m. - - - RESOLUTION 040171 - Resolution authorizing the Committee on Labor and Civil Service to hold public hearings to examine and investigate the high number of unemployed people in Philadelphia and the effects this has on their families, the viability of business, commerce and the City's declining population base and to recommend policies, programs and practices that are intended to help reverse this trend. - - - PRESENT: COUNCILMAN JUAN F. RAMOS, Chair COUNCILMAN W. , Vice Chair COUNCILMAN FRANK. J. DiCICCO COUNCILMAN JACK KELLY COUNCILMAN DAVID COHEN COUNCIL MEMBERS ALSO PRESENT: COUNCILWOMAN JANNIE BLACKWELL, Majority Leader COUNCILWOMAN DONNA REED MILLER Councilman Darrell Clarke - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters 1835 Market Street, Suite 600 Philadelphia, PA 19103 (215) 561-2220 2 Resolution 040171 - 3/15/04 P R O C E E D I N G S - - - COMMITTEE CHAIR RAMOS: Good morning, everyone. My name is Juan Ramos. I'm Chairman of the Committee on Labor and Civil Service. , is here present, and to my left, Councilman Frank DiCicco. Very shortly I'll be joined by Councilman Jack Kelly. This is a public hearing of the Committee on Labor and Civil Service, considering Resolution Number 040171. The resolution reads, authorizing the committee on Labor and Civil Service to hold public hearings to examine and investigate the high number of unemployed people in Philadelphia and the effects this has on their families, the viability of business, commerce and the City's declining population base, and to recommend policies, programs and practices that are intended to 3 Resolution 040171 - 3/15/04 help reverse this trend. At this time I would like to make a statement. This hearing was called because I believe and the rest of this committee, and City Council concurs, that as a city we must all be concerned about the high number of unemployed citizens in Philadelphia and the effect that unemployment has on families, neighborhoods, and the local economy. Through these hearings, we hope to examine, investigate the issues of unemployment from various perspectives, including the economic forces that cause businesses to close down shop. We want to get a sense of why some businesses are moving out of the City or laying off employees. We also want to know the human side of unemployment, how are individuals and families coping with their situation, now that they no longer have the same income as before; what unexpected consequences do they face now that they are unemployed. 4 Resolution 040171 - 3/15/04 For example, some hard-working people who are now unemployed are facing the possibility of losing their home through mortgage foreclosure. So, you will be hearing from Sheriff of the City of Philadelphia John Green on why he is calling for a moratorium on mortgage foreclosures, something that hasn't happened in over ten years. You will also be hearing from men who have paid their debt to society. However, many ex-offenders are not given the opportunity to compete for even the most menial jobs. One of the most important things in a person's life is their job. Without a job a person has difficulties providing food and shelter for themselves and their families. Their way of life changes dramatically, and the added stress can cause health and self-esteem problems. When this situation is multiplied by the tens of thousands of citizens who are 5 Resolution 040171 - 3/15/04 now faced with unemployment in Philadelphia, it is easy to see that the whole City's affected in one way or the other. So it is important for all of us, for all citizens, to take notice; to examine, investigate and try to understand the issue; and to do everything we can to help the unemployed. This means that the City must change its tax policies, as the Tax Reform Commission has recommended. Then we must take a look at this.
If we need to offer incentives for companies to come to Philadelphia or not to leave Philadelphia, then we must figure a way to be competitive. For instance, I just introduced a bill that will ensure that the City does not contract any service jobs to companies that outsource these jobs to other countries. We must fight to keep the jobs here in Philadelphia. These hearings are just a part of 6 Resolution 040171 - 3/15/04 the discussion, but they are an important part. Because we don't have a handle of what the real problems are, then it's tough to develop solutions. And there are solutions out there. In fact, we will be remiss if we only looked at the problem and didn't consider some of the available solutions. So during this hearing, we will also discuss various programs which seek to address the unemployment problem by providing job training, counseling, and even job opportunities. Today Professor Arthur Shostak, Director of Drexel University Center for Employment Futures, has submitted written testimony that suggests ways that the City can prepare for the future by taking steps that will anticipate and take advantage of economic trends. Our hope with this hearing is that we will be able to better understand this issue, and hopefully at the end of the day will be able to recommend policies, 7 Resolution 040171 - 3/15/04 programs and practices that will help reverse the current trend. Thank you very much for being a part of these proceedings and for taking the time to share your knowledge and experiences. At this time I'd like to call before us Sandy Vito, Deputy Secretary of Labor and Industry for the state of Pennsylvania.
Thank you, Councilman Ramos and Councilman Goode and DiCicco for asking the Department of Labor and Industry to testify this morning. City Council is right -- COMMITTEE CHAIR RAMOS: Would you please state your name.
My name is Sandy Vito. I'm the Deputy Secretary for Work Force Development with the Pennsylvania Department of Labor and Industry. City Council is right to be 8 Resolution 040171 - 3/15/04 concerned about the large-scale unemployment in the City and the region. We are enduring a national phenomenon commonly referred to as a jobless recovery. Despite an official end of the recession, the number of private sector jobs continue to decrease, even though we are more than months into a 10 so-called recovery. 11 Mirroring national trends, 12 Pennsylvania has at least 90,000 fewer jobs 13 today than it did at the start of the 14 recession in March of 2001. And despite 15 predictions to the contrary, we continue to 16 lose jobs. 17 Metropolitan areas have been hardest 18 hit by escalating unemployment. 7 percent, up from 2003, and higher than both the national and state unemployment rates. More than 50,000 Philadelphians are actively looking for work. Unemployment 9 Resolution 040171 - 3/15/04 among African Americans and other minorities is as high as a staggering nine percent. In addition, labor force participation rates -- that's the number of people who are considered to be participating in the labor force -- continues to decline, which indicates that there are a growing number of people who are discouraged from job search activities and have exited the labor market. And unfortunately they don't get counted in the statistics as they're currently calculated. An illustration of the jobless recovery. In 2002, although the number of business starts in Philadelphia exceeded business closings, closings accounted for a loss of more than 15,000 jobs, while starts accounted for just over 12,000 jobs, for a net loss of 3,000 jobs. When Secretary Schmarin first assumed his role just over a year ago, he found a backlog of more than 16,000 people waiting for unemployment compensation 10 Resolution 040171 - 3/15/04 hearings. I'm happy to report that just a year in, we've made significant progress, reducing that number by at least 4,000, and changing the time that people wait for a hearing from weeks to the months that it formerly took. Yet, unfortunately, many of the people who have lost their jobs since the recession have not been able to find jobs at their former occupations or at similar wages. More than 35 percent of unemployed workers have exhausted their benefits in Pennsylvania. In Philadelphia the unemployment exhaustion rate is 55 percent. That means that people lose their benefits before they find new jobs. So while we at Labor and Industry are doing all we can to expedite unemployment compensation, the economic situation for workers remains very difficult. While the news for Philadelphia and 11 Resolution 040171 - 3/15/04 of course the nation is bleak, we should recognize that Philadelphia enjoys some competitive advantages. First, we have a hard-working citizenry with a formidable work ethic. Second, we have at least three sectors that have higher employment concentration than other regions in the nation. Both life sciences, including health care and biomedical industries, the finance section, and construction represent three areas of potential growth, including employment and higher wage jobs. Third, our post-secondary educational institutions are second to none and provide real opportunities to upgrade the skills and educational attainment of the existing work force and the next generation of workers. While the region has potential for growth, action is required. The global economy represents new opportunities, but also represents real human costs and an equal number of challenges. 12 Resolution 040171 - 3/15/04 So, what can be done? First, the time for economic stimulus is right now. As you know, Governor Rendell offered an economic stimulus plan a year ago when he first took office.
The Pennsylvania Legislature has taken action on some important components of the plan, including the Keystone Innovation Zones, which support economic development adjacent to universities in order to support the important innovation and technology transfer to the private sector. The Elm Street Program, also supported by the Governor and the Legislature, will offer $7 million to local communities to revitalize residential neighborhoods adjacent to commercial corridors. But many important stimulus programs have withered due to inaction by the Legislature. Governor Rendell's economic stimulus plan would jump start the economy by 13 Resolution 040171 - 3/15/04 issuing nearly $3 billion in bonds and loan guarantees over the next three years, leveraging these funds to generate a minimum of $5 billion in private investment in economic development projects across the state, directing investments to blighted rural urban and suburban sites, also making Pennsylvania a leader in real estate and business development. Some of the important initiatives yet to be passed that would help stimulate our economy and provide much needed assistance to Philadelphia and the entire state include the business in our Sites Program, $300 million in a revolving loan fund for local communities to use to redevelop sites into productive use. An increase in the Redevelopment Assistance Fund to allow increased state investment in economic growth, the Pennsylvania Opportunity Fund which has two components. Historically, Pennsylvania has lagged behind in access to capital 14 Resolution 040171 - 3/15/04 investment. The two parts of the fund will increase capital and thereby increase job creation. The first part, the Real Estate Construction Fund, will provide gap financing for real estate projects with their focus on rehabilitation of sites that will attract new tenants and foster new business startups. Similarly, the Venture Capital Fund, if passed, would infuse the state with $500 million in new investment for new businesses and business expansion. Both of these provide important job creation opportunities for Philadelphia and the entire State of Pennsylvania. Job creation is essential in this time of economic change, and the Governor's stimulus plan is needed now to help the tens of thousands of workers seeking jobs in Philadelphia and all of Pennsylvania. Work force development, the area that I'm directly responsible for, and investment in our workers is an important 15 Resolution 040171 - 3/15/04 complement to economic stimulus. The Commonwealth of Pennsylvania invests more than $630 million in employment education and training programs. And as you may know, Governor Rendell recently worked with the Pennsylvania Congressional Delegation to secure $41 million for the year to assist workers who have lost their jobs through increased international trade competition. Philadelphia receives roughly $52 million for employment and training programs, and has provided training for more than 3,500 people. Given economic conditions and the new economy, educational attainment levels, and Pennsylvania's current educational attainment levels, it's clear that more money is needed to upgrade the skills of our work force. And we have called on national leaders to increase funding to work force development programs. But it's equally important that we spend existing money 16 Resolution 040171 - 3/15/04 wisely. Career advancement opportunities or career ladders within firms have all but disintegrated. Most workers change jobs an average of eight to nine times over the course of their employable years. This is a stark difference from 40 years ago when people entered as an entry level worker and worked their way up in a firm. The new economic realities create the need for new strategies.
To that end, we've launched important new initiatives designed to increase competitiveness in our critical industries and to increase the ability of our citizens to compete for higher wage, higher skilled jobs. As I've talked about before, we've identified major industry clusters within the state that represent distinct opportunities for Pennsylvania and the various regions. This is part of a critical component designed to meet employer demand for 17 Resolution 040171 - 3/15/04 skilled workers and Pennsylvanian's need for higher wage jobs, self-sufficiency and career advancement. Using this information, the work force development system can promote regional industry partnerships, which are multi-employer/employee consortia, designed to learn the specific needs of the industry cluster. Issues such as labor force shortages, skill gaps and retention rates can be addressed through the industry partnerships, focusing scarce work force development education and training resources on industry and worker priorities. Industry partnerships can also develop career pathways or career ladders between firms, just as they were once available in side firms. Some successful examples in the strategy exists in the region, particularly with regard to health careers. I believe you will hear later today 18 Resolution 040171 - 3/15/04 from the manager of the Life Science CareerLink. This site is intended to assist the unemployed, underemployed, and disadvantaged workers find suitable employment in health careers, and to develop, through education and training, the skills needed to compete for jobs and advance their careers in an industry sector that provides not only real opportunity but that has a worker shortage. Similarly, the Commonwealth recently provided seed funding for the development of an industry partner in the manufacturing sector. This partnership is charged with grappling with specific work force needs of manufacturers, learning what the common training needs are for multiple employers, and gearing training and education dollars to meet the need, and as a result, helping our workers compete for good jobs at family sustaining wages. In the upcoming months you'll hear 19 Resolution 040171 - 3/15/04 about efforts to expand post-secondary education and increase the ability of Pennsylvanian's to gain marketable credentials. Already in this region you have a model community college consortium that works with Drexel University, to assist people in attaining important educational credentials, credentials and degrees that combine skill specific training with academic instruction. This initiative recognizes the importance of post-secondary education and the need for workers to possess skills, knowledge and problem-solving ability. We live in a new economic environment, in an environment marked by increasing global competition, cost pressures, and the need for skilled workers. Our strategies for combating unemployment must address this new environment and focus on making our industries competitive, while providing 20 Resolution 040171 - 3/15/04 opportunities for our residents, opportunities that have to include jobs, lifelong learning, careers, and career advancement. Thank you. COMMITTEE CHAIR RAMOS: Thank you, Miss Vito. Do you have copies of your testimony?
I don't with me, but I can send it to you, if that's okay. COMMITTEE CHAIR RAMOS: Can you please do so?
Absolutely. COMMITTEE CHAIR RAMOS: You talked about the Governor's economic stimulus plan and the inaction of the Legislature. Can you tell us where that stands today?
I'm sorry. Can I... COMMITTEE CHAIR RAMOS: You talked to us about the Governor's economic stimulus plan, and that there is inaction on the part of the State Legislature. Where is that today?
As he introduced the 21 Resolution 040171 - 3/15/04 stimulus plan about a year ago, there have been ongoing negotiations. We had hoped that it would be passed by now. As you know, both the budget... The budget and the economic stimulus plan were stalled. I would be loathe to suggest what the reasons for that are. But I know the Governor is very, very committed to passing economic stimulus because we need it right now. I mean, if we're going to invest in jobs, now is the time to do it. COMMITTEE CHAIR RAMOS: Any idea if it's going to be before the summer's out? I mean...
I can tell you two things. One, there was hope that it would be passed this month, but I have heard unofficially that the Republicans in the Senate and the House have walked away from the negotiating table. COMMITTEE CHAIR RAMOS: You talked about the Governor's economic stimulus plan. If all of his plan was to be 22 Resolution 040171 - 3/15/04 approved by the House, do you have any projection of how this would impact on the unemployment rate and how low it has a potential of going?
The multiplier effect is about 2.5 percent. I'd have to get you job estimates. I did not bring them with me. COMMITTEE CHAIR RAMOS: Can you get that for me?
Absolutely. But we would anticipate an increase in job creation, a significant increase in job creation. COMMITTEE CHAIR RAMOS: At 2.5 percent?
Mm-hmm. But I have to figure out what the baseline is. I have to get those numbers. I'm sorry I didn't bring them with me. COMMITTEE CHAIR RAMOS: Do you know in what sectors, in particular, these jobs will be available?
Some of the components of the economic stimulus are targeted to health care and biotechnology. Others are 23 Resolution 040171 - 3/15/04 targeted generally to manufacturing or any industries in which new business startups are possible. So, it could be a variety of sectors. COMMITTEE CHAIR RAMOS: And the Keystone Innovation Zones, they're included in the Governor's...
They've actually been passed. And we're hopeful that we will have both the funding and the guidelines out in April. COMMITTEE CHAIR RAMOS: What are your projections if these Innovation Zones are approved locally, and so forth? About how many jobs -- Do you have any projection on how many jobs it will create?
The Innovation Zones are actually designed to promote technology transfer, so we don't know exactly how many jobs it would create. But the goal is to make businesses more competitive by taking innovation done in the university setting and making that move more quickly into the private sector, 24 Resolution 040171 - 3/15/04 so that businesses become more competitive in terms of, you know, innovation, technology, research and development, new product design, et cetera. COMMITTEE CHAIR RAMOS: Can you talk to me a little bit about the Real Estate Construction Fund?
It's designed to provide assistance gap financing for people who -- You know, a lot of folks can come very close to having all of their financing secured. This would provide sort of incremental financing for the rehabilitation of commercial sites, particularly redevelopment of sites that need to be brought from brown fields to productive use. COMMITTEE CHAIR RAMOS: Do you have any projections on how many jobs that --
Again, I don't have any job projections. I apologize. I will absolutely bring you -- send you some job projections. 25 Resolution 040171 - 3/15/04 COMMITTEE CHAIR RAMOS: You stated early in your testimony that when the new Administration came to Harrisburg that there were 16,000 people that were unemployed, or had been -- correct me if I'm wrong -- that they were denied unemployment compensation, and that after they were denied, they were waiting for hearings. 16,000 people were waiting for hearings still when the new Administration came in. And you mentioned that 4,000 -- Correct me here. You reduced it at 4,000 or you have only 4,000 that still need hearings?
My understanding is that we have only 4,000 that still need hearings, and that the time waiting for hearings is down from a number of months to a couple of weeks. And we're working very hard. COMMITTEE CHAIR RAMOS: So you handled 12,000 hearings that were since the new Administration came in? Resolution 040171 - 3/15/04
Yeah. COMMITTEE CHAIR RAMOS: So, you brought it down to 4,000 in a year-and-a-half?
A little under a year-and-a-half, yes. COMMITTEE CHAIR RAMOS: A little under a year-and-a-half. What was the problem?
There were a number of problems. The way the work was managed was a problem. There also were not enough hearing officers. We've actually taken great strides to increase the number of hearings officers and provide incentives for people to move case loads more quickly through the system. COMMITTEE CHAIR RAMOS: Can you detail what the great strides are? How many hearing officers do you have in Philadelphia, and does that meet the demand for hearings?
I believe that we are still in the process of hiring more hearing 27 Resolution 040171 - 3/15/04 officers, but that we are working very diligently to have all the positions slotted. And I can't give you the specific numbers for Philadelphia or even statewide. COMMITTEE CHAIR RAMOS: Can you tell us how someone can apply for these hearing officer's jobs?
I can send you the information. I believe they're Civil Service jobs, and you would need to take a Civil Service test. You can directly link to the L & I web site, which is wwdli.state.pa.us, and the application and the information is on the web site. COMMITTEE CHAIR RAMOS: And how about here in Philadelphia? Can someone go somewhere?
You could go to the local -- COMMITTEE CHAIR RAMOS: Because we have people watching on T.V. I believe, Councilman DiCicco, and Councilman Goode, so there might be some folks that are 28 Resolution 040171 - 3/15/04 listening to every word you're telling us.
Yes. You can go to the local CareerLink Office. You could also go to the local Civil Service testing site. And unfortunately, I do not have the address to that. But I can find it for you. COMMITTEE CHAIR RAMOS: I have no 10 further questions at this time. Councilman Goode.
Thank you, Mr. Chair. Miss Vito, thank you for your testimony. I'm a little bit disappointed that you don't have the job creation numbers based upon the full enactment of the Governor's stimulus plan. But can you tell me, if you know, what the cost per job would be that the Governor's willing to spend to create jobs?
I don't know that information. I apologize. But I think in terms of costs per job... I mean, at this 29 Resolution 040171 - 3/15/04 point the stimulus plan is intended to stimulate economic investment by leveraging both public and private sector investment.
I understand that. But for the cost per job, if it's going to be $75,000, $80,000, $100,000 per job, it doesn't make it a good investment, despite the multiplier effect.
In the work force development system, we typically spend for a retraining, about $8,000 per --
No; I was speaking more so about the economic development side, in terms of the loan programs that will be set up under the stimulus plan.
I don't have that information. I know the Governor's Action Team typically spends about $10,000 per job.
Again, it's not my specific area. But my understanding is 30 Resolution 040171 - 3/15/04 that there would be an oversight board for the Venture Capital Fund which would make sure that the investment went into sound investments likely to promote job creation. Again, those details are being worked out by the State Legislature and the Governor.
Do you know if they intend to include any call-back provisions?
In other words, if those jobs are not created, will they either call the loans, increase the interest rate, take back part of the money? Are there call-back provisions?
Most of the programs currently administered in the economic development programs of the State do have call-back provisions. But as you know, unfortunately it's often difficult to exercise those call-back provisions if a business goes out of business. But they do typically have those in 31 Resolution 040171 - 3/15/04 the Venture Capital Fund. Again, the regulations have not been written, but I would assume that there would be similar call-back provisions.
Let me ask you a question that's more along the lines of your expertise. You spoke eloquently about work force development, and spoke also extensively about the Governor's economic stimulus plan. How directly linked are the work force development efforts to the economic development efforts?
Well, they're directly linked. Many people sort of falsely have an understanding of work force development as a catalyst for job creation. What the work force development system can do is create an educated and skilled work force that can help at times attract new businesses. But without economic development and stimulus, there are no new jobs. 32 Resolution 040171 - 3/15/04 So we work very closely with the Department of Community and Economic Development, so that if they're investing in particular sectors: Health care, biotechnology, et cetera, that we're gearing our work force development programs to those areas.
My question really is, how are they directly linked? In other words, if the economic stimulus plan is going to create loan funds, and those loan funds are targeted toward business lending, how then are your work force development efforts linked there? Or are they linked there? And are the work force development efforts, or what percentage of the work force development efforts are reserved or targeted toward what's going to happen in terms of those loan funds?
In other words, most work force development efforts identify industries that may be growing. 33 Resolution 040171 - 3/15/04
I'm not sure that the loan funds under the economic stimulus plan are targeted or to the extent to which they are targeted are then linked back to the work force development efforts. In other words, I guess I'm asking the question --
No; I think I understand the question. What we've done, the Department of Labor and Industry and the Department of Community Economic Development have jointly undertaken a cluster analysis, a targeted cluster analysis to identify, first, statewide where our competitive industry clusters are.
Which is where 34 Resolution 040171 - 3/15/04 I'm really going. In terms of your loan funds that you will establish if this economic stimulus plan is fully enacted, will those loan funds mandate a percentage of jobs for Pennsylvania residents? Will those loan funds mandate a percentage of jobs for your work force development clients?
Again, the regulations have not been written. I'm not sure that they would be mandated. But the systems work closely enough together that the work force development system provides the pipeline for the workers in those new jobs.
It can provide the pipeline, but is it mandated that there be a direct link?
It has not in the past always been that direct pipeline. We are working very hard to make those connections. I think I understand what you're saying. 35 Resolution 040171 - 3/15/04 You're right. In the past there has not always been the corrections that you're talking about. We're very much -- I use the health care industry because it's sort of the simplest one to understand. There's an actual labor force shortage. So, as we're making investments, we are actually trying to get people into the real jobs that exist there. The same thing as we build new jobs in targeted industry sectors. Presumably if biotechnology, pharmaceutical manufacturing, medical manufacturing is an area of economic development investment, we would specifically target through the career links, through job training services, that the first recruitment would come through the work force development system.
But if those companies don't seek public financing through your economic stimulus plan, then essentially for those companies that do seek public financing, there might be a 36 Resolution 040171 - 3/15/04 disconnect between what you're doing in work force development and what you're doing in terms of economic stimulus.
No. I think I'm saying that while there is currently and has been a disconnect, we're making every effort to avoid that disconnect. So, if they're getting public financing from the economic development side, they come to the work force development side. So, for instance, let me tell you about one improvement that we've made. The Governor's Action Team, as you know, actively works with businesses on retention strategies and attraction strategies. Whenever they make offer letters, they'd let us know that a company is coming in, what their job training ideas may be, so that we're at the table at those meetings. Similarly, when they're making loans, we'll understand what the sectors are that are invested in, and we'll pull 37 Resolution 040171 - 3/15/04 those employers together in industry partnerships to better understand their training needs. So, for instance, in the manufacturing... Let's say we're investing in NLF loans for certain types of equipment. The work force development side would then come in at a multi-employer strategy and provide specific job training and education on that type -- that piece of equipment that we might be investing in. So, there are direct linkages that we're creating. Is it perfect? I would say absolutely not. But are we making great strides? Absolutely.
Okay. But all that is still short of mandating that a percentage of jobs that the businesses will create from your economic stimulus plan will go towards your work force development clients.
Again, the regulations 38 Resolution 040171 - 3/15/04 haven't been written. And I guess I could take that back to the folks who are working on economic stimulus as an idea to sort of mandate that. I would say Pennsylvania residents -- I think the goal is to have Pennsylvania residents, so that absolutely that there be a specific linkage. That makes perfect sense.
I asked those questions not just in anticipation of what the Governor is going to do, but here we entertain the idea of a half a billion dollar economic development capital fund as well. Thank you.
Okay. I think that's a great idea. And I will look into, you know, how could we possibly mandate that, not just through voluntary agreements.
Thank you. COMMITTEE CHAIR RAMOS: Thank you, Councilman Goode. I want to acknowledge that 39 Resolution 040171 - 3/15/04 Councilwoman Donna Reed Miller has joined us. Thank you for coming.
Thank you. COUNCILMAN DiCICCO: Thank you, Mr. Chair. Good morning, Miss Vito. In your testimony you talk about some of the components of the Governor's economic stimulus package, and you also testified that it's about a year, year-and-a-half that it's been on the table, and that the Republican leadership, and that the House and the Senate have basically walked away from the table. I'm sure there are many components to this. I'm not asking you to go into detail. But could you speak with any specific knowledge on what may be the biggest sticking points that the Republicans are having to deal with and why they're not supporting this? Is there anything in general? Could you generalize that?
I have no -- 40 Resolution 040171 - 3/15/04 COUNCILMAN DiCICCO: Politics aside, that they may not want the Governor to look good. I understand all that stuff, I mean, again, myself. But I'm just curious if there's something...
I honestly have no idea. Again, that was unofficial. The official understanding, up until at least a week ago, was that there had been agreement on all the details. So... COUNCILMAN DiCICCO: On?
All the details of the stimulus plan. So, I really have no 15 earthly idea why they've walked away -- COUNCILMAN DiCICCO: Agreement on the details, but not necessarily in support of...
No. There was agreement. I think the difference of opinion had to do with timing. But my understanding was that there was an agreement that was worked out between the four caucuses as to what would be passed, and that the issue was timing, 41 Resolution 040171 - 3/15/04 and that it looked like March would be the time that they would pass it. COUNCILMAN DiCICCO: So, we have a good chance that sometime this month it may be passed, you're saying. And do you know if there's any --
I just got word on Friday, again, unofficially, that the Republicans had walked away from the table, and I don't know why. COUNCILMAN DiCICCO: Well, that's what I was trying to find out. Is the reason why --
I don't know. COUNCILMAN DiCICCO: -- it's too expensive? Are they not... You have no 18 knowledge of that?
I don't know. I don't know what their position is. I welcome you to ask them. COUNCILMAN DiCICCO: If they were here, I would. I'm just curious. I mean, again, without the political nature of these things that sometimes get in the way, 42 Resolution 040171 - 3/15/04 I was just curious if there is any specific issue or issues that the Republican leadership in Harrisburg was having a problem dealing with.
Again, I just got this on Friday, so I have very little information. COUNCILMAN DiCICCO: I understand. Thank you. Thank you Mr. Chair. COMMITTEE CHAIR RAMOS: I'm an optimist, but let's not hope at all that this package is turned down in the House, in the full House. What kind of negative impact would this have on the unemployment scene in Philadelphia in particular, if the Governor's economic stimulus plan, that has so much for employment, is not acted on?
Well, there's two sort of, you know, schools of thought on this. One is that we just should wait and the recession will end. The other is that we 43 Resolution 040171 - 3/15/04 need to actually take action to really sort of pump up the economy. I would be an adherent to the second, rather than the first, and I think the consequences for the people of all of Pennsylvania are pretty grave. We have had -- continue to have significant job losses. And, you know although, we're, again, months into a 11 so-called recovery, we have not seen the 12 type of job gains that you would expect to 13 see related to a recovery. 14 So, I would suggest that without 15 some action, such as the stimulus, we're 16 going to continue to see increasing 17 unemployment rates and increasing labor -- 18 decreasing labor force participation rates. 19 COMMITTEE CHAIR RAMOS: Thank you. 20 Councilwoman Donna Reed Miller, please.
Over the 44 Resolution 040171 - 3/15/04 weekend, I don't know whether I was on the internet or reading the newspaper, but the Bush Administration keeps predicting that jobs are going to start to come back. Do you have any idea what kind of jobs they're talking about? And how are they coming back? And this is not really -- This is not a political question.
When I read it, I said, I wonder where these jobs are going to come from. So, I thought, you know, since you work for Labor and Industry, that maybe you guys have some information we don't have.
Well, I guess, let me say a couple of things. One, the information Labor and Industry has, again, been very stark. Unemployment continues to --
-- increase. In Pennsylvania, where we believe we have a competitive advantage is in health care, where we actually have a labor force 45 Resolution 040171 - 3/15/04 shortage. We believe we can grow jobs in the biotechnology and biomedical areas, including pharmaceutical manufacturing and medical equipment manufacturing. But understand that that sector of the economy is very small, in terms of employment. Philadelphia has a specific competitive advantage in the finance sector. Also, you know, tourism continues to be an area where jobs grow, and one of the things that we're looking at, in terms of work force development, is how do we create actual tour pathways in the tourism sector. The construction sector in Philadelphia is still relatively healthy, although that sector has also experienced some job losses recently, too. So, the truth is, while I can tell you what the competitive sectors are for the region and for the State, most sectors are, with the exception of health care, and even that depends on the occupation within the sector, are experiencing job losses. 46 Resolution 040171 - 3/15/04
So, I guess the short answer is, if we have actual job gains, they are likely to be in those sectors that I just described.
Okay. Do you know what the -- And someone may have asked you this prior to my arrival.
Do you know what the unemployment stats are for Philadelphia?
7.7 percent, which is higher than both the state and the national averages. And among African Americans, it's as high as 9 percent. And again, as I mentioned before, that discounts folks who are discouraged from the labor market, so it could in fact have a real -- could be higher.
