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Minutes

Stated Meeting, January 26, 1999

Philadelphia City CouncilJan 26, 1999

People mentioned

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

Organizations mentioned

COUNCIL OF THE CITY OF PHILADELPHIA STATED MEETING Tuesday, January 26, 1999 10:00 a.m. Room 400, City Hall Philadelphia, Pennsylvania PRESENT: COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN AUGUSTA A. CLARK COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN DAVID COHEN COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILMAN JAMES F. KENNEY COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILWOMAN MARIAN B. TASCO COUNCILMAN ANGEL L. ORTIZ COUNCILMAN FRANK DICICCO COUNCILMAN BRIAN J. O'NEILL COUNCILMAN RICHARD T. MARIANO COUNCILMAN W. THACHER LONGSTRETH COUNCILMAN FRANK RIZZO PATRICIA RAFFERTY (For Chief Clerk Marie Hauser) VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 1/26/99 STATED MEETING - Greeting/Invocation P R O C E E D I N G S

Council President Verna

Good morning, everyone. I note that the hour has come and that a quorum of this Council is present. The Council will come to order, members will take their seats visitors will retire to the seats outside of the rails. To give our invocation this morning, the Chair recognizes Councilman Longstreth. (Council Longstreth comes forward.)

Council President Verna

Will members please rise. (All rise.)

Councilman Longstreth

It is my distinct honor to give the invocation to this group as we meet here to honor the mayor and hear his plans for the future of the City of Philadelphia. As some of you know, I'm a member of the Society of Friends and our Quaker invocation has two advantages: one, it's silent; and, two, it's brief. (Laughter.)

Councilman Longstreth

So I would ask 1/26/99 STATED MEETING - Approval of 1/14/99 Journal you to bow your heads in prayer, each in your own way as we look forward to the great future of Philadelphia. (Moment of silence. )

Councilman Longstreth

God bless you and thank you.

Council President Verna

Thank you, Councilman.

Council President Verna

The next order of business is the approval of the journal of the meeting of Thursday, January 14, 1999. The Chair recognizes Councilwoman Clark.

Councilwoman Clark

Madam President, I move the approval of the journal of that date.

Council President Verna

Is there a second? (Duly seconded.)

Council President Verna

It's been properly moved and seconded that the journal of Thursday, January 14, 1999, stands approved. All in favor will signify by saying aye. Those opposed? 1/26/99 STATED MEETING - Leaves of Absence The ayes have it, the motion carries. The journal of Thursday, January 14, 1999, stands approved.

Council President Verna

The next order of business is leaves of absence. The Chair recognizes Councilwoman Clark.

Councilwoman Clark

Madame Chair, I'm aware of no requests for leaves of absence on the part of the Democrats.

Council President Verna

The Chair thanks the Councilwoman. The Chair recognizes Councilman Rizzo.

Councilman Rizzo

No requests for leaves of absence, Madame Chair.

Council President Verna

The Chair thanks the Councilman.

Council President Verna

The Chair will dispense with the regular order of business to recognize visitors. To all of our visitors and guests with us this morning, the Chair welcome you here today and applauds your interest in the legislative 1/26/99 STATED MEETING - Visitor Recognition affairs of our City, and we invite you to come again. We have a very -- we have very special visitors with us today. As most of you know, later, during this Council session, Mayor Rendell will join us to deliver the budget message. As is the custom, also joining us in the chambers are the women and men of the administration and agencies of the city who play crucial roles in the operation of the city government. At this time, City Council wants to recognize you and thank you for your good and dedicated work. As I call your name, please stand, and I would suggest that we refrain from applauding until we have recognized all of our guests. Joseph Certaine, Managing Director; Greg Rost, Chief of Staff; Stephanie Franklin-Suber, City Solicitor; Stephen Mullin, Commerce Director; Ben Hayllar, Finance Director; John Kromer, Director of Office and Housing Community Development; 1/26/99 STATED MEETING - Visitor Recognition Michael DiBerardinis, Recreation Commissioner; Frances Egan, Commissioner of Licenses and Inspections; Police Commissioner John Timoney; Joan Reeves, Commissioner of Human Services; Joan Decker, Records Commissioner; Harold Hairston, Fire Commissioner; William Mifflin, Executive Director of Fairmount Park; Nancy Kammerdeiner, Revenue Commissioner; Estelle Richman, Health Commissioner; Thomas Costello, Prisons Commissioner; Kumar Kishinchand, Water Commissioner; Lawrence Moy, Streets Commissioner. Andreas Perez, Commissioner of Public Property; Linda Seyda, Director of Personnel; James Roundtree, Head of MBEC; Dr. Richard Tyler, Director of the Historic Commission; Kevin Vaughan, Director of Human 1/26/99 STATED MEETING - Visitor Recognition Relations Commission; Louis Applebaum, Procurement Commissioner; David Hornbeck, Superintendent of the Philadelphia School District; Carl Greene, Executive Director of the Philadelphia Housing Authority; Rina Cutler, Executive Director of the Parking Authority; Noel Eisenstat, Executive Director of the Redevelopment Authority; Nicholas DiPiero, Chairman of the Civil Service Commission; Barbara Kaplan, Executive Director of the Planning Commission. Ladies and gentlemen, we applaud you. Thank you all very much. Thank you. (Applause.)

Council President Verna

I believe we have other elected officials joining us this morning: Jonathon Saidel, City Controller; Lynne Abraham, District Attorney; Ronald Donatucci, Register of Wills; 1/26/99 STATED MEETING - Communications Vivian Miller, Clerk of Quarter Sessions; Sheriff John Green; Judge Alex Bonavitacola, President Judge of the Court of Common Pleas; Judge Louis Presenza, President Judge of the Municipal Court; Judge Frank Little, President Judge of Traffic Court. Are they here? May we recognize them. (Applause.)

Council President Verna

Thank you.

Council President Verna

The next order of business is communications. The Chair recognizes the sergeant-atarms for the purpose of delivering the messages from the mayor to the chief clerk. The chief clerk will read the messages from the mayor.

