COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING AND PUBLIC MEETING BEFORE THE COUNCIL COMMITTEE ON APPROPRIATIONS - - - Room 400, City Hall Philadelphia, Pennsylvania Thursday, December 10, 1998 10:05 a.m. - - - Bill 980832 - Transfers of Appropriations. . . Bill 980833 - Transfers of Appropriations. . . Bill 980835 - Transfers of Appropriations. . . Bill 980836 - Transfers of Appropriations. . . Bill 980837 - Transfers of Appropriations. . . Bill 980838 - (Being held) Bill 980839 - Transfers of Appropriations. . . Bill 980840 - Transfers of Appropriations. . . Bill 980841 - Transfers of Appropriations. . . Bill 980886 - Transfers of Appropriations. . . Bill 980887 - Transfers of Appropriations. . . (Full text of all bills appears within body of transcript.) PRESENT: COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILWOMAN AUGUSTA CLARK COUNCILWOMAN ANNA CIBOTTA VERNA COUNCILMAN ANGEL ORTIZ COUNCILMAN RICHARD T. MARIANO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 2 I N D E X All Bills Dean Kaplan, Budget Director. . . . . . . . . City of Philadelphia 6 Bill No. 980833, 980839 Thomas Nestel, Deputy Commissioner. . . . . . 13 Administration & Training Philadelphia Police Department Bill No. 980840 Josephine Mangano . . . . . . . . . . . . . . 12 Administrative Services Director Department of Recreation 13 14 15 16 17 18 19 20 3 12/10/98 APPROPRIATIONS COMMITTEE - Tranfer Ordinance Bills P R O C E E D I N G S
Good morning. The Committee on Appropriations is now in session. Will the clerk please read the bills.
Bill No. 980832, an ordinance authorizing transfers in appropriations for Fiscal Year 1999 from the General Fund, the Director of Finance-Contribution to School District/Tax Cuts, the Department of Revenue-Sinking Fund Commission, the City Representative, and the Director of Commerce-Economic Stimulus and the Auditing Department; and from the Grants Revenue Fund, the Director of Finance-Provision for other grants to the General Fund, the Mayor's Office of Information Services, the Department of Public Health, the Department of Human Services-Office of Emergency Shelter and Services, the Director of Finance-Community College of Philadelphia, the City Representative and the Director of Commerce, the Auditing Department, and the First Judicial District. Bill No. 980833, an ordinance 25 authorizing transfers in appropriations for Fiscal 4 12/10/98 APPROPRIATIONS COMMITTEE - Tranfer Ordinance Bills Year 1998 within the General Fund from certain or all City offices, departments, boards, and commissions to certain or all City offices, departments, boards and commissions. Bill No. 980835, an ordinance 7 authorizing transfers in appropriations for Fiscal Year 1999 within the Grants Revenue Fund from the Director of Finance-Provision for Other Grants to the Mayor. Bill No. 980836, an ordinance 12 authorizing transfers in appropriations for Fiscal Year 1999 within the Grants Revenue Fund from the Director of Finance-Provision for Other Grants to the Department of Human Services-Office of Emergency Shelter and Services. Bill No. 980837, an ordinance 18 authorizing transfers in appropriations for Fiscal Year 1999 within the Grants Revenue Fund from the Director of Finance-Provision for Other Grants to the Police Department, the Department of Recreation, the District Attorney, and the First Judicial District of Pennsylvania. Bill No. 980838 is being held. Bill No. 980839, an ordinance 5 12/10/98 APPROPRIATIONS COMMITTEE - Tranfer Ordinance Bills authorizing transfers in appropriations for Fiscal Year 1999 within the Grants Revenue Fund from the Director of Finance-Provision for other grants to the Police Department. Bill No. 980840, an ordinance 7 authorizing transfers in appropriations for Fiscal Year 1999 within the Grants Revenue Fund from the Department of Human Services to the Department of Recreation. Bill No. 980841, an ordinance 12 authorizing transfers in appropriations for Fiscal Year 1999 within the Grants Revenue Fund from the Director of Finance-Provisions for Other Grants to the Streets Department. Bill No. 980886, an ordinance 17 authorizing transfers in appropriations for Fiscal Year 1999 within the HealthChoices Behavioral Health Revenue Fund from the Department of Public Health to the Department of Public Health. And Bill No. 980887, an ordinance 22 authorizing transfers in appropriations for Fiscal Year 1999 within the HealthChoices Behavioral Health Revenue Fund from the Department of Public Health to the Department of Public Health. 6 12/10/98 APPROPRIATIONS COMMITTEE - Bill 980833, 980839
Thank you. Good morning Mr. Kaplan. Please state your name for the record.
