Let's go a step further. Let's go to something that I think would probably interest the District Attorney's Office even more so than a person just without a license. What about a complaint against a contractor and you find that they haven't been paying any of the tax that is due the City, what could you due do that contractor? Forget the actual incident, you start an investigation, you find out that this person's been conducting business in the City of Philadelphia for just a year and has paid no tax, what could you do about that?
Nope. No offense intended, the City Councilpeople are very much interested in contractors and everybody else pay taxes, but that is not a criminal action. That 1952 2/23/01 - FY '02 OPERATING BUDGET would be, for example, L & I would report to the City Solicitor and the City Solicitor would do what they do if I didn't real estate tax. They try to collect it or they dun me or something else. But I want to make sure you understand, Councilman Rizzo, that if I'm a thief and I'm a contractor, the fact that I don't pay my taxes or the fact that I don't get a license is not going to impede my desire to rip people off. So I don't know that except for good financial management of the City it's important that the City collect its taxes, but it's not a violation of the statutes of the Commonwealth of Pennsylvania if you don't your City licenses fee. That's an issue for the City solicitor, the Department of Licenses and Inspections.
If the City of Philadelphia then, is there anything that the DA's Office could do to that individual if the City of Philadelphia asked the District Attorney's Office to involve themselves?
Let's say in the real world, I mean, if the City wanted me to go after tax 1953 2/23/01 - FY '02 OPERATING BUDGET cheats and you want to pay me to go after tax cheats, I don't know that that's great use of our resources, frankly, because we're not truly equipped to on do that. That is situation that's best left to other department heads of the City of Philadelphia, not the District Attorney's Office, if I may be so forward.
District Attorney, the reason I'm pushing this is the fact that you describe a very, very difficult situation, how hard it is to go after a person especially if they leave the nails and the chalk and the other paraphernalia for 49 if they picked up at Home Depot and then they're not really committing any fraud, there's just a breach of a contract. I guess I'm just searching for something that could send a message to these people because you brought these --
The best thing as I suggested, Councilman Rizzo -- this is really true. So many people are gullible and vulnerable and they think that they can consolidate all their deaths and get some money left over and get a second mortgage, whatever they do, and get their kitchen taken care of. But they don't know nor can they possibly 1954 2/23/01 - FY '02 OPERATING BUDGET understand the technicalities of the fine print of a contract, plus the fees, the balloon payments, the credit insurance and all those other things. So my sense tells me that just like the Marcy Simms commercial, an educated consumer is our best customer. An educated wary consumer is our best defence against a fraud. But still, fraud will be permitted to go as long as people are willing to put their name on a piece of paper when they're not entirely sure what all the fine print means. That's why we've been talking to CLS about how Community Legal Services and our office can perhaps help to educate consumers. It's like holding somebody's hand. We have all kinds of frauds and things happening in Philadelphia because in spite of our best efforts, people still do things, even having been told if it sound too good it probably is, there are some people in the City who will do it anyway. And that's the sad thing of it. I'm willing to listen to anything that you might want to suggest, but I'm not aware of anything other than what I've said.
In the last week or so, we've all in Council been focussed on these 1955 2/23/01 - FY '02 OPERATING BUDGET budget hearings, so I know that something -- maybe the Chair can help me with this. The Administration just announced a new organization or a consumer protection arm of government or something to do with the consumer, and I would assume it also did something that would protect the consumer and I would hope that they would draw, when appropriate, the District Attorney into -- because I don't think a scam like that against anyone, especially like I mentioned earlier on our senior citizens is just --
We work very closely with the State Attorney's General's Office and their Consumer Protection Bureau. Plus, we would be pleased to work with anybody in the City Administration to alleviate some of the tremendously pressing and horrible situations that our citizens find themselves in.
I can't recollect, but I know that just in the last week during the budget process I heard maybe --
Councilman Rizzo, I believe it was City Council that passed a resolution for a consumer advocate.
Is that what I'm 1956 2/23/01 - FY '02 OPERATING BUDGET recollecting?
It was a resolution 4 followed up by two bills offered by Councilman Clarke.
So hopefully, that will lead to being helpful with this issue. Thank you again, District Attorney Abraham.
Thank you. Are there any other questions of the District Attorney? Thank you. I hope you're walking out of here as happy as when you walked in.
You're welcome. The Defender Association is next. (Witnesses come forward.)
Good afternoon. Thank you for your patience. Identify yourself for the record and proceed with your testimony.