Since January of this year? COMMITTEE CHAIR RAMOS: What month is that for? 47 Resolution 040171 - 3/15/04
That's the current year statistics, 2003. That's January of this year. And then for 2002, I believe it was 7.6 annually. COMMITTEE CHAIR RAMOS: That's annual percentages.
Thank you. COMMITTEE CHAIR RAMOS: Any of my colleagues here on this Committee have any questions? I want to acknowledge Majority Leader Councilwoman Jannie Blackwell. Councilwoman, do you have any questions for the Madam Deputy Secretary of Labor and Industry?
Thank you. It's a pleasure to be here, and certainly I want to commend you and the members of this Committee for holding a hearing on such an important issue. I was with Councilwoman Miller just downstairs about another contract that 48 Resolution 040171 - 3/15/04 would bring another 500 jobs to our City. So, it is absolutely so important and so timely that we have these hearings. And we certainly support you 1,000 percent. And thank you, Secretary, for coming.
I'll follow up with a written testimony, and I'll also get you the job creation projections. I apologize for not having that with me. COMMITTEE CHAIR RAMOS: Thank you for coming here today, and we'll wait for your text.
Thank you. COMMITTEE CHAIR RAMOS: Will professor Bruce Radar... Mr. Radar is Professor of Finance at Temple University Fox School of Business and Management. Please state your name and your title again, please.
My name is Bruce Radar. I'm Assistant Professor of Finance at Temple University. I teach finance courses there. I'm also a chartered financial analyst. 49 Resolution 040171 - 3/15/04 COMMITTEE CHAIR RAMOS: Thanks for coming here. Do you have a prepared text?
No, I don't. I was just informed on Friday. And I want to apologize that I don't have any detailed prepared text. And I didn't know exactly what I was supposed to talk about, to be honest with you, which makes it sort of kind of interesting when I listen to people talk. But when I want to make sure that you understand that the remarks that I make today are mine alone. If you want to interpret them as being Temple's, I'm sure they are along the same lines as Temple University itself I hadn't had a chance to clear anything with anybody. As I said, I was notified on Friday that they asked me to testify today. I had very little time to come up with anything. I don't have any statistics for you like the previous lady. But I can tell you a little bit about my history and 50 Resolution 040171 - 3/15/04 some of the things, because I had a lot of experiences with unemployment and areas of unemployment. And I would also like to make some sort of recommendations that I think are important. I'm a free-market individual, to start off with, and that may be different than some of the people here. Because when people talk and say that government needs to get involved, I believe government's involvement should be to level the playing field, okay, to encourage innovation but to level the playing field. And I as I said, I don't know the statistics in the area itself, but it seems to me that this area, one of the problems with Philadelphia is the employment is moving outside the City limits but not out of the region. Okay. And what Philadelphia needs to do is, you have basically what we would call a structural problem in unemployment. 51 Resolution 040171 - 3/15/04 The City went through a period, I assume, of manufacturing and that was the center. And as that left, the City didn't really try to replace it. What they ended up doing was, in my opinion, raising taxes and stuff, and trying to keep the services the way they were at that time. Now, that is good for the people who are there. But what you did was sort of sacrifice, I think, a little bit of the future. And that being said, from here I think the City of Philadelphia needs to encourage people back into the City. I know Mayor Street has programs by which he's getting rid of some of the urban blight. And as I come into Temple, I see that factories have been leveled, and things like that. Those are the kind of things, I think, that make this City more attractive. It has a lot to offer. I think you as a council, and 52 Resolution 040171 - 3/15/04 Philadelphia as a City, needs to make sure that it's attractive for other people. We're in a period now which we're in one of the strangest times I think any economist has ever seen. We are in a recovery. People say there's a recession. The economic growth numbers are phenomenal that you see in the market that comes out nationally. The only problem is, we're not creating jobs. And I think that has to do a lot with globalization, and things like that. And another thing I think that people don't do is encourage entrepreneurship as much as they should. That's the way you bring jobs in the City. To be honest with you, large companies don't create as much jobs as small companies. That's a fact every economist knows. An entrepreneur who can develop a program -- And it was nice to hear that 53 Resolution 040171 - 3/15/04 people talk about venture capital and using venture capital in the City. I think that would create more jobs for the City of Philadelphia than anything else, encouraging entrepreneurship. And you do that by going through the universities themselves. Temple University, the School of Business has an entrepreneur group. I have students who come to me and ask questions all the time about starting a business and doing business, sometimes in real estate, sometimes in a wide variety of areas. And I try to encourage them.
What we need to do is try to encourage them to stay in Philadelphia, and help them to develop their business, and give them expertise, and things like that. Then the jobs will be created here. I think when government gets involved -- As I say, I'm a free market individual. As Adam Smith would say, when government gets too involved in business, what happens is, they usually create 54 Resolution 040171 - 3/15/04 problems more than they create jobs and create good economic growth. As I said, your job should be to try to level the playing field. Now, I know that you're competing with other people who are giving tax breaks, and things like that. You need to match those. That's obvious. Okay. But you always have to have that eye to the future, what's new. The lady before me was talking about different industries that we have a technical advantage in. We need to exploit those technical advantages for the City of Philadelphia. In other words, it's going to be hard because we're sort of in, as I said, a strange time, because even United States wide, President Bush claims that there's going to be a whole bunch of jobs created. He's done everything he can as far stimulus, and yet the jobs haven't appeared. And that really is a difficult task 55 Resolution 040171 - 3/15/04 for anyone in your position at this point, is to try to encourage that, the growth of entrepreneurship, because I think that's how you're going to get your jobs in this time and place. You need to develop a confidence in the City. People have expectations, and they look to the City Council to show them that the future for the City of Philadelphia is strong. And if you do, you'll attract people to come here. And you have to do that really -- You know, you may have tax incentives and other things. I read the paper and see this information coming out for the City of Philadelphia. It makes -- If they're done properly, I think you can attract a lot of positions and a lot of jobs to the City, and stem the tide that you have right now. You might be able to attract people in from moving their facilities from outside the City in places like Montgomery County back into Philadelphia County in the 56 Resolution 040171 - 3/15/04 City of Philadelphia. I'm not sure what the solution is. You know, you have economists and people working for you that help you develop those solutions. But it's something -- You need to show people that you're working on those solutions, to show them, so that they develop the expectation that this is the place to be, this is the place to develop jobs. COMMITTEE CHAIR RAMOS: Thank you for your remarks, Professor. I'm not an economist.
Mm-hmm. COMMITTEE CHAIR RAMOS: But I always, as I grew up and as I joined the work force at a very early age, I always equated the measure of recovery by job growth. Are you in a position to talk to me a little bit more about how I can better understand where the economy is having such a great recovery, and yet the unemployment 57 Resolution 040171 - 3/15/04 rate, as the Deputy Secretary of Labor and Industry just testified, continues to go up in Philadelphia?
There's a lot of different reasons why we have had a jobless recovery. One of them, if you look at Allan Greenspan, his testimony will tell you higher productivity. We've come through a technological -- basically, a technological change that's made us more productive. There is also the problem of outsourcing. Whether that's a problem or not depends on what you believe in. But that higher productivity makes it more difficult, okay, to employ the people we have, without developing some way... And I think one of the key elements is going to be eventually developing more of an export oriented country, more along the lines of Japan. And Philadelphia is in a good place to do that, in my opinion. That's really one of the key elements in why we have had a jobless 58 Resolution 040171 - 3/15/04 recovery, is that, basically, productivity gains have been so tremendous. And if you look at the productivity numbers over the last six months and last year, they've been phenomenal. COMMITTEE CHAIR RAMOS: If I was unemployed, I'd probably -- And I was unemployed last year for most of the year -- I would say, if there's so much productivity that's gone, you know, beyond the roof, how come you're not hiring me to help with that productivity that's expanded so much?
Well, how would I react to that? That maybe your job skills, your set of skills are no longer applicable, and you need to update your skills. One of the great things about the Philadelphia area, in my opinion, is that we have a tremendous amount of universities which can develop that expertise for people. And if you notice, a lot of people are going back to school and updating their 59 Resolution 040171 - 3/15/04 skills. The only problem is, we've come off a period of time where people didn't have to update their skills. Their salaries and everything increased almost yearly from the 1950s, all the way to the 1990s. Now, you know, when I tell my students... I'm sort of a unique individuals because I've had four or five careers. There's a lot of people who haven't. So I have a tremendous amount of different job skills. I tell my students to look ahead and always be prepared to change and to adapt to the new environment. COMMITTEE CHAIR RAMOS: I understand what you're saying, but could it be also that employers are maybe trying to get even with employees, that more is expected and more is demanded of the employee today than in recent times, because the new phenomena of the changing of the job market is unfolding before us. Do you think that could be a reason? You don't have to pay into health and 60 Resolution 040171 - 3/15/04 welfare benefits? I cannot -- I don't have to pay time-and-a-half. Do you think some of those factors are now things that employers use to keep their employee numbers down, and yet push for bigger productivity?
Mm-hmm. COMMITTEE CHAIR RAMOS: I'm not saying it as a negative factor. I'm just saying it as a matter of fact.
I would agree with you 100 percent, that employers are expecting a lot more out of their employees these days. For instance, just Temple graduates, when they leave the business school. If you had gone ten years ago, they would have gone -- most of them would have gone into some kind of training program. Now a lot of times they're expected to hit the ground running. They're expected to be able to do something right off the bat. And that -- You know, the pendulum swings both ways. And when there's -- Right now there's slack in the 61 Resolution 040171 - 3/15/04 employment market. There's more employees out there. Obviously, that's what you're talking about here. There is high unemployment, in a lot of ways. And that slack is going to -- The employers have an advantage. If the labor markets get tight, the employee has the advantage. And then you see job growth, and, you know, you see a lot of different things happen like that. So it sort of swings -- You know, you see more than having to add more people. And that's... You know, economics are kind of strange. There's good times and bad times because there is economic cycles. And what government has to do is learn to deal with those economic cycles and be sort of counter cyclical in them. That's why I said that as far as I'm concerned, you're trying to do a good job here. You're trying -- And I assume what you're trying to do with these hearings is to find ways that you can encourage more 62 Resolution 040171 - 3/15/04 employers into the City of Philadelphia so that we can use the resources that we have here, which are, you know, in a lot of ways are a very skilled work force. COMMITTEE CHAIR RAMOS: Thank you. I want to acknowledge that my colleague, Councilman Jack Kelly, who's a member of this Committee, has joined us. And for the record, we have a quorum. Do any of my colleagues here at the table have any questions? Councilman Goode.
Thank you for your testimony. I did enjoy it, although I found it mostly anecdotal in its content. Did you actually do any research with regard to job creation, job development, before coming here?
Let's deal with the first anecdotal reference, that small businesses create the most jobs, which I agree with. And the fact you say that most of your students at Temple should be encouraged in their entrepreneurial pursuits and should be trained in those pursuits. Do you believe, beyond the issue of technical capacity, that there may be other issues out there that should be addressed, like, for instance, financial capacity, that there might be particular access to capital issues for businesses, particularly small businesses in Philadelphia?
Well, that's what -- If you remember what I said, that the previous person who testified, she was talking about setting up a venture capital fund to help fund new businesses. I assume that was what it was for. That is something that I think is necessary and a good function of 64 Resolution 040171 - 3/15/04 government, okay, to encourage entrepreneurial...
Do you think that it might be a particular economic disadvantage in Philadelphia, with regard to redlining by banks, lower income and minority owned businesses?
In the context of the changing demographics of the City, that we may actually just have an access to capital problem, as opposed to a lack of entrepreneurship?
Well, that's where this... Remember, I said in one of my original testimony, or what I said was that the function of government in my opinion is to level the playing field? There are rules set up by the Federal Reserve, and there's things that 65 Resolution 040171 - 3/15/04 you can do as a City Council to encourage people to invest in this City and in the minority community.
Okay. Thank you. COMMITTEE CHAIR RAMOS: Any other questions from the panel? Councilwoman Donna Reed Miller, please.
I was wondering, when you do the entrepreneurship training programs, or workshops, or whatever it is you do, do you help students or people identify exactly what type of business they should open, like what's a hot new market? Because many people talk to me about opening businesses, but they really don't know what type of business they want to open. 66 Resolution 040171 - 3/15/04 And I know you can do like a skills inventory, an interest inventory, and all those kind of things. But what you might want to do may not be what you need to do for a successful business, if you understand what I'm saying.
I understand what you're saying. But I'm not actually involved with the entrepreneur group at Temple University.
And there are a lot of students who decide they want to open a business, and they ask my opinion. And what I try to do is encourage them, and to analyze where they can get the benefit or if it's beneficial for them to do it, and the risks involved. I'm more on that end of it, as far as, it's just students who come to me. I don't have any formal training, as far as 67 Resolution 040171 - 3/15/04 entrepreneurial, with the students. We have a section that does that. We have professors who are entrepreneurial professors. I just happen to be a finance professor, and I've had a lot of work experience. And so, I get students that try to depend -- you know, will depend on my opinion. Because... You don't know much about my history, but I was a civil engineer for ten years, and worked in Texas. Then I was an institutional broker and sold municipal bonds for a period of time. Then I went back and got my Ph.D. later in life. And then I've been teaching at Temple, and I taught at the University of Houston. I've been through periods of times that make sort of this... You know, Philadelphia has problems. I lived in Houston for over 20 years, and the bust of 68 Resolution 040171 - 3/15/04 the 1980s -- You're talking about the feelings of being discouraged? I had friends who were out of work for two and three years, highly skilled individuals, people with engineering degrees, people who were geologists by training, physicists by training. And to observe that and see how people can get discouraged, that's why I always thought the government should step in. In Texas, they don't step in as much as they do here. And I would regret that. I think Texas should act more like the governments up in northeast.
I know that this morning you made an interesting point when you said that Philadelphia, of course, was a City that had a lot of manufacturing plants. And when they started to close or move, it wasn't replaced. I think Philadelphia markets itself now as a service industry with tourism and hotels, et cetera. But those jobs certainly don't pay the same type of wages 69 Resolution 040171 - 3/15/04 that some of the blue collar jobs paid. For example, you know, right now there is a lawsuit in court regarding a contract to make rail cars for S.E.P.T.A. And with the Budd Plant closing, which is, you know, most of these workers there made very high wages. And the company that wants it actually is out of state, so those jobs would go out of state. But this is -- Councilwoman Blackwell spoke earlier. This is an opportunity for Philadelphia to create 400 -- for this company to create 400 jobs for Philadelphia, hopefully residents, and probably from the surrounding county. So, you know, I have my fingers crossed. And I'm hoping that the company that's going to be locally based here in Philadelphia gets that contract because that's 400 more people that we can put to work in very high paying jobs. And I think that we probably -- I know the PCDC does -- I get notices from 70 Resolution 040171 - 3/15/04 them when they're doing their entrepreneurship workshops and classes. But I think for young people, perhaps in high school -- and this is probably going to be a question for the School District -- but somewhere down the line. You know, when I was going to school, when I was in high school, the message from my parents and my teachers were, you know, get a good education so you can get a good job. But we have to switch that message and flip it. I mean, all statistics and data says that the small businesses are the industry that hires most of the workers here in the United States. So, we have to now say to our young people, think about what you'd like to do. And we just had a meeting with Labor and Industry. And one of the points that they brought up that I thought was really good was that we should probably use some of the colleges and universities, as you 71 Resolution 040171 - 3/15/04 stated, as the focal point for business start up. Because then perhaps you can, you know, capitalize on their student population and their staff, and also on the vendor, become a vendor with that particular university, to purchase a product from your base. And one of the things we really want to do is to promote the whole concept around entrepreneurship. So I just wanted to make those remarks.
I would agree with you 100 percent on that. I was raised in probably the same time you were where my father taught me, you go to school, you get a degree, you go work for a company, and you work for the company for the rest of your life.
Okay. And I found out very quickly, because I was a civil engineer when I started out, that that wasn't the way it worked. 72 Resolution 040171 - 3/15/04 Companies that I worked for would have -- I'll give you an example. I worked for a company one time that went from about 100 people up to 400 people in a period of two years. They went from 400 people to 100 in six months. And they had a tremendous amount of layoffs.
And it was very disheartening to be in a company having those things occur. So, I learned that I had to be very adaptive to the atmosphere around me, and develop skills. Some people who didn't probably regret it now.
Right. Okay. Thank you. COMMITTEE CHAIR RAMOS: Thank you. Any members of the Committee have any follow-up questions? (No response.) COMMITTEE CHAIR RAMOS: Thank you, Professor, for taking of your time and coming before us. 73 Resolution 040171 - 3/15/04
You're welcome. COMMITTEE CHAIR RAMOS: Mr. Ernie Jones, and Yvette Nunez West. Good morning, Mr. Jones.
Good morning. COMMITTEE CHAIR RAMOS: Good morning, Mr. Jones, and Yvette Nunez West. Please both of you state, at the time that you speak, your name and your title, please.
Thank you. We do have written copies of our testimony, if you'd like to give them out.
Good morning. I'm Yvette Nunez West. I'm here today as Chair of the Latino Work Force Development Task force.
My name is Ernest Jones. I am President of the Philadelphia Work Force Development Corporation. I believe we've decided amongst ourselves that I will go first, and then Yvette will follow through, if that's okay. COMMITTEE CHAIR RAMOS: Proceed.
Thank you. 74 Resolution 040171 - 3/15/04 Good morning, Chairman Ramos, and members of the Committee on Labor and Civil Service, and Councilwoman Blackwell. I would like to thank you for the invitation to appear before you and present testimony on the Resolution calling for public hearings to examine and investigate the high number of unemployed people in Philadelphia and its deleterious effects on the life of this City. I am President of the Philadelphia Work Force Development Corporation. As fiscal agent for the City, PWDC administers funding for employment and training activities. There are two major sources of funds for these activities: Work Force Investment Act funds, which come through the State Department of Labor and Industry, and TANIFF or welfare funds which come through the State Department of Public Welfare. In the fiscal year that just ended, that is FY03, PWDC received almost $58 75 Resolution 040171 - 3/15/04 million to provide services to non-welfare adults, dislocated workers, youth and welfare clients. Over 60 percent of these funds were targeted to welfare clients. So, that gives you some sense of the balance between the general funds and the TANIFF funds. With these funds and with the help of hundreds of training providers and community based organizations, we were able to enroll 17,568 individuals in various programs, and placed 11,530 in either jobs, or in the case of youth, in an appropriate youth program. The work force development system in Philadelphia is composed of four major organizations. They are the Work Force Investment Board, the Philadelphia Youth Network, the CareerLink Consortium, and the Philadelphia Work Force Development Corporation. The WIB, as we call the Work Force Investment Board is appointed by the Mayor, and has overall responsibility for the 76 Resolution 040171 - 3/15/04 strategic direction of the work force development system, and the investment of work force development funds. Philadelphia Youth Work -- and I see Laura Shubilla here -- I'm sure you'll hear from her later, administers WIA youth funds. The CareerLink Consortium operates the one-stop system required under the Work Force Investment Act. The one-stop system which is called CareerLink in Pennsylvania, is a series of physical locations throughout Philadelphia which serve as access points for employers and job seekers. There are currently nine comprehensive or mini centers strategically placed throughout the City and over 20 access points. Unfortunately, we do not have a center in West Philadelphia, but plans are under way to add an additional site there. PWDC is one of five members of the CareerLink Consortium. The other members 77 Resolution 040171 - 3/15/04 are the Pennsylvania Department of Labor and Industry, the Pennsylvania Department of Public Welfare, the State Office of Vocational Rehabilitation, and the Greater Philadelphia Chamber of Commerce. Both in our capacity as administrator of work force development funding, and as a member of the CareerLink Consortium, we see on a daily basis the causes and effects of unemployment in Philadelphia. A major cause of unemployment is something we refer to as the skills gap. If you look at Sunday's Inquirer, you are likely to see hundreds of jobs advertised. Most of these jobs require a certain skill level. Many of the people with whom we come in contact do not possess the necessary skills to get these jobs. This skill gap begins early in the lives of our citizens and grows larger with each passing year. By the time an individual graduates or drops out of high school, the deficit in 78 Resolution 040171 - 3/15/04 his/her education is so large that it is unlikely he or she will be in a position to compete for these jobs. It then becomes the task of the work force development system to try to train the individual and to undo years of miseducation.
Another major cause of unemployment in the City is the high incidence of criminal records on the part of residents, particularly males. We estimate that approximately 40 percent of African American males, and somewhat slightly less for Latino males between the ages of and 35 have some 17 sort of criminal record. 18 These criminal records prevent the individuals with them from getting many of the jobs that are available and for which they are otherwise suitable. Philadelphia is a city of immigrants, and many of our new citizens have not yet mastered the English language. This has served as a barrier for many who 79 Resolution 040171 - 3/15/04 otherwise are very qualified. Yvette Nunez West, Chair of the Latino Work Force Development Task Force will speak more to this issue. Finally, many businesses are leaving the City for a variety of reasons. Taxation, quality of life, incentives, and other factors all play into the equation. The net effect, however, is a loss of jobs for City residents and an increase in unemployment. Notwithstanding the above, we believe that City government can take steps to improve the employment climate in Philadelphia. First, the work force development system must be better coordinated. There should be a cabinet level position which oversees the entire system. The most obvious person to provide the oversight would be the Commerce Director, although the President of PIDC could also serve in this capacity. Currently, the WIB reports to the 80 Resolution 040171 - 3/15/04 Secretary of External Affairs, while the Mayor's Chief of Staff provides some oversight in certain instances. By tying work force development to economic development, we can take better advantage of situations when companies are locating within the City and creating jobs. Second, companies who received tax abatements or other publicly funded incentives should be required to hire a certain percentage of their work force from Philadelphia. They should also be mandated to advertise their openings with the CareerLink system so that they are widely distributed throughout the City. Third, there must be a major initiative put forth to solve the problem of individuals who have criminal records but who have paid their debts to society and now seek to become gainfully employed. This will require a joint effort on the part of the City and the private sector. But with the backing of the City 81 Resolution 040171 - 3/15/04 Council and the Mayor, I am confident we can overcome this problem and ensure that thousands who are currently kept out of employment will enjoy the fruits of their labor. Finally, we must improve our education system so that our graduates can compete with their counterparts from the surrounding counties. I am heartened by the progress that is being made at the School District, but we still have a long way to go. In closing, I would like to extend my congratulations to you, Mr. Chairman, and to the Committee for holding these hearings. The issues you are addressing today will decide the viability of this City tomorrow. And I am available for any questions you might have. Thank you. COMMITTEE CHAIR RAMOS: Thank you for your testimony, Mr. Jones. Can I ask Miss Yvette Nunez West to 82 Resolution 040171 - 3/15/04 proceed with her testimony please.
Thank you. Good morning. I want to thank Councilman Juan Ramos, and the Committee on Labor and Civil Service for the opportunity to present testimony on the Resolution 8 which calls for an examination of unemployment in Philadelphia. I am here to speak on unemployment in the Latino community as Chair of the Latino Work Force Development Task Force. You have with you today copies of a report on Latino Philadelphia, which provides demographic information on the Latino population here in the City, as well as additional information on the task force and inserts of an updated member list. org. I would like to quickly share with you some of the statistics in the report which identifies pressing concerns when discussing unemployment in Latino 83 Resolution 040171 - 3/15/04 Philadelphia. A report on Latino Philadelphia is the result of a comprehensive 400 household door-to-door survey in North Philadelphia's predominantly Latino community. The information gleaned from this research and from the most recent current population service at the time found that fewer than half of Latino adults in Philadelphia were working. The research also found that a significant portion of the Latino community is involved with public support programs, especially temporary assistance to needy families, and Supplemental Security Income. About one third of Latino households report public assistance income, and 40 percent of households in the survey reported receiving SSI. Education levels are one of several significant issues facing the Latino community in the area of work force development. Our research found that the median 84 Resolution 040171 - 3/15/04 education level in the Latino community was between a 10th and 11th grade level. Approximately half of Philadelphia Latinos have a high school diploma or GED. LWDT recommends that the City make a concerted effort to address the high dropout rate in the Latino community. Based on these and other data, LWDT established the following values and beliefs that serve as the overarching concerns regarding unemployment within the Latino community. To begin with, the current resources available to Philadelphia Latinos do not adequately address their training and employment needs. Collaborative policy and advocacy efforts will yield more efficient resources for Philadelphia's Latino population than will isolated efforts by individual agencies. Because Latinos are the fastest growing population in Philadelphia and are becoming a larger segment of the total City 85 Resolution 040171 - 3/15/04 population, it is critical to Philadelphia's vitality to ensure that the Latino community is socioeconomically healthy. Employment in jobs that provide family sustaining wages is key to socioeconomic vitality. And lastly, because Latinos are less likely to be employed and economically independent than most other racial and ethnic groups in Philadelphia, and because employment is so essential for positive socioeconomic outcomes, it is critical to dedicate more resources to addressing the employment needs of the Latino population. Because the Latino Work Force Development Task Force represents nearly 30 organizations, all volunteers, public and private who work directly or indirectly with the Latino community and/or work force development, I requested their input on what they believe are the prevalent barriers to employment, and the best strategies for alleviating the high 86 Resolution 040171 - 3/15/04 unemployment rate within the Latino community. Regarding English as a second language, adequate English's ESL services, as they pertain to employment, have been a repetitive concern. While learning English to function fluently takes time, many families need employment immediately. A suggestion is to identify employers who are willing to partner with the ESL community to provide in-house ESL training, as it pertains to the work being done, which will allow for a quicker road to self-sufficiency and mastering of the English language.
Furthermore, it was suggested that ESL services also be tailored to specifically address the needs of the mature worker population, and to ensure that classes be offered throughout the City. In general, the Latino Work Force Development Task Force would like to see 87 Resolution 040171 - 3/15/04 training opportunities that are directly linked to employment not only increase, but increase in its marketing to and recruitment from the unemployed Latino population. Training services need to be better marketed within the Latino community. Training services should be offered for individuals who have high degrees of experience in their native countries, but whose only barrier to successful employment here is language. Assistance with language and training for board testing in the United States should also be made available. Funding for training opportunities that are directly linked to employment should be increased and should be directly marketed to the Latino community, in addition to the general job seeking population. Furthermore, the City should fund a short-term public sector employment program for long-term welfare and unemployed 88 Resolution 040171 - 3/15/04 individuals or fund expansion of existing programs, such as the Transitional Work Corporation; invest targeted work force dollars to the Community College of Philadelphia to expand programs targeting welfare clients, such as Next Steps and New Choices, as well as those that target the long-term unemployed population. There is also a need for Latino inclusion in small business development in high to moderate economic growth areas. The Latino Work Force Development Task Force has also made an effort at addressing the needs of the ex-offender population. In November 2003, members of the LWDT steering committee met with the Pennsylvania Prison Society in an effort to begin a concerted effort at addressing the needs of the Latino ex-offender population. We found that many of the excellent resources offered by the Pennsylvania Prison Society were not being promoted to the Latino community, nor the agencies 89 Resolution 040171 - 3/15/04 serving that population. However, nor could the Pennsylvania Prison Society meet the additional demand without adequate staffing. 81 percent of its female inmates were Hispanic. In partnership with the Philadelphia County Assistance Office, an LWDT member, we were able to identify in recent statistics for drug felony conviction cases now eligible to return to TANIFF fully 34 percent were from North and Kent Districts, which are predominantly Hispanic. As a result of this meeting, LWDT is beginning the process of advocating for a full-time bilingual job developer of the Pennsylvania Prison Society that can work with agencies and CareerLink centers located within the Latino community, to ensure that our ex-offender population enters or reenters the work force. An LWDT member recently conducted a 90 Resolution 040171 - 3/15/04 survey in the Kensington section of North Philadelphia. The questionnaire was administered to the local community by a group of interviewers. 6 Overall, there were over 1,000 7 surveys conducted in English and Spanish. 8 Two-thirds, or 66 percent of the 9 respondents, were Latino, which reflects 10 the dominant ethnic community in the target 11 area. 12 The following information reflects the importance of a focused strategy for increasing employment within the Latino community. The survey found that the top three family needs reported in the survey were recreation, employment, and public safety in the community. Employment was reported at 16 percent. 51 percent of respondents believe that employment gives strength to the family unit. When asked about their highest hopes for the future, the highest percentage of 91 Resolution 040171 - 3/15/04 responses was the hope for better employment and for financial stability.
The respondents hope there will be more employment opportunities coming to the area that will lead to an improvement in financial stability. 39 percent of respondents hope to have a better job, while 33 percent hope to improve their financial stability. 52 percent of the respondents are employed, with the majority, 39 percent, working in the public services sector. Almost half of the respondents have graduated from high school, have gotten their GED, 46 percent high school, with 33 percent not yet completed high school. There is some other statistics included in the written testimony. In closing, the Latino Work Force Development Task Force welcomes the opportunity to present testimony and would like to work with the Committee on Labor and Civil Service in its efforts. The Latino Work Force Development 92 Resolution 040171 - 3/15/04 Task Force will continue its mission to improve opportunities and conditions for employment among Philadelphia Latinos. And in 2006 we expect to publish our second report, an update to the 2001 statistics, as well as expanded information about the growth of Philadelphia's diverse Latino population. Thank you for your time. COMMITTEE CHAIR RAMOS: Thank you for your testimony. And I just whispered to my colleague, Councilman Goode, a very good testimony, you and Mr. Jones.
Thank you. COMMITTEE CHAIR RAMOS: I'm going to defer the opening of questioning to Councilwoman Donna Reed Miller. And the Chairmanship will pass over to Mr. Goode, as I excuse myself just for a few minutes.
Thank you. Thank you for your testimony. This question is for Mr. Jones. 93 Resolution 040171 - 3/15/04 Regarding... I still call you PIC, but I know it's called Philadelphia Work Force Development Corporation, but better known as PIC. Is the main purpose of your agency to enroll people in employment and training programs?