Thank you. Good morning, Councilwoman Krajewski and members of the Appropriations Committee. I'm Dean Kaplan, the City's Budget Director. And accompanying me today behind the railing are a variety of senior officials from a variety of departments affected by the transfers which are before you this morning. As noted by the committee's clerk, I am here to offer testimony this morning on Bill No. 15 980833 and 980839, which make FY '98 budget appropriation transfers between and among classes and departments in the General Grants Revenue Fund, and a variety of ordinances which handle transfers for FY '99 -- Bill No. 980832, 980834 through 980837 and 980840 and 980841, which make I will go over quickly in a moment. And then 980886 and 980887, which involve the HealthChoices Behavioral Health Revenue Fund. Perhaps I should begin by summarizing the year-end FY '88 transfer ordinances. As you 7 12/10/98 APPROPRIATIONS COMMITTEE - Bill 980833, 980839 know, they're required for the year-end closing of the City's Financial books. In the course of preparing the City's annual financial report, the Accounting Bureau and the Budget Bureau identify reconciliations which need to take place between the totals shown in the City's consolidated annual financial report and the appropriations for each department. And these two transfer ordinances reconcile those two sets of numbers. Once the annual financial report is completed, it's audited by the City Controller, who serves as the City's independent auditor. In order for the Controller to give a favorable opinion regarding the annual financial report, legal appropriations for each department and each fund must be consistent with the annual report. And, therefore, we need these ordinances, obviously, for the Controller to issue a favorable opinion by the end of this month. Bill No. 980833 makes a variety of changes. 980841 transfers within the General Fund, which are summarized in the testimony I've 8 12/10/98 APPROPRIATIONS COMMITTEE - Bill 980833, 980839 provided to the committee. 980839 is a transfer in the Grants Revenue Fund, which, basically, is -- the sole department affected is the Police Department, and both of those are reconciliations for FY '98. For FY 1999, there are a variety of different ordinances. The first is a General Fund midyear transfer ordinance, which is 980832. It includes transfers, and the vast majority of 11 funds in this bill are to fund the First Judicial District of Pennsylvania for the remainder of this year. As the committee knows, in the adopted budget this year, annual funding that would have supported the courts was placed in several other lines in the budget, pending the State's hopeful assumption of court funding costs. 3 million from Grants Revenue, which reflects the amount offsetting funds the court spend, which are offset by fees and other revenues. 9 12/10/98 APPROPRIATIONS COMMITTEE - Bill 980833, 980839 There's several other increases within the General Fund for departmental changes. 3 million for the Mayor's Office of Information Services; $1 million for Community College, which is a result of the labor agreement reached earlier this year for the college and an increase in its City's contribution as a result of that. There are two amounts -- $574,000 for Health, and $266,000 for the Office of Emergency Shelter and Services -- which both go to fund the General Fund portion of the sidewalk behavioral ordinance costs, which we've discussed several times in recent weeks. The vast majority of these dollars go to funding increased outreach teams to work with homeless individuals on city streets. There's $500,000 for the Commerce Director, and this is an increase in funding for the Cultural Fund, which is an issue that all of you familiar with and have worked very hard to achieve. 5 million, and we expect it to stay at that level going in the future.
10 12/10/98 APPROPRIATIONS COMMITTEE - Bill 980833, 980839 And these various changes are funded by a number of changes in the Sinking Fund because a variety of debt service guarantees that the City has maintained for several years are -- since the beginning of the fiscal year have been established to terminate, and we will no longer need to make those payments, so those funds are available to make this transfer. And then, finally, there's a small $755,000 transfer within the departmental budget of the Controller's Office. The grant -- there are a variety of grants revenue transfers before you today. Bill 15 No. 980835 is an increase in funding from the Mayor's Commission on Literacy for their Family Literacy Program. Bill No. 5 million for OESS for food bank aid and basically a state grant for emergency food assistance. Bill 980873 is a $900,000 Grants Revenue Fund transfer to support the local law enforcement block grant money, which the City has again received from the federal government this 11 12/10/98 APPROPRIATIONS COMMITTEE - Bill 980833, 980839 year. Bill 980840 is a $600,000 appropriation, which was originally for the Department of Human Services for the Safe and Sound Program. It's been determined that those funds are best appropriated in the Recreation Department because that's where the program will be run, where that portion of the program will be run from this year. And Recreation and Human Services have requested this transfer to reflect that programmatic assignment. Bill No. 6 million grant appropriation to the Streets Department for the recycling program, mostly to buy new recycling vehicles, also to fund education programs this year. And then I had previously mentioned 980839 as a transfer for FY '98. The final two bills, No. 980886 and 980887, are transfers within the HealthChoices Behavioral Health Revenue Fund. 8 million to fund sidewalk ordinance 3 initiatives; and the second to fund the Behavioral Health Initiative of about $800,000, and this matches state money -- or I should say it mirrors state money which is appropriated to provide drug and alcohol services for individuals who are removed from the Medicaid rolls. That concludes my testimony, I believe. And, obviously, I'd be happy to answer any questions. And, as I mentioned, there are numerous departmental representatives who can answer various questions on their pieces of these transfers.