Good afternoon, Madam 1957 2/23/01 - FY '02 OPERATING BUDGET President. I'm Ellen Greenlee, Chief Defender, Defender Association of Philadelphia. On my left is First Assistant Charles A. Cunningham. And on my right is our Controller Selim Tawadros. Also with us and part of our team I should recognize our business manager, Linda Kozinski (ph); our assistant controller, Christian Muel (ph); and my assistant, Christine Adler; as well as Byron Carter who is chief of Probation Parole and Alternative Sentencing.
Ms. Greenlee, the stenographer has been given a copy of your testimony. It will be transcribed in full. I would ask if you could summarize your testimony. We would really appreciate it.
My request would be for those extra District Attorney doesn't need because we could certainly put them to good use as we're struggling mightily to try to keep up with the District Attorney's Office in terms of staffing and retention of our attorneys to do our business. 1958 2/23/01 - FY '02 OPERATING BUDGET I thank you, Madam President and Members of City Council, for this opportunity to present our appropriation request to you this year for Fiscal Year 2002. As you're aware, we are purchase of service contractor providing representation in the criminal defense area for adults and juveniles, providing representation to the mentally ill in civil and criminal matters, and to dependent children in contested custody matters. 5 percent of personal services asked of all City departments. I should mention, while I'm certainly pleased to hear the District Attorney say that she's able to manage this year a starting salary of $42,250, as you will recall, we will be in the third year of our parity plan and this September our starting salaries for those who are barred in Pennsylvania will be $36,500. So while I certainly feel that assistant district attorneys are worth 1959 2/23/01 - FY '02 OPERATING BUDGET more than $42,250, I certainly would urge the Council to consider seriously some changes in this parity plan we're involved in because to my mind there is no question that the work that the assistant defenders do is, as the Rendell Administration said in its party days, we are certainly deserving of parity with the District Attorney's Office. And I think anyone familiar with the work that's done in the criminal courts, in dependency court, and mental health court realizes that the quality of work done by the Defender Association is superior. In Fiscal Year 2001, we increased our attorney staff by 10 and our social service staff by 4. This was to meet our obligations in the model courts, in dependency court and family court and to have additional attorneys for the afternoon court and municipal court that was started in May. In October, we were able to staff that PM court that municipal court started. We had requested also for Fiscal Year '01 an increase of eight in our administrative staff. This request was turned down. We come now for Fiscal Year '02 with certain open issues that we 1960 2/23/01 - FY '02 OPERATING BUDGET are working with the budget director on. We have a critical need for additional administrative staff, which I'm sure the numbers I will show you will indicate that need. We have a need for 6 additional positions. We have also some issues 7 around insurance, health insurance and workmen's 8 comp yet to be resolved. And fortunate or 9 unfortunately, we will have to move our offices 10 probably within the next year which is going to be 11 quite a considerable experience. As I know you're 12 aware, Mr. Rause (ph) has designs on that block 13 where we're located at 17th and Arch. And in fact, 14 we are in the footprint of the new project that he 15 is planning, so while our lease is not up until 16 February 2003, we have begun work on attempted to 17 relocate since Rause is eager to get started on that 18 project. So that will be other areas that we will be working on with the Budget Director to resolve quickly. When we look at what has been happening since 1996 in this five-year period, the work in the Defender Association has increased dramatically. The increases in case load and work load are just staggering in terms of the amount of staff that we 1961 2/23/01 - FY '02 OPERATING BUDGET have to handle these. As you will see from exhibit B, in terms of new cases, we have had a 42 percent increase in the number of cases we have received. Our work load has increased by 32 percent. And our court listings have increased by 36 percent. The most dramatic increases we have experienced during this period has been in municipal court cases.