The Clerk

To the President and Members of the Council of the City of Philadelphia, I am transmitting herewith for the consideration of your honorable body the following ordinances: 1/26/99 STATED MEETING - Communications An ordinance amending Chapter 19-1500 of The Philadelphia Code entitled "Wage and Net Profits Tax" by decreasing the rates of tax. An ordinance amending Chapter 19-2600 of The Philadelphia Code entitled "Business Privilege Taxes" by decreasing the rates of tax based upon gross receipts. An ordinance amending Chapter 19-1800 of The Philadelphia Code entitled "School Tax Authorization" by amending Section 19-1801 to further authorize the Board of Education of the School District of Philadelphia to impose a tax on real estate within the City of Philadelphia. An ordinance amending Chapter 19-1800 of The Philadelphia Code entitled "School Tax Authorization" by amending Section 19-1806 to further authorize the Board of Education of the School District of Philadelphia to impose a tax on the use of occupancy of real estate within the School District of Philadelphia. An ordinance amending Chapter 19-1800 of The Philadelphia Code entitled "School Tax Authorization" by amending Section 19-1804 to further authorize the Board of Education of the 1/26/99 STATED MEETING - Communications School District of Philadelphia to impose a tax on net income from real property, intangible and intangible real property of the residents of the School District of Philadelphia. An ordinance adopting an operating budget for fiscal year 2000. An ordinance to adopt a capital program for the six fiscal years 2000 to 2005, inclusive. And an ordinance to adopt a fiscal year 2000 capital budget. And an ordinance amending Section 1 of the ordinance approved June 25, 1998, Bill No. 980452, which is an ordinance authorizing the Commissioner of Public Property, the Director of Commerce, Director of Aviation, and other officials of the City to acquire real estate and enter into certain leases or other agreements with the Philadelphia Authority for Industrial Development. And a resolution providing for the approval by the Council of the City of Philadelphia of a revised five-year financial plan for the City of Philadelphia covering fiscal years 2000 through 2004; and incorporating proposed 1/26/99 STATED MEETING - Communications changes with respect to fiscal year 1999, which is to be submitted by the mayor to the Pennsylvania Intergovernmental Corporation Authority ("The Authority") pursuant to the Intergovernmental Corporation Agreement authorized by an ordinance of this Council approved by the Mayor, on January 3, 1992, Bill No. 1563-A, by and between the City and the Authority.

Council President Verna

The messages will be printed in the journal. The chief clerk will please read any other communications in her possession.

The Clerk

That's all I have, Madame President.

Council President Verna

Thank you.

Council President Verna

The next order of business is the introduction of bills and resolutions. The Chair recognizes Councilwoman Clark for the purpose of moving that the rules of Council be suspended to permit immediate consideration of resolutions.

Councilwoman Clark

Madame Chair, I 1/26/99 STATED MEETING - Communications move that the rules of Council be suspended so as to permit immediate resolution of all resolutions -- for immediate consideration of all resolutions.

Council President Verna

Do I hear a second? (Duly seconded.)

Council President Verna

All in favor of the motion to suspend the rules to permit immediate consideration of the resolution at the time of introduction will say aye. Those opposed, nay? The ayes have it, the motion is so carried. The Chair recognizes Councilwoman Clark for the purpose of introduction of bills and resolutions.

Councilwoman Clark

Thank you, Madame President. Today, I have no bills or resolutions.

Council President Verna

The Chair thanks the Councilwoman. The Chair recognizes Councilwoman Blackwell.

Councilwoman Blackwell

Madame Chair, this morning, I have eleven bills and two 1/26/99 STATED MEETING - Introduction of Bills, Resolutions resolutions.

Council President Verna

Thank you. The chief clerk will please read the title of all of the resolutions, please, first.

The Clerk

A resolution honoring Jonathon Mayor. An ordinance granting permission to the West Philadelphia Fire House Associates located at 701 South 50th Street, in Philadelphia, PA.

Council President Verna

I'm sorry. Is that a resolution?

The Clerk

No, that's an ordinance.

Council President Verna

The bill will be referred to the appropriate committee.

The Clerk

There are others.

Council President Verna

Bills first.

The Clerk

An ordinance authorizing Sheraton University City, 3501 Chestnut Street, Philadelphia, operator of the property located at 3501 Chestnut Street, Philadelphia, to construct and maintain various encroachments onto and under the north footway of Chestnut Street.

Council President Verna

This bill will be referred to the appropriate committee. 1/26/99 STATED MEETING - Introduction of Bills, Resolutions

The Clerk

And an ordinance authorizing Sheraton University City, 3501 Chestnut Street, Philadelphia, operator of the property located at 3501 Chestnut Street, Philadelphia, to construct and maintain an electrified marquee attached to the property at 3501 Chestnut Street.

Council President Verna

This bill will be referred to the appropriate committee.

The Clerk

And an ordinance amending Chapter amending 19-1500 of The Philadelphia Code, entitled "Wage and Net Profit Tax" by decreasing the rates of the tax. And an ordinance amending Chapter 19-2600 of The Philadelphia Code entitled "Business Privilege Taxes" by decreasing the rates of the tax based upon the gross receipts. And an ordinance amending Chapter 19-1800 of The Philadelphia School Code entitled "School Tax Authorization" by amending Section 19-1804 to further authorize the Board of Education of the School District of Philadelphia to impose to impose a tax on the net income from real property and tangible and intangible personal 1/26/99 STATED MEETING - Introduction of Bills, Resolutions property of the residents of the School District of Philadelphia. And an ordinance amending Chapter 19-1800 of The Philadelphia Code entitled "School Tax Authorization" by amending Section 19-1806 to further authorize the Board of Education of the School District of Philadelphia to impose a tax on the use or occupancy of real estate within the School District of Philadelphia. And an ordinance Chapter 19-1800 of The Philadelphia Code entitled "School Tax Authorization" by amending Section 19-1801 to further authorize the Board of Education of the School District of Philadelphia to impose a tax on real estate within the City of Philadelphia. And an ordinance adopting the operating budget for fiscal year 2000. And an ordinance to adopt a capital program for the six fiscal years 2000 to 2005, inclusive. And an ordinance to adopt a fiscal 2000 capital budget.

Council President Verna

Excuse me, are they all the bills? 1/26/99 STATED MEETING - Introduction of Bills, Resolutions

The Clerk

That's all the bills.

Council President Verna

All of the bills will be referred to the appropriate committees.

The Clerk

And a resolution providing for the approval by the Council of the City of Philadelphia of a revised five-year financial plan for the City of Philadelphia covering fiscal years 2020 through 2004; and incorporating proposed changes with respect to fiscal year 1999, which is to be submitted by the Mayor to the Pennsylvania Intergovernmental Cooperation Authority ("The Authority") pursuant to the Intergovernmental Cooperation agreement, authorized by an ordinance of this Council approved by the Mayor on January 3, 1992.

Council President Verna

The resolution will be referred to the appropriate committee. The Chair recognizes Councilman Cohen.

Councilman Cohen

Madame President, I have no bills or resolutions.

Council President Verna

The Chair thanks gentleman. 1/26/99 STATED MEETING - Introduction of Bills, Resolutions The Chair recognizes Councilwoman Krajewski.

Councilwoman Krajewski

Madame President, I have four bills and one resolution.

Council President Verna

Thank you. The chief clerk will please read the bills.

The Clerk

An ordinance authorizing transfers and appropriation for fiscal year 1999 within the Grants Revenue Fund from the Director of Finance Provision for Other Grants to the First Judicial District of Pennsylvania. And an ordinance authorizing transfers and appropriations appropriation for fiscal year 1999 within the Grants Revenue Fund from the Director of Finance Provision for Other Grants to the Board of Trustees of the Free Library of Philadelphia. And an ordinance authorizing transfers and appropriation for fiscal year 1999 within the General Fund from certain or all City offices, departments, boards, and commissions to certain or all city offices. And an ordinance authorizing the revision of lines and grades on a portion of City 1/26/99 STATED MEETING - Introduction of Bills, Resolutions Plan No. 187 from the City Plan and vacating the legally open portion of Belgrade Street. And a resolution designating February 1, 1999 through February 5, 1999 as "Catholic Schools Week" within the City of Philadelphia.