Thank you, Mr. Kaplan. Let's go to Bill No. 980833 and 980839, whereas in the FY General Fund, you're requesting an increase in the appropriations for the police department for 1.5 million?
What was the grievance that you cited in the testimony? And, may I add, what is the impact upon next year's budget? 13 12/10/98 APPROPRIATIONS COMMITTEE - Bill 980833, 980839 (Thomas Nestel comes forward.)
Good morning, Councilwoman Krajewski and members of the Appropriations Committee. I am Tom Nestel, Deputy Police Commissioner. The grievances were -- it's a consolidation of 54 separate grievances that the $1 million is requested to settle. And most of those grievances involved changing officers' working hours, and that is what the vast majority of the 54 grievances are.
As you mentioned, there are two separate police pieces in the transfer. The first piece is that which is in the General Fund portion of the transfer. And then Bill 19 980839 is a transfer which reflects the timing of what we call "the crime bill classes." As you know, we have to match the federal funds which we get for the additional police officers we hire. And because that class came a little bit earlier than we expected last year, we needed to recognize the additional 14 12/10/98 APPROPRIATIONS COMMITTEE - Bill 980833, 980839 grants.
So it's higher than what you originally budgeted.
Correct, in the grants fund. In other words, because that class went earlier, we got more grant fund money than we expected. So that's the second piece of the police transfer.
Thank you. How many new police are on the streets that can be attributed to the crime bill?
And we first started to hire under this program, when in what year?
And would you explain what the funding was? I recall that the first year, the federal government would pay, 15 12/10/98 APPROPRIATIONS COMMITTEE - Bill 980833, 980839 what, 75 percent?
The funding is a total -- or a maximum of 75 percent but up to a specific dollar amount. So that we received, over the period of time, let's see $6 million in federal funds to offset a portion of the salaries for the 753 officers.
It's spread over a three-year period. And some of those officers are presently fully funded through City revenues now. And as they -- it's three years from the date they were hired. So the initial officers, the first hiring was 153 officers; they are all fully funded. And in our budget, the operating budget for each year, we indicate when the officers come off the crime bill onto the operating budget, and that is built right into our budget.
Are there any other questions from members of the committee? (No further questions.) 16 12/10/98 APPROPRIATIONS COMMITTEE - Bill 980833, 980839
As I mentioned, 980832 is the FY '99 midyear transfer ordinance in the General Fund. There are a variety of programs funded here. The vast majority of the bill, $54 million is for the First Judicial District of Pennsylvania. There are additional transfers for MOIS for the sidewalk ordinance, Community College, and the Cultural Fund, and then an internal transfer within the Controller's Office. These are funded by monies which have been set aside for the First Judicial District of Pennsylvania as well as certain savings on debt service guarantees the City had previously had on a number of properties.
Why are we allowing the State not to comply with its responsibility?
Well, the Administration 17 12/10/98 APPROPRIATIONS COMMITTEE - Bill 980833, 980839 and City as a whole, I think, have worked very diligently to try to bring the State to understand its responsibility under a series of State Supreme Court decisions requiring State funding of the courts. It's prettier clear, even to those of us who are not attorneys, that if you read the opinions, the State is required to develop and implement a funding plan. Obviously, it's up to the State Supreme Court to work with legislature to make sure that that happens. And it hasn't happened yet.
It's been going on for quite some time now. How long has this been going on now?
Yes. In this year's State budget, for the first time, the Governor actually proposed the first piece of funding for that, a $12 million appropriation to fund the senior court administrators in the judicial districts around the State through the State budget. 18 12/10/98 APPROPRIATIONS COMMITTEE - Bill 980833, 980839 Although the governor supported that, when the budget was passed in the last several days before the budget was finished, the State legislature put in a provision requiring that that funding not be spent, that that appropriation not be made until a comprehensive State court funding program had been developed. And because that has not happened, that appropriation is essentially in limbo now.
