me ask a question. Your organization, or your organizations along with Mr. Binns, I believe, established a revived and new Thrill Show, which is a separate, I guess, a separate nonprofit identity. MR. McBRIDE: That's correct.

Prior to that, who sold the tickets and raised the money for the Thrill Show for the revenue that went into the current Hero Scholarship Fund? MR. McBRIDE: The police and firefighters.

'Cause I've been in office for 15 years and prior to that, worked in politics, and 70 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 I mean I knew when those guys were out there beating the bushes to sell those tickets to that show. I mean, you never wanted to tell them no anyway, but, I mean, they were out there and they were enthusiastic and, you know, willing to make those sales and to go and visit the offices and visit the stores and the businesses and really hawk those tickets, knowing that the money was going ultimately and hopefully one day not to one of their children. I assume that that's the main way in which the money was raised. MR. McBRIDE: Yes, absolutely. You know, I imagine the Thrill Show -- the Hero Scholarship Fund, I should say, did other things to raise funds also, but, you know --

That was a signature event. MR. McBRIDE: Ticket sales was a big thing. It was probably a 71 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 $100,000 for the Fire Department. I imagine probably the same for the police department. And I know that everywhere I worked, you know, I made sure that I worked hard how tell those tickets, and I know that John Redmond did too because I knew John Redmond. I studied for lieutenant with John Redmond, you know, and I know that he cared about it too. We believed in the Fund, we believed in the purpose. You know, we understood it to be something there if we paid the price. We understood it to be something there if our brothers and sisters paid the price.

Okay, thank you. Whoever would like to go next.

Thank you, Councilman. As we're sitting here today hearing these various comments, the 72 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 situation that we have is -- over the course of time, we've watched the people from this fund do a magnificent job for our members. Kindhearted. It's my understanding and my belief -- not my understanding but my belief that most of the people, if they would have sat through and heard the comments that you'll hear us be able to tell you today, the members on the board would be just as appalled as we are. As we go to these events prior to last year and we would have our little sit-down, the courtesy and the manners and the class that the people have from Miss Sliwinski on down was unbelievable. I've heard the stories from our widows over the years of how well their family was being taken care of. I think that's what throws us so much of a curve. Because it doesn't stop, it doesn't end. The problem that we had last year is once we were notified, we 73 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 were told, Well, you're not really a part of the board. We understand that. We don't agree with it because when the members have problems, they do not call the Police Commissioner or the Fire Commissioner; they call the Fire Union and the Police Union. That's where we get the calls, the frustration that we have when we sit there and listen to how the children were heard. What made it extremely hard last year as it does again today is, all the families suffer; it doesn't end. We're getting ready for Monday. Again, we have another reopener that the Hayes family has to sit through over the person who killed their father. This was also going on last year, which caused great pain. When we received the notification that there wasn't going to be a Thrill Show, we wanted to find out why because we felt that this was something that has to go on. We 74 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 continue to lose brave firefighters, brave police officers, unfortunately, faster than we would like, as anybody would like. And we had a very unique opportunity to try to resolve some of these issues because a lot of times, the widows are left with young children, and they need personal assistance, they need personal help. They need somebody who, I feel, sits down and shows the concern of what it is that we need to get done. We hear the different stories, but until you sit there yourself and see the level of disrespect -- and the one thing we always learn is, we don't have to like each other, but you never stop respecting people. The level of disrespect that took place in my office on March 27th last year was enough for me to see that the problem that you say today that you're bringing forward -- Councilman, 75 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 you've always been there for the police and fire, you've always been there, and I think the people in this room need to know that because while this process was going on, you were in communication with us. You were trying to find out more, you were looking for a win/win, you were trying to resolve a problem, and we respect you to the utmost for that. But the only way that this can be given the credibility is, Michael Lutz, who is a former president of Lodge 5, former state president, had an issue in regards to the Holy Family situation, as we heard testimony earlier from Karen, that it only took a phone call to be able to be resolved. And the situation that developed in our office on March 27th, where one of the sons of our officers who was getting ready to go back and see the trial for the person who killed his father, was being accused of being 76 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 a thief. I don't understand that. Would not even look, would not even take the turn and say to us, I'm here for the check. Is that it? Is that it? Is that it?

Well, as I will now relinquish to Mike too, my friend Mike, you will hear the sad event that took place in our office on March 27th. After this, our friend Jim Binns -- Jimmy Binns is here today and has been sitting there with us, trying to help us get this to the way that we can be responsive to our families. They can know that there is something there for them, they can know that the people there care. But before I pass the mic, it is honestly my belief that the other people sitting here today were not aware at all of how rude our children were treated. Michael?

Please 77 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 identify yourself for the record.

My name is Michael Lutz, L-U-T-Z, and I'm a trustee chairman for the Fraternal Order of Police, Lodge 5, Philadelphia. I just want you to know that my comments are confined to Robert Hayes and to Shawn Hayes. It has nothing to do with the rest of the board of the Hero Scholarship Fund. During -- oh, by the way, this is in regard to Robert Hayes. Robert Hayes was killed in the line of duty, shot to death on June 17, 1993, leaving behind a wife and three children, age 10, age 9 was Shawn, and age 8 was Ryan. That's who he left behind. During the summer of 2005, I had occasion to speak to Jerry Callaghan, administrator of the Hero Scholarship Fund, regarding Shawn Hayes attending Lincoln Technical Institute. Mr. Callaghan's issue at the time was that Shawn Hayes had already 78 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 received the scholarship money from the Hero Scholarship Fund in the fall of 2004 to attend Holy Family University. Unfortunately, Shawn did not finish his course for the fall semester at Holy Family University because he broke his hand. Due to the fact that he broke his hand, he could not use his hand at all whatsoever. He could not take notes and could not go to classes. The unfortunate issue in this case was that Shawn notified Holy Family of the circumstances; however, he never officially withdrew from the school. To compound the issue, he never notified Hero Scholarship Fund of his incapacity because he thought the school would notify the Scholarship Fund due to the fact that the school had received the initial check from the Hero Scholarship Fund. Obviously, Shawn was wrong in that one regard. In an effort for Shawn to 79 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 continue his education without further interruption in his benefits, I requested as to what information was required to expedite the matter, as Shawn was already registered at Lincoln Technical Institute. Mr. Callaghan requested a letter from Shawn as to the reason why he missed a semester. In addition, he requested documentation from a physician regarding his broken hand. During this time, Mr. Callaghan also suggested that we get a check back from Shawn in the amount of $8,000. The letter along with the necessary documentation was given to Mr. Callaghan. However, he did not accept a letter or the doctor's note, as he wanted the $8,000 to seal the deal. Mr. Callaghan said nothing -- or didn't want to hear anything concerning any negotiations unless the $8,000 was paid back. 80 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 It was at this time he said that getting the money back was really going to be tough to get because Shawn took the money and converted it to his own use. I said what? " I asked him if he had any substantiation of that. He said no, he called the school, and the school didn't have the check. He told me this, that Shawn stole the money also in front of Terry Reed, one of our constituents down there at the Fraternal Order of Police. She's also a trustee. I contacted Shawn and requested that he meet Terry Reed and I at Holy Family College because I needed his permission to have access to the records because I wanted to find out what was going on here. ) who's a registrar at Holy Family College. At this meeting, I informed Miss Vickery 81 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 as to the reason of Shawn's absence during the fall semester of 2004. I also her showed her medical documentation along with the explanation. The Registrar's Office requested a letter of retroactive medical withdraw, which he was obtained from me. The school accepted the letter of retroactive medical withdrawal and then gave Shawn the reimbursement check in the amount of $7200. This check was minus a few hundred dollars for the cost of the summer course that Shawn did attend. In an effort for Jerry Callaghan to keep his word, I made arrangements for the check to be returned to Mr. Callaghan at the office of President Eddis.