Council President Verna

The four bills will be referred to the appropriate committees. The Chair recognizes Councilwoman Krajewski regarding the resolution.

Councilwoman Krajewski

Madame President, I move for the adoption of the resolution. (Duly seconded.) (Duly seconded.)

Council President Verna

All those in favor will signify by saying aye. Those opposed? The ayes have it. The motion is carried. The Chair recognizes Councilman Kenney.

Councilman Kenney

Thank you, Madame President. I offer two bills on your behalf, one resolution on your behalf, and one resolution on 1/26/99 STATED MEETING - Introduction of Bills, Resolutions my behalf which I seek to be assigned to the appropriate committee.

Council President Verna

The clerk will please read the titles of the bills.

The Clerk

An ordinance amending Chapter 10-800 of The Philadelphia Code entitled "Safety" by adding a new section prohibiting the ownership, use, possession, or sale within the City of Philadelphia of any motor vehicle that uses tinted glass, all under certain terms and conditions. And an ordinance amending Section 1 of the ordinance approved June 25, 1998 entitled an ordinance authorizing the Commissioner of Public Property, Director of Commerce, Director of Aviation, and other officials of the City to acquire real estate and enter into certain leases and other agreements with the Philadelphia Authority for Industrial Development. And a resolution recognizing February 14, 1999 as "Firefighters Recognition Day" in the City of Philadelphia. And a resolution authorizing the City Council Committee on Education to hold public 1/26/99 STATED MEETING - Introduction of Bills, Resolutions hearings on a proposal to require the School District of the City of Philadelphia to educate elementary and secondary-school-aged about the historical events surrounding the Great Irish Famine in 1845 to 1850.

Council President Verna

The bills will be referred to the appropriate committee. Also, the last resolution reads will be referred to the appropriate committee. The Chair now recognizes Councilman Kenney for the purpose of a motion on the other resolution.

Councilman Kenney

Madame President, I move that the resolution be adopted. (Duly seconded.)

Council President Verna

All those in favor will signify by saying aye. Those opposed? The ayes have it. The motion is carried. The Chair recognizes Councilwoman Miller.

Councilwoman Miller

Thank you, Madame Chair. I have no bills or resolutions today. 1/26/99 STATED MEETING - Introduction of Bills, Resolutions

Council President Verna

The Chair thanks the Councilwoman. The Chair recognizes Councilman Nutter.

Councilman Nutter

Madame President, I have nothing today.

Council President Verna

Thank you. The Chair recognizes Councilwoman Tasco.

Councilwoman Tasco

Madame President, I have no bills or resolutions today.

Council President Verna

Thank you. The Chair recognizes Councilman Ortiz.

Councilman Ortiz

Madame President, I have no bills or resolutions today.

Council President Verna

Thank you. The Chair recognizes Councilman DiCicco.

Councilman Dicicco

Thank you, Madame President. I have no bills or resolutions today.

Council President Verna

Thank you. The Chair recognizes Councilman O'Neill.

Councilman O'Neill

Madame Chair, I have no bills or resolutions today. 1/26/99 STATED MEETING - Introduction of Bills, Resolutions

Council President Verna

The Chair thanks the gentleman. The Chair recognizes Councilman Mariano.

Councilman Mariano

I have no bills or resolutions today.

Council President Verna

Councilman Longstreth.

Councilman Longstreth

Madame President, I have no bills or resolutions.

Council President Verna

The chair thanks you. The Chair recognizes Councilman Rizzo.

Councilman Rizzo

Madame President, no bills or resolutions today.

Council President Verna

Thank you.

Council President Verna

The next orders of business is reports from committees. (Councilwoman Blackwell addresses the Chair off-mike.)

Council President Verna

It is my understanding that Councilwoman Blackwell's resolution has to be adopted. 1/26/99 STATED MEETING - Committee Reports

The Clerk

A resolution honoring Jonathon Moore.

Councilwoman Blackwell

Madame President, I move the adoption of the resolution. (Duly seconded.)

Council President Verna

All those in favor will signify by saying aye. Those opposed? The ayes have it. The motion is carried.

Council President Verna

The Chair recognizes Councilman Kenney for a report of the Rules Committee.

Councilman Kenney

Madame President, the Council Committee on Rules reports out one bill with a favorable recommendation.

Council President Verna

The clerk will please read the report.

The Clerk

To the President and Members of the Council of the City of Philadelphia: The Committee on Rules, to which was referred Bill No. 9900002 -An ordinance declaring it is desirable 1/26/99 STATED MEETING - Committee Reports for the health, safety, and welfare of the people in the area served by Chestnut Hill College, a nonprofit corporation organized under the laws of the Commonwealth of Pennsylvania, which operates facilities located at 96901 Germantown Avenue, in Philadelphia, Pennsylvania, for the Hospitals and Higher Education Facilities Authority of Philadelphia, to undertake a project for Chestnut Hill College, and approving the buildings and facilities included in such project -respectfully reports that it has considered the same and returns the attached bill to Council with a favorable recommendation.

Council President Verna

The Chair recognizes Councilman Kenney.

Councilman Kenney

Madame President, I move that the rules of Council be suspended so as to permit first reading of Bill No. 990002 today. (Duly seconded.)

Council President Verna

It's been properly moved and seconded that the rules of Council be suspended so as to permit first reading of Bill No. 990002 on today's calendar. All those in favor will signify by saying aye. 1/26/99 STATED MEETING - First Reading - Bill 990002 Those opposed? The ayes have it. The motion is so carried.

Council President Verna

The next order of business is the consideration of the calendar. The chief clerk will please read the one bill on the first-reading calendar, please.

The Clerk

Bill No. 990002, an ordinance declaring it is desirable for the health, safety, and welfare of the people in the area served by Chestnut Hill College, a nonprofit corporation organized under the laws of the Commonwealth of Pennsylvania, which operates facilities located at 96901 Germantown Avenue in Philadelphia, Pennsylvania.

Council President Verna

The Chair agrees. This bill will be placed on the second-reading and final-passage calendar for next week

Council President Verna

The Chair now recognizes Councilwoman Clark for the purpose of calling up bills on the second-reading and 1/26/99 STATED MEETING - Final Reading - Bill 980657-A final-passage calendar.

Councilwoman Clark

Madame Chair, all bills on the second- and final-passage calendar are being called up except Bill No. 960633, 960629, 970272, 980227, 980464, 980239, and 980716.

Council President Verna

Thank you, Councilwoman. The first bill to be called up for consideration is Bill No. 980657-A. The chief clerk will please read the title of the bill.

The Clerk

An ordinance amending Title 9 (Entitled "Regulation of Business, Trades, and Professions") of The Philadelphia Code by prohibiting the sale of laser pointing devices to minors, and regulating the display of laser pointing devices for sale.