Those are the misdemeanor cases, which include so many of the drug cases that come into the system. We have seen a 76 percent increase in our case load and a 76 percent increase in our work load. In terms of new Common Pleas cases, we have experienced a 54 percent increase. These numbers are staggering in terms especially in terms of our staffing, in terms of the problems that we have in maintaining staff, not only legal staff, but also administrative staff which is another issue that we will be working with the Budget Director on because our starting clerical and clerk typist and telephone operators start at 13,500, which is not a salary that anyone in the City is even remotely familiar with. What this means is we have difficulty filling our positions and we have difficulty keeping people in those 1962 2/23/01 - FY '02 OPERATING BUDGET positions so we're constantly struggling to maintain full staffing. A good example is our paralegal salaries where we have difficulty hiring people because our salaries much, much lower than the District Attorney. When we're fortunate enough to find a good person and spend time training that people, we have seen several of them taken away District Attorney's Office with increases of about $5,000 in salary to do the same kind of work at the DA's Office that they're doing for us. So this is really a serious area of concern for us. As I mentioned, it's been another record-setting year this last year. And this five-year growth has been enormous. The heaviest volume of cases has been in municipal court where last year we had 72,751 cases, which as I mentioned is a 76 percent increase. In juvenile court, we're also experiencing long case lists with a very large increase in the number of sex assault cases. With the police doing a lot more serious review of sexual assault cases, we have a lot more clients charged with sex assault crimes. 1963 2/23/01 - FY '02 OPERATING BUDGET We are doing well in juvenile in terms of our grants and special projects. We have received national recognition for our girls project and we are working on a multi-systemic therapy project to begin in April which will provide extensive services to a hundred young people in their home. Our Juvenile Special Defense Unit, as you are aware, which handles direct file cases, juveniles filed directly into adult court, last year had a 52 percent return rate of youngsters who were returned to family court, which obviously we consider to be indicative of the fine work that is done by that unit. The Federal Bureau of Justice Assistance has applauded our team approach. I have included a copy of that article for your review on their report on the team approach that we use in our Juvenile Special Defense Unit and its success. In our Homicide Unit since we became involved in homicide in almost, let's see, '93 so it's almost eight years ago, we've handled 710 cases. 85 percent of them were designated as capital cases, and during that time period, we have had no one receive a death sentence. I think just 1964 2/23/01 - FY '02 OPERATING BUDGET from a practical point of view, whether you like the death penalty or not, there is a very substantial savings to the City in terms of cost of counsel when clients or defendants receive the death penalty that the City saves because of the excellence of our representation in homicide cases. In our Child Advocate Unit, we have seen the opening of the second model court. We are representing presently 7200 children. The number is down a little because the court is managing to close more cases and to get children into permanent placements much bather. This model court which began as an experiment two or so years ago has really taken hold. It is front loading services to children and it is quickening the response for children in crisis.
I know that Judge Sylvester who is now back as administrative judge really wants to take these processes from model court and have them apply to all the courtrooms in family court. In our Probation Unit, as I mentioned, Mr. Carter is here who is the chief of that unit. We have a high volume of probation and parole violation hearings. We are constantly reviewing sentences in order to file petitions for 1965 2/23/01 - FY '02 OPERATING BUDGET reconsideration for early parole. We have more than 26,000 different communications last year around our clients in state and county prisons, with them and with their families and others concerned. And our intermediate punish section of Mr. Carter's unit, we review all felony cases after preliminary hearing, about 500 a month, to see if they are appropriate for alternatives. This unit has worked extremely hard with the other players of the system, the Department of Health, the DA, Probation and the other players, to work at establishing alternative placements for those in custody. This also a very important financial situation for the City because not only does treatment work, but treatment is much less expensive than keeping someone in prison. At the present time, the prison has a population of 7300 which is the highest it has ever been. When we had a cap just two or three years ago, the population was expected to not exceed 5600. So we at present have 1700 more inmates than the prisons were intended to hold, which is a problem in and of itself and represents a pending crisis, I think, for the City in terms of management. But we are striving mightily to try to 1966 2/23/01 - FY '02 OPERATING BUDGET get out of prison those who have been paroled. We have right now a hundred clients sitting in jail who have already been paroled, but they cannot get into a program because the City has not put up the money for the beds that they might go to. We are in a freeze situation at this point in time and we cannot get these folks out except at the rate of a 9 month. So this backlog is continuing and continuing 10 and adding to the overcrowding. This is one of the 11 areas of concern that we have and I think it's a 12 serious matter of concern for the City what is 13 happening with the prisons and what the costs are to 14 the City. 15 Also, in dependency court, one of our 16 areas of concern is the report from Philadelphia's 17 Public Interest Bar and Advocacy Community, which is 18 just coming out this week and probably will be printed and distributed, there is a serious shortage of judges in family court to handle dependency cases. There are long lists and private counsel is not paid sufficiently to induce them to work on dependency cases. So there is a serious situation that is growing in dependency court in those areas. We are also concerned as to the 1967 2/23/01 - FY '02 OPERATING BUDGET treatment of our mentally ill clients, many of whom are staying in jail much longer periods of time than they should because there are no treatment facilities available. This is something that we have been working on without a lot of success in terms of the Director of Social Services to try to make more beds available to try to get more beds at Norristown and to find other facilities where those who are mentally ill can be treated and not simply kept in jail much longer than those who are not mentally ill. We are concerned also about our staffing, our internal staffing, about salaries, as I mentioned, sufficient to attract and retain staff, especially our administrative staff. And we are working on a parity plan for that and we will obviously have to do something in terms of salaries for our attorneys. We have seen a very serious drop in the number of applicants this year for attorney positions. Routinely three or four years ago, we would get 7 or 800 applicants. We were down to about to about a hundred this year. I think this poses a serious problem.