I did this because of his attitude toward the Hayes family. I wanted witnesses there. Imagine that, having to get witnesses because of a person's attitude toward a 82 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 family of a police officer that was killed in the line of duty. The meeting took place on or about March 7, 2006, with Shawn Hayes, his mother, Joanne, President Eddis, Terry Reed, and I. All of those people, all of those witnesses. Upon arrival of Jerry Callaghan, the check was turned over to him. 0 grade point average. Mr. Callaghan said he has to go to the board to get approval. In addition, Mr. Callaghan also reminded us that the FOP or the Firefighters Union are no longer part of the board of directors. 83 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 At this point, I said that I'd been a board of director myself, and I'd been a member, and I had been at a number of meetings that you, in your capacity, have a lot of influence on how the vote goes. " Mr. Callaghan responded bitterly by stating he don't have a vote, but if it was up to him, he would vote against Shawn obtaining the scholarship plus the fact that he is not in favor of giving him the money. This is after I gave him the check back for the $7200. This is the check that he said that would seal the deal, that he would get his money back and get back in school. Now he's saying he's not going to get back in school. I looked at him and said, "How can you say that? His father was shot to death. " 84 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 He said -- this was right in front of Joanne Hayes, his wife. Robert Hayes was killed in the line of duty on June 17, 1993. And in front of his son Shawn, he said this: He said, "I don't care. I don't care. " He said it right in front of them. I said, "You don't care? You don't care about a police officer who was killed in the line of duty? " I said, "That's 'cause your not family. You're not worthy to be in this office. We are family. Get out of here. We don't want you here. " And he was escorted out of the building because we don't want anything to do with him. He is a terrible, ungrateful representation of the Hero Scholarship Fund and the good work they do. He's a disgrace, to have to talk, especially in front of a family like that. What nerve, what audacity. 85 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 So as a result of that, as it was alluded to by the president -- probably Bobby Eddis, the president of the FOP, was the fact that they started their own Hero Scholarship Fund. And as a result of the money raised through their initiative, through their good initiative, and only through their good initiative were we able to obtain the money to pay for Shawn's education. We had to pay that. The Hero Scholarship Fund didn't pay that; we paid it because he wouldn't have graduated. 0 great point average, and he wouldn't have graduated without the goodheartedness of the president of the firefighters and the president of the FOP. That's the only way it got paid. Here's the check, an FOP check, and all of the letters that I have told you about is here in this package. If you have any questions, I'd 86 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 be more than happy to respond to any questions that you may have.

Thank you very much for your testimony. I have no questions. I thank you for taking the time and spending your time this afternoon here. I would request now that any representative who's going to give testimony, please --

Councilman?

Yes.

Can we first here from Jimmy Binns?

Hold on a second. Mr. Binns? (Witness comes forward.)

Good afternoon, Councilman.

Good afternoon. Please identify yourself for the record.

My name is James 87 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 Binns, and I am the chairman of the Hero Thrill Show. My involvement with this topic came at about January of the year 2006, when Bob Eddis, the President of the Fraternal Order of Police, asked me to come to his office, and he showed me a letter dated January 20, 2006, and if I could, I would like to read that into the record.

Please proceed.

It says: "Dear board member: The 2005 Hero Scholarship Fund Show, the 51st, was held September 10 and 11, 2005. After carefully comparing revenues over the past several years, including decreases as well as the expense and difficulty in putting on the show, it has been decided to discontinue the show as its main fundraiser. The Fund will continue to be managed by the Haverford Trust Company, Financial 88 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 Advisors, and Heffler, Ratititch & Saita, Auditors. "Scholarships will continue to be awarded to eligible recipients by the executive and scholarship committees of the Hero Scholarship Fund. These funds extend well into the future to ensure continuance of the mission statement, that of helping provide scholarships to the children of police officers and firefighters killed or permanently disabled in the line of duty. "Because of this change, there is no need for a full board as it now exists. However, we would welcome your continued support as you see fit. Mere words pale in light of in light of our gratitude for your past efforts and valued input over the years for this most worthy cause. You have indeed made the mission statement a reality. "Again, thank you, and kindest regards. 89 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 "Sincerely, Ruth A. " After meeting with Mr. Eddis, I then met with Ryan McBride, the President of Local 22, as well as Police Commissioner Sylvester Johnson and the Fire Commissioner Lloyd Ayers, and they were, I would say, apoplectic at having Mr. Eddis receive this letter because Mr. McBride had never received a similar letter. And I then wrote to Mrs. Sliwinski on February 15, 2006 and that letter reads: "Dear Miss Sliwinski: I represent Lodge 5 of the Fraternal Order of Police and Local 22 of the Philadelphia Firefighters Union. " Well, that was erroneous; I thought Mr. McBride received it but found out he had not. 90 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 "Since your organization has decided to discontinue the Thrill Show, I request a directory of your board members and the financial statements prepared by Heffler, Ratititch & Saita. Upon receipt of that information, I'd like to meet with you. The police and firefighters will produce the Thrill Show and assume control over the Hero Scholarship Fund. "Thank you for your anticipated cooperation. " Now, I want to stress that my intention at that time was not to pick any fight and not to be in an adversary position vis-a-vis Mrs. Sliwinski or any members of her board. As a matter of fact, I later found out that the gentleman in the back row has been a friend of mine for over 40 years, and he is listed on what was given to me as a -- I'm talking about Mr. McGettigan, 91 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 Norbert McGettigan. He is listed in what was given to me as a list of Finance Committee members. But after I wrote to Miss Sliwinski, I received a very nice letter from her on March the 3rd, and she stated to me in that letter: "Dear Mr. Binns: I'm in receipt of your letter of February 15th regarding the Hero Scholarship Fund. " Now, I want to repeat that. As a City function and operation. Because that's going to tie into my own only conversation with Mr. Callaghan. "Since 1994, we have been forced to operate the show simply because there was no City backing. Hence, we have been operating as a one-man director of operations. Further, we cannot continue to lay out 92 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 the money necessary to fund the show each year by becoming the producers as well. "Therefore, it was decided to continue fundraising through other sources in order to continue our mission, that of providing college scholarships for the children of police officers and firefighters killed or permanently disabled in the line of duty. " That letter was not included in this letter, and to this date, I do not know who the members of the board or the scholarship committee is -- are.