To date, have any of the employees from the First Judicial District been transferred over to the State?
No. Other than, obviously, as you know, some years ago, the judges were State employees. But other than that, no. 22
When do you think this issue will be resolved? I mean, we've been talking about it for years.
It is very difficult to 19 12/10/98 APPROPRIATIONS COMMITTEE - Bill 980833, 980839 tell. We have, as you know, pursued a number of strategies to try to get the attention of the State. It's clear that there is some fairly serious dialogue going on at the State level, but if we cannot -- if we're not going to get relief in the State courts, it's going to be very difficult for us to force it any other way.
Bills No. 12 980835, 980838 and 980840 and 980841 which is Grants Revenue Fund's midyear transfer; is that right?
I have just one, Madame Chairwoman, on Bill No. 980840. In your testimony, on , you state that these funds will be used for the Safe and Sound Program. Can you explain what this program does and how the program affects our young children?
Yes. The specific 20 12/10/98 APPROPRIATIONS COMMITTEE - Bill 980833, 980839 testimony prepared by the Recreation Department, which you may have, goes into some detail about that, but if I could ask -- is there somebody from Recreation or Health who could come up and address that specifically rather than just having me read that back to you? (Josephine Mangano comes forward.)
My name is Josephine Mangano. I'm the Administrative Services Director of the Recreation Department. The Safe and Sound Program is a part of the City's anti-violence initiative. It was created in the Mayor's Office of Children and Family, and it's a part of that whole initiative. What it does is, it's really quite unique. In fact, I don't know of any other jurisdiction that has a program like this. It's to work with the children and the families in the neighborhood and to reduce violence by coordinating all of the resources and collaborating with private sources and public sources and community resources. 21 12/10/98 APPROPRIATIONS COMMITTEE - Bill 980833, 980839 Some aspects of it are creating programs for mentors. We have a program called "The Peaceful Posse" whereby we're going to train our Recreation people and community people in the neighborhoods who are interested in reducing violence in their neighborhoods to work with youth, especially youth that are at risk, so that they can model for them anti-violent behavior, and also create opportunities and alternative activities to violence. We also have the Ice Violence Campaign, and that is to end violence. And in doing that, we're putting out a public relations effort so that we can get it out to the neighborhoods and to the youth.
It's a relatively new program, and its main initiative is to reduce violence by working with the neighborhoods and any other resources that we can harness and coordinate and collaborate with so that we can focus all of the resources to reduce violence through any types of means -- social, recreational, and health 22 12/10/98 APPROPRIATIONS COMMITTEE - Bill 980833, 980839 means.
What areas of the City do you cover on this? And how many children are involved?
Well, the Robert Wood Johnson Grant, which funds the Safe and Sound Program directly, is for the North Philadelphia area. Our Violence Initiative Program is for most areas of the City, and we use various funding streams for that.
All right, thank you. We will go to Bill No. 980886 and 980887. Councilwoman Verna, would you like to go back?
Mr. Kaplan, on 980841, how many additional recycling vehicles will be purchased with these funds?
And do we have the necessary personnel to operate these vehicles? 23 12/10/98 APPROPRIATIONS COMMITTEE - Bill 980833, 980839
Right. This actually, believe it or not, the recycling fleet is now old enough that there are some vehicles that are at an age where they should essentially be in our reserve, they shouldn't be on the street every day. So many of these vehicles will be replacement vehicles for some of the older ones that we currently have on the street.
I'm not quite sure what the split is between new recycling vehicles and replacement vehicles. Perhaps the Streets Commissioner can respond? (Mr. Kaplan confers with someone from the Streets Department.)
Yes. 24 12/10/98 APPROPRIATIONS COMMITTEE - Bill 980833, 980839
Thank you. Now we'll go back to 980886 and 887. Are there any questions from members of the committee? (No questions.)
I guess you're requesting a suspension of rules, Mr. Kaplan?
Yes. I'd like to request a suspension of rules on all of these bills.
Thank you. Well, that ends the public hearing on appropriations. - - - 25 12/10/98 APPROPRIATIONS COMMITTEE - PUBLIC MEETING
We will now go into our public meeting. The Chair recognizes Councilwoman Verna for the purpose of reporting out bills.