The main function of our organization is to receive and administer funding that comes into Philadelphia for work force development activities. I would say 90 percent of the funds are then subcontracted out to a host of training providers, hundreds of training providers and community based organizations.
Okay. So, 90 percent of your funding actually goes to training providers, who then in turn train people and hopefully get them placed in employment.
Okay. So, basically, then, what is your connection to CareerLink? One of the problems that I'm having, and I'll just be, you know, open. I have a meeting that I have to go to downstairs at 11:30. I have a lot of young people between the ages of, let's just say, and 30. 11 Constantly I guess get calls, and when I'm 12 out they want help in finding employment. 13 And of course the ex-offenders, 14 which I know there will be groups that will 15 be coming in a little later to testify on 16 their issues. 17 And what I normally do is say, go to 18 CareerLink, you know. They're funded to help people find jobs. Many of them come back to me because I don't believe they understand how to use CareerLink. So, I was wondering, in the CareerLink system if there could be a special effort put together for that younger population that just doesn't really 95 Resolution 040171 - 3/15/04 know how to use CareerLink. One of the things that I do constantly -- And I think you're aware: I came from an employment and training background. So, one of the things that I try to do is encourage people, particularly the younger people, to go to an employment and training program so they can get some skill specific training and use that agency as a way to become employed. And that's one of my strategies. And it works for those that follow it up. But other than that, I send them to CareerLink, and they just come right back to me. So, I think there needs to be some kind of special service for that younger category there.
And I believe -- And I agree, a lot of people do go to CareerLink not knowing exactly how the system works. First of all, our connection to CareerLink is that we are one of five members of the CareerLink Consortium that 96 Resolution 040171 - 3/15/04 runs the entire system. But we play, I think, a key role in the running of that system. At the CareerLink sites -- And again, these are physical locations throughout the City of Philadelphia. The kinds of services that are offered are what we call core services. That is, an individual comes in. Each CareerLink is equipped with computers. There is an assessment counselor there. And individuals can go to simply try to find a job. If they need additional help after that, the next step of services is something called intensive services. That would include English as a second language, resume writing, some minor life skills type of assistance that will take place at the CareerLink site. If after that the individual cannot find a job, then that person should be referred either for something we call an individual training account which is a 97 Resolution 040171 - 3/15/04 training voucher, or to one of the existing training programs that we have. So, I do not know when the goal, whether they're going there expecting to be trained on site at the CareerLink, which does not happen. I believe all of the sites have orientation sessions and paraphernalia for people, but I will certainly follow up to make sure that all, including the young people, get the appropriate instructions on how to use the system.
Because I truly don't think that they actually do know how. And that's really a big disadvantage to them.
And I didn't know whether they were able to get, like, an intensive one-on-one at some point. So what I can do is just refer them back there, I guess.
Well, I would hope that you would call me, if that's ever an issue 98 Resolution 040171 - 3/15/04 in the future, where people are not getting the appropriate service at the CareerLink. If you'd let me know, call me. I will follow up to make sure that they are getting what they're entitled to.
And I don't know whether the service is not appropriate. I just don't know whether they know how to utilize it. You'd be surprised the number of people. And if you go -- I know that a lot of what CareerLink does is by computer. And there is -- Do they get assistance when they go there?
I've gone on the internet, and I've gone into Career Builder, I think it's called, and searched, you know, for jobs there just to test it out. And also, if I'm helping someone 99 Resolution 040171 - 3/15/04 look for a job, then I'll take that time to do that, to see what's in Career Builder. And you use -- CareerLink uses Career Builder, correct?
Okay. But I've seen the booklet that they put out. And I thought it was an excellent booklet. It's a very comprehensive booklet on finding employment. I don't know whether CareerLink puts it out or Department of Labor and Industry, but it's really a good resource. But again, people need, I believe, more one-on-one intensive assistance to really become employed in this type of a market where... (Councilwoman Miller's cell phone rings) -- in this type of market, where jobs are so few. And I guess another big thing is that people don't know how to really figure out how they can transfer skills from one industry into another that also makes them 100 Resolution 040171 - 3/15/04 more marketable, and just a how-to of finding a job. Because I've actually thought about running some workshops and bringing some of the constituents into them that constantly call me. And people are constantly, constantly looking for jobs. I'm sure other Council members have the same situation, and particularly ex-offenders. So, I'm glad to see that you did put something in your testimony regarding ex-offenders. You know, we can all do things with our money and file bankruptcy, and after seven years we're okay. But ex-offenders seem to have to live, you know, pretty much the rest of their life trying to get employed. And at some point I think that's an issue that we really have to address, the whole area about ex-offenders and employment. Thank you.
Thank you, Councilwoman. 101 Resolution 040171 - 3/15/04 Before we leave the issue of CareerLink, Councilwoman Blackwell wanted me to ask a question why there's not a comprehensive center within West Philadelphia.
The process for getting a CareerLink site approved is a slow process. And I can't say why West Philadelphia is the last one to be set up. The entire system is relatively new. The CareerLink Consortium has been in discussion with the West Philadelphia Partnership and a couple other groups out there to set one up. I mean, I would expect that process for chartering of the new center to take place very soon, by the end of this fiscal year.
Thank you. On my own behalf I wanted to say that I did think your testimony was excellent.
Particularly liked the fact that you've highlighted 102 Resolution 040171 - 3/15/04 immigrants and ex-offenders and the need for a link between work force development, economic development, which you know is a pet issue of mine. And I was particularly interested in your recommendation that the work force development system be put under a cabinet level position with leadership from either Commerce Director or the President of PIDC, that we need to be taking better advantage of companies located within the City in creating jobs, and particularly those who are receiving tax abatements and other public incentives. I wanted to ask you, for the record, do you know what percentage of jobs that are created by public financing of business, economic development, actually go toward work force development clients?
I don't have that exact percentage, but I can just over the last year anecdotally tell you, when TJ Maxx moved into the City and opened up its big warehouse -- that was about 1,000 jobs -- 103 Resolution 040171 - 3/15/04 we worked with them and provided a training subsidy for those 1,000 jobs. We are currently working with Ikea, which is going to be coming into the City. And I think that's about 400 or 500 jobs. What we try to do is, every Monday morning our Vice President who's in charge of the -- what we call employer services, or Work Force Services Division -- I'm sorry -- meets with PIDC to look at all of the economic development projects that are on the board. And we actually go with them sometimes to help sweeten the pot, so to speak, and to induce them to coming into the City. So we actually put in quite a bit of our funds into those kinds of projects. Again, I don't know what percentage. But, I mean, we could probably calculate it. I just don't have it today.
At what point are you brought into the process, in terms of business attraction? 104 Resolution 040171 - 3/15/04
It's not right in the beginning. I think in most cases, especially with PIDC, land acquisition, the site. Then the financing is generally worked out. And then after that's done, we are generally brought to the table. And I had this conversation with the President of the PIDC. He would like to be able to do it all at one time, you know, right in the beginning.
That's how you should be brought in probably at the point of financing because the point of public financing is generally subsidy. And you have resources that can be applied to that public financing.
Okay. Thank you. Thank you Mr. Chair. COMMITTEE CHAIR RAMOS: Okay. Members of the Committee care to question? Jack Kelly, please.
Thank you. Mr. Jones, you mentioned that you 105 Resolution 040171 - 3/15/04 received almost $58 million to provide your services to your clients. Could you tell me where the $58 million came from?
60 percent of it came from the Department of Public Welfare, which are TANIFF dollars, and the remaining came from the State Department of Labor and Industry. Those are work force investment dollars. Let me explain that the total amount that came in for the City is much greater than the $58 million. The state provides direct funding to a lot of agencies here in the City -- we call it pass-through dollars -- that we do not administer, in the sense that we don't issue an RFP and enter into contracts with individuals. But those dollars came from the two sources that I mentioned.
Okay. Now, you also mentioned that they were targeted, at least 60 percent were targeted to welfare clients. Could you tell me how many of these 106 Resolution 040171 - 3/15/04 people on welfare were removed from the rolls; in other words, who gained employment? Do you have any idea?
Yeah. I'd say annually we're able to place close to 4,000 people in jobs that are on welfare, which would then either substantially reduce or eliminate their need for TANIFF, continued TANIFF benefits.
In other words, they'd be removed from the welfare rolls?
Okay. Now, you also mention in your testimony that you're... It seems to me you're being a little critical of the education they received, because you've mentioned something about under years of miseducation. What is your opinion of the school system and what they're trying to do to help your clients?
My opinion differs from what they're trying to do, when compared to 107 Resolution 040171 - 3/15/04 what they've done in the past. I think the Philadelphia School System is a lousy school system. And I think we've made tremendous strides. And if we continue that way, I think we'll become a good school system. But I don't think it's done a good job of educating our kids, and to make them competitive when you compare them with the young people in Bucks County, Montgomery County, and the other counties.
What would you recommend as far as the school system to make improvements?
I have a lot of respect for Paul Vallas. I think he has the right plan, and I think he is making progress. But just as the system did not drop to the level overnight, it's going to take many, many years to get it back up where it is really educating our kids.
All right. That's all the questions I have. COUNCILMAN DiCICCO: Thank you. 108 Resolution 040171 - 3/15/04 Good morning, Mr. Jones.
Good morning. COUNCILMAN DiCICCO: You mentioned your involvement with TX Maxx, and your involvement with Ikea. Could you explain a little bit about exactly what it is you do when you bring your resources to them.
Yes. We are, under the Work Force Investment Act, allowed to invest in the training of new employees, if it leads to a job. So, we will sit down with the -- in the case of TX Maxx I believe the training subsidy was $1,000 per new employee. With that, it affords them the opportunity to train individuals. And we make the investment, people get hired, and, you know, they pay taxes, and they stay employed. COUNCILMAN DiCICCO: So, are you saying to me that TX Maxx, Ikea, the big box companies that you're involved with, were it not for your training investment, would they still be -- would they be in a 109 Resolution 040171 - 3/15/04 position to hire people or is it supplementing their ability to hire people? I think it supplements, I mean, if they're going to open a business, they need to hire people. But, again, it's one of the incentives that the City is able to offer them, and in many cases it has made a difference. COUNCILMAN DiCICCO: So, you're creating a job pool in a sense?
Well, actually, they can do the recruitment. We're just giving them money so that they can train their work force up front, and which will lead to employment of those individuals. COUNCILMAN DiCICCO: So, if you were not training them, then the company would be training them, which would cost them --
Yes. COUNCILMANN DiCICCO: I'm getting at the dollars and cents of this. Goes back 110 Resolution 040171 - 3/15/04 to my colleague, Councilman Goode, why I think -- We all agree you should be at the table initially.
Yes. COUNCIMLAN DiCICCO: I mean, as one who supports TIFS and tax abatements to encourage economic growth, is it part of the equation at the onset when companies are either looking to move here or we are wooing companies to come in? It seems not to be part of the equation until after PIDC has done their job.
Well, there has been, again, progress in that area. Peter Longstreth came onto our Board. He's on our board of directors now, the former Commerce Director was on our board. And I think probably over the last year there has been much more coordination between our organization and PIDC But I think he would say, if he were here today, that he would like to see work force development be at the table much earlier on than it has been in the past. 111 Resolution 040171 - 3/15/04 COUNCILMAN DiCICCO: And I agree. And I'm certainly not being critical of anyone here. I just think that if we are offering -- For me this becomes another financial incentive.
Yes, it is. COUNCILMAN DiCICCO: In addition to the TIF, the abatements, and everything else that's being offered -- And I think those are good things. People may disagree, but I think they're good things. But my concern is that are we guaranteeing or is this a better way in which we can guarantee that Philadelphians would be hired, since we're making the initial investment on training for the company or to the company.
The answer is yes. We can only spend our money on Philadelphia residents. So, when we make an investment they hire an Philadelphia individual. COUNCILMAN DiCICCO: Okay. Thank you.
I had one other 112 Resolution 040171 - 3/15/04 question. I just have another question, Mr. Jones. Are any of your training centers located in the northeast part of the City?
We do quite a bit of work with... And the name escapes me. First of all, there is a CareerLink site that was just opened up in the northeast.
And attached to my testimony is a listing of the various sites.
The only reason I bring that up is because presently there's some development of large businesses that are going to be starting there probably within the next year or so. Wal-Mart, Lowes, and a lot of other department stores are going to be built up there.
I was just curious. Okay. Thank you. 113 Resolution 040171 - 3/15/04 COUNCILMAN DiCICCO: Not on Allegheny Avenue. COMMITTEE CHAIR RAMOS: Mr. Jones, how have you measured the success of PWDC? You can be as candid as your person permits you to. And talk to me a little bit about the frustrations and the things that you wanted to do, the organization wanted to do, the corporation, and it didn't happen.
I think we've been fairly successful in doing what we're charged to do, that is, to administer the funds. Under this system, we are not the party that's charged with developing or deciding the strategic thrust of the work force development system. That is done by the Work Force Investment Board. And when the system was set up a couple years back, I think there was some friction between the two organizations. I think that has pretty much gone away. And I think we work very, very well together today. 114 Resolution 040171 - 3/15/04 But when you're not the person who ultimately determines the strategic direction -- I mean, I hate to characterize it as a frustration, but it does raise some issues sometimes. The other area I personally have been somewhat frustrated is in the area of trying to do something for ex-offenders. I mean, almost daily when I go out, I see that issue discussed. And there are a number of individuals, training providers, people who think we need to do something, we need to mount a major, major effort in the City to address that concern. And the fact that we haven't done it yet is somewhat frustrating. COMMITTEE CHAIR RAMOS: The job situation in this country has been summed up in different ways. But one declaration that has stuck with me is this question. And the question is: Are you sure that you're going to be at the job that you have today five years from now? Now, I know that. I can answer. I can honestly answer 115 Resolution 040171 - 3/15/04 that and know that I'm not sure. However, it is a fact of life.
That's true. COMMITTEE CHAIR RAMOS: Someone testified, I believe the Professor and Councilwoman Donna Reed Miller alluded to it being much younger, and your parents telling you, go study, get a good degree, and go get a good education, get a job, and stay there. It's no longer like that. Is PWDC around five years from now?
I don't know. And we are subject to the same funding vagaries that others are. I mean, we're undergoing right now because of a restructuring of some of the welfare programs, layoffs of some of our staff. I just don't know. I think the City will always need someone to provide the service that we provide, but I cannot say it will be PWDC five years down the line. COUNCILMAN DiCICCO: Thank you again. Maybe I missed this. If you already 116 Resolution 040171 - 3/15/04 answered, I apologize. Is there any connection linkage between your agency and the School District?
Not directly. Let me explain. We -- And actually Laura Shubilla is probably the best person. She heads up the Philadelphia Youth Network. And that deals with the administration of all the youth dollars. We basically are involved with adult training at PWDC. I was on the phone with Paul Vallas the other day, talking about a program where we have, through our TANIFF programs, subsidized the placement of a number of welfare clients to act as non-teaching assistants in the School District. He was very thankful, and he's looking for ways to expand that. We have that kind of working relationship with the School District. We've also funded the training of some of their custodial staff, who otherwise would be laid off, which allowed them to gain additional skills that they 117 Resolution 040171 - 3/15/04 actually were retained and got a better job within the School District. So, we have that kind of relationship. But other than that, there is no formal connection with the School District. COUNCILMAN DiCICCO: So there's no 9 training that you know of... Let me rephrase that. I'm familiar with the school in South Philadelphia, Bok, Bok Vocational. I mean, that was when I was growing up many years ago, that was a high school that some of us thought was kind of a place of last resort. But, in fact, what they did was, they trained people in skills to become mechanics, people who were in the service industry, which were needed. I mean, there are all kinds of trades came out of there. And I probably think that today we probably can use more of these types of schools. But if you're training someone to be employed in Ikea, TX Maxx, whatever, isn't that something that could be done and maybe 118 Resolution 040171 - 3/15/04 should be done at the earlier years?
Yes. COUNCILMAN DiCICCO: And therefore, I guess my question is, is there any linkage or any coordination between your agency and the School District, and at least getting people prepared? Again, going back to my high school days, I went to a Catholic high school, but you had a choice of either the academic or the commercial program. To be in commercial dealt with typing skills, reading skills, and things like that, as opposed to the academic was preparing you for college for a professional field. And again, if you got a high school diploma -- When I graduated high school, I mean, it was a big thing. You were able to get a job.
But to answer your 119 Resolution 040171 - 3/15/04 question, if you recall, I said there were actually four major parts of the work force development system, the one that -- And to answer your question, yes, the system is in touch with the Boks and with the high school. It's done through the Philadelphia Youth Network. And again, I believe you're going to hear from its executive director later on today. But they deal with all the youth. And they have the very close tie-ins with the School District. COUNCILMAN DiCICCO: Thank you. Thank you, Mr. Chair. COMMITTEE CHAIR RAMOS: Miss Nunez, you have some very good proposals presented in your testimony. In the ESL part of your testimony, I believe in the second to last page, you suggest here that suggestions to identify employers who are willing to partner with the ESL community to provide in-house ESL training, as it pertains to the work being done, which will allow for a quicker road 120 Resolution 040171 - 3/15/04 to self-sufficiency, mastering of the English language. Who would pay for this? Are you saying that the employer should provide this out of their own pocket?
The employer is subsidy. For example, I know that with TX Maxx, they had multiple supervisors who spoke multiple languages. So, they were able to hire from non-English speaking population pools, and were able to train them in the work that they were doing, while at the same time just being immersed in an environment where people are speaking English, and you're working and you're learning. You can learn at the same time. So, some of those positions were subsidized by PWDC, you know, and the employer. COMMITTEE CHAIR RAMOS: So, the employer had to go into his pocket, but through PWDC they also received some kind of funding to provide this. 121 Resolution 040171 - 3/15/04
We could actually pay for that. If that is a prerequisite to employing the people, if they need classes, we actually pay for, in non-English, in non-ESL situations, we'll pay the Center for Literacy to go in to work with employees at our cost to improve their literacy skills, and we certainly can do it in the area of ESL.
And research, not that I have with me today, but research has shown that non-English speakers learn a lot faster when it's connected to the work that they're doing or the skills training. COMMITTEE CHAIR RAMOS: Do you think enough employers know that you have this good program available to them?
No. And I don't know that if we did, you know, the marketing and outreach, I don't know if the funding would then be available. COMMITTEE CHAIR RAMOS: I want to 122 Resolution 040171 - 3/15/04 help you with that.
Excellent. COMMITTEE CHAIR RAMOS: Okay? The other matter here is, you presented a very good idea here. It says City should fund the short-term public sector employment program for long-term welfare and unemployed individuals. As you well know, public monies are getting -- are shrinking; less and less. All of you know that the Mayor is going to have his address to the City, his budget address this coming Thursday, and that he will announce a very big deficit. So, our public dollars are going to be less and less. Do you have any idea how the government can fund this or where we could get the money for it? I'm definitely open to a program of that sort. But you're going to have to help me find where this money is at. Maybe Councilman Goode, who's an expert in this area, as Chairman of the 123 Resolution 040171 - 3/15/04 Commerce and Economic Development. But I think that this is a very good proposition. It's just that the fact is that public dollars are shrinking. And even the Federal Government has reduced substantially or almost to non-existence dollars for public sector employment. If you have any ideas or you have an idea now, please come forth with it. If not, I'm open to listen to where you think this money is at, or if Mr. Jones would have any idea where...
Each year, before the fiscal year begins in July, on both major streams of funding, there are decisions made and priorities set for the upcoming year. As I indicated, we get millions of dollars into the City annually to provide services to welfare clients and to non-welfare clients. I think it will be very helpful if 124 Resolution 040171 - 3/15/04 the Work Force Investment Board heard from City Council sometime before May of this year, which I believe is the board meeting, they will sort of set the agenda for next year, basically asking them to include in their priorities whatever City Council feels is appropriate. On the welfare side, the time frame is about the same. I think a letter to Secretary Estelle Richman, indicating those issues that we think are important to the City, ask that they be incorporated into the priorities of the employment and training under the welfare side next year would be very helpful. And if done -- I mean, even if it's just asking to set aside a percentage of the funds, say, to do a public services job or to hire people to do this, I think it would be well received and would be helpful. COMMITTEE CHAIR RAMOS: Thank you both so much for your... I'm sorry.
Follow-up. 125 Resolution 040171 - 3/15/04 Mr. Jones, you said in your answers to some of the questioning that one of your regrets and frustrations is that the work force development policy is somewhat dictated by the Work Force Investment Board by design. For the record, can you tell us how those appointments to that board are made and by whom were they made?
Fine. The Work Force Investment Board is a creation of the Work Force Investment Act. And in each of the areas where they exist, they're appointed by the local elected official. And in Philadelphia that is the Mayor. So, the Mayor makes all the appointments to the board.
And how often do they make policy decisions? I know they make annual budget decisions. But is there any governing policy documents that they are required to produce?
To the State, yes. I don't know that they make a formal presentation to the City. There is an 126 Resolution 040171 - 3/15/04 annual report that's done that I think is shared with the Mayor's Office. Other than that, I do not know.
So it might be a good idea for Council to create some oversight similar to what we do with community development block grant dollars, that before we have budget or policy is submitted to whatever the authority is, that Council review it.
That would be helpful. COMMITTEE CHAIR RAMOS: Okay. Thank you. Thank you so much for your very clear testimony. And keep up the good work.
Thank you. COMMITTEE CHAIR RAMOS: I know Mr. Doug Henderson has been waiting patiently. Mr. Henderson, can you come forward please? Please state your name and the organization you represent. I think I also wanted -- Is Mr. Peebles here? Why don't 127 Resolution 040171 - 3/15/04 you join Mr. Henderson at the table. Mr. Henderson, you can proceed.
My name is Doug Henderson. I am Zone Manager with General Motors, covering Eastern Pennsylvania, South Jersey, and the Delaware area. Thank you, Councilman Ramos, for allowing me to describe an initiative, very much a grass roots initiative, that we've done in partnership with our local Hispanic television station Univision, Channel 65, along with our local Chevrolet and Pontiac and GMC dealerships, to build a greater employee base for our dealerships through the Hispanic community. The initiative we announced back on March 1st involves identifying, training, and hiring Hispanic bilingual sales people for our local dealerships, which for the cases of Chevrolet, Pontiac and GMC, number 160 in the Philadelphia metropolitan area. The initial objective of this initiative is to place 70 sales people. And that's to be done, again, complete with 128 Resolution 040171 - 3/15/04 training and identifying and have those folks in place by August 31st of this year. As we laid out with the press back on March 1st, this really becomes -- is a first wave. We know that the demand through our local dealerships is greater than 70, but we are committed to ensuring that the first 70 are placed, are successful, and that really, from a selfish perspective from General Motors, that we are also reaching to a greater extent the Hispanic community. It's one thing to employ additional people, but it really makes for a very successful relationship when those folks are bringing in additional business for our local dealerships. I mentioned in my introduction that we are doing this in partnership with Univision. It is critical for us to not only reach prospective candidates that are bilingual and Hispanic, but also once those folks are in place, that we promote and 129 Resolution 040171 - 3/15/04 reach the prospective owner base of our products, General Motors products, specifically Chevrolet, Pontiac and GMC, and we reach that audience so that our sales people that we've placed are indeed productive, that are doing business with Hispanic prospects within our dealerships. Another item that I mentioned was -- and again, this is very tactical, a description of our initiative. I appreciated the macro perspectives shared by my preceding presenters, but again it's a very tactical, very practical initiative. We also are working with a really nationally renowned trainer named Saul Serna, who will be taking part and really championing a 13-week training initiative. And when I say that we're going to have these folks in place on August 31st, that factors in 13 weeks of complete training for the candidates that we identify. So it's not something that can happen overnight. But there are very clear 130 Resolution 040171 - 3/15/04 deadlines and expectations established for this initiative. It's one that General Motors is looking at across the country. This is a pilot initiative for General Motors, and one that we know will pay dividends if we execute it properly. M. dealerships. If you look at an average of about 45 employees, that employee base represents about 10,000 people, 10,000 families that are dependent on not just General Motors, but as well as their local dealership for their success as a family. So, individually one dealership is perhaps a very small piece of our employer base, but collectively our dealers have recognized that we need to do a better job to reach out into, in this specific initiative, the Hispanic community. But, you know, not just for the betterment of those families in terms of 131 Resolution 040171 - 3/15/04 jobs, but as well, again selfishly, to make the full economic cycle that we can be more successful in the Hispanic community. I've got additional details with regard to the initiative. But, you know, for the purposes of keeping the hearing moving along, I'd turn it over to my fellow speaker or answer any questions that you have, Councilman. COMMITTEE CHAIR RAMOS: Thank you, Mr. Henderson.
You will see that we're entering into this part of public hearing where we're going to have people testify to job training programs. We had PWDC state that they placed 11,000 people that were out of work now are working. And when we saw that how the Department of Labor and Industry in Pennsylvania has also reduced the number of people who are waiting for unemployment or intended to people who are waiting for unemployment benefits. 132 Resolution 040171 - 3/15/04 So, as we stated earlier, we want to hear about the situation, the hurting situation of the unemployed, but we also want to be able to use this opportunity to announce some programs. And I am very glad, Mr. Henderson, that General Motors is making a contribution in this area, and they have committed that this program develops and has goals that are successful, that they will look into expanding this program. And we, of course, welcome that. Mr. Peebles, can you proceed, please.
Good morning, Chairman Ramos, Councilman Goode, and members of your committee. My name is William Peebles. I have before you a copy of my testimony. I'll read it and try to be brief. I'm the Director of the Diversity Apprenticeship Program known as DAP. DAP is a program of the Philadelphia Revitalization and Education Program PREP. 133 Resolution 040171 - 3/15/04 PREP is led by its Chairman and Board of Directors, Mr. , and its managing partner, Mr. Anthony Lewis. I am here to testify before this Committee in support of the Resolution 8 authorizing the Committee on Labor and Civil Service to hold public hearings to examine and investigate the high number of unemployed people in Philadelphia and the effects this has on their families, the viability of business, commerce, and the City's declining population base, and to recommend policies, programs and practices that are intended to help reverse this trend. Specifically, I will address the lack of employment for minorities in the construction trade unions in the City. I want to commend Councilman Ramos and the members of this Committee for having these hearings to engage the public in this critical issue. DAP was created to move qualified 134 Resolution 040171 - 3/15/04 minorities into apprenticeships of their construction building trades. It is a public/private partnership founded by members of the Philadelphia -- excuse me -- Pennsylvania Black Legislative Caucus, The Philadelphia Buildings Trades Council, and the Philadelphia Revitalization and Education Program. It's training designed was developed by members of the trades in consultation with the black elected officials of Philadelphia PREP, the Philadelphia Office of the AFL/CIO, Cheyney University, Berean Institute, and other concerned citizens. DAP is an economic development program, not a job training program. DAP was and is designed to provide economic opportunities to minorities who live in the City. The advisory board, co-chaired by four respective leaders of both the community and the trades, advises the program and takes information back to the communities related to apprenticeships for 135 Resolution 040171 - 3/15/04 minorities. These co-chairs are Mr. , Business Manager of Laborers Local 332, Mr. Patrick Gillespie, Business Manager of the Philadelphia Building Trades Council, State Representative Louise Williams Bishop, and State Senator Anthony Williams. The advisory board meets quarterly to discuss the progress of the program, new opportunities for DAP participants, and placement requests from the trades, among other related issues. DAP seeks to address the problem of minority participation by providing them with an opportunity to obtain sustained careers in the buildings trades. Except for the laborers union, minorities have been effectively excluded from the building trades. While many of the trades have recently allowed more minorities to work on projects, most are not placed into apprenticeships to gain journeyman or professional status as a fully qualified 136 Resolution 040171 - 3/15/04 construction trade union member. Non-Hispanic whites make up a minority of the City population, roughly 42 percent. 8 percent. S. Department of Labor, in the five-county area Philadelphia's minorities accounted for percent of the apprentices to the 13 construction unions for the period October 14 2001 through September 2002. Three percent 15 of that number was female. 16 Conversely, these statistics reflect 17 the fact that 83 percent of the apprentices for the same period in the same area were not minorities. Given the major projects in the City, such as the stadiums, the Market Street Reconstruction Project with SEPTA and others that provide a large amount of work for the construction industry, there should be a corresponding percentage of 137 Resolution 040171 - 3/15/04 minorities in the construction trades, relative to the population of the City.
This lack of inclusion contributes directly to the high unemployment levels in the minority community. Entrance requirements to the trades is not particularly difficult at most of the unions for the typical resident of the City. Moreover, the construction industry, which has had a growth period for the past few years, is expected to continue to grow in the near future. Minorities have been under represented for decades in the trades. The program was an agreed upon solution of all parties to ensure that minorities would have a part of the large number of State and City funds required for major construction activity in the City. DAP was created to prepare minorities for the building trades, and the building trades agreed to use the program to place minorities into apprenticeships. 138 Resolution 040171 - 3/15/04 Some of the trades have supported this agreement and others have not. To date DAP has placed 109 participants into different trades as apprentices. 6 Additionally, DAP has placed 316 7 participants into non-construction 8 employment. 9 The leadership of PREP is setting up 10 a series of meetings in the next few weeks 11 with union business managers to discuss 12 their support of the minority placement of 13 apprenticeships from our program. 14 If construction unions that have not 15 supported the program do not open their doors to our qualified participants, we will encourage the City and others to use a model similar to the Neighborhood Transformation Initiative, and look at other ways to ensure that minority participation happens with the trades. DAP recommends that this committee's resolutions be adopted by the entire City Council and given legislative authority to create the changes where and when 139 Resolution 040171 - 3/15/04 necessary. Also DAP recommends that this committee support activities and programs which address employment issues that has historically kept minorities from being representative in their organizations throughout the City. The construction trades have not fairly included minorities, by any measure In closing, I recommend that DAP with programs like that become institutionalized by the government and others until minority participation in the trades has been resolved to the satisfaction of the public. I want to thank you for allowing me to make this presentation, and I respectfully submit this report to you. I will answer any questions that you have. COMMITTEE CHAIR RAMOS: Thank you, Mr. Peebles, Mr. Henderson. We have heard from two gentlemen, Mr. Peebles, that have talked about the diversified apprenticeship program, and 140 Resolution 040171 - 3/15/04 Mr. Henderson, who has announced a program here towards people who are bilingual or Hispanic, from necessity speak both Spanish and English, sponsored by General Motors. At this time I'll defer to any of my colleagues at the table. I want to recognize the presence of Councilman David Cohen. Thank you for coming, Councilman Cohen. Councilman Goode.