"In accordance with your request, we will have a copy of our financial statement prepared by Heffler, Ratititch & Saita and sent to 93 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 you. "On a personal note, I have been associated with the Fund since 1962 and president since 1994. Our board would be happy to work with responsible agencies dedicated to the welfare of police officers and firefighters as we continue to be and in accordance with our bylaws. I trust this gives you background of the Fund and our board. "Very truly yours, Ruth A. " I received then a letter four days -- dated four days later from Mrs. Sliwinski that says: "Dear Mr. " And I would like to introduce all of these as part of your record but 94 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 --

Mr. Binns, are they copies for us?

I'm going to give them to Miss Putnam and she can return the originals to me after making whatever copies she needs.

Fine. Thank you.

But I have still not received any -- I'll -- I'm going to give you everything when I'm finished -- received a list of the board members or the scholarship committee. What I did receive was a list of what appears to be Finance Committee members, and that's when I first learned that my friend Norbert McGettigan was a member of that committee. And there are ten members in all, and I don't know what role, if any, they play with regard to the grant 95 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 of scholarships or the convening after quorum for a board meeting. But what I wanted now to inform you about is a conversation I had with Mr. Callaghan. And at the time, believe me when I tell you, I know how to pick a fight, and I wasn't trying to pick one. What I was told by Mr. Callaghan was that -- his explanation for the reason that they were no longer going to run the Thrill Show was that Mayor Street stole all the money. " Then I received -- strike that. Then I wrote on March 31st to Mrs. Sliwinski and said to her: 96 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 "Dear Miss Sliwinski: Thank you for your letter of March 3, 2006. Subsequent to that letter, I received your March 7, 2006, letter enclosing the financial statements prepared by Heffler, Ratititch & Saita, for which I thank you. "I am still not in receipt of your list of the executives and Scholarship Committee members, which I requested in my letter of February 15, 2006. Kindly provide me with those lists at your earliest convenience. " The next thing I received as a phone call having to do with Shawn Hayes, which I really wasn't involved in. There was a lot of heated blood and heart palpitations from my friends to the right. But I was really approaching this in a very antiseptic manner because 97 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 we, as of this time, had decided to form our own Hero Thrill Show. We left out a word so that we wouldn't be ever accused of comingling funds or not being forthright with who exactly we were. Now, what we want at the end of all this, and hopefully with your good graces and those of your fellow Councilmembers, is first of all, some knowledge as to who it is that's deciding the fate of these boys and girls that you've heard about today. I am not a police officer, nor am I a firefighter, and so I don't really have the passion that Bobby and Brian have for this. I respect all of the members of that fraternity, and I think that my public actions have demonstrated that. But these people here are trustees of their two organizations by virtue of their position. And by virtue of that position, they are, in their minds, trustees of every kid who's a 98 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 child, whether or not their parents are living or dead, but they see to it -- and I know the fervor with which they operate. And they're not up here saber-rattling. They take this stuff home with them every night and wake up with it every morning. And I'm simply, more or less, a sounding board for them and someone who they have very -- might I say I'm very humbled by their selection of me as the chairperson of is organization that now, in its first year, with less than a half a year to prepare, raised $370,000 as opposed to the letter that said it was costing them money. And today, these two guys gave a check to Mrs. Redmond for her tuition for her children because they weren't going to wait any longer. And you've heard Mr. Lutz testify that the FOP, out of its own coffers, paid for Shawn Hayes's, where we reimbursed his company 99 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 from the funds that we raised. That's how passionate these two men are about it, and you, I'm sure, have seen the visible body language as they were testifying. We still don't want to pick a fight. I mean, I'm not going to fight Norbert McGettigan. First of all, he's tougher than I am. But, second of all, he's a gentleman, and I'm sure Mrs.

Sliwinski is a lady of the highest repute and means very well. But from what you've heard -- and I only know what you have heard here today, save that one conversation I had with Mr. Callaghan. I don't know him, I don't dislike him, I don't know one thing about him. I don't know where he lives. If they have an office, I don't know where it is. I do know that they have invested the funds with a very reputable money manager. The Haverford Trust Company is very reputable. 100 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 But these people are entitled to know how much money there is. It appears from the financial statements, there's over $3 million. But they are also entitled, in my view -- and hopefully you and your associates will share it -- to have a say in whether these families have to come groveling hat in hand for the tuition for their children, and what are the criteria; and if the rules changed, when did they change. And why shouldn't that $3 million be now folded into the Fund that is now obviously up and running. And I'm going to bite off a little something here, but we'll double that 370 this year 'cause now we've had a full year to work. And now it's turned into one of the biggest attractions in Philadelphia. You'll recall that Sylvester Stallone served as the grand marshal last year, and we had a packed house on 101 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 not much time up and running. We, since that time, have started to piece together a blue chip, a blue ribbon board of directs, and nobody wants anything, nobody takes anything, there's no salaries involved, there's no 8 expenses involved. And we can run the Hero Thrill Show out of the combined offices of the Fraternal Order of Police and Local 12 without having to pay anybody to be any 13 kind of executive director, probably 14 without even having to pay for postage. 15 And we will people at the helm 16 who live, eat, and breathe the lives of 17 their members. And I think that that's 18 only fair. 19 We don't want to cast stones at 20 anybody, we don't want to engage in 21 litigation, but unless there is an 22 accounting forthcoming, there will be litigation forthcoming. That's not a threat; that's just a fact of life. I have already spoken to a lawyer about 102 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 that.