And it's not, I think, because of lack of good will, of people willing to 1968 2/23/01 - FY '02 OPERATING BUDGET do public interest work, but young people coming out of law school with law school debt and college debt piling one on top of the other just can't afford to work for the salaries that we are able to pay them. As I mentioned, our stating salary is thirty-six five this September. In Fiscal Year 2003, we will be in the fourth year of our parity plan and our salary will be thirty-seven two at that time. So we are managing -- if the District Attorney can do what she says, and I know she's a women of her word, I'm sure she can give those increases this year, we are falling black to a position of second class citizens in a system that requires a vibrant and prepared Defender Association where we're handling on average 75 percent of the cases. If we really believe that the poor deserve effective representation, the same as those of means, then we cannot have the system tilted so that the prosecution has all the resources it can possibly use and we are struggling not only for resources, but to try to keep the people we've been able to attract to this work. I note also the District Attorney saying that she received a productivity loan last year and each assistant DA has a computer. Well, we were 1969 2/23/01 - FY '02 OPERATING BUDGET very proud ourselves that we were able to put one in an office of three attorneys. We have not had much success in terms of pushing for a productivity loan. And while I realize that we are not a City agency which we all too well, unless we can be kept at the same level of resources, and certainly technology is one of those areas, then this system is skewed in favor of the prosecution and we are paying lip service to providing effective representation to the poor. This is really becoming a very critical matter that our resources and the resources for private counsel be at the same level as they are for the prosecution. As you can see, the prosecution is having no difficulty whatsoever in meeting its demands. And they have other resources not available to us, obviously, with grants and forfeiture monies and those that they can -- they can on their own afford to give a very substantial increase to their staff. That, of course, is one of our concerns. As I mentioned, our relocation, we are obviously very interested and we know you will be interested in our relocating to a place that is 1970 2/23/01 - FY '02 OPERATING BUDGET convenient for the work that we do which means it needs to be convenient to family court at 1801 Vine and to the Criminal Justice Center at 13th and Filbert. We have begun some preliminary investigations along these areas, and I know that you will be hearing more about that. I trust that you will support the need for us to be located in an area that is accessible to both of these places and not even think about putting our people on buses or shuttles to court because it doesn't work for our practice. Our final area of concern then would be in that area of technology, that there been some thought given to a productivity loan for us as well as the other players in the system to bring us up to speed in those areas. We have managed, certainly with the able assistance of my business manager and assistant, to put together a brochure on our services and a report which we will be sending to the Councilmembers for your constituent services, I think you will want those. Having said that and awaiting your questions, I thank, Madam President, for the time that you have given us and the interest that you and 1971 2/23/01 - FY '02 OPERATING BUDGET the Members of Council have always shown to the work in the Defender's Association.
Thank you, Ms. Greenlee. I think you have stated very clearly that you are working with Mr. Dubow regarding the need for administrative staff and also attorneys.
You made mention of those who are in prisons have been paroled but the City doesn't have beds for them to go to. Are you talking about a halfway half or are we talking about --
This is for drug treatment. I'm Byron Carter, Director of Alternative Sentencing for the Defender's Association.
Yes. The client is 1972 2/23/01 - FY '02 OPERATING BUDGET evaluated by the City Health Department and also a doctor trained in addiction reviews that evaluation and picks a level of treatment. The client is then paroled to that level of treatment. Approximately 65 percent go to in-patient and the remaining percentage go to outpatient. The people are in-patient are then stepped down to intensive outpatient and finally to outpatient. We also provide services for them to obtain employment as they near the end of their addiction treatment. We find that there's a 44 percent improvement in the conviction rate for people that have gone through six months of treatment. There's approximately a hundred clients per month costing the City in prison costs approximately a quarter million dollars per month that are waiting -- that have been paroled by the courts, by the judges, and ready for release except the City cannot afford or will not pay for those clients to go to treatment. The beds are available.
And the City refuses to pay; is that what you're saying?
Mr. Dubow, 1973 2/23/01 - FY '02 OPERATING BUDGET could you check into that and get back to us, please?
Thank you, Madam Chair. I'd like to explore that a little further. It wasn't even the original reason I put my light on. Give me the tail end of that again. These are people who have been released?