Could you update me on the status of your funding with PWDC?
We are currently getting ready to submit another request for funding for the NTI project. That should happen by June. We are almost at the end of this current funding period.
You're welcome. COMMITTEE CHAIR RAMOS: Mr. Peebles, since the inception of the DAP program, how 141 Resolution 040171 - 3/15/04 many people that have gone through your program been placed in construction related trades?
In the last three years. And if I'm not mistaken, I believe, in apprenticeships, what we need to make clear, Councilman, is that there's a difference between being placed in the union and being placed in the apprenticeships where you're going to have a career. That's the purpose of our program, is to make sure whoever goes through our program, has an opportunity for a career, not just a job. COMMITTEE CHAIR RAMOS: So, it's not just -- I'm interested in the employment --
Of course. COMMITTEE CHAIR RAMOS: -- of individuals that are unemployed, I assume, right? Most of the people that come through DAP are unemployed. 142 Resolution 040171 - 3/15/04
(Nods head in the affirmative.) COMMITTEE CHAIR RAMOS: And the idea is to get training through one of the many building trades union. So, they've gotten employment. And you say that's about 109 who --
Yes. COMMITTEE CHAIR RAMOS: -- have moved on to jobs in different trades.
Yes. COMMITTEE CHAIR RAMOS: How many of them have been retained in other trades outside of the laborers union?
Most of these were outside of the laborers union. COMMITTEE CHAIR RAMOS: Yes.
All but were -- 20 Only 24 were in the laborers union. The 21 rest were in the other 15 trades that we 22 were talking about. 23 COMMITTEE CHAIR RAMOS: And that's 24 within the two-year time frame or --
Actually, 143 Resolution 040171 - 3/15/04 two-and-a-half years. COMMITTEE CHAIR RAMOS: Two-and-a-half years?
Yes. COMMITTEE CHAIR RAMOS: Okay. Any questions from the panel? Councilman David Cohen.
Thank you, Mr. Chairman. I wonder whether you've had any experience with health benefits. Do the employees that get jobs these days, are they getting health benefits, or are they getting them in reduced form, or not at all, or fully?
I can answer that question quite easily, Councilman. Anyone who goes through the apprenticeships and the construction trades probably has a better benefit package than most in the City. The unions maintain a pretty good benefit package for their members.
There was an interesting article in the Sunday Inquirer 144 Resolution 040171 - 3/15/04 by the business writer, Andrew Cassell, I guess his name is, who thought that employers would hire more workers if they didn't have to worry about providing health care, with its increasing costs. The thought struck me after reading his column that this may offer a good place for the right wing and the left wing to join. For employers, maybe we ought to develop an alliance between employers and workers on this one issue, to support the concept of having the Canadian single payer plan work because then it will remove an obstacle to employment on the part of the employers if the government took over the service. And secondly, I think it would ensure for the first time that everybody in America would be treated equally and fairly. Everybody ought to be entitled to a form of health insurance that's fully adequate, not just a minimal form or none at all. 145 Resolution 040171 - 3/15/04 So, I think he raised a very interesting question. And I hope this Council is going to be able to begin dealing with that kind of situation. Thank you. I yield to... COUNCILMAN DiCICCO: I'm always in agreement with you these days, Councilman. Thank you, Mr. Chair. Good afternoon. I'm sorry. I missed a major portion of your testimony. But you did mention something about 109 individuals who went through the apprentice program as a result of the NTI?
No. Councilman, what I was saying, in our program we've been around roughly two-and-a-half to three years. And our job is to prepare people, minorities, to go into apprenticeships in the construction trades. In that period of time, we had 109 people get into the apprenticeships so that they can move into journeyman status and become professional in the various careers that they selected. 146 Resolution 040171 - 3/15/04 But to answer your question, specifically we have at this count 39, and we will have at least 60 by June through the NTI process. That is, people in the trades. COUNCILMAN DiCICCO: Who already completed the apprenticeship program?
No. Who already went through our program to get into -- COUNCILMAN DiCICCO: To get into apprenticeship?
Yes. COMMITTEE CHAIR RAMOS: What's the total work force? And it's probably somewhat fluid, but do you know what the total work force that's been engaged in the NTI program?
No, I don't know. I don't want to pretend to know that number. Now, if you're asking me the total number of union employees in the City area, I can tell you the estimates that I've researched recently, which is probably 63,000 in the five-county area. 147 Resolution 040171 - 3/15/04 COUNCILMAN DiCICCO: And I guess my concern is, notwithstanding all of your hard work, that we get 109 people into the apprentice program. And you compare that to the number of people who are in the union work force in the region. I think anyone would say that it's a drop in the bucket, if you will. And again, notwithstanding all of your hard work, do you think that there's enough effort being put into this to bring minorities in or are you still finding it somewhat of a struggle?
Councilman, I mentioned in my testimony earlier, we're having meetings with the business managers of the various trades in the next few weeks. Some trades have worked with us and some of them have not. And we're going -- My boss will be making a report to the Mayor and to you, the Council, with regards to what trades are working with it. COUNCILMAN DiCICCO: That was going 148 Resolution 040171 - 3/15/04 to be my next question.
Yes. COUNCILMAN DiCICCO: Do you happen to know today where the majority of -- what trades are more receptive of what you're trying to do?
In all honesty, Councilman, I would like to withhold answer to that question until we have a chance to address the business managers and give them some reason to get to us as to why they failed or didn't fail. COUNCILMAN DiCICCO: Why it's taking so long.
Exactly. COUNCILMAN DiCICCO: Do you have any -- What is your involvement, if any, with the contractors, those in particular, the minority contractors, who were supposed to be getting a certain portion of the NTI work? Are you involved with those folks?
Yes, I am. COUNCILMAN DiCICCO: Do you know... The reason I'm asking this question, I was 149 Resolution 040171 - 3/15/04 told by someone recently who works for the Department of L & I -- and I'll keep that person's name confidential at the moment -- that what they are finding is that a number of the minority contractors who are doing a lot of the demolition work for NTI are having some difficulty in completing the contract for which they were hired. Another contractor is brought in, completes the job. The reason they're having a problem is, I'm told is, they're nearly not being trained -- the contractor and/or the employees who work for the contractor really have not been fully trained to do the job.
I have not heard that one. L & I has a different piece of NTI than the regular NTI process. The contractors for NTI are usually subcontracted to a prime contractor who will make sure that those people who respond to the bids are qualified. There are under L & I people who do 150 Resolution 040171 - 3/15/04 work that don't have to meet certain requirements, as I understand it. But I'm not involved with that. COUNCILMAN DiCICCO: My concern is, and the way it was relayed to me is that certain individuals are bringing minority contractors to do the sub work so that they meet that quota or that threshold. But ultimately, because the contractor has not been trained to do the job -- And it goes back to I think what we were talking about with Mr. Jones, about people who really aren't being trained in the trades. I mean, we're really just -- You know, we're just pulling the wool over everybody's eyes. I mean, this is like a kind of window dressing. We're going to give you this, but in the end unless you can stand on your own two feet and do the job, all this will be, you know -- Part of what we were trying to do is create opportunities for people in this City, especially people in the 151 Resolution 040171 - 3/15/04 minorities who didn't have these skills in the first place. If they leave a job and they're still not skilled, you know, they're not going anywhere in the future.
Well, Councilman -- COUNCILMAN DiCICCO: And I have a concern whether that is as widespread as I was being told -- I'm being told that it is.
I can tell you, Councilman, I do know that those who are involved in the NTI process, outside of L & I, those contractors are going through a training process through the African-American Chamber. And they have actually going through a course and actually done practical work, some of those contractors. Others have had previous experience. However, the people we put through the NTI process have already gone through at least four weeks of education, safety construction, safety management up at the 152 Resolution 040171 - 3/15/04 labor school at Exton, Pennsylvania. I don't know if you've had a chance to go up there and see that facility. But I don't think there's a facility in Philadelphia -- and I've seen all of them -- that rivals the training and the technical training that you receive, the physical and technical training that you receive. There's no doubt that the people we've sent are trained. Now, there's a prevailing wage issue with NTI. I can't speak for the people who are non-union. But the union people I know that we send are trained, and have the equipment and the knowledge to make sure that the jobs are done properly. As I said, I can't speak to the L & I side of the house. COUNCILMAN DiCICCO: Thank you. No 21 further questions. Councilman Goode. COMMITTEE CHAIR RAMOS: I want to recognize the presence of Councilman Darrell Clarke, who has joined us. 153 Resolution 040171 - 3/15/04
Mr. Peebles, just to make a distinction between -- You train people to the labor aspect of NTI, not necessarily within the contracting aspect; is that correct?
And in your training of people within the labor portion -- That was a pre-apprenticeship program. But within that pre-apprenticeship program, you are training people mostly for positions as laborers?
In NTI we have five trades we are preparing people for: Laborers, roofers, plasters, carpenters. And I'm sorry. I'm getting a block on the last trade. But it has to deal with the NTI work in particular. It will come to me in a moment.
But the largest percentage of NTI work would be laborers?
What percentage 154 Resolution 040171 - 3/15/04 would that be?
Our estimate, according to the Equal Opportunity Plan, is 70 percent of the people have to be from the Philadelphia area, and we expect that similar percentage in terms of laborers.
Okay. Last question. Beyond your training that you're doing in a discussion of training needs, beyond those people being trained, there are people within the laborers union that can actually do that NTI work, in addition to those people who are being trained to possibly join that laborers union.
You don't 155 Resolution 040171 - 3/15/04 necessarily have a capacity problem with regard to NTI work, although you're developing additional capacity. There is capacity within the laborers union to perform NTI work currently.
That's true. But there's a ratio. For every one person they take from me, there's four other people in the laborers. With regards to the plasterers, the same ratio. With regards to the roofers, I believe the ratio is even lower, three to one. You have to have so many journeymen to so many apprentices in the various trades, and it depends on the trades as to the ratio. So if there's an apprentice hired, you can be sure that there's going to be up to four journeymen working for each apprentice that's hired, so it doesn't take away from the journeymen who are already in the trade.
I understand. 156 Resolution 040171 - 3/15/04 Just in the context of Councilman DiCicco's question, I wanted to make sure you make it clear that a percentage, a large percentage of the work being done through NTI is demolition work and it's being done by laborers. In addition to the capacity that we're building, there is capacity that already exists within the laborer's union, where we don't have a problem with minority recruitment.
Thank you. Thank you, Mr. Chairman. COMMITTEE CHAIR RAMOS: Councilman Clarke.
Thank you, Mr. Chairman. I'd like to apologize for my attire. I was actually out monitoring some NTI activity, so I wanted to dress appropriately. Thank you. Actually, I just wanted to follow up on a couple of questions that Councilman 157 Resolution 040171 - 3/15/04 DiCicco asked, with respect to demolition, having to some degree an intimate knowledge of the demolition process, since a substantial amount of that is happening in my District as we speak. In talking to the subcontractors, who happen to be in most cases African American, one of the issues that I find that is somewhat problematic to me is that their capacity issue and their ability to become primes and GCs on these demolition contracts, I think when we all discussed this initially we thought that the NTI process, particularly the demolition phase because of the makeup of the traditional workforce, the likelihood that we could get prime bids on those contracts has apparently not come to fore. And I'm a little concerned about that, as we move through this process, that at the end of the day if we don't have contractors who have the capacity to bid as general contractors, then to some degree I think that we were unsuccessful. 158 Resolution 040171 - 3/15/04 Have you experienced that? Or do you know about that, as it relates to the contractors who are currently bidding for subs and don't have the ability, for whatever reason, to move up and bid as primes?
Councilman, I won't pretend to be an expert, but I am fully aware of why the subs aren't moving to prime. The number one reason, as explained to me, has been the fact that the bonding issue is a major issue with regards to going from subcontractor to prime. If you're a subcontractor, your bonding requirements are much lower. If you become a prime contractor, everyone under you has to come under your bond. And that's an issue for a number of minority contractors.
Can you go through that bonding process briefly, you know, not in any level of detail, but say I'm -- 159 Resolution 040171 - 3/15/04
I really, really want to reserve that to the people who actually handle that because we're not -- Councilman, we're not in that bailiwick yet.
So, essentially, based on the amount of work, based on the contract, you're required to have a substantially higher bid than the current subcontractors under the NTI process are in the position to get the $5, $10, $50 million bonds. Are there any programs, either private or government driven, that assist these entities into securing a bond?
I believe OHCD is funding a program through the African American Chamber of Commerce which has not only the bonding assistance, but I understand some banking leveraging dollars. I'm not absolutely sure on all the details 160 Resolution 040171 - 3/15/04 of it, but, yes, that's one entity we know of. I happen to know that Hill International is working with other entities. I don't know their names at this point.
Hill International is the one that has the contract for NTI for the City?
Exactly. And they're also assisting contractors to get bonding. I was at a function just a couple of weeks ago where that happened. So, yes, the outreach and the training activities are there. But in response to your question specifically I cannot tell you exactly where they are, but I know there's people trying to become prime contractors.
Okay. I just want to ask one more question, somewhat unrelated, but related to this whole work force as it relates to opportunities for minorities. 161 Resolution 040171 - 3/15/04 I had the occasion, along with my colleague, Councilman Goode, to participate in the Stadium Oversight Committee, actually on the Eagles and the Phillies. And one of the things that came out close to the end of the process is that there was an issue with respect to the ratios of apprentice versus journeymen. And because the formula was the way it was, it didn't afford us an opportunity to infuse a number of new minorities into the process, subsequently increasing the ranks in the unions. Is that process dictated by law, state law, or is it by agreement? Is it by handshake? Is it an internal process, say to...
Yeah, in terms of ratios. When one trade may have a five to one apprentice versus journeyman, or the other may have a three to two, or two to one. How is that whole process determined? 162 Resolution 040171 - 3/15/04
Councilman, that's a Federal issue. The Bureau of Apprenticeship Training and the State both authorizes the various apprenticeship programs to do the training for the trades in that particular trade. And they set the standards as to how many journeymen are needed per new person apprentice on a job. So, in essence, every trade has to go through the State and the Federal Bureau of Apprenticeship Training at the United States Department of Labor to come up with that ratio. So, that ratio is not pulled out of the air. It's something that's agreed upon between the two parties, the union and the Bureau of Apprenticeship Training, to have a formally recognized apprenticeship training program.
No. The Bureau of Apprenticeship Training for the United 163 Resolution 040171 - 3/15/04 States Department of Labor. But under the Federal Government, you have a state apprenticeship entity under the State Department of Labor that gets information from the Federal as to whether or not your particular union has a ratio. So the ratio is not made up. It's actually a formalized number.
So any change in those ratios would have to be initiated by either the union or the Federal Government or the union legislator?
Probably the union, Councilman. I wouldn't think that the Federal Government would come down into the union's business and tell --
If you recall -- I think you do because we had these conversations last term. I introduced a ratio bill. And you explained to me the difficulties of implementing such a bill 23 because it would affect ultimately not only the work force itself, but it could potentially affect the work itself, because 164 Resolution 040171 - 3/15/04 you have apprentices working on jobs that traditionally journeymen would be. And I'm assuming that the quality of work may be somewhat different. The pay scale would obviously be different, and there could be some fallout as a result of that. But as I said to you last time -- We just kind of ran out of time last time when the term ended -- that is something that I would be very interested in entertaining on a local level, and hopefully subsequently the State and Federal level. Because at the end of the day, I don't believe that if you can't change those ratios to ensure that apprentices get on some of these jobs in a substantial level, you'll never get minorities and females opportunities. It's just simply the way it's structured. It's just not going to happen. I was very disappointed when we did the stadiums as relates to that.
I must say that relative to what Councilman DiCicco said, 165 Resolution 040171 - 3/15/04 and this is Bill Peebles speaking to the Council, this committee: We have had situations where the trades in fact did not take in any minorities. Our issue is to make sure that the City of Philadelphia, whose population is mostly minority, gets into the construction work. And to be blunt about it, we know of cases where apprenticeships were taken in, and none of them looked like me. And we're dealing with those trades directly so that they can have an opportunity to correct that issue. I don't want to bring that to light. But to answer your question, it may not be the ratios, Councilman. It may be the fact that they need to recognize that the people in the City need to work. And that's the issue from my point of view.
Yeah, I understand that. But I just think that the reality is, if you increase the number of apprentices that come into the process, 166 Resolution 040171 - 3/15/04 then the likelihood of you getting more minorities is enhanced considerably. If you don't increase the number, it's just not going to happen.
I'm just looking at it based on the process that I went through. So I want to...
Because you can flip it. If you get more apprentices, you have less journeymen. You have less journeymen, you have less people earning a living, you know, at that journeyman rate. And the unions may have some -- I would think I would have a problem with that.
Well, I understand that. But at some point, you know, you got to make a decision as to what direction you want to go. And, you know, I think that, you know -- and I don't think anybody in this room will argue with the point that, as Councilman DiCicco said earlier, the number of minorities and 167 Resolution 040171 - 3/15/04 females in the union is just inadequate at best. So, at some point you have to make a drastic change in strategy to get to where you need to get, you know. I'm a reasonable person, which is why I backed off the last time. But I do need to do something here locally. And hopefully, I'll have the support of my colleagues to start that process of changing some of the numbers, you know. And who knows? At some point we may start a building construction boom again doing some of these KOZs and expansion of the Convention Center, where there be enough for everybody to have an opportunity. But I just -- You know, I don't want to go through another process like I did with those stadiums. Although we got good numbers on contracts, you know, we had a substantial number of minority contractors who got jobs. But at the end of the day their numbers and participation was just as low as non-minorities. 168 Resolution 040171 - 3/15/04 And they simply said because the people weren't there in the union halls to put on the job. And I just don't want to have to go through that again.
Okay. Thank you, Mr. Chairman. COMMITTEE CHAIR RAMOS: Thank you, Councilman Clarke. I want to thank both of you for appearing today. I believe Councilman Cohen wants to get in a couple questions, directed at Mr. Peebles. I want to also say that I know we have a number of people that have been waiting here very patiently, and please continue to wait patiently. I will not conclude with these hearings today, though I'm going to get everyone in today that is here and scheduled to testify, whoever else also wants to testify. But I will recess and continue these hearings. 169 Resolution 040171 - 3/15/04 So this particular issue that a number of us here on this table -- all of us at this table have gotten into so much is going to take more time for us to continue to work this out, so that the minority participation in our trades, and so that the unemployment and those respective communities can continue to decrease instead of increase, as we see through the testimony today are a matter of fact. Unless anyone on this committee has a question for Mr. Doug Henderson, I'd like to excuse him, and thank him for presenting to us those job opportunities with General Motors. At this time I would ask my colleague, Councilman David Cohen, to ask one or two questions. And then we're going to move on. Progresso and the Youth Network will be next. I know, Rob, you've been here for a good while. You'll be after that. The rest of your, please hold tight. 170 Resolution 040171 - 3/15/04 COUNCILMAN DiCICCO: Mr. Peebles, would you speak a little bit more closely into that microphone.
Mr. Peebles, who pays for the apprenticeship program's costs?
At this point we have PWDC paying for the NTI. Well, actually it's the Mayor's NTI program through PWDC.
I'm sorry. I wasn't able to get that. Does the union pay the costs?
No. The union helped design the training. But the union has no 24 other say in it, any more than anyone else.
How often do 171 Resolution 040171 - 3/15/04 apprenticeship classes get set up?
They usually set them up once a year, running six to nine months a year.
Normally, we start off -- We've averaged now about 1500 people the last two years, and usually we graduate 149, 150 people.
Yes. It was not an easy course because the people have to be fully qualified for us to put them into the apprenticeships. The unions are not saying they're going to give anybody a special break, so we know that the people we send them are fully qualified.
What happens to those that do not graduate? They just disappear along the side?
No. Many of them find employment in other areas. Then we have 172 Resolution 040171 - 3/15/04 people who have what we call ABE, adult basic education areas. Some may need deliver's licenses. We refer them to wherever they need to go to move forward.
Let's deal first with the 149 that you say graduate. That's a little more than percent of those that 9 start. 10
So, you have a large body of people who are disappointed that for one reason or another they were not able to continue or chose not to. We don't know that. But of the 149, how many of them became union members?
At this time. They 173 Resolution 040171 - 3/15/04 may -- They may still yet, because the year has not ended become --
Who makes the decision finally as to whether they become union members?
Yes, it does. It requires, I believe, a three-pronged approach. One, they get tested academically; two, they get interviewed by a panel of usually employers and union members; and three, they are rated, and as of their rating they get selected according to most unions.
Do they have -- If an employee is rejected from union membership, does he or she have a right to appeal to any body or through a process?
I have to say, Councilman, I'm not privy to that 174 Resolution 040171 - 3/15/04 information. If, in fact, there's one person that can deny anybody or all six have to agree, that's dependent upon the trade. Each individual union makes a decision as to their --
How many separate unions are there for which the apprenticeships may qualify?
And are there any records as to how many apprenticeships become union members as to each of those 16 unions?
I've attempted to get those records, Councilman. I cannot obtain them at this point. I cannot obtain them by asking for them. COUNCILMAN DiCICCO: He doesn't have them. He said he would ask them if they would let that information out, but he 175 Resolution 040171 - 3/15/04 doesn't know.
Well, I would certainly appreciate your finding out about it because it remains my strong conviction that it would be a quite easy thing to solve. I feel as strongly as Councilman Clarke, since I've been engaged in the process since 1971 trying to find a way to compel the unions to operate on democratic, small d, principles and afford people an opportunity to get in or get out. And one of the great difficulties always is, how do you even get any information about it? Are there names kept of those apprenticeships that get into the union?
Those that get in, Councilman, I understand they are keeping names. But those who don't get in, I've asked, and they say we don't keep those records. When I say that, I'm saying that I've only asked probably five or six 176 Resolution 040171 - 3/15/04 unions. But each one has said, we don't have a reason to or a need to maintain those records. So you really can't say that ten people applied and two got in because the people that didn't get in, the records aren't maintained.
It always seemed to me... I'm going to have a two-part question to you. It always seemed to me that a very easy way of solving the whole problem with the present Administration is for the Mayor to call in Pat Gillespie and John Dougherty, the two most known and apparently the most influential members, and say to them, today is Monday. And if discrimination is not ended on Tuesday, then Wednesday don't come back to work. And that would solve the whole problem. And he could in the details of that explain to them that his Administration's credibility is entirely at stake. Because otherwise it doesn't make sense. But if the Mayor for any reason, 177 Resolution 040171 - 3/15/04 good or bad in anybody's judgment, chooses to go through any other process, it seems to me since the government pays the funding, it would require the government to show a sense of responsibility. There ought to be a name for every person that applies, and what happens to that person, name and address, so that we could find out what the facts are. I referred to my interest since 1971, and that was not just a wild chosen date. That was a date the Federal Labor Department came to Philadelphia to investigate discrimination in the building trades. Now, there were two people who testified at that hearing. One was Councilman -- the late Councilman Longstreth who testified that the Federal Government had no business even making an inquiry; and I who testified, as you would know, completely to the reverse. But the fact is that nothing has happened in 33 years, despite intensive 178 Resolution 040171 - 3/15/04 efforts. And it doesn't look as if the government is supplying the right pressure, if the government doesn't even know who the people are that are involved so the government can conduct its own investigation. The government of the City of Philadelphia ought to know of every apprentice, because you start with the program where 90 percent of the people who are chosen -- we don't know how they get chosen -- are eliminated before they get into the program. And that of the 10 percent, less than half of them graduate. And we don't know who they graduated and who don't or what unions or 16 unions. And very few of the original 1500, what was it, 59? Actually get to be a member. And then we get into the tale that's been told to me so many times. I want to hear a different record. And that's why I'm raising these questions. 179 Resolution 040171 - 3/15/04 I'm told that when they get into the union, it doesn't much matter because they still don't get jobs, or if they get jobs they get jobs at the furtherest distance away from home, the most difficult jobs that there are, in an effort to discourage them. And since the 59 that make it are assumed to be normal human beings, they are subject to discouragement. So, that actually, often sometimes they express the opinion that would have done better if they had not even bothered with the apprenticeship program or gone through it. Now, I think that's a disgrace. I think it's true that the aims of the minority groups, women and minorities, to have a work force, it looks like Philadelphia is a worthy goal, and we ought to achieve it. And in Philadelphia, where we have such a strong labor force and such a strong government that supports the labor force and has labor people at the top ranks, it's 180 Resolution 040171 - 3/15/04 inexplicable why we can't make any progress. So, therefore, I'd suggest to you that it's urgent that we find a way. City Council, I understand now, has somebody, -- maybe they've had them for some time or had somebody in the position working with this on this minority problem. And we're going to want to see -- I'm going to give Councilman Clarke every bit of support I know how to give to get answers to this question. And I think it's not just Councilman Clarke and myself. I think all of us in City Council. I know Councilwoman Blackwell over the years has expressed real interest.
I know Councilman Rohas, new as he is -- His first hearing... Ramos. Ramos. I got to learn my Spanish names better so that they don't all sound alike, and at least I know when I've made a mistake, and this time I didn't. But Councilman Ramos shows his interest by having his first 181 Resolution 040171 - 3/15/04 hearing. Councilman Goode, I know has always been in the forefront. And I know when I've raised the question with Councilman DiCicco, he's always been troubled by the same thing. And I think the same thing applies to every member of Council. We would like very much quickly in this new Administration of Mayor Street to get answers that make sense. And there's really no reason to explain how a strong, Democratic, pro labor City like Philadelphia lives under conditions and accepts them where minorities are clearly denied full democratic rights to get into labor unions. And the labor movement is so much a part of the City Administration, it's hard to believe why this is happening. So I don't know, but I'm going to ask the Council representatives who are supposed to be handling minority business problems and minority employment problems to work with you. 182 Resolution 040171 - 3/15/04 Do you work directly in this program? Are you part of the City's -- Are you part of the group that Mr. Roundtree is or used to be the head of?
How do you fit into the situation? Are you part of NTI?
Yes. We are a part of NTI. We are the work force development arm of NTI.
And Councilman, just to let you know, in all honesty, the Mayor has and continues to be a major supporter of our program. As a matter of record, it was the Mayor -- last year I believe it was May 25th -- who had the leaders of the union stand in this very building and say that they're going to commit 100 apprenticeships to us. That's why we're having the meetings. That's why we're going to make 183 Resolution 040171 - 3/15/04 sure we get a report card to the Council and the Mayor.
We don't even know what it means if you're successfully an apprentice because we don't get from the 59 people -- I've never gotten any indication from any minority person who went through the program that anything was really achieved in the program. And at the time the Mayor made the announcement that he got the union leadership -- I assume that meant Pat Gillespie and John Dougherty, because they're the only two names we know of here or I know of in the area who helped lead the building trades union. At that time people raised the question, what does it mean? Does every apprentice get a job? And we've told, no, there were many apprentices that had never yet been employed. And then we raised the question, well, what's the importance of 100 new ones 184 Resolution 040171 - 3/15/04 if you can't even find jobs or maybe even get union membership for those that went through the program successfully? Whatever that program was and whoever made the decisions -- there at least were 59, as you say, in the last class that made it through. But not all 59 or not even most of them got jobs. So it seemed to us, at least to me -- Let me take the sole responsibility for this belief. I believe that was just a show of interest. But nothing has happened to indicate that the lot of the average minority worker, whether it's an ethnic basis or female basis or gender basis, that has improved at all. We see no evidence at all of that. Is there any evidence that exists that there's been improvement?
Yes, Councilman. One, if a person becomes an apprentice in the unions, there's a requirement by the Federal Government that the people work at least 1,000 hours a 185 Resolution 040171 - 3/15/04 year. They may be laid off some of the time, but they're not going to be unemployed. They're going to have to work, and if they remain apprentices, 1,000 hours.
Does anybody check on that? Could you get a list of the names of the people and the number of them who got the 1,000 years in the last group?
We would appreciate that very much. That would be helpful. I have to to tell you, I doubt very much that you're either going to get the information or going to get any evidence that that's been complied with. Like most rules, they don't seem to have any follow through in this area of minority 186 Resolution 040171 - 3/15/04 employment. There are rules on the books that make us feel good when we hear them. And then when we check into whether they've been carried out, we find nobody knows and nobody will talk or you can't identify whom, and there is absolutely no evidence that any improvement has occurred. And when you go to the work locations it looks like it's the same thing. Thank you. COMMITTEE CHAIR RAMOS: Thank you, Councilman Cohen. Mr. Peebles, if you could get that information that's being requested by Councilman Cohen, it's very needed information. As I promised you, we will continue this discussion at a second part of this committee hearing on the reality of unemployment in Philadelphia. At this time, I will wrap it up and call our next witnesses. But I believe 187 Resolution 040171 - 3/15/04 Mr. Goode has a last question.