You had to speak to a lawyer?

Pardon?

You had to speak to a lawyer?

Yes, because I'm not acting as any lawyer. I will -

I'm just being --

I am here as a friend of the court, as you will, but actually, I think I've turned blue because my friends, Eddis and McBride, will turn me into one of them, which is probably the best thing that's ever happened to me. But, anyway, what we want -- and I am kind of their mouthpiece here today; not that they need anybody because you've heard their testimony. But I sit in the meetings, and they feel these phone calls from the Mrs. Hayeses and the Mrs. Redmonds of 103 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 the world with an entirely different mindset than someone other than them. They are very compassionate men, and the people in their organizations are very compassionate, and that's all they think about. And it would seem to me that it would make great good sense for us to get together with the people that Mrs. Sliwinski and Mr. McGettigan function with and see if we can't bring them into our fold. If they don't want to, we will not be -- you know, we won't be mad or anything like that. But that money should really be placed in a fund and managed by people -- not that they're mismanaging that, nobody's making that allegation, and it's the furthest thing from our mind. But we believe that we can make this fund grow because of the money that will augment it. And we believe that if these men and/or their 104 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 designees within these two unions are burdened with the decision-making process as to who gets a scholarship, how long they get a scholarship for, what schools they are allowed to attend, for how -- what GPAs they have to maintain in order to keep up their eligibility. It just makes sense to me. I mean, they're on the front lines with 'em every day. They night shoulder to shoulder. Bobby Eddis is out polishing plaques on Christmas Day, Brian McBride is there with him. I mean, their whole mindset is directed to their membership. These men are really knights in shining armor, they really are. There's no other way to describe them. And all they live, eat, sleep, breathe is the families of their union members, their extended families, but they're really not that extended. It's all one family. 105 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 And as you know from reading the New York papers, this is the only city in the country that has the symbiotic relationship between its police force and firefighters. It's the only city in America that has it. And these people beside me embody it, and these women that you have heard are the backbone of our firefighting family and our police family. So I would just like to see something happen. I mean, Bruce McKissock is a friend of mine; I'd be happy to sit and meet with him and be honored to meet with Norbert at any time he wants to. I'd like to make the acquaintance of Mrs. Sliwinski; I've never met her. But our goal is to have this all enveloped into one organization and take it from there, and then you're not going to be in a position where you're going to have -- you're not going to 106 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 ever receive a phone call from a disgruntled widow or widower because these people here will handle it in such a way that it will obviate the necessity for such a call, and the decisions that they can make are going to be made on the basis of merit. So I don't want to go into this, but I would like to offer all of these documents into evidence, give 'em to Miss Putnam to make copies, and she can send them back to me whenever she gets around to it.

I just have a general question relative to your investigation and research into this whole situation.

Yes, sir.

The 1954 ordinance, which created the Fund, provides the composition of the Award Committee to be the Chairman of the Committee of Public Safety of the City Council, the Police Commissioner and 107 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 the Fire Commissioner and the Managing Director and the Council President, who is Chairman of the Award Committee; that's what the original ordinance 6 intended. In your view, is it legal without an act of City Council, without an additional ordinance, to change any of that composition or to run the corporation in a different way other than what was intended in 1954? I mean, certainly, you need to make changes and adjustments over the course of 40, 50 years, but can you -- could a board just unilaterally change the way in which they operate?

No. Not only that, but it goes further than that, Councilman. And once, again, we're not -- I'm not casting any aspersions here, but that money, that $3 million, was raised by firefighters and cops going out among the populace, and they were 108 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 carrying out the mission that you just read of that organization. And there's an -- if not explicit, there's an implied covenant that it can't change. And so that's -- that's the beef here. In other words, it has changed. They've even been told it's changed, and it's being changed by people who weren't privy to that 1954 resolution. And from what we were told by both commissioners -- the Police and Fire Commissioner -- they played no 15 role in this practically at all.

And the Council President basically concurs that she signs a document.

Well, I mean, it shouldn't be that way.

I understand.

Nothing is Utopia, but we have an opportunity here to do real good, real good things. 109 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 And we have two people that I know from my intimate knowledge of how they act that would be excellent at it. And with the cooperation of the City Council, the Police Department, the Fire Department, their commissioners, their titular heads, and the unions, I mean, you couldn't have a better setting for the administration of this type of aid to needy and -- But I guess it doesn't even amount to a question of need. These children are entitled to it. I don't care if they struck the lottery; they're still entitled to this education, and they're entitled to get the money from this scholarship fund that their mothers' and fathers' coworkers went out and sold the tickets to raise. So it's as simple as that, and I don't see why there should really be a brouhaha about this. You got people who have volunteered -- and I'm one of 110 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 the volunteers, and we all work without pay, we don't want anything, we don't need any offices -- we got more offices than we can use between the two of them. And we don't need any employees, we don't need any paid employees because we have people who, at the snap of either of those two gentlemen's fingers, will do whatever it takes to get it done to make this thing work, and the proof of the pudding is that in less than six months' time, we went out and we raised net net $370,000. And this year, we'll double, if not triple, that. (Applause.)

Thank you. Thank you very much for your testimony. I would request anyone from the Hero Scholarship Fund who's testifying please approach the witness table. (Witnesses come forward.) 111 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247

Good afternoon. MR. McGRATH: Good afternoon, Councilman Kenney.

Good afternoon. Thank you for waiting. MR. McGRATH: My name is John McGrath. I'm with the law firm of McKissock & Hoffman. I am pleased to be here on behalf of the Hero Scholarship Fund of Philadelphia.

Thank you. MR. McGRATH: Councilman, first of all, let me thank you for the opportunity that you have given us today to hear the comments and the concerns that have been voiced so eloquently by those who are with us. I am here today with Mrs. Sliwinski, with Norbert McGettigan. They are two of the current officers of the Fund. Also with us is today is David Rhode, who is a member of the board and a former 112 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 officer; and finally, Jerry Callaghan, who is our director, our executive director. Councilman, first of all, what I would like to do, I think, is address the last question that you asked of Mr. Binns because I think it is important to try to dispel what seems to be a misunderstanding. The Hero Scholarship fund of Philadelphia was not created by an ordinance of City Council. In 1954, City Council passed an ordinance that created a Scholarship Award Committee of Council. That committee is something separate and apart from the Philadelphia Hero Scholarship Fund, which was created in 1955. It is a private corporation. It enjoys 501(c)(3) status, but it is not an organization that was created by Philadelphia City Council. I have spoken with the attorney for City Council, Mr. Masters, 113 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 during the week. He was kind enough to forward to me the ordinance that I believe you are referring to. I have read it and I can only state to a legal certainty that it is not us; it is something else.