Council President Verna

This bill having been read on two different occasions, the question now is, shall the bill pass finally? The clerk will please call a roll.

The Clerk

Councilwoman Blackwell?

Councilwoman Blackwell

Aye.

The Clerk

Councilwoman Clark? 1/26/99 STATED MEETING - Final Reading - Bill 980657-A

Councilwoman Clark

Aye.

Chief Clerk Hauser

Councilman Cohen?

Councilman Cohen

Aye.

Chief Clerk Hauser

Councilman DiCicco?

Councilman Dicicco

Aye.

The Clerk

Councilman Kenney?

Councilman Kenney

Aye.

The Clerk

Councilwoman Krajewski?

Councilwoman Krajewski

Aye.

The Clerk

Councilman Longstreth?

Councilman Longstreth

Aye.

Chief Clerk Hauser

Councilman Mariano?

Councilman Mariano

Aye.

The Clerk

Councilwoman Miller?

Councilwoman Miller

Aye.

The Clerk

Councilman Nutter?

Councilman Nutter

Aye.

The Clerk

Councilman O'Neill?

Councilman O'Neill

Aye.

The Clerk

Councilman Ortiz?

Councilman Ortiz

Aye.

The Clerk

Councilman Rizzo? 1/26/99 STATED MEETING - Final Reading - Bill 980799-A

Councilman Rizzo

Aye.

The Clerk

Councilwoman Tasco?

Councilwoman Tasco

Aye.

The Clerk

Council President Verna?

Council President Verna

Aye. The ayes are 15, the nays are 0. The bill has passed finally. The clerk will now please read the title of Bill No. 980799-A.

The Clerk

An ordinance creating the West Philadelphia Retail Tax Increment Financing District and approving the project plan of the Philadelphia Authority for Industrial Development ("PAID") for the redevelopment of the West Philadelphia Retail Tax Increment Financing District.

Council President Verna

This bill having been read on two different occasions, the question now is, shall the bill pass finally? The clerk will please call a roll.

The Clerk

Councilwoman Blackwell?

Councilwoman Blackwell

Aye.

The Clerk

Councilwoman Clark?

Councilwoman Clark

Aye. 1/26/99 STATED MEETING - Final Reading - Bill 980799-A

Chief Clerk Hauser

Councilman Cohen?

Councilman Cohen

Aye.

Chief Clerk Hauser

Councilman DiCicco?

Councilman Dicicco

Aye.

The Clerk

Councilman Kenney?

Councilman Kenney

Aye.

The Clerk

Councilwoman Krajewski?

Councilwoman Krajewski

Aye.

The Clerk

Councilman Longstreth?

Councilman Longstreth

Aye.

Chief Clerk Hauser

Councilman Mariano?

Councilman Mariano

Aye.

The Clerk

Councilwoman Miller?

Councilwoman Miller

Aye.

The Clerk

Councilman Nutter?

Councilman Nutter

Aye.

The Clerk

Councilman O'Neill?

Councilman O'Neill

Aye.

The Clerk

Councilman Ortiz?

Councilman Ortiz

Aye.

The Clerk

Councilman Rizzo?

Councilman Rizzo

Aye. 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation

The Clerk

Councilwoman Tasco?

Councilwoman Tasco

Aye.

The Clerk

Council President Verna?

Council President Verna

Aye. The ayes are 15 nays are 0. A majority of all members of Council having voted in the affirmative, the bill passes.

Council President Verna

Ladies and gentlemen, the time has come for us to consider the Mayor's presentation of his annual budget message. Section 4-1101 b. and d. of the Philadelphia Home Rule Charter states: "The Mayor shall submit to Council, not later than 90 days before the end of the fiscal year, his operating budget message and proposed annual operating budget ordinance for the ensuing fiscal year. At the same time he submits to Council the proposed operating budget for the ensuing fiscal year, he also submits to Council the recommended capital program and recommended capital budget as received from the Planning Commission to the extent approved by the Mayor." 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation I now appoint the following committee to escort the Mayor into the Council chamber: Councilwoman Clark, Councilman O'Neill, Councilman Cohen, and Councilwoman Krajewski. Please proceed, ladies and gentlemen. (Above-named Councilmembers come forward.)

Council President Verna

Councilman Nutter, do you wish to be recognized? Your light's on.

Councilman Nutter

No, Madame President, I don't wish to be recognize.

Council President Verna

Thank you. It is my understanding the Mayor's on his way.

Sergeant-At-Arms

Madame President, the Mayor has arrived. (Mayor Rendell enters Council chambers.) (Applause.)

Mayor Rendell

Thank you very much. Thank you all very much. Councilman O'Neill just said that the thundering applause is probably because this is -1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation given the length of my speeches because this is my last one. And Councilwoman Clark said if I'm short, I will get double the applause. (Laughter.)

Mayor Rendell

Before I begin, I just want to mention -- most of you know, but the young man who just miked me, Joe Marrone, is someone who takes care of the sounds systems both on the second floor and up here. Joe is in his mid-80s and has worked for the City for decades and decades and decades, and Joe has no intention of retiring, so he told me he doesn't care about the pension bill. (Applause.)

Mayor Rendell

Good morning, President Verna, members of this City Council and distinguished guests. I am proud to be here to present my proposed fiscal year 2000 Operating and Capital Budgets and also to submit to Council for its consideration my Five-Year Financial Plan for fiscal years two thousand through 2004. This is my eighth and final budget address as Mayor. Over the years, I've come to you in times of crisis to talk about the shared 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation sacrifices and difficult fiscal decisions we've had to make for our city's future. I've come to you in times of recovery to seek your support for the historic changes needed to turn around decades of decline by bringing down our taxes for the first time in half a century, investing in the growth of our economy to create jobs for Philadelphians, and restructuring our government to improve our services even as we've lowered costs. And last year, as we began to reap the rewards of our hard work and discipline -- with 3,000 new jobs, $2 billion in new construction projects in the pipeline (a half a billion dollars of which are now underway), and the announcement of a landmark project to bring the Philadelphia Naval Shipyard back to life -- last year I came to ask for your continued partnership in staying the course. Each year as I've stood at this podium, I've also talked about the enormity of the fiscal crisis that confronted us when we first took office: a $200 million budget deficit; junk bond credit ratings; streets and playgrounds crumbling; public pools locked and dry during summer heat 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation waves; fear of shutting down fire houses; and missing payrolls. You remember as well as do -we were truly a city on the brink. Today, however, it is a measure of how far we have come together, that people are now talking about Philadelphia's future, not its past. Of course, we still face daunting challenges, and many problems are yet to be overcome -- along with the tremendous number of critical tasks to be completed even before this year is out. But over these past seven years, this City Council has displayed extraordinary responsibility, creativity, and dedication in the face of every single challenge. Indeed, when the history of 20th century Philadelphia is written, your courage and productivity will be remembered as the high-water mark of legislative leadership. Moreover, under the able direction of President Verna, there is no doubt that this standard of excellence will continue. And because of this unprecedented cooperation that we have forged together, Philadelphia is now positioned to talk about its bright days ahead. So in this final budget address, I come 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation to you with a full agenda for the next eleven months we have remaining to work together -- and also with a vision for our great city in the early years of next millennium. Let's imagine for a moment Philadelphia as it will look over its next five years. Starting off this new era, thousands of new hotel rooms and our world-class convention venues will fill up with national media delegates for the 2,000 Republican National Convention, heralding Philadelphia's arrival as one of America's premiere destination cities. (Applause.)

