Just a little8 because of amnesty, and it's one-time9 money, but, yeah, just a little bit.10
And are we11 considering -- and I want to commend12 Councilwoman Krajewski for her initiative13 to do that, which resulted in $12 million14 more that we had --15
And so if18 that trend continues, we won't be at19 crisis mode, if indeed the state did not20 do anything drastic by cutting us. And I21 understand they have their budget woes,22 but we will probably be right on par23 where we said we would be.24
Yes. That's right.25 67 10/26/10 - FISCAL STABILITY - RES. 1005241 If there's nothing -- if we don't get hit2 by the state, if there's no other3 downturn in the economy, we should be for4 this year around where we thought we were5 going to be, which is much better than,6 you know, seeing revenues fall off the7 cliff like they had two years ago.8
That's light9 at the end of the tunnel that may not be10 a train coming to hit us.11
Now, with13 that, we've taken a posture where we've14 slowed down in a cautious manner on some15 of the hirings that we could have done,16 and I'm not going to try to guess the17 motivations of that, whether it is in18 anticipation of some uptick of expense or19 some reduction in revenue. I don't know20 what those are, but at some point, we're21 going to have a reconciliation of those22 dollars and it will come in the form of23 transfer ordinances that will be put24 before us.25 68 10/26/10 - FISCAL STABILITY - RES. 1005241
In that3 regard -- and I'll piggyback off what4 Member Goode said -- that we aren't5 anticipating any settlement of the union6 contracts? I mean, does this --7
We're anticipating8 that if they're settled, they'll be9 within the framework laid out in the10 Five-Year Plan.11
All right.12 And specifically, that has nothing to do13 with the slowdown of hirings?14
The slowdown in18 hirings is to ensure that we actually19 stay within our budget.20
Okay. For21 example, in the EMS -- well, no; in the22 black-out situation --23
Brown-out.25 69 10/26/10 - FISCAL STABILITY - RES. 1005241 Black-out, brown-out, they're not in2 business. We could -- if my memory3 serves me correctly, would 25 new hires4 there solve that whole $3 million5 problem?6
I wasn't at the7 hearing, but if that's what came out at8 the hearing, then I'll --9
So, I mean,10 as we start to approach this -- and I'm11 going to anticipate at our next meeting,12 I'm going to ask that question a little13 harder. I don't need an answer right14 now, but as we start to realize these15 savings, as our plane is coming to at16 least stable airspace, anticipated17 revenues are there and some favorable18 surprises like amnesty, I know there's19 going to be something that kicks us in20 the shins, but pretty much I would be21 looking for us to solve some of the22 service problems, which the brown-outs23 are a problem, that we can anticipate24 that we've realized certain amount of25 70 10/26/10 - FISCAL STABILITY - RES. 1005241 savings due to late hirings, that we can2 hire out of -- what was the number of3 unfilled positions that we had, Charlie?4 What was that?5 MR. McPHERSON: 675.6
Out of 6757 unfilled positions, that we can manage to8 breathe easy and hire 25 more to solve a9 problem that has gotten so much attention10 from the public and one that concerns me11 deeply when we start talking about first12 responders and the safety of the public.13 So as we move from this quarter14 to the next quarter and we have this good15 news, I want to be also looking for us to16 do good things to pass that good news on,17 like maybe hire 25 firefighters to solve18 a major problem like that.19
I wouldn't actually20 call this good news. I would say it's21 the first time in a while we haven't had22 bad news, which is a significant23 difference. I don't think we're in a24 place where we can start adding25 71 10/26/10 - FISCAL STABILITY - RES. 1005241 expenditures, because we're kind of where2 we thought we would be. It's not like we3 have more money than we thought we were4 going to have when we --5
No. I6 wouldn't classify it as adding7 expenditures. It would just be doing8 what we said we were going to do in the9 Five-Year Plan and hiring the people that10 we have budgeted for. So, I mean --11
The Five-Year Plan12 assumes we don't incur those costs. So13 what we're doing now is consistent with14 the Plan.15
All right.16 I'll give you until the next quarter for17 us to come to common ground on that, but18 if the trend continues -- and I pray and19 knock on wood that it does -- we're going20 to look to see public relief in some21 areas as well, so that that good news22 gets translated into good services. All23 right?24 Thank you, Mr. Chairman.25 72 10/26/10 - FISCAL STABILITY - RES. 1005241
Thank you,2 Councilman.3 Mr. Dubow, let me understand4 this, in your most recent questioning.5 The PICA-approved budget and the6 positions not filled, 675, and let me7 understand, where is that money as it8 relates to our fiscal year?9