Who -- I know you probably weren't around in '55, at least in your capacity, when it was created, but how was it created? Who formed it? What was the circumstances of its existence? MR. McGRATH: It was formed in the normal manner for incorporating businesses back at that time. The incorporators consisted of -- if I can refer to the articles of incorporation. The incorporators were John B. Kelly, Samuel Daroff, Paul MacNamara, Robert Pryor, and Fred Johnson.

Okay. The issue why I raised this is because in the organization's 990 form from the year 2005, on , it says: 114 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 Note 1, Organization. The Hero Scholarship Fund of Philadelphia ("the Organization") was created in December 1954 by a City of Philadelphia municipal ordinance to provide scholarships for the children of police officers and firefighters killed in the line of duty -- I'm sorry -- of the City of Philadelphia who were killed or disabled in the line of duty. The organization derives the majority of its revenue from the Hero Scholarship Thrill Show and Carnival. This is a two-day event which raises funds from admission fees, carnival ticket sales, and other activities throughout the show. Entertainment is provided by the various units within the Philadelphia Police and Fire Departments. That is your audited 990 for 2005 submitted by the organization. MR. McGRATH: I'm familiar with the document that you are quoting, Councilman Kenney. The purpose that is 115 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 stated there of the organization is correct, and I would refer back to the original articles of incorporation from 1955. The purpose of the corporation is to establish and maintain scholarships for the children of fireman, policemen, park police of the City of Philadelphia killed or disabled in the line of duty and to accept contributions and raise funds for such purpose from the general public. The reference, however, in the 990 to an ordinance creating this corporation is, unfortunately, incorrect. And as I sit here today, I cannot tell you how that misinformation found its way into that document.

Who's responsible for filing the 990? MR. McGRATH: The Fund as a whole is responsible for it. Ultimately, it would be the responsibility of the board of 116 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 directors. The 990 was prepared by the auditors. I can assure you, Councilman, that the error will be corrected in future filings. The 2006 990 has not yet been filed to my knowledge.

I'm sorry, if you have other things. MR. McGRATH: The only thing else I wanted to ask at this point is because we have now had the opportunity to hear the comments and concerns that have been voiced and because we did not know specifically before arriveing here today exactly what would be covered, I would ask that we be allowed five to ten minutes so that those of us here on behalf of the Fund can speak among ourselves, and then we can more directly address your concerns.

Sure. We'll take a five-minute recess. MR. McGRATH: I appreciate that. Thank you. 117 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 (Short break taken.) (Proceedings resume.)

We're back in session. (Witnesses come forward.)

Good afternoon. Mr. McGrath, will there be specific testimony, or are you going to offer the testimony or -- MR. McGRATH: Mrs. Sliwinski would like to testify.

Okay. Please identify yourself for the record ma'am.

I'm Ruth Sliwinski, President of the Hero Scholarship Fund. I've been a member of this organization since 1962, and I joined it because it does benefit children. First off, I would like to express my condolences belatedly to the widows and the young fatherless children. I deeply regret that there's 118 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 been a misunderstanding. We certainly hope to rectify it. We have a board meeting and a scholarship meeting April the 17th, and we've taken a very hard look at this. And if we could, after our meeting, get back to appropriate people. We're very distressed that we've worked and tried so hard and, you know, and we regret this misunderstanding.

I appreciate your comments, and I know you for a long time, and I understand you're sincere. I would appreciate it if you could convey to the board that the compromise or the offer that Mr. Binns had made, along with the union representatives, to try to work together to maybe recreate or reconstitute this whole activity and this whole corporation may be the best way to go. No one wants to have an 119 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 ordinance fight, no one wants to have a legal fight. We think -- I think you've heard and you've expressed your concern and disappointment about what you've heard so -- and I know in your good heart, you'll go back and try together work with these people who are all committed to the same thing.

Sure, sure.

Okay. Thank you. MR. McGRATH: Councilman, if I may, I do have some additional comments if I can offer them.

Please. MR. McGRATH: Thank you. The Hero Scholarship Fund of Philadelphia is a private not-for-profit corporation, as I said, that was organized in 1955. Its sole purpose is to provide academic scholarships to the children of Philadelphia firemen and policemen unfortunately killed in the line of 120 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 their duties. The Fund has been proud to have diverse members of this community serve on this board, and those respected individuals have given so very generously of their time for this worthy cause over the years that this fund has been in existence. Since its inception, the Fund has successfully filled its mission and has helped many students -- literally hundreds upon hundreds of them for -- from so many deserving families, has helped them to realize their dreams of receiving college educations. Even through some lean times and in the face of uncertain funding and support, the Fund has been able to carry on that tradition. In recent years, through what we believe to be responsible management, the Fund has been able to grow so that it can meet the needs of duly qualified students not only now, 121 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 but also for years to come. And hopefully, with the continued support of the Police and Fire Departments, the FOP Local 22, and the generosity of so many other benefactors, we will expect that the Fund will thrive and continue to succeed in its mission. As you have heard, the fiscal integrity of the Fund has been carefully monitored on a regular basis by outside auditors. Those accountants have provided annual reports to the officers and directors of the Fund, ensuring that the Fund's assets are properly managed and that its guidelines for awarding scholarship money are followed. At this point, we are pleased to report that the Fund does indeed have an endowment that exceeds $3 million, and so the ability to continue on with the mission we believe to be intact barring any disaster that we would hope never occurs within the 122 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 City. Many years ago, the Hero Scholarship Fund adopted specific rules and regulations to guide it in accomplishing its goals and also to provide clarity for those in need of its assistance. From time to time, those rules and regulations have been updated in an effort to keep them current with changes in academic aid programs generally so that, for example, the current guidelines do require that students apply generally for financial aid using the FAFSA, AES, or PHEAA forms. Current guidelines also require that students have their schools submit financial aid summaries to the Fund. The purpose of those forms is not to establish or use any income criteria but simply so that we have some documentation about the sources of other funding that each of these deserving children may be entitled to 123 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 and may in fact be receiving. The basic requirements for eligibility and for continuing participation in the Fund's scholarship program have remained essentially the same for over the last years or 8 more. The guidelines are now set 9 forth, and for the last several years 10 have been found in the Hero Scholarship 11 Fund Handbook and guide That is 12 available for anyone who might seek the 13 Fund's support. 14 Councilman, you may recall 15 that we supplied your office with a 16 copy of that booklet around this time 17 last year. I believe it might have 18 been in May of 2006. And certainly 19 that same handbook is available through 20 the FOP and through Local 22. 21 Infrequently, there have been 22 times that the Fund has been unable to 23 provide scholarships to some 24 applicants. That circumstance, we 25 believe, occurs only where the 124 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 applicant has not met the Fund's eligibility requirements.