Actually, this is not a question. This is a follow-up to a question raised by Councilman Cohen. I believe City Council has had an economic opportunity officer for over a decade. The origin of that position actually came when a former director of Minority Business Enterprise Council was going to release a report card on the Rendell Administration. I believe that grade was going to be a C minus. And so at that point the Administration was not happy that they were going to receive a C minus in terms of minority participation. And then Council President John Street saw fit to bring that person from Embeck over here as a first economic opportunity officer.
Okay. Great. COMMITTEE CHAIR RAMOS: Thank you, Mr. Peebles, for coming before us today. 188 Resolution 040171 - 3/15/04
You're welcome. COMMITTEE CHAIR RAMOS: And we will stay in touch. And we will continue this hearing on that matter at another time. It's very important for all of us in City Council. I will call on Mr. Nicholas Torres, Executive Director of Congreso de Latinos Unidos. Presidency of Philadelphia Youth Work. Come forward, please. And we'll have a recess of just a few minutes. So, come forward. (Brief recess.) COMMITTEE CHAIR RAMOS: Mr. Torres, and Miss Shubilla, whoever wants to come first, you can make your statement at this time.
Mr. Chairman, members of City Council. Good afternoon. My name is Nicholas Torres. I am the Executive Director of Congreso de Latinos Unidos, one of the City's largest and most comprehensive community-based organizations. 189 Resolution 040171 - 3/15/04 Congreso services over 14,000 individuals per year through its multiple social service and educational programs. The majority of these individuals are either unemployed or in extremely low-wage jobs. Thank you for allowing myself to present our perspectives on the important issues of unemployment in Philadelphia. As Yvette Nunez West illustrated in her testimony, citing the Latino Work Force Development Task Force for Latinos in Philadelphia, finding and maintaining family sustaining employment is a constant struggle. We face low work force participation, with fewer than half of Philadelphia's Latino adults working; low educational attainment. Approximately half of Philadelphia Latino adults completed high school. This combined result results in extremely low income for Latino families, with a median income of around $13,000, 190 Resolution 040171 - 3/15/04 specifically in North Philadelphia. The significant gap between the skills and education demanded by our region's employers, and the majority of Latino adults living in the City can be remediated through targeted investments in skills, training and education. City resources will yield economic gains if invested in training and education programs targeted to specific industries, such as Congreso's APTitude program which prepares community members to enter Philadelphia building trade union apprenticeship programs leading to high wage careers in construction, and strategic partnerships with our region employers, similar to what was presented earlier by General Motors, and initiative we have with the truckers unions, ensuring access to meaningful training and jobs. Most importantly, significant numbers of community members need access to adult education classes, such as literacy in English, GED preparation in English or 191 Resolution 040171 - 3/15/04 Spanish, and English as a second language instruction, before they can take advantage of skills training programs such as aptitude or truckers unions. Adult education resources are scarce. The City must invest in programs that allow adults to develop basic language skills, while supporting their families or preparing for the work force. Adult education classes must be offered in community based settings, such as Congreso, where they are easily accessible by working parents and low income individuals who have limited resources for transportation. Community members are proactive in seeking viable employment solutions. This is evident in the high numbers of community members who have participated in the Calle Americana CareerLink Center at Congreso, which opened in September, this past, 2003. Since its soft opening, over 2,200 people have visited our CareerLink, the first bilingual one stop in the region and 192 Resolution 040171 - 3/15/04 the State. The following is a snapshot of the job seekers who have visited our center. 77 percent of our customers were Hispanic. And of that group, 50 percent chose Spanish as their preferred language. Consistent with City statistics for Latinos, 50 percent of Calle Americana customers have completed high school, and only one percent completed a vocational or technical certification. Four percent completed an Associates Degree, and only two percent completed a Bachelors degree. 97 percent of Calle Americana customers report that they are not currently employed, and 98 percent of customers report that they are seeking full-time employment. Congreso do Latino Unidos seeks to address these issues by connecting job seekers to a broad array of services, ranging from adult basic education to career placement services.
193 Resolution 040171 - 3/15/04 In order to be able to meet the high demand we are experiencing through the CareerLink, there needs to be a more coordinated and more robust work force development system within to work. In light of the urgency of this issue for the health of the City, we respectfully thank you for providing us with this opportunity to present our perspective, and applaud Councilman Ramos's efforts. COMMITTEE CHAIR RAMOS: Thank you, Mr. Torres. Ms. Shubilla.
Mr. Chairman, members of the City Council, my name is Laura Shubilla. I am the President of the Philadelphia Youth Network. I appreciate the opportunity to appear before you today to ask discuss some of the ways in which Philadelphia youth are being prepared to become active and productive members of the future work force. 194 Resolution 040171 - 3/15/04 I believe you have written testimony that was handed out earlier in the hearings. The Philadelphia Youth Network is a not-for-profit Citywide work force intermediary developed to promote academic achievement and career success for to 9 year olds in Philadelphia. 10 We staff the City's Youth Council, 11 which is a statutorily mandated subgroup of 12 the Philadelphia Work Force Investment 13 Board, and we also administer Federal funds 14 made available to the Philadelphia Work 15 Force Investment Board. 16 In addition, we work to improve the 17 quality of programs and services available 18 to Philadelphia youth, by building the 19 capacity of local youth service 20 organizations, promoting the adoption of 21 research based effective practices, and leveraging new funds for local youth work force development efforts. As with PWDC, the bulk of our money is contracted out through community based 195 Resolution 040171 - 3/15/04 organizations to actually deliver the training and educational services in the communities throughout the City. In short, the core mission of the Philadelphia Youth Network is to prepare City youth for productive employment and active citizenship, by providing organized and comprehensible pathways into the mainstream economy, that result in positive education and employment outcomes. Over the last five years PYN has promoted the creation of a comprehensive system that provides clear access points for both employers and young people, and that alliance resources available to the City with a set of shared goals and outcomes. In order for this system to be effective, quality preparation for youth must be combined with opportunities provided by willing employers. These opportunities differ, based on the age and readiness of young people, ranging from exposure to different career 196 Resolution 040171 - 3/15/04 areas, especially high growth sectors in our region, to internships, summer jobs, college, and long-term employment. Key features include connections to schools. It came up earlier how we worked with the School District of Philadelphia. We work very closely with the School District of Philadelphia. All experiences that we offer provide connections to schools. Summer internships, for example, are project based and aligned with School District standards. Approximately 70 percent of summer interns receive academic credit for their projects. Work readiness training. Last summer over 3,000 youth attended work readiness summits on two Saturdays in June, where they were trained by 180 private sector and community volunteers on the skills needed to successfully retain their jobs. We also were promoting connection to year-round programming. Increasingly, all 197 Resolution 040171 - 3/15/04 summer experiences are components of year-round programs. For example, for each summer approximately 315 youth with disabilities, for whom employment is a goal on their individual education plan with the School District, are employed through the summer program. In addition to jobs, several hundred youth also participate in residential experiences on college campuses, and are involved year round with that college or university. In these ways and in many others, the Philadelphia Youth Network seeks to improve the work force prospects of the City young people. Mr. Chairman, with regard to youth employment programming in the City of Philadelphia and elsewhere, there is bad news and there is good news.
The bad news is that, according to the researchers at Northeastern University the summer of 2003 was the worst for 198 Resolution 040171 - 3/15/04 teenage employment prospects in the last half century. In Philadelphia we regularly turn away from 3,000 to 5,000 young people who seek Youth Council supported opportunities but for whom there are no slots available. To compound this problem, for program year 2003, 2004, Federal Work Force Investment Act youth funds available to the City were slashed by an astonishing 12 percent, and this was based on a Federal 13 cut of 11 percent. 8 14 million. 15 This cut resulted in the loss of 16 almost 1,000 slots available for young 17 people to participate in youth work force 18 development programming. 19 But there is also good news. With 20 the leadership of Pamela Crawley, Vice 21 President and Director of Public Affairs 22 for Citizens Bank and Chair of the 23 Philadelphia Youth Council, and George Davis, Senior Vice President of Lincoln Financial Group and Chair of the 199 Resolution 040171 - 3/15/04 Philadelphia Work Force Investment Board, major efforts are now under way to build new home grown work force development opportunities for Philadelphia youth. The leadership of the WIB and its Youth Council have resulted in the creation of Work Ready Philadelphia, a Citywide system for youth work force preparation, that is designed to coordinate existing programs and services, and importantly, to expand the number of opportunities available to young people, including unsubsidized private sector internships. Work Ready is co-chaired by Mayor John Street; John Basha, Chair and CEO of Lincoln Financial Group; and School District CEO Paul Vallas, all of whom continue to provide extraordinary leadership for this campaign. As I stated, Work Ready Philadelphia is designed both to coordinate existing efforts and to build new opportunities. There are several components of the work force development programs here in the 200 Resolution 040171 - 3/15/04 City. Most commonly known as Youth Works, it is the summer and year round combination of work force development programs that is supported by about $6 million in Work Force Investment Act funds, and an additional $3 million in state TANIFF dollars. Together, these funding streams support summer and year round youth work force opportunities for about 5,000 young people. The summer career exploration program is supported by the William Penn Foundation, with additional funding for more than a dozen other local philanthropies. SCEP has provided enhanced summer jobs for older youth for more than 19 years. In the 2003 summer, approximately 20 1,300 youth were placed in subsidized employment in predominantly private sector workplaces. Importantly, for the first time last summer SCEP and Youth Works were brought together into a single coordinated 201 Resolution 040171 - 3/15/04 administrative structure, resulting in increased efficiencies and programmatic alignment. In the summer of 2003 the School District of Philadelphia initiated its Summer Development Institute, designed to help credit-deficient rising 9th and 10th graders to complete required course work and be promoted. As an incentive for students to participate, the School District pledged funding for as many as 1,000 young people to participate in afternoon jobs and service opportunities. Working with Mr. Vallas and Dr. Craig Williams, who is also the Vice Chair of the Youth Council, we hope to refine and expand this model for next summer and beyond. An essential goal of the Work Ready campaign is to create new, unsubsidized internships for young people. Philadelphia is one of the few cities in the country, large cities, that 202 Resolution 040171 - 3/15/04 doesn't have a very organized sector jobs campaign for young people. Last year we were successful in generating almost 200 internships.
100 percent of employers responding to our follow-up survey indicated that they would hire Work Ready interns again. While that was a good beginning, we know we can do much better this coming summer. I would also add that 11 percent of the companies that hired youth in the summer continued to work with those young people year round. And when we asked the companies why they continued on and hired those youth, either after school or permanently in jobs, many of them answered that it was because the young people asked. So, this was an important educational opportunity for youth, and understanding networks, and how to begin to build networks for their futures. We are reaching out to employers across the City for their support in hiring 203 Resolution 040171 - 3/15/04 young interns this summer, to donate funding that can support a young person at another work site, or to contribute to the work of the campaign in other ways. Costs to support a summer intern are as low as $1,000. We would greatly value Council's help in getting the word out concerning Work Ready and in supporting internships in any way that you can. In closing, I want to highlight two other powerful youth work force partnerships involving City agencies. Mr. Jones, when he was up here before, talked about ex-offenders. And we also are working a great deal with Family Court in Philadelphia around looking at youth offenders, and the connection between employment for kids coming out of placement and how we can help to facilitate that process more efficiently. Through funding that we have been able to leverage, we have hired a coordinator who is out of Family court 204 Resolution 040171 - 3/15/04 right now, who's helping to connect young people coming out of placement back into programs that provide education and employment support. Judge Field, who is also a Youth Council member, has provided extraordinary leadership to this effort. In collaboration with the Department of Human Services and the Philadelphia Work Force Development Corporation, the Achieving Independence Center provides opportunities for youth aging out of the foster care system to learn a wide variety of work readiness and occupational skills. One of the ways that they do that is by working in a functioning cafe, which is actually on site at the Achieving Independence Center. These are only two of a significant number of new partnerships that are forming throughout the City in support of our young people. We were talking earlier about the 18 to 30 year old population, while we see a 205 Resolution 040171 - 3/15/04 great number of to year olds going into the CareerLinks, and needing some additional support in order to access those CareerLinks effectively. And we've started to provide some youth friendly staff at the CareerLink at 990 Spring Garden to begin to look at four to year olds who were walking in, who 10 may need some additional support, who may 11 need more comprehensive services, how we 12 can have staff there who can actually work 13 with them, to make sure that they find 14 their way through the maze of services, but 15 also to find the most appropriate placement 16 for them, since they are eligible for both 17 youth services and for adult services. 18 A lot of times that population is 19 less educated, even than the majority of 20 people who come into the CareerLink. And 21 so there's a need to combine education and 22 employment. 23 But traditional adult literacy 24 programs and traditional adult employment programs don't always work for that group, 206 Resolution 040171 - 3/15/04 so we have to blend services between what we know about working with youth and what we know about working with adults, in order to effectively serve that group.
In summary, I believe despite the major challenges associated with current economic conditions, and the decreasing Federal support for youth work force programming, that Philadelphia is on the verge of creating a system for youth work force development that is unrivaled anywhere in the nation. We have leadership and support from the City, the School District, the foundation community, and private employers across Philadelphia. We are blessed with high quality youth service organizations that deliver research based on effective practices. And we have many, many talented young people who are eager to take advantage of the powerful positive experiences that come from working and serving in their community. 207 Resolution 040171 - 3/15/04 Thank you, Mr. Chairman and City Council, for your interest and leadership in this area. I look forward to working with the Council to ensure that all of our young people have access to enriching work force development opportunities that they need and that they deserve. I would be pleased to answer any questions that you might have. COMMITTEE CHAIR RAMOS: Thank you, Miss Shubilla. Let me go back for a minute to the statement of Mr. Torres. Mr. Torres, can you talk to us a little bit about your APTitude program. You state here that the which prepares community members to enter Philadelphia building trades apprenticeship programs, leading to high wage careers in construction. Can you tell us what the enrollment is, what your success rate has been in achieving what you just stated? 208 Resolution 040171 - 3/15/04
I think this complements earlier testimony similar to the DAP programs. Each year we've received a contract to serve 60 individuals for -- COMMITTEE CHAIR RAMOS: How many?
60 individuals funded from Philadelphia work force development. COMMITTEE CHAIR RAMOS: 16?
Funded by the Philadelphia Work Force Development Corporation and previously by OHCD. Our success rate over the last -- we started -- this program started up in 1997, 1998. Over the last five years we've placed about 110 of those individuals in apprenticeship union programs. And this year it's -- The struggle with the unions has been somewhat difficult in ensuring that those graduates received the union placements. There's a two-part process to that, 209 Resolution 040171 - 3/15/04 is actually passing the union test, which our graduates have to pass right around 70 or 80 percent. And then the difficulty often times comes in terms of placement within the unions in terms of the apprenticeship programs. COMMITTEE CHAIR RAMOS: Mr. Torres, have you been able to track and see how many of these 110 apprentices that have been placed have moved on to become journeymen? I know in some of the trades it takes, you know, a few years before you reach that status. But have you tracked where are these people now, and how far are they into the new trade that they have now been -- they have now as their way of making a living?
We have not tracked that, but I know anecdotally that it is very few who have actually advanced to that stage. Given that the program is only about five years old, it usually takes many years 210 Resolution 040171 - 3/15/04 to actually become journeymen, but I know there are about two or three. But out of the 110 that have been such placed are still at the beginning stages, in terms of their placements. COMMITTEE CHAIR RAMOS: How many of them do you believe are employed as apprentices today? Do you have any numbers?
We can find that information. We did not have the staff capacity to go back and track those 110 individuals. COMMITTEE CHAIR RAMOS: Can you get that for me, please?
Yes, I can. COMMITTEE CHAIR RAMOS: Miss Shubilla, I was visited by some people from your staff earlier -- earlier in my career at City Council, which has only been ten weeks. And I was very pleased to know that you were working very hard to get as many of our children to work this summer, 211 Resolution 040171 - 3/15/04 work-age children. Can you give me an idea how many children, how many jobs are out there to fill this summer for our summer youth program?
We hope to have about 7,000 jobs this summer for summer employment. The private sector campaign, as I said, last summer we did 200 unsubsidized jobs. This summer we hope to do 500. We'll see how close we get to that. Boston, who's been doing this for 15 years, does 4,000. So, they're always the 16 benchmark, you know, to which we hold 17 ourselves. And they have a very active 18 group of employers who do this. 19 But I'm happy to say the most recent 20 employer we just signed on was AmeriChoice, 21 who agreed to hire 15 young people. Most of the employers coming in are also hiring youth at above minimum wage which is also nice. They're hiring youth for $6.50 an hour. 212 Resolution 040171 - 3/15/04 And they're also interested in providing scholarship opportunities for young people who want to go into health care as a career. So, as we work more with our private sector partners, we find more and more opportunities for them to participate with young people. So, if we have our way, if we get our 400 or 500 jobs, there should be a little more than 7,000 opportunities available, which is nowhere near the amount that we need in the City. As I said, with very little... We don't do a lot of marketing any more, because young people know these opportunities are out there. And with the marketing we do do, we usually have a waiting list of at least 3,000 youth every summer. That's something that we would like to be able to fill those jobs, because my experience has been that when youth turn 14, they are very, very excited about 213 Resolution 040171 - 3/15/04 working. And so the bulk of the new young people we see every year are and year 5 olds who have just gotten their working 6 papers and who don't have a lot of 7 opportunity. 8 It's harder for them to get jobs on 9 their own, so in many cases this system is 10 the first opportunity for them to actually 11 be employed. 12 COMMITTEE CHAIR RAMOS: How does 13 that compare? What was last year's 14 numbers? You have 7,000 jobs this summer. 15 What was last summer?
It will be a little bit higher than last summer, if we get all the private sector sponsorships. But in terms of public and foundation dollars, that's level from last year. COMMITTEE CHAIR RAMOS: It's low?
Yes. It's about the same as last year. 214 Resolution 040171 - 3/15/04 COMMITTEE CHAIR RAMOS: Why do -- and correct me if I'm wrong, but it's my understanding that students outside of Philadelphia can also enroll in your summer program. Is that so?
No. Students outside of Philadelphia are not allowed. The only young people who -- COMMITTEE CHAIR RAMOS: The Career Exploration Program?
Summer Career Exploration Program, yes. The William Penn foundation drives the funding for that program. COMMITTEE CHAIR RAMOS: Mm-hmm
And they are involved in Camden and in Chester County. So, they have asked us to fund certain community groups in Camden and Chester County to do youth employment for those areas. But the public money only goes to support residents of Philadelphia. That small portion of the foundation money is directed towards those other communities. 215 Resolution 040171 - 3/15/04 COMMITTEE CHAIR RAMOS: How many Philadelphia youth participate in your SCEP program?
There's about 1,300 slots in that program. And I believe about 150 of those are directed towards Chester and Camden, and the rest are in the City. COMMITTEE CHAIR RAMOS: 900...
No. It's about 1100 or 1200 that are for Philadelphia residents. COMMITTEE CHAIR RAMOS: So, apart from the 7,000 publicly funded jobs, right?
In the 7,000 member groups. COMMITTEE CHAIR RAMOS: I'm sorry. That includes your SCEP program.
Yes, it does. COMMITTEE CHAIR RAMOS: Okay. Thank you. Any questions from the Committee? Councilman David Cohen. 216 Resolution 040171 - 3/15/04
We do a combination for young people. You know, most of our youth who participate are in school, so they are summers jobs are... These are six-week opportunities that are hours a 9 week. 10 And they involve a component that's 11 also a training component. So, youth are 12 either doing projects or they're doing 13 portfolios as part of the summer program 14 where they are eligible to earn credit. 15 We have a smaller number of programs 16 that are funded during the year with 17 Federal money. And that's for about -- You 18 know, the number decreased recently with 19 our recent cuts. But it's about 1200 youth 20 who are involved in programs year round. And all those programs have some kind of an employment piece. They may not actually earn wages year round. Some of what our providers do is they'll provide incentives, so if youth 217 Resolution 040171 - 3/15/04 meet certain goals that they are working on in their programs. And many times they tie it to attendance in school and to academic achievement. They will gain certain monetary incentives as part of their year round component.
I would like to make a request of you, particularly, because I think your group and all the groups that work in this area deserve everybody's commendation. They do a wonderful job. But I think you're ruining into another problem. I referred earlier to an article I read in the Inquirer which indicated that there may be an effort, maybe even an agreement, but certainly the article supports the concept that there may be just a general understanding amongst employers not to hire. And I'm beginning to think that all the talk about the schools having failed, about the work force not being ready, is 218 Resolution 040171 - 3/15/04 just an excuse by employers generally, led by the biggest employers of all, to not hire personnel and to look for other ways to raise their productivity rates. And with the advancing gate of technology, many of them have been able to do it. And that may account for the jobless recovery. But you have proved that the work force is ready, that there are ample people, and that there's a group of people in the City working to make sure that our work force and schools work. And I think you're all doing a tremendous job. But I think the one area you can't cover is the availability of jobs. And that's the reason I raised earlier about maybe the government ought to take over the health care payments to take that argument away from employers. And secondly, maybe we're going to have to deal with what might be an employer, generally quiet, but very 219 Resolution 040171 - 3/15/04 effective campaign not to hire, unless they have absolutely no other choice. And with today's technology, they often have other choices. And that's something that you can't do because you're not in a position. We're slightly in a position because we have something to do with budgeting. But government can never provide the number of jobs needed for our work force. So, I'd like you to read that article by Andrew Cassell, the Inquirer business reporter, and have your comments as to how that applies, if at all, to Philadelphia. Because your experience seems to indicate that Philadelphia employers are working cooperatively to provide -- And I'd like to know what are they willing to do cooperatively. I'd like to know specifically names of companies that go out of their way to create jobs for young people because the only way young people will get fully 220 Resolution 040171 - 3/15/04 trained is by working. And the best model that you can have in a community is for somebody to brag about the job he has or she has, and how satisfying it is, and the opportunity to develop themselves. That's the best advertisement for keeping youngsters in school. To keep youngsters in school when the best students are getting are not getting into college and are not able to get employment is not much of an advertisement for education. But when it shows up in the form of somebody successfully working and showing the fruit of it, and the ability to have funds to buy the necessary things for a family to survive. So, I would like your comment at the next hearing that our fine Chairman calls on this matter. Because I think ordinary people in the community may be facing the first time that employers have really decided it's in their interest to maintain a group of maybe 221 Resolution 040171 - 3/15/04 or million Americans unemployed, lacking the basics of life. Because it just seems unusual that a recovery could go on this long without there being any increase of significance in the work force, and that particularly following the loss of more than 3 million jobs over the last three years. So, I would like your comments on that. Would you be willing to do that? Read the column. I think it's a very important column for everybody to read, by Andrew Cassell. He's the business editor for the Philadelphia Inquirer. But he has a very negative outlook for the future jobs.
And your work is going to be to naught if you can't produce jobs, because that's what you've got to ultimately produce. And you're doing our share very fine. You're preparing the work force. And no one is going to be able to say there's an inadequate work force in Philadelphia or throughout other parts of 222 Resolution 040171 - 3/15/04 the nation. But only employers can produce jobs. So, thank you Mr. Chairman. COMMITTEE CHAIR RAMOS: Thank you, Councilman Cohen. I read that article, and I had the same impression that you did, Councilman Cohen. So, make sure you get back to Councilman Cohen through me.
And we'll be happy to do that. COMMITTEE CHAIR RAMOS: On the insights of that article by Andrew Casell.
We will be happy to give you a list also of all the employers who are participating and have participated. You know, one of the interesting things I found, the financial services industry is definitely leading this in Philadelphia. That's where we have a great deal of participation. Very often the challenge isn't as much having the companies agree to pay for 223 Resolution 040171 - 3/15/04 the young people. It's really working with them to understand how you can use high school interns in a workplace. So, we spend a lot of time talking to them about what kinds of jobs and 7 year olds can do and how they can be very 8 productive. 9 Once they get into the companies, 10 very often the mentors who work with them, 11 because we do a good deal of mentor 12 training with the supervisors at the 13 worksites to understand how to work with 14 high school youth, get very invested in the 15 young people. 16 And what you find is, they then, if they go onto college, down the road they'll come back and still work there at Christmas breaks and at holidays. And that's really what we want. We want to build networks for long-term relationships. So, the people to people part of this that happens when youth are in workplaces has been very powerful. COMMITTEE CHAIR RAMOS: Thank you, 224 Resolution 040171 - 3/15/04 Miss Shubilla. I promised you that I was going to send letters out to employers. Those letters are going out as we speak. I just got a little e-mail that it was happening. And you gave me some employers, and I sent letters to those employers as well, so they can contribute to this program. For every $1,000 that an employer contributes, they'll hire a youth, right, for the summer. And I am more than glad to be able to be of some help. I want to recognize Timothy Chiller. Timothy's been sitting here since early this morning. He wrote an article also, Councilman Cohen, and he had an op-ed in the Philadelphia Inquirer. He is from Federal Reserve Bank. And I asked him, could he testify. He said, no, I want to come and listen in on your hearings. So I want to thank Mr. Timothy Chiller for being so generous with his time in joining us today. And continue to write 225 Resolution 040171 - 3/15/04 those op-ed pieces in the Philadelphia Inquirer. I just have one final question. Do you have... I'll defer to Miss Donna Reed Miller, please.
Hi. Good morning. And you may have answered this. How do young people know about Work Ready?
We do -- I mentioned before, every summer we have a waiting list of about 3,000 young people who want internships that aren't able to get them. We recruit through all of the schools, so material is sent out to all of the School Districts in early April. We have about 50 community based partners throughout the City who receive information as well. We recruit through the Department of Human Services. We recruit through Family Court, through the County Assistance offices. So we do pretty widespread recruitment. 226 Resolution 040171 - 3/15/04 We have not found there being any difficulty with finding enthusiastic young people for the positions. We really need to aggressively recruit employers to provide opportunities.
We are co-located at the Schuylkill Avenue office with the School District, yes.
Okay. Actually, now that you -- I think my office is one of the -- I just didn't know the name of it. But every year, you're right, we do help you, unless your... We found a lot of placements here in City hall for a lot of the -- And in fact, lots of judges and other elected officials in City departments were very eager to have your interns.
Now I know who you are. Thank you. 227 Resolution 040171 - 3/15/04 COMMITTEE CHAIR RAMOS: I want to thank you both for being so generous with your time, and so patient. We requested a few items from you. Please get them to us as soon as you can. And Mr. Torres, I want to personally thank you for all the work that you do with Congreso, one of the biggest social service agencies in the Hispanic community in the State of Pennsylvania. And I see since CareerLink went over there, you have gotten over 2,200 inquiries about employment. And that says there's a problem out there, and that we're... So, and I'm so happy that you're there providing our people with some resources so they can go on and make a living and sustain a family. Thank you both. Rob Ravanell, Titus Brown, and William DiMascio. And I see we can also on the same panel bring on Mr. John Lefkowitz and Ray Jones.
My name is Rob 228 Resolution 040171 - 3/15/04 Ravanell. COMMITTEE CHAIR RAMOS: Rob, you're not going to read all of that that you have in front of you, right?
No, I'm not going to read all that. COMMITTEE CHAIR RAMOS: Okay. Come on forward. You can pull chairs and sit around the table, please. Rob, will you please for the record state your full name and your title because that's appropriate.
My name is Rob Top Notch Ravanell. I'm a citizen of Philadelphia -- citizen of the City of Philadelphia. The Mayor has recently put together a task force for reentry and reintegration. I'm on the legislative committee. Up until early March, I used to be on John Dodd's Board of Directors, for the Philadelphia Unemployment Project. COMMITTEE CHAIR RAMOS: Will you pull the microphone closer to you, Rob, 229 Resolution 040171 - 3/15/04 please?
And that's why I'm -- Do you want to introduce everybody else or am I supposed to go? COMMITTEE CHAIR RAMOS: We'll proceed with the introductions after your statement. Thank you.
Okay. I came here today because -- And I didn't want the mike too close because I have a strong voice. I came here today because I'm probably one of the only people in this room that is unemployed. A lot of people have jobs. I have to come down here and represent for the person unemployed. There are a lot of meetings. As I said, the Mayor put together a task force. This is sitting here (Indicating) because at the first two people -- And just bear with me as I speak. 230 Resolution 040171 - 3/15/04 When you asked the secretary -- and I took notes -- from the Department of Labor about some statistics, I'm sitting here and I'm like, she ain't got the statistics. All right? We got everything here from a profile to working poor from 2001 to characteristics of the minimum wage worker, work experience of the population. What I'm trying to say here is, we have a lot of information on unemployment situation. Now, if I myself who is -- I'm not an economist. I just been to Temple University. I got to get a job so I can finish paying for it. S. labor force from 1950 to the year 2050. We have reports in here that come out every two years. Here's one for 2005, 2010, employment projections to 2012, local 231 Resolution 040171 - 3/15/04 area statistics. Local area statistics. A schedule of when they release this information. We also have here more local reports, Philadelphia Census Group. Reentry and reintegration of adjudicated offenders. And I'll get to the point of why I have all this paperwork here. Not only that. We have findings of that group. So they did a study on unemployment. And I'm probably going to go on, so I'm glad Mr. DiMaggio is somewhere near me. Because I want to speak about ex-offenders. That's what I say. I live in West Philly. I live in what we call the hood. Excuse my language. But I see the majority of African American males. And all these reports will tell you, African American males have the highest rate of unemployment across the nation, in Philadelphia, in the State. Our state penitentiaries are filled 232 Resolution 040171 - 3/15/04 with Philadelphians. All right. No one else but Philadelphians. Here's a report from the Sentencing Project. The intended and unintended consequences of state racial disparities. A term I like to throw up is disparate impact. Disparity is when something is uneven. Impact is the effect it has on you. There's a disparate impact on African American men, from having involvement with the court systems and the judicial systems. We have reports on that. I'm'a stop right there, and say, I'm kind of baffled because deeper in here, I have things that... Yeah, Philadelphia City Code, Home Rule Charter. Last year I came to a City Council meeting. And we were over the hearings. And I was listening to hearings on same thing, about the minority contracts and things of that nature. I was happy with Mr. Cohen last year because he walked in a little late; but he 233 Resolution 040171 - 3/15/04 was the one that said, put this bill on the table; get the unions down here; let's ask the unions why the brothers can't get jobs. And I thought that was very, very intelligent of him. But I'm sitting here today and we just had -- They don't even call it PIC any more because PIC was testifying. I'm sitting here today, and I'm like, the same question from last year about why the brothers can't get into it. Maybe it sounds like to me that they were getting into the apprenticeships. They were get into it, but they're still not actually getting the jobs. I'm saying all this because this has been going on for so long. And my question at the end of all this is going to be, what are we going to do, and when are we going to start to do something? Because we're still holding hearings. We'll probably have a hearing next year on the same thing. But my thing is, if I have a gentleman that has not 234 Resolution 040171 - 3/15/04 worked -- I heard a gentleman came up and testified.