Mayor Rendell

Market Street East will be as diverse and exciting as any street in the nation -- with the Entertainment Center at Penn's Landing, the DisneyQuest indoor theme park, a fully renovated Reading Terminal Headhouse, and first-class department stores joining Lord & Taylor and others already on the street. Along the way, the National Constitution Center will be the centerpiece for an engaging and dynamic Independence Park experience, together with a brand-new Visitors Center, a new 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation Liberty Bell Pavilion, and an exciting sound and light show. While on the Avenue of the Arts, our breathtakingly beautiful new Regional Performing Arts Center will open to international acclaim. At the Philadelphia International Airport, over 5,000 additional people will be employed at the new International and Commuter Terminals, adding to the tremendous development that has already made this airport the fastest growing in the nation and a powerful economic engine for our city. Not far away, at the Philadelphia Naval Business Center in South Philadelphia, 900 workers at the state-of-the-art Kvaerner Shipyard will launch a new era in American shipbuilding, with thousands more jobs emerging to support this reborn industry. In West Philadelphia, a new 2,000-employee medical center on the site of the old Civic Center will pioneer the newest cancer treatment technologies such as proton therapy, while projects like the University of Pennsylvania Sansom Commons and Sundance Cinemas will spark a new partnership with dynamic energy. Along with 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation the University City Science Center Keystone Opportunity Zone -- which will teem with exciting high-tech start-up businesses -- these projects will help us retain our graduates to generate new enterprise right here. Along North Broad Street, in a community that lost more than two-thirds of its population from 1960 through the 1990s, families will be moving back to the revitalized Cecil B. Moore area -- surrounded by reinvestment in commercial projects not seen in decades, such as Apollo of Temple, the North Philadelphia Train Station shopping complex, and Jump Street, USA. These developments will highlight the transformation already hailed by the New York Times as creating new -- and I quote -- "stability and optimism" in North Philadelphia. On the site of the former Schuykill Falls and Martin Luther King public housing high-rise towers, smaller-scale and more liveable homes will be developed as decent places to raise a family. And at the same time, the success for Empowerment Zones and Keystone Opportunity Zones will have brought new investment and, more 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation importantly, hope to some of our most distressed communities. And throughout our city of neighborhoods, crime will keep coming down, test scores in our public schools will keep going up, and the public will truly take pride in the new Philadelphia. Seven years ago, these dreams would have been unobtainable. But today, they are real, and we have only to look back to know what we can accomplish when we work together. We have completed six consecutive years with a balanced budget, regained investment-grade credit, and ended fiscal year 1998 with a record $169 million surplus. And at the same time, we've not only kept our fire houses open, but we've also increased EMS crews by 40 percent and achieved a 50-year low in fire deaths. We have not only opened our pools on time, we have reclaimed once-abandoned pools and playgrounds; expanded after-school programs; more than tripled recreational baseball leagues; increased basketball league participation fivefold; and extended our ice rink season by nearly a month. 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation We have also increased street repaving by City crews from 44 miles in FY '96 to 158 miles in FY '98.

Mayor Rendell

We've created five neighborhood Youth Access Centers and 18 Family Centers. We upgraded our libraries and health centers with expanded hours of service. And by adding 753 crime bill officers and using innovative deployment strategies, we have 1,000 more police on the streets than we had at the start of this decade. )

Mayor Rendell

Perhaps most importantly of all, we have begun to turn around the absolutely devastating loss of jobs that was draining Philadelphia of life and opportunity. From 1987 to 1992, we lost over 100,000 jobs -hemorrhaging at the peak rate of more than 2700 jobs a month in 1991. Now, however, preliminary numbers indicate that we ended 1998 with our third consecutive year of job growth -- adding nearly 5,000 new jobs on top of the 3,000 gained in 1997 and the 100 when we first turned the corner in 1996. We have done this not only by restoring credibility and stability to City government and 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation services, but also by beginning to bring down the crushing City taxes that have made Philadelphia one of the least competitive cities in the nation. Since 1996, we have cut our wage and business taxes four consecutive years -- while taxes have been going up in our surrounding suburban counties. 5 billion Economic Stimulus Program, we have helped launch major project after major project, helping us build a new Philadelphia. " But make no mistake, unless we continue to rise to the challenges before us, our city's progress could easily be threatened again. And so today, I want to focus on four major challenges that we must continue to address if we are to fulfill Philadelphia's promise in the new century ahead: First, we must continue to exercise the discipline required to keep our fiscal house in order. Second, we must seize every opportunity 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation to rebuild Philadelphia's economy by investing in new development and continuing to cut the taxes that undermine our ability to compete for residents, jobs, and businesses. Third, we must continue to improve the City services essential to quality of life, making our streets safer and our municipal services better. And, fourth, we must continue to support the progress in our public schools and work for more equitable State education funding. Now, none of these four challenges will be easy, but the budget and Five-Year fiscal Plan that I present to you today outlines our plan for meeting them. And if our experience of the past seven years has proven anything, it has shown us that working together, there is no challenge that we cannot overcome. Looking first at budgetary balance, while our successes have been undeniable, considerable threats still remain. First, there is welfare reform. Already, 43,000 single adults have lost their State-funded medical assistance. That means that 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation the number of uninsured visiting our health centers has increased dramatically. In FY '95, 44 percent of the patients at our health centers were uninsured. By contrast, in FY '98, that number had jumped to 68 percent -- 68 percent were uninsured. As a result, last year, we provided an additional $1 million in the operating budget, and we are maintaining that level again. But the real trouble starts this spring, when an estimated 32,000 more Philadelphia families will lose their welfare benefits between March and June -- flooding a labor market that does not have enough jobs for all of them. That is the challenge, and it is a formidable one: 32,000 families without benefits, without a job, without hope. In terms of the personal devastation, the cost is limitless. In terms of the General Fund impact, the costs are also severe. During the first quarter of FY '99, shelter requests were up 61 percent over the same period in FY '98, even before the colder winter months had begun. 25 million for shelter 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation services over and above the $18 million in the General Fund, which is already being spent as part of our $63 million homeless service budget.