As much as the Fund and its directors might in their hearts want to help each and every child who is looking to receive that college education, each and every child who has lost a parent who gave so much in service of this city, we also, as a fund and as an organization entrusted with these monies, must walk something of a tightrope. There is a balance that must be struck between our generosity, or the Fund's generosity, on the one hand generosity and its fiscal responsibility to the endowment and to the needs of any students who may be coming in the years to come. We think that the Fund has done that responsibly. We have heard today, of course comments, from some that are questioning that, and the Fund will 125 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 take all of those comments to heart. If there is some organizational change that needs to be made, then that is something that the Fund will very seriously consider. If there are individuals at the Fund whom we need to address specifically, then that will be done as well. But on behalf of the Fund and its board of directors, I certainly want to assure you and to assure everyone in this room that their comments -- the comments heard today are not being taken lightly, that they will be acted upon. As Ms Sliwinski said, the board is scheduled to meet in mid-April. The issues that we have heard about today will be addressed at that time, and either I or someone else on the behalf of the Fund will then communicate most probably with Ms Boyle, Mr. Eddis, Mr. McBride, 126 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 Mr. Lutz, and Mr. Binns so that they can be assured that some action has been taken. In closing, I do want to address one other topic that we have heard something about today. The Hero Scholarship Fund has been proud to have been involved in the production of the Philadelphia Police and Fire Thrill Show over the last several decades. The proceeds from that fundraising event have, in fact, been a consistent source of funding. Despite the history of that event and the Fund's relationship to it, I do think that it needs to be acknowledged that the Fund does not have any obligation, even under its own bylaws, to produce that show. The Fund's directors certainly were disappointed to learn last year that the Fund would not be able to produce the Thrill Show on its own. But equally, the directors were very 127 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 heartened to learn that others were going to make strides to find another venue so that the show could go forward for the benefit of the Hero Scholarship Fund. We now understand and have heard from Mr. Binns today that the show, in fact, was very successful in 2006, and we offer our congratulations to all of those who made it possible. In the end, their efforts, as well as the efforts of the Philadelphia Hero Scholarship Fund, benefit the children, and that's why we are here and that's why we will take action. Thank you, Mr. Chairman

Thank you. I understand your comment relative to the Thrill Show, but again, I will harken back -- and maybe this is also incorrect. In your 2005 990, it says the organization derives the majority of its revenue from the Thrill Show and 128 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 Carnival, which would lead me to question to then, if it's the majority of its revenue, why would you end it? If that's the major way in which you raise the money, why would the board decide to end it? I know it's not a convenient thing to do, it takes a lot of work and staging and organization, but why would you why would the board vote to eliminate its major source of revenue? MR. McGRATH: I'm not sure that's necessarily a correct way to express it. The board, to my knowledge, did not vote to end the Thrill Show in perpetuity. The decision was simply made that in 2006, the Hero Scholarship Fund was not then in a position to go forward for a variety of factors. As it turned out, others then did step up to the plate, and they have now taken charge of what we know to be the Thrill Show. 129 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247

What was Plan B as far as replacing the revenue that was going to be lost from the 2006 show? MR. McGRATH: First of all, a substantial amount of revenue is derived as investment income on the endowment that exists. The fund has done well through the management of the Haverford Trust, and that has allowed us to continue. There are other fundraising efforts that were in place in 2006 as well as 2007. For example, I know there are discussions of having a charity golf tournament in 2007. There were also representations made that the proceeds -- maybe not all, but some of the proceeds from the Thrill Show that was run by the others were to be for the benefit of Philadelphia Hero Scholarship Fund, so we had some reason to believe that funding was not going 130 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 to dry up completely and that there would continue to be sources.

I didn't mean to suggest it was going to dry up completely. I was just concerned that it was the major source of revenue. What other activities in 2006 replaced -- other than the interest income, what other activities replaced the Thrill Show?

We get donations, we get individual funds from other companies. And this year, we were able to get -- Robert Green is on our board who's president of Philadelphia Park, and they gave us $25,000 from their two-day invitational opening. And we have received other large contributions that we get annually, the Annenberg Fund and the Golden Fund and some others.

Okay. I just have a few other questions for the 131 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 record that if you can answer them, I'd like to make sure that they're on the record as we move forward. If you can't, I understand; but if you can, please try. What is the maximum scholarship awarded to a student attending a college or a university? MR. McGRATH: At this point, it is $8,800 per semester.

And how is the cap determined? It's an odd number. It's like -- MR. McGRATH: The cap was set several years ago in consultation with members who are representatives from higher education in the Commonwealth of Pennsylvania. We went to them seeking some information on what is the reasonable cost that is for tuition to attend a State-run university. That was the figure that was provided to us, and we decided that that makes good sense; we would use that now as some 132 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 ability to limit the costs that are incurred.

Were the regulations or bylaws changed to move away from private and other institutions as opposed to just State-financed institutions? I mean, for example, if the student is qualified enough and lucky enough to get into the University of Pennsylvania or Harvard or one of ivy's, is it still 8800? MR. McGRATH: That's correct, but our experience at least has shown that the students who are able academically to attend those institutions also find themselves able to qualify for other sources of funding. The Hero Scholarship Fund, as we have understood our mission to be, really is a fund of last resort.

It's clear from the testimony you've heard earlier 133 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 that that is not the belief or feeling of the people who are attempting to take advantage of the Fund, that I've heard a number of things said today about a promise about keeping a promise that these firefighters and police officers living and deceased, it was their understanding that they could go to work, go into a burning building or into a gun fight and know that the promise of their kids' education being paid for by this fund was a sacred thing. And that's why I believed that they hustled and worked so hard to sell those tickets. I mean, I can't tell you the number of times that, you know, in uniform and out of uniform, you know, they grab you by the collar and say, "You have to buy these tickets." And, you know, you don't mind doing it. But was that ever your understanding or the board's understanding that this thing was kind 134 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 of a sacred pledge? MR. McGRATH: Again, I don't want there to be an misunderstanding. We see the mission to make sure that these children are financially able to attend these institutions. If there is a shortfall from other sources of scholarship or awards that they may be entitled to, then up to $8800 of this fund per semester will ensure that that money is there.