He said he had friends that hadn't worked in one or two years. The thought in my mind, I have friends that ain't worked in five years, seven years, ten years. I knew a gentleman with criminal records ain't been able to get a job in 10 years. I just had somebody representing 11 Youth Network up here. 12 She reminded me that I go on temp 13 jobs, and I do see kids at the job. She 14 reminded me I did take my son out and try 15 to get him the paperwork, his working 16 papers. 17 And I thought to myself, damn, my 18 son can get a job. Excuse me. I'm sorry. 19 My son can get a job but his father can't 20 get a job. Now, mind you, Mr. , -- and please don't -- It's something wrong. Excuse me. I'm not mad at anybody. But let me tell you, your assistant, Solomon Jones, Solomon knows me very well. 235 Resolution 040171 - 3/15/04 We went to Temple University together. Solomon would never think I'm a bad person. He would never have anything wrong to say about me. He knows nothing of me being an ex-offender. My marketable skills which I go on job interviews for all the time, which I pass interviews. I had two interviews last week. Company's name RSD, Resources for Human Development. They love me. Love me so much they gave me another interview Tuesday. But I'm assured that I won't be able to get that job because of my criminal history background, because they work with drug and alcohol rehabilitation. Now, I'm'a go into the Workforce Investment Act, because I got so frustrated of being unemployed. I said, that got to be against the law. So I went down to CareerLink. And this is going to get into a personal story. I got notes, but I can see I'm not even going to go into that. 236 Resolution 040171 - 3/15/04 I went down to the CareerLink -- three years -- because I did have a job. They gave me unemployment 2001. To get my unemployment, you got to go to CareerLink, sit through that training class. I sat through it three years, over and over again. You know why I kept sitting through the same thing? Let me slow down. Because, one, I'm not eligible for training because, you see, I'm too smart. I been to Temple University. So these Work Force Investment Act, which I traced it. S. Department of Labor is, and I asked them, where is this money that I read that you're giving out for people to get training for jobs and things. They said, go back to the CareerLink and tell them. So I went back to the CareerLink. The CareerLink still said -- Well, they said the same thing. We work on a 237 Resolution 040171 - 3/15/04 needs assessment. You don't need no more training. I agree with them. I don't need no 5 more schooling. I need a job. But when I go to jobs, the jobs I go for, I can't have them because I'm ineligible. S. Department of -- Pennsylvania Department of Labor. I wrote him. What do you have for citizens of the community? He sent me a whole lot of unhelpful information, a lot of unhelpful information. I know I'm rambling right now. But let me stop and go back into this. We got so much legislation on the table. I got a Resolution here I didn't get a chance to copy because I'm unemployed and don't have money to copy it. But it was coming to City Council. Your meeting just 238 Resolution 040171 - 3/15/04 came. I took it to Shirley Kitchen last week. I plan to send it to the General Assembly. It has the whereases, the problems. It has solutions in here. And I thought it was real quick. I'd like to go real quick over some solutions off the top for ex-offenders. Title 18, Section 9125 needs to be amended, to include a time restraint on the dissemination of certain criminal history record information for employment suitability purposes. Title of the Pennsylvania 16 Consolidated Statutes, Section 9122 also 17 needs to be amended, to include a time 18 restraint on the expungement of certain criminal history records.
The reason I'm there, ladies and gentlemen, is because when you have statutory bars, when you release someone from prison, and they have finished their sentence -- And a lot of people such as myself, I'm caught up in something. This 239 Resolution 040171 - 3/15/04 is why I'm here. I have never been actually locked down. Excuse me. If you don't understand what I'm saying, I'll give you definition. I have never actually been locked down. Always probation. And this may or may not be for things I have done. But in that courtroom you can't beat this case so take the deal. That happens a lot to the brothers. So we took the deal. But the deal we're seeing now is deadly because the deal, even though we still out here? And we agree -- Because everybody from the courtroom judges to our mothers told us, be good; get a job. Well, a whole lot of brothers been good, but they ain't getting no jobs. And I need to know why. I'm starting to think. And -- And -- And I said I wasn't going to say certain things, but this is City Council. And I'm talking about the Federal government. 240 Resolution 040171 - 3/15/04 This is one statement I say to people. And they seem to say, you know what Rob? It makes sense. The Federal government is the nation's largest employer. Their main business is law enforcement. In order for them to keep making money, they got to point to a whole lot of the citizens to say: You got problems; you're a dope fiend; you have a mental problem; you're a criminal; and keep that going. This is not true. I admit there are a lot of people out here, murderers, rapists, child molesters, and I'm not speaking for them. I'm speaking about the guy that got theft charges, receiving stolen property charges, a guy that you -- the male or female you can give a job to, and they may not be caught up in this again. I'm talking about not ex-felons. I'm talking about parents, children's parents. 241 Resolution 040171 - 3/15/04 Because regardless of whether we think they're criminals or not, somebody loved them. Somebody... They got girlfriends; they got wives. People get married in jail. They have children. They have families. We got steady a release from our penal system where... Another thing I should mention for some people that ain't here. Arrearages. Arrearages out here are sending brothers back in -- sending minorities back to jail left and right. Because you're sitting in the penal system, your arrearages, child support arrearages are accruing. You're coming home. And the first message you get is, pay your bills. Well, you can't get a job. So therefore, the first bill you can't pay is your child support arrears. Now, you ought to be able to take care of your child, period, before you pay the arrears. There's... I need to go to 242 Resolution 040171 - 3/15/04 my notes because I know I'm rambling on. But in -- in -- in -- You got a lot of other people up here. I'm not going to talk. I think you're getting the gist of what I'm saying. When it comes to these criminal history records right now, we have discrimination and disenfranchisement in employment. And that is leading to homelessness on these streets. And it's leading John Dodds back here -- I'm glad he came. He's going to talk to you about the mortgage foreclosures he tried to stop, the moratorium, and stuff. He's going to talk to you about health care which is a big problem, because whether a person gets sick or not does not matter whether they have a criminal record or not. We got a lot of people walking around out here can't get jobs. And I'm sitting here today. I need to see a doctor. I've needed to see a doctor since 243 Resolution 040171 - 3/15/04 2001. That's when I lost my last employment. How do I know? Because I was in the middle of dental work. There's a difference between... Let me say this to you: Difference between medical care and medical benefits. Medical care is something you get from the District Health Centers. All right. When it hurts they'll take it out.
Medical benefits are when you get an opportunity to choose between the treatments you want. You get medical benefits from a job. We need jobs. I... As I said -- And I'm not just talking to you, Mr. Goode, Mr. Wilson Goode, Jr. -- I have been around this City a long time. I have -- The information that the Pennsylvania Department of Labor sent me? You know why it made -- it was unhelpful? Because I had already done it. I had already asked people that I knew with jobs that knew me, could you help me get a job. 244 Resolution 040171 - 3/15/04 But they already known that the company that they work for discriminated against people. And you got to remember -- I got to go back to this, though. We got things on this table here. And I'm going to get through this, and I'm going to be finished and let ya'll speak. I'm worried about things like this. We were talking about the unions. And I was talking about the unions getting people jobs. Well, here's a union, 1199. See, they're real big in this City. Look here. No felonies or disqualifying misdemeanors. Come on, now. How are the unions going to help us get jobs? They put on the advertisements. And we wonder why it's hopelessness and more crime and more recidivism rates, the higher recidivism rates in the City. This is a problem. When I go look for a job -- And say for the sake of it, yeah, I did do something when I was -- 20 245 Resolution 040171 - 3/15/04 years ago. Because that's when the last time you have something on my record, 15, years ago. 5 I think 15 or 20 years ago I was a 6 young man, fresh out of high school. Who's 7 to say? We print on our money, In God we 8 trust. Who's to say that a person cannot 9 go from bad to good, cannot change their 10 personality? 11 We have people... And I said I 12 wasn't going to say this, but it's in the 13 news. And you talking about the news. You 14 read the newspaper. You read the 15 newspaper. 16 All them people with them jobs. 17 There was a guy working in a nursing home 18 murdering people for years. 19 When he got his job, he didn't have 20 no criminal record. All right. It was -- It's people, it's state troopers, it's policemen out here. We got the rape cases on the news. When they got their jobs, they did not have criminal records. They went from good to 246 Resolution 040171 - 3/15/04 bad. So who's to say that people cannot go the reverse way, from bad to good? And I ain't never met a brother that come home from jail and say, that's the place to be. I want to go back. Like it was a vacation. Jail works. It works very well. What don't work is, after we get out we can't get jobs. And you got babies to feed. You got a house. You don't want to be homeless. And a lot of people that do go back, they're just strong people trying to fight. They may not -- And they can't -- And it took me a whole lot, because I had a choice to make last year when I got fired from my job again just because I had a criminal record. I got a performance review that says I was excellent. But I had a choice to make. Rob, what you going to do? You can go back to hustling which may lead you back to jail or... You know what? It's time to go talk to these politicians, because I'm 247 Resolution 040171 - 3/15/04 not a young boy no more. And I understand things. And then on that note, I'm looking at the children now, because I got a son 15. And I'm looking at him and his friends. And I've been down to the Youth Study Center, 20th and Pennsylvania recently. It's the same thing happening all -- happening all over again. The young African Americans are catching cases. All right. And now they'll tell you, like when I was a young boy, they would tell you if you did something before you were 18, when you turned 18, your record get changed. They changed the laws. Now the children's felonies are going to stick with them.
So, as we're thinking about youth network, getting all the children's jobs and things, I'm thinking about all the African American children from come from deprived families, may not have parents in the families, that have year-round, full-time employment, that may have a 248 Resolution 040171 - 3/15/04 parent that is incarcerated and not their father, so that's a lack of guidance in that family. I'm looking at all this, and I'm seeing this problem about the repeat itself for the third time. Because you see, my generation was the second time. My father and them went through the jails, even though I think they did it for a different reason. They did it per the civil rights movement. But it's just always African Americans going to jail. And I think it's time for us to take a look at the laws which is why we got Title 18. Expungement. You can't get your record expunged until you're 70 years old. Life expectancy is 70 years old. Social Security Act says that young people -- Social Security Act that -- I forget what year -- Social Security Act, though, says that young people need to be working to put money into their Social Security funds so that they have something 249 Resolution 040171 - 3/15/04 when they get old. All these people that got criminal records that are being disenfranchised from employment, if the government don't care about them now, what they going to care about them when they 65 and they got no 8 Social Security? What we going to do with them then? What we going to do about the crime rate? Do you think people are just going to lay down and die? No. We going to have -- The crime rate is going to get worse, more innocent people. And innocent people is me. You may think I have a record, but I'm afraid of crime, too. When I walk -- When I go home today because of the way I look, the next cat that's broke or broke for the last week don't know I ain't got a job. Crime is a serious problem. I see crime being fixed, a large part of it -- I don't think it will solve the whole problem -- but a large part of it is about 250 Resolution 040171 - 3/15/04 discrimination in employment. I got a paper here -- We went through this. We got House Joint Resolution proposing an amendment to the Constitution of the United States, respecting the rights to a home. This one is proposing an amendment to the Constitution, respecting the rights of full employment and balanced growth. What I'm trying to say -- National Right to Work Act. Families Act. We got a Living Wage Jobs For All Act. I'm mentioning these to you because it appears to me that our Congress knows. They got the right idea, but it's no sense of urgency here. These were on the table in 2003. It's 2004. Nobody's gotten a job. None of these bills have been passed. City Council -- I mean, we got Philadelphia City Code, Home Rule Charter, advancement of economic opportunities. Participation of minority businesses. Female and disabled owned businesses, City 251 Resolution 040171 - 3/15/04 contracts. We got a lot of good ideas on the table, but I don't see them coming to fruition. What I do see is, though, people are still unemployed. And the situation is getting worse. I joined the Mayor's Task Force in December. And I wanted to join the task force. I said to myself, I wonder how many months -- Because we schedule meetings every month. How many months are we going to schedule a meeting before anybody actually gets a job. December, January, February, March. We're going to have another meeting March 25th. That's four months. We still ain't figured out how to get the people jobs. And I'm trying to tell them that in the meantime, though, while we have jobs -- while you have jobs, and you can postpone this to next week, those people out there that done came past on 52nd Street, on 60th Street -- Because I live in West Philly but 252 Resolution 040171 - 3/15/04 I'm sure I don't know the streets up North Philly like that. Those people I pass? They put their lives on the line this morning.
They're out there selling drugs. They're out there committing crimes, and they going to jail before we get them jobs. There's a lack of a sense of urgency here. The President knows. I saw this newscast. The President is right. Ex-felons needs aid. Ex-felons need aid. Everybody knows. Let me tell you how long everybody been knowing. This is a summary of changes, the State Felon Disenfranchisement laws starts in 1865 in the State of Texas. Goes to 2003. States have been disenfranchising, and going all the way back. And this is not a racist statement. But it's always been, I suspect, African Americans that were being disenfranchised, no voting rights, no jobs. 1865 to 2003, disenfranchising people from voting rights 253 Resolution 040171 - 3/15/04 and jobs. How long before we start fixing the laws? And if I were to ask City Council anything, I would say, what we need, City Council, to do is band together and get the people of the City together because I realize that this is my fault; that we got to deal with the State. The State is another big entity. Then we got to look at the Federal government. So on a level of congruency, we need to get City Council together to working with the people so we can get a movement together to go to the State and let the State know that, no, you have to change these laws because it's detrimental to the economic growth of the City, to the citizens of the City who are residents. And I really need to know when a person is released from incarceration, does society, does the government, local and State government, really believe that this person has paid their debt to society? Is that why they were released? S. 4 Constitution, and Article 1 of 5 Pennsylvania's Constitution, I said to 6 myself, if you're disseminating criminal 7 history information, that's against our 8 constitutional right. 9 Because on Article 14 it says, all 10 natural born citizens of the United States 11 are just -- are afforded the rights -- and 12 I should have brought it, but I thought I 13 had it in my head -- are afforded the 14 rights of all free citizens. Article 1 of the Pennsylvania Constitution says we are all born with certain indivisible and inherent rights, those which are the right to life, is one. Another one is the right to protect the reputation. S. Code disseminates criminal history information in reference to employment suitability purposes, well, how am I protecting my reputation when I go out 255 Resolution 040171 - 3/15/04 and look for a job? My reputation is being destroyed, so therefore I can't have this job. Now, in the hospitals, emptying trash cans... I can't even work -- I do administrative work now because I switched my skills, since I figured out maybe a couple years ago I couldn't work in hospitals and empty trash cans and wash dishes and food service. I said, well, use your computer skills, Rob. So now I go into administrative work. But I can't do administrative work. So, therefore, I'm like, stuck. And it looks to me like I'm supposed to be a hustler, I'm supposed to be a drug dealer or a thief or something. I'm a child of God. I refuse to be any of those bad things. I will come to the government. I will come to City Council. I been looking for the Mayor, too. I got a question for him. 256 Resolution 040171 - 3/15/04 Oh, yeah, because the Mayor -- You know, the brothers come to me on the streets because I talk the same stuff on the streets. I'm looking for the Mayor, but I always miss him by that much. Because I want to know, how come you got the energy and the money to send police out on the streets all the time. But when walk out, that you ain't never brought a job application. That's what we need, jobs. Not more cops. Give the brothers jobs, and then let's see. The minority. I say brothers. I mean the Hispanics, too, because when the last time I was in the jail, there were a lot of Hispanics in there, too. It was African Americans and Hispanics. What we need is jobs.
I say let's give out some jobs. Make sure people can get jobs, and then let's sit back and count and see how many criminals we got in our society. Because I don't think everybody's a 257 Resolution 040171 - 3/15/04 bad person. I think that crime, the way it's going down now, is a social -- it's a social problem. It's a social epidemic, simply because people are being disenfranchised from employment. I'm'a sum this up. I think I went through all these little acts and stuff. Here's another one, Chapter 900. This is Philadelphia City Code and Home Rule Charter, fair practices. But nowhere in the fair practices does it say people that have been released from jail and have criminal records should get fair treatment. That's why I read because I was looking for something to help myself. I don't see things like that in fair practices. Chance to Succeed Act. I guess that was for ex-offenders, but they didn't exactly word it right, so it really doesn't help. And that's what I do: I read things. It's in the word. Let me go to 258 Resolution 040171 - 3/15/04 the end so I can let somebody else speak. And we even got the 21st -- the Secretary, Department of Labor, 21st century work force. They have a whole new idea what the 21st century work force is going to be. It has nothing to do with African Americans. It last nothing to do -- Well, I shouldn't -- Let me rephrase that. It has nothing to do with African Americans that have been stigmatized by criminal histories records. And I'm wondering, okay, where do they fit into the 21st century work force? Or is it that we fit into job creation on the other side of job creation. Because, see, you can have job creation that creates more law enforcement officers. And then we are on the other side of job creation where we just keep getting -- going to jail. On the last note -- And like I said, John will talk about -- I'm sure he'll get really deep into the mortgage foreclosures, 259 Resolution 040171 - 3/15/04 you know, and get deep into the health care. I trust he will. This is the last thing I have. I was like, if I took the words off of this -- I just... Coming down here this morning, I was like, Rob, look at the magazine. Make your point with this. You take the words off of here. You see nothing but African American males to this day still going to jail at higher rates. It's not only the wrappers. It's the ball players. It's the actors. It's the poor ones. We're still being disproportionately represented in the court systems, because we're being disadvantaged -- we're being picked up on the streets, harassed on the streets. As a matter of fact, yeah, I got an example. There was a highway trooper. And I didn't know why, but he damn near rammed me over two nights ago coming out of the parking lot in the mall 57th and Vine. And when I stopped so I wouldn't get 260 Resolution 040171 - 3/15/04 ran over, they stopped and gritted on me. One word out my mouth? He would have threw me up against the car. I would have had to go down the station, maybe had to make another deal. So I kept my mouth shut, and I swallowed my manhood. But I felt some sort of way that the cops were still in the neighborhood harassing the brothers. That was a case I could have took. And if I'd have took that case, I might not have been here today. Like I said, it was like a day or two ago. I could have still been sitting waiting to see the bail commissioner on something I didn't do. It's dangerous out there for us. And brothers don't want to go to jail. They want to get jobs. You think I don't love my son? Enough to not do something wrong? I told my son, I love you enough that pop won't go back to jail. Before I'll go back to jail, I'm'a take this to 261 Resolution 040171 - 3/15/04 the President. Ya'll just happen to be on the way to the President. Thank you. ) COMMITTEE CHAIR RAMOS: Thank you, Mr. Ravanell.
I've learned one big lesson from you, that you came very well prepared, and you gave a very articulate presentation of the things that you know in this area of unemployment, from personal knowledge. And you have stated very sharp the issues of ex-offenders. And because you gave such an eloquent testimony, I'll make sure that the next time I see you in this chamber, I'm not going to let you wait so long. Okay? I believe Councilman Goode is going to ask a question. Then we're going to move on and get statements from the other people on the panel. COMMITTEE CHAIR RAMOS: Good afternoon. Just a couple of responses. First and foremost, I agree with you 262 Resolution 040171 - 3/15/04 wholeheartedly that there should be anti-discrimination laws or included anti-discrimination laws should be laws that do not law discrimination against ex-offenders. So we completely agree about that. We also both acknowledge that that has to happen on a State and Federal level. And you will probably have a commitment from most if not all members of this Council in that regard. Until we get to that point, and particularly if we do not get to that point, particularly looking at the makeup of the State and Federal legislators, the truth of the matter is that there's two perspectives I really want to give to you in your quest to do what is see is being very mission minded. When you ask a question, particularly when you direct a question to City Council or the Mayor or the Governor or the President, who's going to give the brothers jobs, you begin to realize that 263 Resolution 040171 - 3/15/04 the answer to that question is going to have to be us, and not us meaning City Council, but meaning we're going to have to employ ourselves and employ people within our communities. There's a whole separate set of issues involved in that. But we know that, in terms of low income and minority communities, the more small business development you have there, the more you're going to have people within those communities employing people within those communities and less likely to discriminate. So the first thing to begin to think about is strategies toward our employing ourselves, either self-employment or starting small businesses. And that's a big part of it. And the other thing I've tried to deal with today, and I think has been dealt with from a number of different people testifying, is the fact that there is a disconnect between work force development 264 Resolution 040171 - 3/15/04 and economic development. But I'm going to give you another perspective, in terms of what that disconnect really is. People within work force development deal with people. People within economic development deal with businesses. And they have completely separate sets of principles, and the two do not talk. So the people who are most focused on unemployment are not the people talking to businesses. And so I was asked to address a work force development conference as part of a panel about a year-and-a-half, two years ago, and almost turned it down, I said, because they're not going to like what I have to say. And people advised me to just go ahead and say it. And I'm actually beginning -- At that point I actually began to realize how frustrated I was with work force development people who knew their training people where there were not opportunities 265 Resolution 040171 - 3/15/04 at the end of the line, and how frustrated I was with economic development people that were supposedly creating jobs but not monitoring job creation, not targeting those jobs toward Philadelphia, not targeting those jobs towards work force development clients, and that really in the end, what we were doing in terms of job creation really made no sense.
Because we have tens of millions of dollars focused in one direction toward training not leading to jobs and tens of millions of dollars if not hundreds of millions of dollars focused on economic development, not securing jobs for people not only that we are supposedly training but other people who are unemployed here. So I just offer those two perspectives. Yes, we can support anti-discrimination laws really protecting the rights of ex-offenders as American citizens, and as citizens within the Commonwealth and the City, but in the end there's some things we can straighten out 266 Resolution 040171 - 3/15/04 between work force development and economic development. Even when I left on a break here, began to even talk about legislation to try to give Council some oversight, in terms of work force development which we have not had, which we need to have because just too many resources there, the need to better coordinate what we do in terms of economic development, but also leave you with the particular perspective that when you ask a question who's going to give the brothers jobs, in the end it's going to be us, so we have to focus on small business development within the hood so we can employ ourselves.
When you say we have to give ourselves jobs, I understood that. But when you say small business development, I go right back to, we ain't got no money. We can't get no loans, so how are we going to do any -- And let me say something 267 Resolution 040171 - 3/15/04 else. The gentleman from Temple here that didn't know anything about entrepreneurship -- I was the vice president of entrepreneurial -- I went to Temple. I was the vice president of the Entrepreneurial Student Association. I'm sitting here and I'm like, he don't know nothing about it, huh. I did that, the whole entrepreneurial thing. I worked with the small business association. I worked with the Chamber of Commerce when I was in college. Trust me. You need these funds. We cannot get loans. We don't have anything saved up. Could you explain to me how are we going to start a small business.
That is absolutely my number one focus not only in Council right now but the last term. To tell you some of the things we've done, so you're a little bit better educated about it, we had 30 banks that were authorized to receive City deposits. We passed fair lending and community 268 Resolution 040171 - 3/15/04 reinvestment and depository compliance, linked deposit legislation last term that said that unless the banks that hold our money which is basically about a quarter of a billion dollars on a daily basis, tell us what they're going to do in terms of home mortgages, home improvement loans, small business loans, community development investments within low and moderate income communities, they can't hold our money. If they don't tell us, they have to give us the money back. And furthermore, if they don't report it by a certain time, we take away their authorization to even hold our money. We reduced the number of our City depositories from 30 to 7. Those seven banks had to actually commit to lending goals. And the first time they committed to those lending goals was last year. We just received as of within the last few days the lending goals for this year. I can tell you two things: One, 269 Resolution 040171 - 3/15/04 those lending goals have increased; and, two, they exceeded their goals for last year. The last thing I'll tell you is that, you know, actually ten days from today we will be dealing with the issue of small business lending in low income and minority communities specifically, because I believe the access to capital is a big part of what precludes us from starting businesses. It's not the technical capacity. It's not the entrepreneurial spirit, but the access to resource, the access to capital, the access to credit. And we'll be dealing with that very directly within Council. And furthermore, what we're going to be calling on the Mayor to do as part of this half a billion dollar economic development capital fund is to set up a loan guarantee fund to fill those credit gaps within those target areas. COMMITTEE CHAIR RAMOS: Thank you, 270 Resolution 040171 - 3/15/04 Councilman Goode. Let us proceed with the hearings. How about the two gentlemen that are right there in front of the microphones? If you can step forward, state your name, and if it's appropriate to identify yourself with an organization, please do so.
Thank you, Chairman, and Council members. My name is Ray Jones. I am a program director at Impact Services. And I have with me John Lefwich and Joe Mumford, who are program managers in programs working with ex-offenders at Impact Services. I will be very brief. I want to say, first of all, that I agree totally with Councilman Goode in describing what the issue is, and the issue being that we have work force development and the funding for work force development going in one direction, and we have economic development and the funding for that going in another direction. And like two ships passing in the night, they do not see each other and 271 Resolution 040171 - 3/15/04 they are not communicating. If we do nothing else, I want to emphasize the importance that to make this work, it needs to improve communication across the board. Let me just make a few brief statements. Nationally 30 percent of the adult population has a criminal offense at sometime in their past. Dealing with the ex-offender is a critical part of solving the labor pool issues in Philadelphia. And ex-offender programs work best when they concentrate on leading the criminogenic needs of those offenders. And by criminogenic needs, I mean the needs to meet employment, substance abuse, and interpersonal and anger management skills. 85 percent of all Philadelphia prisoners are in jail for drug and alcohol related crimes. That, to me, tells me that income and economic issues are the primary reason why these individuals are incarcerated, employment being the most 272 Resolution 040171 - 3/15/04 important factor in reducing recidivism. And in doing that, it requires us to talk to employers about how their needs can be met and how their fears can be answered. And we need to start that dialogue. Some of the things that we are doing in our programs starting that dialogue is by educating employers as to why they should hire ex-offenders, making it cost effective to hire ex-offenders by creating ways that we can improve, especially for small businesses, their screening and identification process of eligible clients. Things like Federal bonding and tax credits are also another means of helping them in that regard. I'm going to give the mike to Mr. Lefwich, and he's going to talk about some of the things that we do with our ex-offenders, in terms of getting them ready for employment.
Good afternoon. We'd like to believe that the first thing we need to do with our ex-offenders as they 273 Resolution 040171 - 3/15/04 come from the criminal justice system --
John Lefwich. -- is to de-stigmatize them, for somehow in our community it's gotten so that a guy can go away for five years, come back with a master's degree and he's nobody. You go to jail [sic] for five years, come home, you're a hero. We have to change the thought process. It seems that now we have a situation where some cultures have become legitimized by the society and the whole subculture of not working, of being in that mentality that's not part of the mainstream is acceptable in our communities. So we'd like to deal first to change their thinking, see themselves as not anything, but as a man or a woman, and to the boldness of that to the job market, marketing their skills. We do this by providing them with a lot of strong case management. We use a 274 Resolution 040171 - 3/15/04 lot of inspirational stuff to help them understand that their problems aren't personal; they're universal. And we ought to fight for the same things. We do not allow them to become something apart from everyone else, because it doesn't matter what your background is if you're going to build a future. You can always change your future but you can't change your past. We help them to know their legal rights. We show them how to deal with things, identify their skills. Most ex-offenders have skills, but they've been told -- We're not so bad psychologically that they think they don't have it, so they have no worth. But we help them re-define themselves, and to... I guess, as Joe said -- he'll tell you about it -- It's natural to give them a fish sandwich. If you give them some string, some rope, and point them towards the water, to become self-sufficient. 275 Resolution 040171 - 3/15/04 I think at Impact, our slogan is to empower people. And we figure we can empower ex-offenders because they come with a desire. If they committed a crime, they was trying to do something. So they have a desire for money. We want to channel that into a positive way: Life skills, case management, child preparation, and help them understand the job market and understand what is available. Presently we're working with Codap, program called How, and helping offenders to work. And people are saying that our results are unusual because some of them not only get jobs, they maintain jobs. But that's only because of the fact that we help see them as people and just help to de-stigmatize them, and don't let them go around telling folks when they see them right away, I'm an ex-offender, I'm a ex- -- I'm a recovering addict. Let's lose the labels, and come out to the job market talking about your skills, and see what 276 Resolution 040171 - 3/15/04 happens. In terms of the placement piece of our thing, Joe Mumford is responsible for that. I'll let Joe talk about how he finds them jobs, helps them move into the job market and be successful.