Mayor Rendell

6 million on intensified services and specialized placements for chronically homeless individuals as part of the new sidewalk behavior law enacted by City Council last spring. These funds, primarily from the Community Behavioral Health reinvestment dollars mark an unprecedented level of public support for homeless services. In addition to bearing these increased costs, our challenges as a city is to find meaningful employment for those coming off the welfare rolls. To help people transition from welfare to work, the City created the Greater Philadelphia Works Program last spring. It combines public subsidies for private employers, public sector employment, job training and readiness programs, and transportation to help get workers out to suburban job locations. Greater Philadelphia Works is a remarkable effort headed by our own Deputy Mayor Donna Cooper and is one that makes maximum use of the City's $56 million 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation in federal Welfare-to-Work funds. It is a remarkable effort, but the truth is, it's not enough. What's more, meeting this challenge is of critical importance to Philadelphia's economy. 2 billion out of the City's economy by FY '2003. And welfare reform is not only a strain on our finances. Also in its years ahead, the City must assume the full cost of the 753 police hired under the federal Crime Bill. Remember, the Crime Bill only provides a partial and temporary three-year subsidy for these new officers. The City must also pay a rising share of the cost until the federal subsidy completely phases out in FY 2002, when we will pay over $44 million per year for these new officers. 5 million over the last year. In addition, the City must manager over $100 million in new costs from last year's police 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation contract, and also identify funding for 4 percent raises in the existing labor agreements for all City workers -- even before absorbing any increases that might be negotiated in next year's collective bargaining. And in dealing with these costs, we can no longer rely on the approximately $17 million per year that we once derived from the personal property tax, while we still carry the burden of over $100 million in court costs that the State continues to refuse to assume. Probably the most important budgetary challenge, however, will be the difficulty of just saying no. In a city where our needs are so great and where our resources remain so limited, it is an absolutely critical part of our jobs to reject countless legitimate and worthy demands for public funds. Across the full five years of the Financial Plan presented to you, we have maintained fiscal balance -- but only so long as we continue to resist the temptation to spend our hard-earned surplus several times over. Even when the balconies of this chamber are packed with 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation vocal advocates for a noble and underfunded cause -- and they will be, time and time again -- we must continue to make the right long-term decisions for Philadelphia. Moreover, in an unanticipated national recession, all of our fledgling progress could quickly spiral downward . For while the City's near-term progress has been real and encouraging, our long-term trend lines have only barely begun to shift. For just this reason, it is critical to continue the battle to grow Philadelphia's economy, the second key challenge on which our future depends. After all, we must remember that the tremendous progress of the past half-decade follows a decline of more than half a century. 5 million people. C. To reverse this devastating trend, it will take sustained long-term action. 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation And if we do not reverse this decline, our recent gains will prove to be nothing more than a hollow victory.

Mayor Rendell

In this fiscal year, more than three-quarters of our budget comes from locally generated revenue. Unless this revenue base grows, the resources available for critical services will inevitably decline. And at the same time, the best thing we can do to make our neighborhoods safer, our families stronger, and our schools better, is to create more jobs and more opportunity for all Philadelphians. Consequently, we must put aside some of our savings now in investments for future growth. Without a growing economy, establishing budgets for future mayors and City Council will always be about how to divide an ever-shrinking pie to serve a city with ever-more pressing needs. To meet this challenge, we must redouble our efforts to complete those major projects that are now on the table and that are so critical to reshaping our city and creating jobs for people from all of our neighborhoods -- the National Constitution Center, the Regional Performing Arts Center, the Entertainment Center 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation at Penn's Landing, our 15 new hotels, DisneyQuest, Jump Street, USA, the West Parkside retail complex, the Amtrak Service Center, and, by putting State financing in place, hopefully in the near future, new stadiums. Looking at our tax structure, it is equally clear that Philadelphia can never fully compete for new jobs and economic activity without first closing the gap between the City's high tax burden and the cost of living and doing business elsewhere. The crushing impact of the City's tax structure is beyond question. People in businesses consistently point to the wage tax as a primary motivation for fleeing the City. And our taxes have absolutely devastated our jobs base. According to just one study, the City's wage tax alone was responsible for an estimated 60 percent of Philadelphia's job loss between 1965 and 1985 -- all told, nearly 100,000 jobs. Quite simply, without local tax relief, all of our economic development initiatives are destined to fail -- which is why continuing the multi-year full-time program of incremental tax 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation reduction that we began four years ago remains so critical to restoring Philadelphia's competitiveness. From January 1, 1996 -- when the first cut in the City's wage tax in 50 years took effect -- the City has been committed to reducing our taxpayers' burden. 68 percent today, while the nonresident wage tax has been reduced by an equal percentage. 77 mills -- while key changes have been made to the apportionment and active present standard of these taxes that have helped level the playing field for businesses based in the City. In total, these four rounds of tax cuts have already saved Philadelphia taxpayers and employers a cumulative $207 million. Just as importantly, these first cuts have sent a critical message to businesses and residents throughout the region: for the first time in more than a generation, Philadelphia is reducing, not raising, 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation local taxes. )

Mayor Rendell

In contrast, in our surrounding suburbs, the loss of the personal property tax -- absorbed in Philadelphia through management initiative -- has led to major real estate tax increases. As a result, the City's competitive gap is starting to close. While the average local taxes went up in Delaware, Bucks, Montgomery, and Chester counties between 1994 and 1997, Philadelphia tax burdens are coming down. To continue to close this gap, I am proposing a fifth round of tax cuts that, with Council's approval, will take effect on July 1, 1999. Let's cut the resident wake tax once again from 4.68 to 4.61 percent, and the nonresident portion of the wage tax from 4.07 to 4.01 percent. And at the same time, I propose to again cut the gross receipts portion of the business privilege tax from 2.77 mills to 2.65 mills. All told, these cuts will save City taxpayers another $23.5 million in FY 2000 alone. For a Philadelphia taxpayer making $30,000 per year, that means over $100 more in their annual 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation take-home pay as a result of these five rounds of tax cuts. But let's not stop there. Within the next few weeks, I plan to appoint a new select Committee on City Taxes -- to be chaired by Michael Nutter and tax expert and attorney Sheldon Bonovitz -- to evaluate still further changes that we can make to improve our competitiveness. Among these potential changes, the Committee will evaluate possible reductions to our real estate transfer tax, creative new ideas for tax abatements proposed by Councilman Frank DiCicco, and further adjustments to the business privilege tax. In addition, I am also proposing both to extend our existing wage and business tax reduction program yet again into a ninth year and to stabilize and institutionalize the incremental cuts in the wage tax beginning in FY 2003. Assuming that the City continues to implement these reductions as projected, five years from now, City residents will pay less than 4.50 percent in wage tax, and nonresidents will pay less than 3.9 percent. 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation Now, some people have said that our tax cuts are nothing more than symbolic. But it's much more than that. The Inquirer said recently, we're making progress -- and I quote -- "in closing the tax gap between Philadelphia and its competitors. Not only as [the City] chipped away at corporate and wage taxes in town, but suburban taxes have edged up, making it a bit less enticing for families and businesses to flee." And if we adhere to the tax reduction plan that I've outlined today, by FY 2004, Philadelphia taxpayers will have saved a cumulative total of more than $1 billion. (Applause.)