But only up to 8800. MR. McGRATH: That's correct. At this point.

And that was -- was that a situation that was changed by a vote of the board? MR. McGRATH: That would have occurred approximately three to four years ago.

So prior to that, Shawn could have gone to Harvard, and you guys would have picked 135 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 it all up. MR. McGRATH: Again, subject to his ability to receive funding from other sources.

Yeah, I mean, if you're eligible for grants from another source and the difference is $25,000 -- say it's a $30,000 tuition, it's $8,000 from other sources, you would have picked up the balance three years ago. MR. McGRATH: Correct.

What happened to make that change? MR. McGRATH: It was just a decision made by the board as a matter of, I guess, fiscal responsibility is the best way for me to express that.

Was there an issue of the endowment at the time; was it dwindling? had you cut into the endowment directly? How many kids are involved in this at any given time on average? 136 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 MR. McGRATH: I'm not sure I can answer that specifically at this time.

Less than 20, more than 20? MR. McGRATH: It has varied over the years. There have been some years that I am aware of that it has been as high as 40 or more and other years where it has been below a dozen.

Okay. So, I mean, we're not talking about a large number of children generally. MR. McGRATH: Depending on how you define that, yes.

Well, okay, depending on how you define it. So it wasn't an issue of those grants or scholarships eating into the endowment at the time, three years ago. MR. McGRATH: Not specifically, but looking long term, yes, that is certainly a factor we had to take into account. 137 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247

Okay. MR. McGRATH: Councilman, if I may add also, the other thing that we have seen as a change over the last several years is the availability of other sources of funding for the families of those who have lost someone, a policeman or a firefighter killed in the line of duty. So, I mean, it's unfortunate.

Is the availability of loans through those financial aid forms a part of the formula or just grants? MR. McGRATH: I believe it is just grants, but I can't answer that specifically.

Well, you could get back that information if you could. MR. McGRATH: Yes.

Actually, I'd just like to kind of formally ask if at some point, you could provide a 138 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 copy of the bylaws if that's available? MR. McGRATH: I think we should be able to do that, yes.

Thank you. On the 990 -- and we've had a couple questions relative to the 990 for 2005. According to the 2005 990, over $80,000 was spent on compensation for officers, directors, and other salaries and wages. Do the duties of these officers and directors include assisting families to apply for additional financial aid? And if you could break down what those compensation expenses are or were. MR. McGRATH: I am not really in a position to respond to that question.

Is there a staff of the Hero Scholarship, a paid staff of the Hero Scholarship Fund? MR. McGRATH: Yes. The director is compensated. 139 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247

What is the level of compensation? MR. McGRATH: I don't have that figure here.

Okay. Does anyone know? MR. McGRATH: I'm sure someone knows, but...

What was the question?

Are there any other issues of compensation besides salary? MR. McGRATH: If I may, Councilman, I mean, with all due respect, I don't know that the subject of an employee's compensation really is an appropriate topic for this committee. Again, we are talking about --

I respectfully disagree because a lot of the changes that came about three years ago was a result of the issue of 140 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 concern of over fiscal stability and, you know, doing the right thing fiscally, I mean, if we're reducing the number -- or the amount of grants because of fiscal concerns, I would think that an organization that files in the public with a public document, even though it's a privately created entity, should have some responsibility to discuss what other expenses are related to carrying out their mission. I mean, we've had people testify today that they would be willing to do it on a volunteer basis, and I applaud them for that, but, I mean, don't you think it's germane to the fiscal health of the organizations what the expenses are? MR. McGRATH: Absolutely it is.

Okay. MR. McGRATH: But at the same time, I just feel the need to remind the committee that this is a private 141 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 corporation.

I would -- I would -- I would agree with you that the letter of the law that this is a private organization, but in the spirit of the law and as it's reported in your 990, the bulk of the revenue came from public employees who are out there selling tickets to events to provide that money, which ultimately pays staff and pays for other expenses. And that should, I think, unless there's something strange about it, that it should be something readily available and reportable. MR. McGRATH: And the information I think you're asking for is found on the 990. Also, as we heard from Mr. Binns earlier this afternoon, to my knowledge, there is no question about mismanagement of funds; that's not an issue as I perceive it.

No. I 142 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 think that the Haverford Trust is certainly a reputable company and firm and has done a good job in safeguarding those dollars, but there are other expenditures that are made that Haverford Trust I don't know necessarily has to approve or not, or maybe it's just approved by the board, and that's what I wanted to try to get to. And if, you know, you want to refer me to the 990 on salaries and other issues relative to wages, I will do so, but I'm really curious as to why the Hero Scholarship Fund's office was closed and relocated to Felton, Delaware. To me, it seems very strange that when a question is needed to be answered -- Mr. Gleason, for example or Mr. Hayes, who do you talk to? I mean, how do you justify Felton, Delaware, as a convenient location for Mrs. Redmond to get 143 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 information about a question she might have on filling out paperwork that ultimately could preclude their child from attending a university? I don't -- why -- who made the decision and why was it done? MR. McGRATH: Councilman, we heard those concerns voiced here today. They are not concerns that the board had heard before this afternoon. Now that they have been presented to us, I can only assure you that they will be addressed. Now to respond more specifically to your question about why the office was relocated, once again, it was at least in part a question of fiscal responsibility. The rents that were being paid in the Suburban Station building were escalating. We needed to find a less expensive manner to run the operation because, again, we are look long term at what's the best way to preserve the 144 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 endowment.

I understand that and I don't dispute that, but was there any effort made to find pro bono space from Local or 7 the FOP or Mr. Binns -- I'm sure 8 Mr. Binns could find you an office 9 before he walked out the door today 10 that would be donated. 11 Was there an effort made to 12 try to keep the Fund, Philadelphia Hero 13 Scholarship Fund, in Philadelphia? I 14 mean, it just seems bizarre. 15 MR. McGRATH: It is certainly 16 something that the board will consider 17 now. 18

Okay. 19 Just a couple other financial issues. 20 In the Fund's audit for 2004 21 and 2005, can you explain a bank fee 22 expenditure of 16,638 for both years? Bank fees generally aren't that high unless you're bouncing checks. Could you find that out or could you -- 145 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 MR. McGRATH: I'm sure the information is available.