Thank you, John. Again, my name is Joe Mumford. And I am the placement person for the HOW program. COMMITTEE CHAIR RAMOS: What program?
HOW, H-o-w. And that stands for Helping Offenders Work. And everyone that comes through our program is an ex-offender. One of the ways that we've been successful with helping offenders get back or get to work is that we don't let them go the traditional route of finding a job. We try to give them two or three different levels of ways to pursue on the job market, not just the want ads, not just the word of mouth, not just networking, but a combination of those things, and in 277 Resolution 040171 - 3/15/04 addition to trying to use every resource that you can to get yourself to work. And like John said, we try to de-stigmatize them, and we try not to let them call themselves -- don't look at yourself as an ex-offender, and I think in many cases people won't look at you as an ex-offender. Now, if it's not the first thing out of your mouth, if you don't go to the job interview looking like an ex-offender -- and I don't mean looking like an ex-offender, but I mean going in not wearing a suit and tie, and not wearing a shirt and tie -- You have to look a certain way, and speak a certain way, and people will, in many cases, won't even bring it up. I think that one of the things I battle all the time is employers who I have to convince to hire ex-offenders. And that's probably the toughest job, but it's necessary. You know, I try not to let them come 278 Resolution 040171 - 3/15/04 back three months later and find out somebody's an ex-offender. Tell them up front, and sell them on the idea that ex-offenders do have things to offer. I mean, they have skills to offer like anyone else. And that shouldn't be held against them. And so, I think part of what we have to do is to work on the employment sector to get them -- Although the laws haven't changed and some company's attitudes haven't changed because they just had a long-standing policy that they don't hire ex-offenders. And especially since 9/11, jobs -- employers have tightened up on doing background checks and not employing ex-offenders. I think we must spend a lot of our time just trying to educate employers that just because someone has -- as that gentleman said -- has been bad doesn't mean they can't be good, and be good for your company or for your organization. 279 Resolution 040171 - 3/15/04 And so, that's what we try to do. And it has been successful. So we work on it from both ends, from the ex-offender as an employee or potential employee and also to the employer, to try and educate them that, listen, you got to hire these people. Otherwise, they're going to cost you money. If they're out in the community doing wrong, it's going to cost you money in taxes, it's going to cost you money in your own business, it's going to cost your customers. They got to live somehow. So why not put them to work and give them an opportunity to make a legitimate living, rather than turning them away and have them go out and commit a life of crime? I mean, it's just not economics. It doesn't make sense. It's not logical. You can take a chance on someone, and if that person pays off, it opens the door for quite a few other people. Thank you. COMMITTEE CHAIR RAMOS: Thank you 280 Resolution 040171 - 3/15/04 for your statement. The next person, please. MR. DiMASCIO: We send people to prison to punish them -- COMMITTEE CHAIR RAMOS: Your name, please. MR. DiMASCIO: We ought not to be looking for ways to punish them after they get out. My name is William DiMascio. I'm the Executive Director of the Pennsylvania Prison Society. And I thank the Chairman and men and women of City Council for this opportunity to speak to you about this very important issue. The Prison Society is actually the oldest prison reform organization in the world. We've been around for 216 years. And much of our work is devoted to advocating for a just, humane, and restorative correctional process. We work with inmates and ex-offenders here in the community.
With me is Miss Minnie Moore 281 Resolution 040171 - 3/15/04 Johnson, who's been program manager for us for our reentry services project, and she's worked in that field for several decades. We actually run four different reentry programs at the present time. We've been involved in this work for almost a decade, long before reentry became a hot word around town or around the country, actually. When I started at the Prison Society about six years ago, we were dealing with somewhere between 300 and 400 clients each year. Last year our numbers were up over 1200, and the projection for the coming year is that we'll exceed 3,000. We are overwhelmed. The population that we're talking about is growing, and is extremely needy. In Pennsylvania more than 90 percent of all prisoners are going to be coming home some day, coming back to our neighborhoods. And it's important to understand 282 Resolution 040171 - 3/15/04 what the numbers are. They're staggering. There's more than 78,000 prisoners in State and county facilities in Pennsylvania. Doesn't count Federal facilities or others. 78,000 men and women. The Philadelphia County system rotates approximately 35,000 people through its doors each year. This alone points to an immense task of assisting these ex-offenders to find meaningful means of support to stay out of prison and become productive citizens. Statistically the most significant factor that determines whether a person will go back to prison is gainful employment. Countless studies have shown this. Recently the Pennsylvania Department of Corrections reported in a study that post-release employment strongly and significantly reduced the likelihood of drug relapse, rearrest and re-incarceration. In fact, the studies show that full-time employment reduces significantly 283 Resolution 040171 - 3/15/04 the likelihood of relapse into drug use. As the studies suggest, employment of ex-offenders serves the economic interest of the community. It also helps to stabilize our communities. Unfortunately, however, ex-offenders face many barriers to employment. A lack of education and vocational skills make it difficult to enter the work force. This is especially true of released men and women who have been in prison sometimes for a decade or more, and who, if they had skills when they went to prison, those skills have become obsolete while they've been there. Furthermore, many of the very jobs that ex-offenders can do are being denied to them. Legislatures around the nation are passing laws that require background checks and deny certain kinds of employment to people with criminal records. In Florida, for example, legislation is being considered that would require background checks for any service worker 284 Resolution 040171 - 3/15/04 entering someone's home. Here in Pennsylvania the legislature is considering a bill called Man's Law. This would require background checks for all hotel workers who have access to guest rooms. You know, at first glance, these initiatives seem to make good sense. They are ways of protecting the public. But what really happens is that they create a false sense of security for employers, while further demonizing ex-offenders. And I think really at the heart of this problem is the fact that we have demonized so many people who have gone to prison, for whatever reason. That makes it so much more difficult for them to get reestablished after they come back. Neither the correctional system nor the legislature can solve reentry issues or employment for ex-offenders in isolation. Partnerships really need to be developed with state and national 285 Resolution 040171 - 3/15/04 organizations and associations for the development of employment for ex-offenders in skilled and technology based jobs.
More importantly, policy makers at all levels, but especially at the local level, need to collaborate with agencies and non-profit organizations that assist men and women with complex -- with the complex process of reentry, organizations such as you're seeing on this panel right here. We can't do it alone. We really need help. Last Saturday, the New York Times ran an editorial that commended President Bush for recognizing the needs of ex-offenders in his State of the Union Address. At the same time the article 20 criticized him because he only allocated $300 million as a budget which was woefully inadequate for the task. The article concluded -- and I'm quoting here -- more money is needed to make this initiative more than a gesture. 286 Resolution 040171 - 3/15/04 In addition, the country will need to change its attitude before it can reincorporate the millions of ex-offenders who stand at the margins of society with no 6 clear way into the mainstream. What we would like to leave with you today is the fact that consistent gainful employment is the single most important factor in reducing the number of people that go back to prisons. Therefore, it's the single most important factor in reducing crime and in keeping our community safe. Thank you. COMMITTEE CHAIR RAMOS: Thank you, Mr. DiMascio. The gentleman to the right of Ray Jones, I believe you're next.
Good afternoon. My presentation. My name is Titus Hakim Brown. I work for Ready, Willing and Able. My presentation will be cut tremendously down because everybody here has just said everything I was going to 287 Resolution 040171 - 3/15/04 say. So I can just say ditto to what they have to say. What I'll do is, I'll just do a personal profile. Like the brother Ravanell, I believe his name is, has said about being a ex-offender... I'm an ex-marine. I'm a ex-Boy Scout. I have a bachelors degree. I'm a grad student at Temple. Hopefully, if I do this paper by tomorrow I'll be out in May. I'm a Who's Who on Universities and Campuses in United States. And I've traveled maybe six or seven countries, including Europe, Asia and Africa. I'm also a ex-offender. I've spent perhaps 15 years in prison, 12 years straight. It's very ironic that I'm here today. While I was sitting and waiting to be heard, I received a phone call from a Miss Delicia Brown at the Philadelphia CFCF, telling me that my application for a job was still being considered as a case manager, Social Worker II. 288 Resolution 040171 - 3/15/04 And the reason why was because of my extensive police record, and that the Commissioner wanted to interview me personally. And I just had to smile because I told her where I was at the time, and what the topic was, about getting jobs for ex-offenders, you know. In my job -- And Ready, Willing and Able is a program that believes in work. It's a work ethic program designed to bring homeless men from the shelters in the street to independent living and full-time employment. Because we deal with men who come through the homeless system, nine out of ten of them have police records. Although I am going to be employed, hopefully, for the City because I need the benefits from being unemployed for so long, the job I have now I love. I work with a 35-man case load. And I get the opportunity to avail them of all my years of wisdom of hard flocks. 289 Resolution 040171 - 3/15/04 And one of the problems that we've run into is, when we are able to encourage these men to get up every morning at 6:30 and to take two urines a week, and to work till 3:30, and to save 30 to 60 dollars a week out their pay, and to go to NA meetings and out-patient and AA meetings and anger management and impulse control, and go down to the domestic court and start paying their arrears, and to go over to traffic court and start paying their fines, and go to probation officer to start paying restitution, and they do this, and in the 9th to the 12th month when we send them out on job search, they come back frustrated and disappointed and disillusioned. Those that are able to get jobs get jobs that don't have a living wage, and they end up several months out of our program failing to be able to maintain themselves. Fortunately, we have a family attitude, and we allow them to come back and we help them start again. 290 Resolution 040171 - 3/15/04 I worked for the Prison Society when I first came home as a volunteer. And me and Mrs. Moore have talked on the phone a long time. She doesn't remember me. She's never seen me. One of the guys I did time with in prison, Hiawatha, works with ya'll. And the other one works in the Mayor's Office, Mr. Stephen Blackburn. And all these guys are guys who have came through the system and have gotten involved with working with other offenders, trying to make their life smooth. Employment is really a problem for us. Employment and addiction are the two things that keep our guys locked in. If we're able to lessen their burden with employment, I think they'll cut their chances better than half, that they'll be able to stay away from their addictions and survive. I'll give you one quick story. As a young man -- If you walk into our facility today, one of the gentleman on security 291 Resolution 040171 - 3/15/04 came from the prison system as a young man. And we go to the prison system and give a presentation monthly.
He came into our program, and he's now in his 10th month, and we have him working on security. You know what? As a social worker, I just realized I... if I finish this story, I'll violate some confidentiality. But this young man came back to me when a friend of his was killed in the streets, shot down. And he wanted to get involved. He didn't know what to do. He wanted to revert back to his old ways. And he literally cried in my office because he felt as though he was doing a disservice to his buddy by not going out in the street and shooting the guy that shot him. And I sat there and talked with him and showed him how he had changed, how his focus had changed, his goals had changed, his directions had changed, and how that trepidation that he had in his heart about going out and doing this crime was evidence 292 Resolution 040171 - 3/15/04 that he had went from, like Mr. Ravanell had said, from a bad guy to a good guy. And we need to help a lot more of those gentlemen transform from bad guys to good guys, or in some cases they were good guys all the time. They just needed to be given the opportunity. Thanks for hearing me. COMMITTEE CHAIR RAMOS: Thank you, Mr. Brown. Thank you for your testimony. Miss Minnie Moore Johnson, do you care to add anything?
Thank you. Good afternoon. Most of what has been said I echo, and I wholeheartedly support the efforts of all the agencies. COMMITTEE CHAIR RAMOS: I'm sorry. Can you, for the record, repeat your name, please.
Minnie Moore Johnson. I'm the program manager of the Pennsylvania Prison Society. And as I said, I echo a lot of the things that have been said wholeheartedly. 293 Resolution 040171 - 3/15/04 And I've been here for a while today listening to a lot of the testimonies. And the only -- I'm just a tad more optimistic about the employment situation for ex-offenders. We work very, very hard to train people. We don't do job training, but we do life skills training. And our life skills training is not typical, because the Pennsylvania Prison Society -- and we've already been told that they've been in existence for 216 years. But they've been there from the beginning, with dealing with the issues of people of incarcerations and ex-offenders and the families of ex-offenders. My work here with the Pennsylvania Prison Society over the last almost ten years has been in a direction of dealing with employment for the ex-offender and dealing with the employers. My concept for getting people employed and making sure that the employers understand what the situation is is that, 294 Resolution 040171 - 3/15/04 yes, I do go out; I do have meetings with large agencies and large corporations to talk to them about the possibility of hiring ex-offenders, and what their stand is, and try to convince them that there is a possibility that they can work with our agency and with the ex-offenders that are coming home, to make sure they get good jobs, paying decent salaries, with full benefits. The one thing that makes me a little more optimistic about the people that come through the Pennsylvania Prison Society's program is that I believe in teaching them independence. I believe that, yes, we are an agency that you've come to to get the help that you need. But our goal is to get you independent, not just welfare but independent of the going back to the same agency and revolving door kind of situation, looking for work. And what we try to encourage them to do is, part of the problem with people 295 Resolution 040171 - 3/15/04 getting employed is not their criminal history, but the acceptance of the criminal history by the employers. Part of what I'm trying to say is that there are a lot of people applying for the wrong work. And so what I try to encourage them to do is, obviously, if you have fraud or bank charges or some of those kinds of things, you won't apply for a job at a bank. But what I've asked -- Some of the Council people know me, and I've spoken to them about it. And I would suggest that as a coalition of agencies who are all out here trying to achieve the same goal of getting employment for ex-offenders, that we may be able to work in unity for trying to get some sort of legislation passed where that we get tax credits from the Federal Government, we get credits from the State, that maybe there's something that the City can offer to employers who will hire ex-offenders, that will allow for those tax credits in that way. 296 Resolution 040171 - 3/15/04 Maybe we can, instead of saying that it's all on the Federal government and the Federal Government saying it's all on the State and it's reversed, and it's back to us, because we're the ones that are sitting with people holding their hands every day trying to tell them that everything is going to be all right; that some of these very employers that you're going to see are ex-offenders themselves. You have to be able to know how to approach them. But if we do this in a concerted effort, if we all sit together, the 15, 15 or 30 people that we're here today, 16 combined with the 300 or 400 other agencies 17 who are now faced with the problem of 18 servicing ex-offenders. 19 As an example of what I'm trying to 20 say, because the Pennsylvania Prison Society has been doing ex-offender work for so long, there is a large, large list of organizations which include the Mayor's Office of Community Services, Impact Services.
The list goes on and on of 297 Resolution 040171 - 3/15/04 organizations who have sought us out to ask for our advice, based on the experience that we've had working with ex-offenders. A lot of the programs that are being funded now are receiving an enormous volume of people who need their service, will also have the stigma of felony or misdemeanor conviction, and the agency has not the experience or the staff to be able to handle the large volume. And believe me: This is like church. You can find one on every corner because there's a population so large that there are people to be saved. So that there is always good work to be done. And there are a lot of people willing to do the good work. It's not a competitive effort because there's too many people. The numbers we're giving, we're talking about 57,000, 35,000. We're not going to be able to service all those people. And there's no one individual agency in the City that can handle those kinds of numbers. 298 Resolution 040171 - 3/15/04 If we work concertedly with the City to try to encourage employers to look at and consider the ex-offender population, and give them some incentives, as the State and the Federal government are willing to do, then maybe we can increase employment for all the ex-offenders of the City of Philadelphia. Thank you so much. COMMITTEE CHAIR RAMOS: Thank you, Miss Johnson. At this time what I'll do is, I'll defer to my two colleagues for any questions that they might have of this very articulate panel, the issue primarily of ex-offenders and their right to employment. Councilwoman Donna Reed Miller, please.
I agree with my colleague. I think you stated the problem and stated it very, very well. The numbers are actually overwhelming. And I know it's just increasing. And I'm sure it's doubled, 299 Resolution 040171 - 3/15/04 say, in the last five, ten years. When those numbers were actually presented, I said, wow. You know, what can we do? What can we realistically do to help 35,000, 70-something thousand, I think the number said. And I had also thought that perhaps some type of tax credit at the City level would help. But can you explain to me -- I think it was the gentleman sitting there in front of the picture. I'm sorry. I forgot your name.
Ray Jones. Okay. You mentioned a Federal bonding program? Can you explain that? Because someone mentioned that to me. As a matter of fact, it was a ex-offender. I was in another office in Germantown. Said he had applied for a job. And I said, well, do you think they 300 Resolution 040171 - 3/15/04 would hire ex-offenders? And he says, well, there's a bond program. Can you explain that to me, that would guarantee any losses that this particular -- and I don't want to call the employer's name. It was a retailer, a large retailer -- would guarantee any losses that they may incur.
That's correct. There's a Federal bonding program that is available, either through agencies or individuals. We have bonds that we have purchased, to use as a mechanism with employers, as an additional carrot, if we have somebody who is wavering on somebody hiring one of our program participants. And they feel that they would be more secure knowing that any loss that occurs due to this person being hired is covered by the bond. And the bond is an excellent mechanism to help that employer realize 301 Resolution 040171 - 3/15/04 that he is secured, insured, to hire this person and that that loss is covered. It is a dollar amount, but it can also be over a length of time. So, the bond can last for six months to a year or it can be for a higher dollar amount, depending upon how that employer feels it could be best used.
When you go out and you're recruiting and talking to employers, you're explaining to them about the incentives and also about the bond program...
...et cetera Okay. What is your success rate? How many people are you actually placing? 302 Resolution 040171 - 3/15/04
I'll speak about my particular program which is a program called Fathers at Work Initiative.
And we have worked with over 330 men in the last three years. We have placed over 72 percent of them, and over 85 percent are still working.
Our figures are about the same. The difference is that we are working now with four different programs, and our criteria for each program is -- Well, the criteria is employment, but in some of those instances we're doing extensive management with them, and placing them with mentors to help them through the process when they're not employed and the questions they may have. Bill, do you want to... MR. DiMASCIO: Yeah. Actually, one of the programs, one of our largest 303 Resolution 040171 - 3/15/04 programs, doesn't require actual placement. I mean, that's the goal we all shoot for. But that program is designed primarily to provide life skills and job readiness. And so, a lot of that happens. And once we're finished with that -- Unfortunately, we don't have the staff to work with the kind of numbers that we have to try and get everybody placed. But we can just provide some leads and have them go out and search on their own, then. So...
I noticed that most of the testimony today has described the ex-offender as male. And we do know -- You're very -- I don't know that anybody has mentioned the female offender. Maybe someone did. I was in and out of the room. But we also have a growing number of female offenders here in Philadelphia. Is it any easier to place a female than it is to help a male?
Well, I can kind of address that part of it. 304 Resolution 040171 - 3/15/04 One of our programs, the Industry Specific Initiative Program through DPW, we work predominantly with female ex-offenders. And the difference -- It is a huge difference in the placement process, because the female ex-offender comes with an entirely different set of baggage, in terms of what her obligations are. She is far more likely to have issues with DHS, far more issues with drug and alcohol, and being in a recovery and then the treatment. So that her process for becoming employed, even though there are a great many men who are experiencing the exact same situation, predominantly every woman that comes to us is facing those, whereas, if we get 15 men, we may end up with 10 men who are facing issues with DHS or actually in a recovery program. Most of the men come to us has had a felony or criminal conviction but they are work ready. 305 Resolution 040171 - 3/15/04
Excuse me. The Hire Program, all the people that come through there, both men and women, are ex-offenders and with substance abuse histories. And we found out that the women come with a lot more skills, because it's primarily a service market that's out there, service industry will be providing the jobs in customer service, receptionist. And it's just a matter of getting them to handle the issues that Miss Johnson just talked about, and getting them to start to believe in themselves, self esteem. And women can make an easier transition into employment once they get their home based somewhat solidified, because we're at an age where we need to recognize that it's about service industries which will invariably allow women a lot of latitude towards getting jobs, whereas, there's no longer the factories that men used to work in. 306 Resolution 040171 - 3/15/04 But there's going to be the leisure activities, the receptionists, the hostesses, the hotels, the gambling casinos. All these things here require skills that women have. And once we get through life skills, worlds of work, the issues with the children, we can make them prepared for working. We've seen women go on to make extraordinary employment, like... I want to mention some of the jobs for the women that we've gotten, but some of my colleagues are jobs in society that women are now making, even though they are ex-offenders.
I would like to add, too, that the females, as he said, have more marketable skills. And I'm proud to also say that at the Pennsylvania Prison Society, we do not have any minimum wage positions. Where we send them out, our average wage has been $8.65 with full benefits. COMMITTEE CHAIR RAMOS: Good for 307 Resolution 040171 - 3/15/04 you. Do the members of the Committee have any further questions for this panel?
Remember I said that the Pennsylvania Department of Labor sent me a whole lot of unuseful information?
That was about the bond program and the tax incentives, because, see, what it wanted you to do was... Let me say this: The bond program? You better have came home in the last year or two. I been home for 15 years having a problem getting a job. So the bond problem wouldn't work for me. Also, a tax incentive program. All that goes back -- When someone here was talking about the private sectors, the way they think about us. That requires you to walk up and say, hey, I'm a bad person, but 308 Resolution 040171 - 3/15/04 the government will cover -- they'll pay you some money if you hire me. It's not what we're trying to do. I mean, that doesn't seem to have the effect that I want. I don't want to walk in somewhere and say, hey, I used to be a bad person, but I'm a good person now. But if you hire me, the government's going to give you some money, plus they'll insure me because, you know, I'm a felon. That ain't the way you go into a interview and try to present yourself. And I apologize to Mr. DiMascio and Miss Minnie Moore. Real quick. Real quick. Because I did this at another meeting. I'm not getting on you. You try your best, and you do a lot of good things. But you know I went through your training program. And I have a problem with services that don't work. These people provide a service. I'm on the other end. I talk to a lot of brothers. And it wasn't just me. When I tried to send 309 Resolution 040171 - 3/15/04 people to your program at the Prison Society, brothers that had already been there said, they got the same jobs they had last year. My problem was -- And you know what my problem was. I had to come back. A lot of brothers -- A lot of minorities, men and women, are coming home from these institutions. They don't have I.D. So we go to a program such as the Prison Society, and we sit there through a training program. But when it's time for us to get a job -- and I know because I just did it -- my I.D. is expired because I didn't have the money to get a new one. I wasn't driving. The Mayor took my car during the anti-blight program. So there was no need for me to be pressed about getting my driver's license renewed. It was still stayed active. I got my Temple I.D. I got my Social Security card, but because I did not have up-to-date I.D. I went to a training class, and I was told at the end of the 310 Resolution 040171 - 3/15/04 training class that I could not receive a job placement services because I did not have proper I.D. to go on a job interview. And that was at the Prison Society. And I'm not getting on them and putting them on the spot.
Let me finish. Let me finish what I'm saying. There were several people that left. And it's not -- COMMITTEE CHAIR RAMOS: Point of order. Make it short. We need to wrap it up. And we don't want you to... We're the ones doing the engaging.
Okay. COMMITTEE CHAIR RAMOS: Okay. We 311 Resolution 040171 - 3/15/04 don't want you to engage the other panelists, please.
What I was trying to say -- COMMITTEE CHAIR RAMOS: We'll wrap it up.
I wasn't directing at them, because it was PDWC two years ago had a program called the Pilot Program. They got Federal funds. But nobody got jobs, and the program is now closed down. Nobody got jobs, because we all had records. And it wasn't because -- just because we all had records. It was because grown men had to go back. They're probably homeless, living with their grandmothers or their girlfriends. They had to go back and get letters stating about someone else's income. And all these grown men wanted were jobs. So just what I'm trying to say is, we have a lot of programs. And what I'm afraid of is, we're about to set up a whole 312 Resolution 040171 - 3/15/04 lot of new programs that don't work.
So that does that require setting up new programs or not?
No. What I think it requires is, like I said -- and I'm sure that --
What you said was, we have a lot of programs. We don't want to set up a lot of new programs. Then I asked you, what do you want? You said, programs that work. So, do you want to change the programs or do you want new programs?
I'm sorry. I said something while you were talking. I'm sorry. 313 Resolution 040171 - 3/15/04
You want to change the programs that exist or do you want new programs?
No. We could probably look at the programs that exist and just modify them, and make sure that they are covering because --
Let me give you an example. You spoke against targeted tax credits. I'm not sure you've done a full examination of how they might work, might not work. I happen to have authored the only local economic development tax credit legislation that exists in the City, particularly in my time, one targeted for community development corporations doing economic development in economically distressed areas which Impact is a beneficiary of. The other is a job creation tax credit program that now actually gives a tax credit of a thousand dollars per new job created to businesses. 314 Resolution 040171 - 3/15/04 And we could actually amend that program to provide a certain amount of tax credits per year for ex-offenders. And I already began a conversation with Councilman Ramos to Chair about that. And maybe you don't want to market yourself in that way when you're going to an employer. But maybe the next time there is a large business deal that takes place the City is participating in, in terms of public financing, that provides us the opportunity with the availability of those tax credits that we've set aside to set aside X amount of jobs with a bulk of incentives to employ a number of people at the same time. So, I appreciate your testimony all day, but don't believe you have all the answers.
No, I don't. I just have the experience, and that's all -- On that last note, I'll make it very short. And I'm sitting here. I'm like, it sounds again, what you just said, we have some 315 Resolution 040171 - 3/15/04 very good sounding programs. And like I said, they have a very good non-profit organization. But for some reason, it's not hitting the people that need it. And I'm one of the people. I was turned away -- I did not get to use those job services. I'm telling you. And I still am unemployed. And I went to the Prison Society. I've been to CareerLink. And that's the reason -- Let me comment -- That's the reason I'm coming to these hearings. That's why I'm going around places, because I am so sure that we have people with college degrees that have jobs that are working on this but we're not getting any answers. And I'm like, let me go down and let me say to them that these programs are not working.
I want to help you find them. I might not know them. And I'm 316 Resolution 040171 - 3/15/04 not being smart. But I think that, like, Tommy Simms and Wendel Holmes, the two gentlemen I came across that are not here, they're experts on this situation. They are gentlemen that have jail records and also college degrees. They are the experts on the situation. COMMITTEE CHAIR RAMOS: Thank you, Mr. Ravanell. Donna Reed Miller, please.
I just want to state thank you for coming. And this is an issue -- The whole ex-offender in employment and reintegrating them back into society is an important issue that many, many people are talking about. I come from an employment and training background. And I worked in employment training for about nine years many years ago. And it reminded me when Brother Rob said that the Prison Society didn't tell him to get new I.D. You know, some things -- I know that our -- the way that 317 Resolution 040171 - 3/15/04 we work was to partner with the client. We just can't hold their hand and do everything. Getting an I.D. is something that is easy. So... But I think they're doing a lot of good work. I'm hoping that the prisons are actually training people so that when they get released, that their skills are up-to-date skills. I think in your -- in the Prison Society testimony or someone's testimony said that the jobs that people have when they went in are obsolete when it's time for them to come out. So these are all the kind of issues that I think we really have to look at, and to look at Councilman Goode's targeted tax credit, so we can figure out a way to work in the needs of ex-offenders. And that's one of the reasons why we're having these hearings today, to figure out what the problem is, and figure out how we can perhaps begin to address it, because as you're saying, the numbers are 318 Resolution 040171 - 3/15/04 increasing. Yes, Miss Johnson.
Yes. I just want to say one thing. Actually, two things. One is that the Pennsylvania Prison Society's Reentry Services Project, we won't even admit you without proper identification. And if you don't have it, we will get you your Social Security card, we will give you the money to get your photo I.D. We will do what it takes because you cannot get a job without it.
So when they come in the door, the first thing we ask for you to bring is a Social Security card and valid identification. And if you don't have it, we will assist you because we know you can't get work without it. The other thing I wanted to say about the tax credit, that, yes, the tax credit is available to people who need that extra incentive, those employers. But as the example given, what I 319 Resolution 040171 - 3/15/04 encourage people to do is that, yes, you have that tax credit. You have that available to the employer. When you go in to talk to them about that employment, when you say to them that I have the availability -- I have the ability to get a tax credit or to offer tax credits to you, that it's supposed to be done in such a way that it ensures them, the employer, that this is an addition, this is something to help you with your decision to hire me; that if the only reason you're not hiring me is because you think that your company's going to take a loss by theft or something being broken because of my being here, that there is a tax incentive for you available, a bond that is available to you, that will protect you against that, that will help encourage you in your decision to employ me, not so that you -- because I'm such a bad person that the State is willing to do that, but because you are such a good employer and you're willing to give me this opportunity 320 Resolution 040171 - 3/15/04 that these things are available to you.
Okay. Thank you. COMMITTEE CHAIR RAMOS: Thank you all for being so patient on this day. Thank you for your very helpful testimony this afternoon. Are there any other people in Chambers?
Back in the back. COMMITTEE CHAIR RAMOS: Yes. Anyone in Chamber who wishes to testify, please come to the table. Sir, can you just hold up for a minute. Can you bear with me just a few? John Dobbs from the Unemployment Project and people from his group have been here very patient also for a very long time, so please bear with me. John, can you come forward, please, John Dobbs.
Sorry we had to leave. We have a meeting at 3:00 with Sheriff 321 Resolution 040171 - 3/15/04 Green's office about the moratorium on Sheriff sales, that has sort of been our priority recently. COMMITTEE CHAIR RAMOS: Mr. Dobbs, will you please state your name and title for the record, please.