Mayor Rendell

As important as taxes are to business and residential location decisions, however for most Philadelphians, City government is just as much about municipal services that establish the quality of life in our neighborhoods. Therefore, we have consistently rejected major service cuts as a strategy for budgetary balance -- recognizing that such cuts would ultimately be counterproductive by driving out the City's tax base and eroding its sense of 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation community. Instead, the third key challenge for our future is to continue making the most of our resources to sustain and enhance basic services. Among these municipal services, public safety is paramount. Crime continues to be the number one issue for our citizens, and there is no question that we must do more to preserve the safety and security of our neighborhoods. The good news, as I said is, thanks in part to President Clinton's Crime Bill, the City of Philadelphia now has almost 7,000 officers in the Police Department -- more than at any time since 1984. The addition of these officers has made a tremendous difference because they have provided the manpower to aggressively attack crime in every neighborhood. The new officers have allowed the Department to triple the size of its Narcotics Strike Force, from 50 to 150 officers; and to create an elite 100-member Rapid Response Crime Team from among the very best of our highway patrol. Without a doubt, the best example of this new proactive policing is proactive Operation Sunrise, an unprecedented effort to crack down on 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation drugs and violent crime in neighborhoods like Fairhill and portions of Kensington and Hunting Park. The results have been impressive: narcotics arrests in 1998 rose more than 60 percent over the preceding year. Better still, the numbers of homicides in 1998 fell by nearly 19 percent -- a sure indicator that we've chosen the right course in combatting violent crime. We are improving our crime-fighting efforts in other ways too. Whether by introducing sophisticated COMPSTAT crime mapping techniques or by giving district commanders the tools to fight crime in their neighborhoods -- and then holding them accountable for doing so -- the Police Department, under Commissioner John Timoney, is making remarkable progress. We must support this effort to aggressively battle crime in every neighborhood by providing the resources necessary to get the job done. That is why, over the past 7 years, we have placed more than 750 new radio patrol cars and patrol wagons into service -- improving our vehicle availability by over 40 percent. In addition, last November, we completed installation 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation of mobile data terminals -- or "MDTs," as they're known -- in each of our 550 district patrol vehicles, and we are now installing MDTs in 250 tactical unit vehicles as well. These portable computers are a tremendous crime-fighting tool that provide on-the-spot access to emergency dispatch assignments, data bases for vehicle checks and "wanted person" files. 1 million upgrade to our 911 technology and implemented a comprehensive incident reporting system that will help us to track arrests. And we are now moving forward with major new computer systems to improve the Department's internal affairs and personnel functions. In addition, thanks to the leadership of State Senator Vincent Fumo, Philadelphia's first two police helicopters have taken flight. And we've initiated and expanded our popular bike patrol program, equipped all of our police officers with lifesaving new ballistic vests, and given our officers modern semiautomatic Glock pistols. All told, our proposed Police 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation Department operating budget for FY 2000 totals $388 million, an increase of almost $90 million over just the past six years. Think about that.

Mayor Rendell

If I had told you on January 6, 1992 that we were going to have the capability to increase our Police Department budget alone by $90 million, you would have thought that it was a dream. But it is not a dream; it's a reality. In addition, in our capital budget, we've now invested more than $22 million over the past 7 years in upgrading our police districts -after the City's capital spending on police districts had dropped to just $105,000 in FY '92. 5 million for police facilities in our FY 2000 capital budget, including a new forensic library. Along with public safety, many other services make a real difference in people's lives, and my proposed budget includes a number of key enhancements, many of which you have talked to me about in the past several months. 3 million to hire 54 more full-time and 29 more part-time employees to 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation fully staff 10 branch libraries soon to reopen after major renovations, as well as to staff a new library branch for Washington Square West. In addition, we are adding more than $275,000 for expanded five-day-a-week after-school programs in the library system projected to reach 12,000 more children. )

Mayor Rendell

When combined with the Recreation Department's great after-school program and the work that our school system is doing with after-school programs in the schools itself, we are beginning to make a serious dent in having available to kids safe places to go and have fun and to learn during those critical 3-to-6 p.m. hours. In the Recreation Department, we are requesting an increase of $2 million to fully staff all maintenance and custodial positions in our Class B and C recreation centers -- creating 84 new positions to keep all of our centers clean and in good condition. And you'll recall several years ago, we were able to do that for Class A centers, but not for B and C centers. This is a 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation dramatic step forward in helping to protect our Recreation Department inventory and to help make sure that the places that our kids play and have fun in are clean and safe. In addition, we are requesting over $250,000 more to increase summer pool salaries so that they can be more competitive with other job opportunities. In other initiatives, we propose to make permanent the half million dollar increase made in each of the past two fiscal years for the demolition of approximately 200 imminently dangerous buildings in Partners for Progress zones (on top of the more than $10 million budgeted per year in our general demolition program). We plan to add over $125,000 to our successful anti-graffiti and mural arts efforts. And we are proposing that over $800,000 in the Streets Department budget be dedicated towards pilot programs for improving street cleaning and weekly recycling. Further, the proposed new operating budget includes a $21 million investment in support of our Economic Stimulus Program, a six-year $6.5 billion initiative that has already 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation created or retained more than 65,000 jobs in Philadelphia. In addition to these operating improvements, the FY 2000 Capital Budget I submitted today continues our commitment to rebuilding our capital infrastructure. Where in FY '92, the City's contribution to its Capital Program had dropped to only $5 million, I am proposing in FY 2000 to invest $124.9 million in new City funding -- the eighth consecutive year in which we will have invested more than $100 million. In addition, I will seek approval from PICA to reallocate $48.0 million in added capital funds. This extra funding is available from projects completed under budget and from interest earned on PICA borrowings, and it's needed to continue the incredible momentum we have already achieved. So think of that. We will be spending well over $173 million on capital programs this year. That could have only seemed like a dream years ago. (Applause.)