There is always in10 every budget, there's an assumption that11 positions won't be filled for the entire12 year. So if you have a General Fund13 that's 22,500 people, there's always14 going to be some turnover. So if you15 didn't have any vacancies, you would wind16 up going over budget. I mean, just17 because the way our process works, we18 always are going to have vacancies. So19 it's not surprising that you would find a20 large number of --21
Is this22 number consistent with the prior years,23 675?24
I'd have to kind of25 73 10/26/10 - FISCAL STABILITY - RES. 1005241 go back and look, but it's probably2 consistent with the last few years. I3 think we probably have a large number of4 vacancies each year.5
6 Following on the theme of getting7 creative -- and you're probably not the8 person to talk to this about, but you're9 sitting here. I personally had some10 issues with respect to the pace of an11 issue that I think affects two of these12 problem areas -- one is wage tax; the13 other is the transfer tax -- is the pace14 of development in the City, be it15 supported by the government, be it RDA,16 OHCD, PHDC, or simply allowing17 individuals who are willing to build in18 the City of Philadelphia, and it's19 unfortunately not as many that we are20 used to in the past. But I have a real21 concern because I think that, one, from a22 fiscal perspective, that our inability to23 generate activity has been diminished,24 because there seems to be this25 74 10/26/10 - FISCAL STABILITY - RES. 5 I'm all for transparency, you6 know, support it, in some cases probably7 in retrospect regret, every imaginable8 ordinance that relates to creating9 transparency, but my concern is when it10 then turns into paralysis, because I've11 seen too often where people submit12 projects or they come in and requesting13 publicly owned land, be it RDA, Public14 Property or some other agency, and they15 are "formed" to death. By that I mean,16 you get to a stack of forms and you can't17 even be guaranteed that you will end up18 with the property. 24 I think there needs to be some25 75 10/26/10 - FISCAL STABILITY - RES. 13 On the public side, we have14 been sitting on $50 million of NTI bonds15 for the last year. And I'm only saying16 the last year because that's the time17 that the audit was completed, where18 essentially all of the issues with19 respect to whatever concerns were had by20 either the RDA or the Administration as21 it relates to the type of bonds, the22 amount of bonds, any issues with respect23 to some potential criminality, because I24 believe that it was -- actually, at one25 76 10/26/10 - FISCAL STABILITY - RES. 1005241 point there was an attempt to hire a2 forensic criminal auditor to determine if3 there was some criminal activity. 18 The most recent round of19 funding from the state, I think we got20 the lowest amount of developments funded21 in most recent history, and the reality22 is is that a city in the western23 county -- and I don't know if that24 reflected on the fact of who might25 77 10/26/10 - FISCAL STABILITY - RES. 8 So if we want to talk about9 creative ways, other than cutting10 services and raising more taxes, which I11 said earlier, I don't think there's any12 appetite for that, we got to get, frankly13 speaking, a little more aggressive in14 these opportunities. 18 We in Council are always19 prepared to work with the Administration,20 because at the end of the day, as the21 Mayor actually likes to say, there are 1822 people who drive this particular train,23 and we want to be a part of that train in24 a very meaningful way. And while we're25 78 10/26/10 - FISCAL STABILITY - RES. 93 percent real estate tax was a very4 difficult vote -- we also want to be as5 aggressive and in the position to6 participate in a meaningful way in7 creating some of these ideas and some of8 these mechanisms that are going to drive9 revenue, other than simply putting our10 hands in people's pockets. And I mean11 that. 15
And at the17 end of the day, our ability to create and18 generate revenue on a local level is very19 important, and not simply being subject20 to the national recession. Okay? So21 that's pretty much that on that one.22 Any other questions by members23 of the Committee for this witness?24 (No response.)25 79 10/26/10 - FISCAL STABILITY - RES. 1005241
Mr. Dubow,2 thank you very much. That was pretty3 painless, wasn't it, sir?4
Anyone else6 to testify on this resolution?7 (No response.)8
There being9 none, thank you very much.10 This concludes the hearing on11 the Committee of Fiscal Stability and12 Intergovernmental Cooperation. Thank you13 all very much.14 (Committee on Fiscal Stability15 and Intergovernmental Cooperation16 concluded at 2:40 p.m.)17 - - -18 19 20 21 22 23 24 25 80 1 CERTIFICATE2 I HEREBY CERTIFY that the3 proceedings, evidence and objections are4 contained fully and accurately in the5 stenographic notes taken by me upon the6 foregoing matter on October 26, 2010, and that7 this is a true and correct transcript of same.8 9 10 11 12 --------------------13 MICHELE L. MURPHY14 RPR-Notary Public15 16 17 18 19 (The foregoing certification of this20 transcript does not apply to any reproduction21 of the same by any means, unless under the22 direct control and/or supervision of the23 certifying reporter.)24 25