Thank you. Madame Chair, I move that Bill No. 8 980832 be reported out of committee with a favorable recommendation; also a recommendation that the rules of Council be suspended so as to permit first reading at our next Council session. (Duly seconded.)
All those in favor? None opposed. Therefore, the bill is voted out of committee with a favorable recommendation. The Chair recognizes Councilwoman Verna for a motion on Bill No. 980833.
Thank you, Madame Chair. I move that Bill No. 980833 be reported out of committee with a favorable recommendation; also a recommendation that the rules of Council be suspended so as to permit first reading at our 12/10/98 APPROPRIATIONS COMMITTEE - PUBLIC MEETING next Council session. (Duly seconded.)
All those in favor? Opposed? Therefore Bill No. 980833 will be reported out. Bill No. 980835, Councilwoman Verna?
Thank you, Madame Chair. I move that Bill No. 980835 be reported out of committee with a favorable recommendation; also a recommendation that the rules of Council be suspended so as to permit first reading at our next Council session. (Duly seconded.)
All those in favor? Opposed? The bill is reported out. Councilwoman Verna, Bill No. 980836?
Madame Chair, I move that Bill No. 980836 be reported out of committee with a favorable recommendation; also a 27 12/10/98 APPROPRIATIONS COMMITTEE - PUBLIC MEETING recommendation that the rules of Council be suspended so as to permit first reading at our next Council session. (Duly seconded.)
All those in favor? Opposed? (None opposed; 980836 is reported out favorably.)
Thank you. The Chair recognizes Councilwoman Verna for a motion on Bill No. 980837.
Madame Chair, I move that Bill No. 980837 be reported out of committee with a favorable recommendation; also a recommendation that the rules of Council be suspended so as to permit first reading at our next Council session. (Duly seconded.)
All those in favor? Opposed? Thank you. Therefore, it (980837) will be reported out with a favorable recommendation. 28 12/10/98 APPROPRIATIONS COMMITTEE - PUBLIC MEETING Councilman Ortiz -- I think I'll give Councilwoman Verna a break -- for the purpose of voting out Bill 980839. Just one minute. Bill 5 No. 980838 will be held. Councilman Ortiz.
Madame Chair, I move that Bill No. 980839 be reported out of committee with a favorable recommendation, and a recommendation that the rules of Council be suspended so as to permit first reading at our next Council session. (Duly seconded.)
Thank you. All those in favor? Opposed? Thank you. (980839 is reported out favorably.)
Madame Chair, I move that Bill No. 980840 be reported out of committee with a favorable recommendation, with a recommendation that the rules of Council be suspended so as to permit first reading at our 29 12/10/98 APPROPRIATIONS COMMITTEE - PUBLIC MEETING next Council session. (Duly seconded.)
Thank you. All those in favor? Opposed? (None opposed; Bill No. 980840 is reported out favorably.)
Madame Chair, I move that Bill No. 980841 be reported out of committee with a favorable recommendation and a recommendation that the rules of Council be suspended so as to permit first reading at our next session of City Council. (Duly seconded.)
Thank you. All those in favor? Opposed? (None opposed; Bill No. 980841 is reported out favorably.)
The Chair will call on Councilwoman Verna once again for the purpose of voting out Bill No. 980886. 30 12/10/98 APPROPRIATIONS COMMITTEE - PUBLIC MEETING
Madame Chair, I move that Bill No. 980886 be reported out of committee with a favorable recommendation; also a recommendation that the rules of Council be suspended so as to permit first reading at our next Council session. (Duly seconded.)
All those in favor? Opposed? (None opposed; Bill No. 980886 is reported out favorably.)
Madame Chair, I move that Bill No. 980887 be reported out of committee with a favorable recommendation; also a recommendation that the rules of Council be suspended so as to permit first reading at our next Council session. (Duly seconded.)
Thank you. All those in favor? Those opposed? 31 12/10/98 APPROPRIATIONS COMMITTEE - PUBLIC MEETING (None opposed; Bill No. 980887 is reported out favorably.)
Therefore, all the bills will be voted out of this committee with a favorable recommendations and with a suspension of the rules so as to permit first reading at the next session of Council. And thank you all very much. (Adjourned at 10:32 a.m.) - - - 32 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 Thursday, October 10, 1998, were reported and accurately by me, and that this is a correct transcript of same. RE: COUNCIL COMMITTEE ON APPROPRIATIONS BILL NO.'S: 980832, 833, 835, 836, 837, 838, 840, 841, 884, 887 __________________________________, JOSEPHINE CARDILLO, Registered Professional Reporter