Mr. John Dobbs. I'm Director of the Philadelphia Unemployment Project. And obviously, when we have the kind of unemployment we've had over the last number of years, there are consequences. We've talked about them with so many eloquent speakers. Our organization has come up with three particular problems we're facing with the unemployed. One is that unemployment benefits have run out, the Extended Benefits Program have run out as of December 31st. We've had the largest number of people run in history run out of their unemployment benefits in the months of January and February. 322 Resolution 040171 - 3/15/04 Close to 2 million Americans will run out of unemployment benefits in the next six months. 98,000 in the State of Pennsylvania alone will run out of their unemployment benefits. That's one thing that's a big problem facing the unemployed because we don't have enough work. I would also like to say that the economy of Philadelphia is affected by the national economy. All the work that we do, it's admirable, it needs to be done, but basically these are big economic forces that are knocking us around. We have lost two-and-a-half million jobs in three years. We've lost 700,000 jobs in the country since the recovery started. So we have had a recovery where we've lost jobs. This is you unprecedented. The wealth has been -- The gross domestic product has increased dramatically. Wages have not. All the gains in this recovery have gone to the business sector. Little of it's gone to 323 Resolution 040171 - 3/15/04 workers. Let me say one other problem we have... One of the big problems we have is people without health benefits as a result of this. Pennsylvania is for the fourth fastest growing numbers of people without insurance in the country. 3 million people without insurance now. We have a health insurance program that was started recently, Adult Basic, $30 a month for Blue Cross/Blue Shield, a great program. 72,000 people are on the waiting list for that program right now. One thing in City government that you can do and need to do is deal with the Public Health Centers. It's taken three to four months to get an appointment in a City Health Center right now. People, when they lose their jobs, lose their insurance, we refer them to the Health Centers. If you apply today, you won't get an appointment until June or July in the City Health Center. It almost means 324 Resolution 040171 - 3/15/04 they're closed to new patients. When you look at the City budget, you've got to get funds into that program. On top of that, for the uninsured -- and it's about 70 percent of the people using Health Centers are uninsured -- we need evening hours. Way too many people are working without insurance now. People coming off of welfare are losing their health benefits. They're working. They don't have all day to sit around in a Health Center. When you don't have -- When you get a job, your employer is not going to let you spend four hours to go see a doctor. So we need that. Lastly, and the thing we have -- why we do have to rush out of here is the Sheriff's sale numbers have gone through the ceiling in the City of Philadelphia as a result of foreclosures, as a result of this never -- this recession that doesn't end, the recovery that sees less people 325 Resolution 040171 - 3/15/04 working than more. In 1983 we had a moratorium on Sheriff sales in the State of Pennsylvania -- I mean, in the City of Philadelphia. In that month that Sheriff sales were stopped there were 320 Sheriff sales scheduled. March of this year or April this year, we're going to have 912 Sheriff sales in the City of Philadelphia. We went from in just -- from -- in January of 2001 we had 432 Sheriff sales. We're now over 900 a month people losing their homes in the City. It is a disgrace and an outrage. And something needs to be done. And one thing that Council can and should do is join with the Sheriff. The Sheriff Green very courageously postponed the sale for March.
We had over -- almost 600 families dodge the bullet. The meeting we have to go to right now is what's going to happen the next month, what's going to happen to these 326 Resolution 040171 - 3/15/04 folks. And City council has passed a resolution to join in a lawsuit to stop the sales. I think Council really needs to step up. I think there's a lot of pressure on the Sheriff. We need more time. We have got commitments from the State of Pennsylvania to assist families. The Hemat program is going to step in and do something to look at that 600 families that are scheduled for Sheriff's sale. But we need time. That's not going to happen in a month. There was a meeting on Thursday night for all the people that have been scheduled for Sheriff sale March and April. That's over 1200 -- What is it? Six and nine -- 1500 families. They're all going to be considered for help from the State. State that's unprecedented -- Assistance that shouldn't be given to them under the State laws. They're going to offer it to them. 327 Resolution 040171 - 3/15/04 But if the Sheriff sales happen on time, they'll be offered to help and they'll lose their homes before they get it. We need Council to join with the Sheriff and our organization to stop the sale in April or else we're going to have, like I said, over 1500 families lose their homes. And the impact on that, beyond the families and the communities, is devastating. I've been looking for a house lately. If you drive through a block and see abandoned, boarded-up properties, you don't want a house on that block. It destroys everybody's property values. We don't need 1500 families losing their homes on April 5th. We don't need 8, 900 a month. So, that's something that needs -- So those are some of the problems. We have unemployment benefits are out. There's no 24 health insurance. People losing their homes. 328 Resolution 040171 - 3/15/04 And of course, the main things, there's no work. It's a big problem for Council to deal with. We have big forces moving work to India, moving work to China. You know, we can struggle and make some jobs. But if this economy doesn't turn around on a big scale -- Philadelphia, by the way, is far below the national average. 7 percent for January 2004. 6. Whatever happens to the country, we get it double. And you know, all the tax breaks and all the programs in the world are not going to counteract the negative national economy. And the decisions are not being made in City Council. They're being made in corporate board rooms. They're making decisions to disinvest out of our communities. We need to take care of people who 329 Resolution 040171 - 3/15/04 are victimized by this until things come back. And you know, if we can find a way to get ahold of those corporate decisions -- Those same people who don't want to hire ex-offenders, those same people who don't want to hire minorities, they're making those decisions. And you know, it's very difficult. I don't know really how government gets on top of that, short of making some major, major changes of what we do. But we do have the need to take care of people that are caught up in this. And I'd like a couple of them to say some words here. Doreen Harrigan.
Yes. My name is Doreen Harrigan. And I'm a homeowner, and I became unemployed in the year of 2002. And because of my layoff, I started receiving unemployment. And that unemployment helped me to pay my mortgage. But when my unemployment ran out, I had no 24 fund. I couldn't find a job within that 330 Resolution 040171 - 3/15/04 time that I was on unemployment. So... I was at a loss for paying -- a loss of money to pay bills and mortgage, and... I'm sorry. My... I went to Philadelphia Unemployment Project where I learned that the loan that I had for my mortgage was predatory. I called the mortgage company to get help, but they didn't -- they didn't send the necessary papers on time which caused my house to go into foreclosure, which was up for Sheriff's sale in November. We formed a committee at Philadelphia Unemployment Project which helped us to talk with the people at HEMAP, to get them to approve loans that they had not approved in years. I think, since '83 they had not approved any loans. And they finally approved some of our loans. But some people, especially the FHA people, they're not getting their loans approved. Well, they're not getting any help at all. 331 Resolution 040171 - 3/15/04 And we're trying to get help, because we're being unemployed. We have no 4 health benefits. We have no money coming in. I can't even get welfare because I don't have children. I'm not in a drug and alcohol program, so I can't even get money to help me with that. I sell cakes. I do little odd jobs to get money to pay my bills because I can't find employment. I'm either over qualified, under qualified, too old, or they don't have anything. And I don't have any money at this time to do anything. There's no jobs out here. I worked as an administrative assistant. I thought I could get a job just like that, but I can't. There's no jobs out here. And I'm just asking for help, not just for myself, but for other people also. And a lot of us in our communities, we have taken these loans -- and I'm going back to the predatory lending -- we've taken these loans and not knowing that they were predatory loans. 332 Resolution 040171 - 3/15/04 And we're not -- We didn't know that the interest rate was as high as it was. I wouldn't have known -- I was just paying -- I was paying my mortgage payment not knowing. But when I couldn't pay it, then I found out that this loan was predatory, because they took too much out, and they gave me such a high interest rate I couldn't afford it. I couldn't afford it. I didn't know. I didn't know this. And a lot of people don't know in our communities that these people are ripping us off. We don't know. Then the mortgage companies, they don't send the necessary papers in time for us to get the help that they're supposed to be helping us with. And that causes people to lose their homes also, because by the time they do get the information, it's two, three months later the houses are up for Sheriff's sale. These people didn't know where to get help from, and the mortgage companies did not help them. 333 Resolution 040171 - 3/15/04 COMMITTEE CHAIR RAMOS: Thank you, ma'am.
Hi. My name is Rhoda Husser. And like, I'm in a similar situation with her, as though my mortgage isn't late yet. I was unemployed come September 2003. And now my unemployment runs out next week, and I'm like at a standstill. I have no other income coming in. It's just me and my three children. And I just don't know what to do, as far as right now. What am I supposed to do? Where am I supposed to go? Who can I get to help me with my mortgage situation? Because I don't want to lose my house. You offer these programs that tell you about your first time homeowner, so I jumped on it, not knowing all these jobs is not secure any more. Now I lost my job. Been working over ten years. Now my job is gone. I went on -- I got on -- I was laid off, assuming I would go back, but now my job is 334 Resolution 040171 - 3/15/04 gone. So, I'm like, okay, what am I supposed to do? So I found out what these people -- And they told me to come here and let you guys know about my situation, that I'm not the only one. But it's a whole lot of us out here. So I just -- I'm asking for help, if you can extend the unemployment, that will help me until I find another job, because I am out there looking. You know, I am out there looking. And I'm not going to stop until I find something. Thank you. COMMITTEE CHAIR RAMOS: Thank you.
Miss Husser, by the way, has an FHA mortgage. The FHA has no 18 program to assist homeowners facing foreclosures, or next to know programs, although we are meeting tomorrow with the HUD Regional Administration to see what kind of steps they're going to take, in light of the crisis in Philadelphia, the tripling of the Sheriff sales over the last three years. 335 Resolution 040171 - 3/15/04 So we're hopeful that that will get us something. But we do need to continue the moratorium on Sheriff sales right now. And like I said, it runs out April 5th. 1500 homes are scheduled on April 5th, so there hasn't been a lawsuit filed. We do need Council to join in any lawsuit that's going to go on, to stop the sales. COMMITTEE CHAIR RAMOS: Both of you ladies went to the Philadelphia Unemployment Project. That has been of some -- I mean, some hope for you?
Well, not for me because they tell me I have to be -- In order for them to help me, I have to be three months behind in my mortgage.
FHA -- Well, Doreen has had -- has got mortgage assistance. She's covered by the state program. Rhoda here is under the FHA program. There's little that can be done for her, although we're going to meet -- Tomorrow we're going to meet with the Regional 336 Resolution 040171 - 3/15/04 Administrator of HUD to put her case in front of them, ask them what they're going to do for somebody that worked all their life, ran out of employment. Right now they're offering her little help. So we're hoping tomorrow that she's going to get some help. But there is a state program that's excellent. It just -- Over the last 11 years -- For the last seven years, the 12 Ridge Administration didn't fund it. 13 They ran the program with 20 percent 14 of the people approved, 80 percent 15 disapproved for mortgage assistance. We 16 have now changed that around through people 17 like Doreen and Rhoda speaking up, so that 18 they're now -- they've got a target of 60 19 percent approvals. And everybody coming 20 through PUP is getting approved, everybody. FHA... We don't have anything for the FHA population. They're still out there by themselves. We're hoping that something is going to be done for them. But we need time. 337 Resolution 040171 - 3/15/04 Let me just say one thing. Out of the 600 people scheduled for Sheriff sale in March that were stayed, 50 of them were denied, Hemap, the mortgage assistance. That means most of them never applied. People don't even know about the program. The State has committed to go and re-examine all those people and see whether they should have gotten help. We may be able to help hundreds of those people get assistance. But they're going to lose their homes on April 6th unless something is done. That's why we have to go meet with the Sheriff, by the way. And we're trying to encourage the Sheriff to continue the stay beyond one month because he's offered a month. It's not going to be enough to save these people's homes. They're going to need to have their applications taken and a decision made by Harrisburg prior to them getting help. If they lose their house April 6th nothing will be done for those -- And that's, like 338 Resolution 040171 - 3/15/04 I say, 1500 families total. COMMITTEE CHAIR RAMOS: City Council, my colleagues, please correct me if I'm wrong. I believe we passed a Resolution that was presented by Councilwoman Marian Tasco, supporting the moratorium requested by the Sheriff. So, we are on record in support of that measure as well. If any of my colleagues here on this Committee have any questions for the panel. Thank you so much. I know you guys have to run. Thank you so much for your testimony. Mr. Martin Cohen or anyone else that's here. Martin and John Lieb.
After listening to those folks, I remember the adage I cried because I had no shoes, and then I met a man who had no feet. It's pretty hard for us to -- I mean, when you hear about people like this it just makes you feel like whatever problems you have are really not quite so 339 Resolution 040171 - 3/15/04 serious. But they're quite serious. John Lieb who is with -- My name is Dr. Martin Cohen. I'm Director of Student Services and Job Services with Orleans Technical Institute in Northeast Philadelphia. And John Lieb is with our group. We're both part of JEVS, JEVS, Jewish Employment Vocational Service. And John directs our prison program. I'm going to ask John to tell you about some of the issues that he's facing with inmates and prospective employment. COMMITTEE CHAIR RAMOS: So you're not Dr. Martin Cohen.
I am Dr. Martin Cohen. He's John Lieb. COMMITTEE CHAIR RAMOS: Okay. Thank you.
You really have your work cut out for you. I hope what I have to say today will give you some joy and some happiness that things can be done. Okay? 340 Resolution 040171 - 3/15/04 My name is John Lieb. And I was the former Division Head of Texas A & M University Special Programs Training Division, located in College Station. I was also the head of the first dislocated worker program started here in the City of Philadelphia, at which your dad was present at the opening of it. I also was the Deputy Director of Penn Serve, the Governor's Office of Citizens Service. I mention this because when I double back, you'll see that the Ramoses, the Wilson Goode, Seniors, and what they did has an effect, and is still being carried on through the study that was done on the consensus group, of which I'm a member. I also served for four years in the Republic of Korea as a Catholic Missionary; also Program Director of the Baird County Adult Detention Center in San Antonio, Texas. And presently I run the prison programs for the Jewish Employment Vocational Service, in the City of 341 Resolution 040171 - 3/15/04 Philadelphia. All these people that talk to you today, I know them well. And I love them. They really work hard. But there are some structural things that are getting us locked into these problems. And I think Councilman Goode mentioned it when he talked about economic development and job creation. They cannot be separated. Through the old OET, through the PIC, through this work force development, they have become further and further apart. 40 percent of the City's budget of Philadelphia is spent on arresting, locking up, incarcerating and supervising offenders. 2 billion. 40 percent of the offenders in the state institutions throughout the State of Pennsylvania are from Philadelphia. They're not counted in the census, which makes other counties rich and which keeps millions of dollars out of Philadelphia 342 Resolution 040171 - 3/15/04 when it comes to census time. 60 percent of the county inmates can vote, register and vote. Census and voting bring programs to the City because census is the Federal money that comes in, and the vote accesses the people in those communities to that money. There's something that can be done on that. In the interest of time, I just want to whet your appetite, because I've thought this out. And Philadelphia had the biggest voter registration of any City in the world. JEVS was involved with that, with a man named Malik Aziz, who you might know. I'll come back to him later. Inmate profile. Out of the 8,000 inmates -- and I'm there every single day for the last seven years. I know that prison like the back of my hand. You have the population of 8,000 at a fifth grade reading level, a fourth grade math level. 34 percent of them don't have a place to stay when they leave. And this 343 Resolution 040171 - 3/15/04 is more so for the women. And 70 percent are unemployed. That coupled with this invisible sentencing that goes because not only you have committed a crime, but you're eliminated from anything that you might have done because of that crime is part of the problem. When Harrington wrote his book in 1961 about the other America, he defined the rich, the middle class. And he talked about this other America that was in Appalachia, parts of Harlem, Watts, Camden, Chester, and parts of Philadelphia. A book was just written about two years ago by Rodger Anderson called Code of the Street. And he implied another population which is what everyone here today was talking about, the disenfranchised. The disenfranchised is the largest swing vote in the whole United States right now. If I knew now or then what I know now, I could have won the election in 344 Resolution 040171 - 3/15/04 Florida. Immigrants were not allowed to vote. Jeffrey Tubin's book spells it out. I'm on the sentencing project's program for voter registration, too. This all ties in. So stay with me now.
I've come up with recommendations 9 that could save the City of Philadelphia 10 about $20 million. I'm not crazy. 11 In today's Inquirer there was an 12 article, if you read it, about the simple 13 plan to greener, cleaner urban lots. That's clump change. A million dollars? We have a huge horticulture program that I run as part of the contract with the City of Philadelphia as the non-profit. We could turn that into a profit-making operation that could supply trees and shrubs to the City of Philadelphia in perpetuity, at the same time training inmates in jobs, men and women, for the subcontractors that are getting contracts on the Neighborhood Transformation Initiative in Philadelphia. 345 Resolution 040171 - 3/15/04 Every inmate could leave with a tree. At the rate that we're cutting trees down in Philadelphia now, we won't have any trees in years. Each inmate, the 30,000 6 that leave, could leave with a tree. 7 We could also make those fences up 8 there, those fences that go around those 9 little gardens if you come down the Ridge? 10 In perpetuity. 11 It could also supply the 12 maintenance, because the big problem is not 13 the million dollars that you're getting, 14 but it's the maintenance for years to come 15 that's going to cost. 16 I have written a concept paper that 17 the Commissioner has looked at and really 18 likes. It brings the Horticulture Society, 19 the community development corporations, 20 Fairmount Park together in a partnership with the Philadelphia prisons that would save $6 million. And I can get into that later. Councilman Goode mentioned the CareerLink. Why doesn't West Philly have 346 Resolution 040171 - 3/15/04 it? The whole City could have it. You could have it tonight when you go home, if you have internet. What I'm proposing is that CareerLink be brought into the Philadelphia prisons, and that each inmate be exposed to CareerLink, under supervision with my teachers, taught how to use it so that they don't to go 30 days looking for CareerLink when they leave. They're already online. I estimate that would be $1,500,000 that the City could save. And by that I mean is, you could have the access -- The problem with the poor and the disenfranchised is not that there's not programs, but they don't know how to access the programs on a consistent basis. Okay. So that's CareerLink. You could go home tonight and get on it and get a resume out that would go all throughout the tri-county area. You could leave the jail. You do this 30 days before, and then the inmates leave with a loaf of bread under their arm. They go to 347 Resolution 040171 - 3/15/04 CareerLink and they can get the assistance that they need. The third thing is that every inmate that comes into Philadelphia Prison System -- And I wrote the education part of this thing. Your dad's the one that brought this group into Philly, and the wonderful people that are part of it, you need to listen to. Careerscope is a computerized vocational inventory that Philadelphia is the only jail in the nation that has it. Each inmate could have that be done on them, him and her. And it gives them a readout of what they're good at, what they could do, to give them the jump behind the walls for the types of things they need to get when they get out, that transitional link that's missing. The second -- third thing is -- fourth thing, there's a jobs project that's up at the Philadelphia prisons now, funded by the $2 million that was left over from the court settlement, the Jackson vs. 348 Resolution 040171 - 3/15/04 Hendricks. I'm leaving this here with you now because two of our programs, building maintenance and environmental maintenance are part of that. And that's a therapeutic community that has them working and dealing with their issues in ASD which is one of the prison facilities. You read that, and I think that's the way to go. There's an ex-offender group, the Mayor's Ex-offender Task Force, chaired by Malik Aziz. I'm requesting -- Now, who am I?
I'm requesting a $200,000 check be written this afternoon at 5 o'clock from that Jackson vs. Hendricks $2 million that's just sitting there in a bank, because ex-offender input has been left out of that process. That group was funded without any funds. And I've been to all of their meetings. And there's a hundred, two hundred of these ex-offenders that are doing things. But we have to fund them. 349 Resolution 040171 - 3/15/04 He's a wonderful person, by the way. I've worked with him for the last couple years. The next thing I'd like to see is to contact Mr. Ramos, who took my position in Harrisburg because my position was lined out by the Ridge Administration, and take that million dollars that could come into Philadelphia for service learning programs, that could hook up with the prisons programs. And each school in Philadelphia could have a service learning program that teaches them about the environment and how to keep it neat, where Malcom X's mural is there on the Ridge? The kids could come out. That would be their park. They will learn history. They will keep it going. And you do that all throughout Philadelphia, and you start to build from that bottom. When I was at Penn Serve, there was a million dollars that Philadelphia didn't apply for, because up through the 350 Resolution 040171 - 3/15/04 Conservation Corps? I was in charge of that. And because somehow Philadelphia had this image that -- They had an image of Philadelphia that, well, if you give it there, it's money down a rat hole. But it wasn't. What's his name? Mr. Ramos, right? Is the person that got the job at Penn Serve or State Representative? COMMITTEE CHAIR RAMOS: Yes. No 12 relation to me, but I know him.
But he can be very, very influential because there's $8 million in that budget, and there's $20 million that could be matched. And the Conservation Corps could be the vehicle through the prison system to get this thing off -- to build this infrastructure in the City through the prisons. The prisons can contribute to building the infrastructure of Philadelphia. And I have a lot of details on that. Review the bail process. Why are we 351 Resolution 040171 - 3/15/04 putting people in jail when they don't have $300 and charging $70 a day to keep them for maybe a month or two? That's a different area. But that's something that concerns me, because people could be out on the street for two or three hundred dollars. And if they're that dangerous, you don't let them out on that kind of bail. Support Commissioner King in his summit. Each -- I'm requesting that each Council person brings two employers to his summit. This war that was started back with Johnson, the War on Poverty, is only going to be won with an employer-driven system that looks at places like the jails as a source of labor, and as a source of capital for their organizations. I would never spend a thousand dollars to train somebody for TX Maxx, I'm telling you right now; never. They can't afford the thousand dollars to train them, don't let them come in here. 352 Resolution 040171 - 3/15/04 Get them at the front end, like Texas A & M did. You get to the front end and you say, this is the other piece that we have. Buy into it. And those jobs are going to be dedicated to inmates who behind the walls are already involved in programs and are showing that they're turning their life around. Review the consensus group study and read it well. Three organizations were not present, PWDC, the ex-offender group, and the private sector. I submit to you that without those three people being involved in this, this is just another study that you might as well just say... You know, why does Philadelphia need to pay people $180,000 to come in, like they're doing now, to tell us what our problems are? That's my last... Next-to-last point is, we have to stop looking on the outside for experts to tell us what we already know. We can do it ourselves. 353 Resolution 040171 - 3/15/04 Support voter registration in the census. The funds are out there, if we approach it right with the states and the feds, because most of the people coming from -- 40 percent of the inmates returning to Philly are in a state institution now. So we have to link closely with the state and the feds. They will give us money if we show that we want to be partners with them, because they have their problems, too, There's over a billion dollars spent in Pennsylvania state prisons. A billion dollars is a lot of money. And I'd like to suggest that the City of Philadelphia, School District of Philadelphia applies for charter status for the Pennypack School in the Philadelphia Prison system. It will bring lots of money in there, and you can design a program that meets the needs of those people. There's 18 year-olders, 19 year-olders in the Philadelphia prison system that are at 354 Resolution 040171 - 3/15/04 third-grade reading levels. That's a school. That's a charter school. Just because they're adults, they can't -- shouldn't be eliminated from getting money. These are people that are not only illiterate, but basically have lost hope because they feel there's no hope. So the charter school would be one way that you could bring that in. I'm also -- was appointed by the Commissioner King. All of these things I've passed by the Commissioner, by the way. And he's really supportive of this stuff. He needs your help. So I guess the message is, support your local Commissioner. He's trying very hard up there, and bring two employers to the Commissioner King's employer summit. We won't let you down behind the walls.
I'm the only one in this room that can go into that jail, any jail in the City of Philadelphia, morning, noon and night with this (Indicating). 355 Resolution 040171 - 3/15/04 Our programs are there. Also, revisit Philacore. Philacore has been left to kind of die on the vines, but that's another source of -- It's just that we're trying to make the river a working river. We need to have the jail be a working jail. Bring employers in. Have them be part of the training and what we do, and I guarantee you at the front end a lot can be done so that these guys don't leave and within 30 days, like that young man there, he'll ravel on until hell freezes over because he's gotten so frustrated with the system, but needs to be reigned in and said, okay, like you just did, what is it that you can do to help, and bring him into the scenario, because there's many of them out there like that. So in closing, I'd like you to read this (Indicating). Everybody's in here except the three people I mentioned, PWDC, in terms of being participants. They need to be brought in. Private sector employers, and Malik's ex-offender group. 356 Resolution 040171 - 3/15/04 And this here (Indicating) is what we do at the prison. This here (Indicating) is the concept paper that will blow your mind, the $6 million that can be saved. You can go home tonight and get your children to put CareerLink -- We had a little trouble in Councilwoman's office because there's some connection there that needs to be worked on. But it can be -- Each City Council person could have in their own office the CareerLink, so when your constituency come in there you basically say, Mrs. Jones or Mrs. Caudenis, sit down, go through here -- plus all of your workers can use it to help their families. And one thing I learned working in the State of Pennsylvania was that if the system is not used, it dies, and they say that people didn't utilize it. The dislocated worker program in Philadelphia when it started did not have any referrals. I went to the Inquirer, and 357 Resolution 040171 - 3/15/04 they did a article on me. And I'm sitting in the room at South 12th Street. And 4 the state came and said I embarrassed them, 5 because -- And I said that you embarrassed 6 me. 7 And the reason they didn't have any 8 people there was because they told the 9 people it wasn't only until you exhausted 10 your unemployment checks that you could get 11 into the program. 12 And that's turned around. And the 13 people started coming into the program 14 because a little note was put in their 15 unemployment check, call the center. And 16 the numbers went up. You cannot kill a 17 program that the people use. 18 So that's what I'm suggesting, those 19 kinds of things. I have documentation to 20 prove all this, and I have about 15 other 21 suggestions that can get us -- get it done, get us off the rock. And I work with all these people, by the way, that talked today. They're wonderful people. But it's a structural -- 358 Resolution 040171 - 3/15/04 We're caught in a structural disenfranchised situation that the -- starting your own business and all this kind of stuff is good. And we can start at the prison to do it, because the inmates there are learning terrific trades. And I just wish you all luck. I talk too much like I usually do when I get excited. But any one of these, I told you about -- the Logan situation. You know? I was the relocation specialist in Logan. All right. COMMITTEE CHAIR RAMOS: Thank you for your testimony, Mr. Lieb. My office is career linked. Dr. Cohen, do you care to...
Yes. I'm Dr. Martin Cohen. I'm Director of Job Search Services and Student Services at Orleans Technical Institute in Northeast Philadelphia. I was principal of Roberto Clemente Middle School from 1967 till 1990. Last 15 years I've been working for JEVS at Orleans. 359 Resolution 040171 - 3/15/04 We have a good story to tell because we train 350 students a year. We have an 85 percent placement rate. But here's some details. 40 percent of the students that we train are ex-offenders. And of that 40 percent, 84 percent have no driver's licenses. Now, that's really serious for us because we train the building construction trades. Our employers don't even want to interview anyone unless they have a driver's license. What is keeping -- Well, ex-offenders have all kinds of baggage that they bring. And not having a driver's license usually relates to youthly indiscretions, and most of the time driving without a license or after having them stopped driving without a license, continuing to drive without a license. There is such a thing as an occupational limited license which virtually does not work. 360 Resolution 040171 - 3/15/04 There are two areas where you are not eligible for an OLL. One is the failure to respond to a notification, and the other is driving with a suspended -- when your license has been suspended. Virtually all the ex-offenders that we have great difficulty in placing. It's usually not because they're ex-offenders. We are lucky enough to have a lot of our students who are graduates who are ex-offenders who are now employers. And we've been lucky enough to get them to hire some of our students. So we have a lot of -- We're really -- We really back up our students in the way that -- We can get ex-offenders jobs, but we can't get them jobs without driver's licenses. And we really don't know how to tackle this problem. If we could, we would be even in a better position to help. And I'm sure that there are other -- many other jobs that are -- would be available to ex-offenders if they could have a driver's license. 361 Resolution 040171 - 3/15/04 And this is an area that I think is well worth having someone from City Council or from City government look into and explore what are the reasons why so many ex-offenders cannot have their licenses restored. And is there anything we can do to help the situation? If we could, I think that we would really attack directly a very, very simple but very important problem of finding employment for ex-offenders. And that basically is the only pitch that I wanted to make. The only other thing I would like to say is, there are all of these programs that I've heard about today -- and I know John's involved with several of them, the Jobs Project at PPS, and the search for common ground and the City's reentry group. Where do we coordinate all of these programs? Is there any one overseeing organization, body or plan that would really pull together -- You have all these trains going on parallel tracks. 362 Resolution 040171 - 3/15/04 And if we could figure out how to get them to the destination with some kind of coordination, with some kind of coordination of funding, all of these things, maybe this question has an answer that I don't know about. But I just can't see where we -- where everyone just seems to be going off very, very positively caring, working hard, but they're all over the place. And that's my little story. COMMITTEE CHAIR RAMOS: Thank you, Dr. Cohen for your testimony. I will pass on -- That point has come up a number of times today, on the coordination of the different agencies and corporations that are doing work in this area, to alleviate the unemployment problem in the City of Philadelphia. Do any of my colleagues have any questions for our panelists? ) COMMITTEE CHAIR RAMOS: I want to thank both of you for coming out and 363 Resolution 040171 - 3/15/04 waiting patiently. DR.
Cohen: I'd like to thank you for being so incredibly patient and listening to all of these people. COMMITTEE CHAIR RAMOS: As the Chairman of this Committee, I'm going to recess this Committee. This means that there will be more hearings on this subject. And we will notify you and the public if they're interested, in continuing this very important discussion concerning the reality of unemployment in Philadelphia. DR. Cohen: We appreciate your interest. COMMITTEE CHAIR RAMOS: I'll recess to the Call of the Chair. ) 364 CERTIFICATE I HEREBY CERTIFY that the proceedings and evidence are contained fully and accurately in the stenographic notes taken by me upon the public hearing of The Philadelphia City Council, taken on March 15, 2004, and that this is a true and correct transcript of same. _____________________________ DAVID A. )