I just -- it's not a huge number but it just popped out, and I'm like -- I mean, that's a pretty expensive bank. MR. McGRATH: I understand your question, Councilman, but as I come back to the resolution that enabled this committee to conduct this investigation, I did not understand that to be a topic.

I understand. This came about as kind of culling all of this information and seeing things that I just would like to question for the record. And if you can provide an answer, fine; otherwise, it's on the record unanswered. And on the same line, there's a telephone expenditure for both years of $3,084, which seems to me to be extremely high. I don't know if it's cell phone bills or it's regular 146 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 land-line bills, but if you could try to provide us with that, it would be helpful. MR. McGRATH: Well, once again, Councilman, I'm sure we do have the information, but it does not seem to me to be within the scope of the purpose of this investigation.

Well, we're -- you know, scope changes. As discussion and testimony comes aboard, we go, you know, we go in different directions. Statement of activities for the year's end of December 31, 2005 indicates that there's one, two, three, four sources of income for that year. The big one is the Hero Show Revenues of $311,000 and change, other fundraising revenues of $4,000 and change -- I'm sorry other fundraising revenues. Hold on a second. Other fundraising revenues of $4,458. Contributions, I think, Miss 147 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 Sliwinski has alluded to at 62,000. Interest and dividend income of 79,000, so -- almost 80,000. So the Fund is being managed as far as the investment side, which I think roughly comes out to about $457,000 in revenue for that year. On the expense side, we had a fundraising expense of $89,000, which, I assume, is generally the cost of running the show. MR. McGRATH: And maybe other fundraising costs, yes.

And other fundraising costs. And then general and administrative costs of $217,000 for a total of $306,000. Now, $457,000 raised that year and $306,000 with expenses other than the scholarships, 'cause you gave away about $108,000 in scholarships, that's understandable and clear. But the 89,000 and the 217 in 148 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 general and administrative is concern because the American Institute of Philanthropy, which rates charities for donors says that efficient groups will spend at least 65 percent of their funds on the causes they support. And according to the Hero Scholarship Fund's 2005 990, allocation of grants total only 33 percent of the Fund's total expenditures, and that seems to be way off what's accepted or expected for national philanthropic organizations. MR. McGRATH: Once again, Councilman, if the resolution bringing us today had raised that as a concern, I think I might be in a better position to answer your question, but it did not.

Okay. Well, what I will do then, as a result of you not being in a position to answer, I will put all of those questions together and then send you a 149 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 letter making requests for some explanation. Could you talk a little bit, or would somebody else from the Fund like to talk a little bit about some of the testimony we heard in the first two panels? MR. McGRATH: Regarding the specific instances?

Regarding the general demeanor and interaction between staff and families, or at least these families. I frankly -- I mean, I've lived some of it myself with two of the families but was really kind of shocked at the depth of the hurt and the anger. And it seems to me that this is exactly the type of organization that should never create that kind of environment with anyone. And I know the board's meeting soon, but I really have to express kind of disbelief. I mean, as I said 150 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 earlier in the testimony, I was hung up on three or four times myself and, you know, that is what it is, but there's got to be some human connection to this all, especially concerning -- considering why these people are here, because they've lost their husband, I mean, in a very tragic and traumatic way. So when a kid doesn't make a filing deadline because he has some psychological issues relative to not having his dad his whole life, I kind of think that's a situation where you want to help and not want to bang a phone down and not want to cut you off and not want to accuse people of doing things. I just really am as much concerned about that as anything else. And you can comment or not, but -- MR. McGRATH: Well, Councilman, I can respond both personally, and I will be presumptuous 151 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 enough to say that I am responding on behalf of the board to say that we very much share your concerns. The board members who are here were disappointed to hear some of the comments and frustrations that have been expressed. And once again, you have our absolute assurance that we will look into those matters so that we can get to the bottom of it.

Okay. MR. McGRATH: If changes need to be made, then changes need to be made.

Okay. I would like to end this on Mr. Binns' note of hope 'cause he's -- again, he wasn't -- he's not involved as the union people have been, he's not involved as the families been, he's not even involved as I have been. He's newly entered into this kind of realm and doesn't really have a 152 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 hard and fast opinion that we can kind of make this better and fix this with all of our help and just make sure that no other mother or stepfather or anyone else or student ever has to experience this again. I think that's a fair way to end this. MR. McGRATH: I think we would echo that.

Thank you very much. MR. McGRATH: Thank you.

Anyone else to testify? (Witness comes forward.)

Please identify yourself for the record.

Thank you. Just take a moment. I just wanted to make you aware of another resource. On December 16, 1998, Act 129 signed by Governor Ridge gave any child of a police officer or a fireman who was killed in 153 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 the line of duty since January 1, 1976, they may be eligible for a waiver of all charges for tuition, room and board, and certain other fees while pursuing an associate's or baccalaureate degree at any Pennsylvania community or state-owned college or state-related educational institution. Administration of this waiver program is under the Pennsylvania Higher Education Assistance Agency. And the child must be a Pennsylvania resident who is the child by birth or adoption of a police officer or a firefighter killed in the line of duty.

Thank you for that information, and I am hopeful that as we move forward and reconstitute this fund or reestablish this fund or commingle the group, the governance of this, that we will have either staff or volunteer staff that 154 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 will research these things and also put them into the pot of resources for these deserving people.

Thank you very much. We appreciate your courtesy.

Thanks for coming.

I'm Mrs. Hayes. And like I said, my husband was Robert Hayes, who was killed in 1993. I also want to say, going through the experiences I've been through, there shouldn't be an age. Our husbands died in the line of duty. Our children should have their scholarship no matter what age they are. When you go through as many things as us wives have gone through -- like with my son he had to take a breather because his daughter was, um, was -- had -- when his daughter was dead, and I tried to call him and he didn't want to hear of these things. 155 3/30/07 - LEGISLATIVE OVERSIGHT - RES. 060247 I think it's -- I'm here today for everybody to say they need to look at are everything. If there's a point when the children can't make it, they need to help the children through this, not make it any worse for them. Thank you.

Thank you very much. We all blossom at a different time in our lives, and those traumas sometimes keep that blossoming from happening when it in normally happens, but hopefully, it ultimately happens, and we should be there with the resources and support. So have a nice weekend, everybody. Happy Easter. (Proceedings end at 4:25 p.m.) * * * 156 C E R T I F I C A T E I HEREBY CERTIFY that the proceedings of the City of Philadelphia Council Committee on Legislative Oversight are contained fully and accurately in the stenographic notes taken by me on Friday, March 30, 2007, 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.)