Mayor Rendell

25 million contributions towards a new Community College satellite campus in the Germantown/Oak Lane area. 2 million for renovations and safety improvements for the Art Museum; 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation $875,000 for City cultural and recreational facilities, including the Betsy Ross House, Fort Mifflin, and the Robin Hood Dell East. Finally, the Capital Budget also includes investments to improve the responsiveness and efficiency of government operations. 3 million to renovate two family shelters. Even with all this investment, however, no strategy to improve our economy and neighborhoods can reach its full potential unless we meet the challenge of educating our children to compete in the 21st century. Unless we do so, Philadelphia cannot achieve the promise of its 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation future. Thankfully, our schools are making progress. And while that progress may not be as fast as any of us would like, it is undeniable. In some circles, it may be fashionable to criticize the School District's agenda, but I issue the challenge to those who would do so: What specifically would you do differently? Just look at the changes in the Philadelphia public schools since 1994: On the management side, the School District has nearly 350 fewer administrators than it did when I ran for mayor in 1991, a reduction of almost 25 percent. And the district has already achieved nearly $30 million in savings recommended by the Private Sector Task Force on Management and Productivity. In the classroom, improvements abound. Philadelphia now has full-day kindergarten for all of our five-year-olds. There is a computer for every 10 students today, compared to for every 30 students just years ago. Books are available for every child in every core subject. Over 14,000 new volunteers have offered their services 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation to the schools. And the District has raised $152 million in private donations, the largest amount of private dollars raised anywhere in the nation for urban public education. But the best news about public education is that the reforms set in motion are starting to work. In 1998, citywide Stanford Achievement Test results in reading, math, and science showed substantial improvement for the second year in a row. More recently, over half the public schools in Philadelphia met their two-year improvement goals, with nearly every school showing some improvement. Even the Commonwealth of Pennsylvania has noticed. " Let me be clear. No one believes that the problems of our public schools have been solved. Dropout rates are still far too high; far too many students fail to receive kind of education they'll need to compete in today's tough marketplace; and the District must continue to 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation work for significant improvement in student performance. As serious as these problems are, there is little hope for addressing them without adequate funding from Harrisburg. Let's look at the facts. percent, or 24,000 new students. By itself, this increased number -- just those 244,000 kids -- would be the third largest school district in Pennsylvania. Yet during that period, the value of the State's education subsidy for Philadelphia has dropped by almost percent in real inflation-adjusted terms. As a result, the gap between what suburban and City schools spend is $2,000 per child, an explosive growth of more than 100 percent in that gap in just 3 years. In a classroom of 30 students, this gap translates to 60,000 per classroom, 60,000 per classroom. Just think what an extra 60,000 could do for our kids: more computers, better student-to-teacher ratios, or even helping to restore summer school for our children who desperately need it.

Mayor Rendell

1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation Moreover, the City shoulders a disproportionate share of the financial burden for the public schools. The current School District budget includes $563 million in locally generated revenues, including a special $15 million supplemental appropriation that the City, thanks to this Council, has made in each of the last 3 fiscal years. In addition, the City provides a wide range of special services, including almost 1,000 school crossing guards and discounts on water/sewer and gas bills -- that saved the District over $70 million each year. The FY 2000 operating budget submitted today reaffirms the City's support for public education. And although City taxpayers are already doing all of this for our public schools, today I am proposing that we do even more. In FY 2000, for the fourth year in a row, I propose that the City provide another special supplemental appropriation of $15 million to the School District. That means that in addition to half a billion in local annual support, we will have provided an extra $60 million in supplemental appropriations during the past four years. What's 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation more, I urge my successor to continue to provide School District with $15 million each year and every year until the school funding issue is resolved. And remember, Philadelphia's finances are severely constrained because we are the only jurisdiction in the Commonwealth that is both a city and a county. As a result, City residents already shoulder the burden of county service -such child welfare, prisons and the courts -- that no other city in Pennsylvania must fund by itself. In Philadelphia, county costs alone total more than $160 million per year. A recent study undertaken by Greater Philadelphia First demonstrates this point with startling clarity. In Pittsburgh, which is a part of Allegheny County, these costs are shared by the city and its suburban neighbors. If Philadelphia's tax burden for county services were equal to that of Pittsburgh, then the district's total per-pupil expenditure would rise from $6,860 to $9,110, a $2,250 increase that would completely eliminate the per-pupil spending gap between suburban and Philadelphia schools. 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation As a result of these startling statistics, I want to make a pledge: If the Commonwealth at long last honors the Supreme Court order to assume the cost of running the courts or if the Supreme Court aggressively moves to enforce that order this year, I will direct that the $160 million in local savings to be plowed back into funding, I will direct that that $160 million be plowed back into funding for public education. )

Mayor Rendell

Not one dollar -- not one dollar of the savings for court costs would go into our General Fund. Every single dollar we save will go into public education. I think that every jurisdiction in this Commonwealth would be willing to do the same. It is a fair and appropriate way to help us along in that funding gap. And by itself, this $160 million would eliminate the School District's deficit for its next fiscal year, which could reach to $150 million according to the experts, including the outside order to hire by the State legislature to review district spending. But whatever means we 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation employ, this much is clear: Philadelphia schools need more equitable treatment from the State. The four challenges I have set forth today -- maintaining fiscal discipline, rebuilding our economy, enhancing the delivery of City services, and improving public schools -- all have one basic future in common: each is a challenge to make Philadelphia more competitive in the battle to attract investment, jobs, and opportunity. If we fail to address these challenges, all the progress we've made together will come to a screeching halt. We have worked too long, shared too many sacrifices, and come too far in the past seven years to risk a return to the days when Philadelphia lived beyond its means and lurched from crisis to crisis. For my part, I pledge to work through the very last minute of my administration to keep Philadelphia moving forward. And there is no need to fear the challenges ahead. Working together, we've made the tough decisions every time we've needed to do so, time and time again. We've brought Philadelphia back from the brink, we have begun to 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation restore our competitiveness. And today, Philadelphia stands ready to fulfill its promise as a world-class city. As a result, our work together as generated tremendous enthusiasm about our city from all around the country and the world. Last November, the New York Times hailed Philadelphia's comeback, and I quote, "out of financial chaos and into a vibrant metropolis with new restaurants, museums, hotels, a convention center, and perhaps most strikingly, a sense of pride." Just this month, the London Economist featured an article on "the better streets of Philadelphia." And in December, the Associated Press remarked that once "a mere pit stop between Washington D.C. and New York, Philadelphia is coming into own as a premier place in which to visit, live, and do business." No less important, our work together has generated tremendous enthusiasm within the City -- which may be our most enduring legacy over these past seven years. Philadelphians believe in their city's future once again. And more than anything else, that faith and confidence will live 1/26/99 STATED MEETING - Mayor Rendell's Budget Presentation to see us through. Although this is my last budget that I will present to City Council, I remain confident that our momentum will not slow down. The things we have accomplished will benefit our citizens for generations to come. Philadelphia's progress does not end with the start of this new century; it just begins. Thank you. (Standing ovation.)

Council President Verna

Thank you.

Council President Verna

Are there any speeches on the part of the Minority? (No speeches on the part of the Minority.)

Council President Verna

Are there any speeches on the part of majority? (No speeches on the part of the majority.)

Council President Verna

There being none the Chair recognizes Councilwoman Blackwell for the purpose of making a motion to adjourn. 1/26/99 STATED MEETING - Adjournment

Councilwoman Blackwell

Madame President, I move that this Council be adjourned until Thursday, February 4th.

Council President Verna

Is there a second? (Duly seconded.)

Council President Verna

All in favor, signify by saying aye. Those opposed? The ayes have it. Council will stand adjourned until Thursday, February 4, 1999, at 10 a.m. Thank you. (Adjourned at 11:21 a.m.) C E R T I F I C A T E I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Tuesday, January 26, 1999, were reported fully and accurately by me, and that this is a correct transcript of same. RE: STATED MEETING __________________________________, JOSEPHINE CARDILLO, Registered Professional Reporter