These people are prison but are paroled. There's nothing holding them except -- they have been paroled to go to drug treatment. The the only thing that keeps them in jail is that the City will not pay for those treatment slots. They often wait two to three months in prison before a slot will open up. The approximate cost is about a quarter million a month for those people waiting to go to treatment.
And give me some context. You're saying across the criminal justice systems a quarter of million dollars a month to hold them.
What does it cost for them to be placed a month? You understand what I'm -- I'm trying to make a comparison. I'm assuming it costs us more to hold on to them than it does to put them out.
It depends what level of treatment they go to. That can range from a cost of approximately $65 a day to a cost of approximately $135 a day for treatment. However, the City only has to incur those costs for approximately 35 days. Then due to the efforts of the Health Department and our social service staff, they are rolled over into state and federal funding programs. Therefore, it would save the City a great deal of money if they were released rapidly.
Yes, sir. We deal with approximately 56 different programs from here to as far out as Harrisburg.
Were these people 1975 2/23/01 - FY '02 OPERATING BUDGET getting drug treatment in prison?
Some of them -- approximately, I would say, percent are receiving 5 drug treatment. Again, the treatment in the prison 6 is called the options program. It's basically to 7 prepare those people for release to the drug 8 treatment programs. 9
Thank you. 10 Ms. Greenlee, as you well know, along 11 with a number of other members, I have had a concern 12 about the whole parity issue, pay issues, resource 13 issues as it relates to the Defender's Association, 14 and I think today, I can certainly understand if 15 you're feeling a sense of exasperation. In any fair 16 system, if one has been created yet, on budget day 17 if one side of the system is apparently pleased as 18 punch about what's going on with their office, then 19 the other side should be as well. And I think it's 20 fairly clear that that is not the case today. And you have different things that you do with your offices, although I still maintain there was a somewhat infamous exchange a number of years ago where I think the District Attorney pointed out to us that the DA's Office and the Public Defender's 1976 2/23/01 - FY '02 OPERATING BUDGET Office has different interests. I naturally still maintain that you have the same interest which is justice and fairness in the system. So notwithstanding whatever, if you're in the third year of the parity agreement, I think all of that needs to be revisited, whether we're talking about salaries, resources, computers, you're obviously soon to be in new space. I would certainly like to see a plan that lays out all of those issues. And if it's not going to be exact parity, the difference should be so immaterial that it doesn't make that much difference. We had some of this discussion earlier with the First Judicial District around the issue of court appointed counsel and what's going on with that system and the fees. There are a couple different levels of justice around here. And for many of us, we might pretty much be in a situation that we'll get as much justice we can afford and not be subject to the vagaries of the system and just kind of take your chance and get in and potentially never get out. None of us would ever want to be in that situation. I'm not saying that we can solve everybody's problem or that it's ever necessarily 1977 2/23/01 - FY '02 OPERATING BUDGET going to be perfect. But it certainly can be a lot better than it is today. And I would like to see us move to a point where in the area of salaries, general resources, and ability to do the job, whether it's the Solicitor's Office, the DA's Office, or the Public Defender's Office, there shouldn't be that much difference. There shouldn't be a glaring difference between and among the parties because whether you're the defendant or you've made an accusation, we're all Philadelphians here together and everyone should feel that their day in court was a fair day in court and that the deck wasn't so stacked against them that they really never had a chance the day they showed up.
I couldn't agree more. I certainly WOULD support efforts to do that. I have had informal conversation with City Solicitor who supports the idea of equality among what he called the three law offices, the Law Department, the Prosecution and the Defense. I do not think that the District Attorney shares that view from comments she expressed at the time this parity plan was put in place. But perhaps she can be persuaded to think differently about it. One would hope so. And I 1978 2/23/01 - FY '02 OPERATING BUDGET would hope that we could make whatever efforts are necessary to see equality among the law offices in the City.
Well, Mr. Dubow obviously is working certain magic with the DA's Office. We've had in previous years very different circumstances and situation. I don't think Madam Chair she's ever announced that she was so happy so I think if Mr. Dubow can do that for the DA's Office, he could probably make you happy, Ms. Greenlee.
I know that he would do it if he could. But it was total surprise to us because we do not have the kind of lines of communication from the District Attorney's Office that we even knew about this news today.
Every now and then he needs a little encouragement. We'll be working with you. Thank you.
Thank you. Are there any other questions of Mr. Greenlee? The Chair recognizes Councilman Cohen.
Thank you. 1979 2/23/01 - FY '02 OPERATING BUDGET I like the atmosphere created by all those on the Council side who have spoken today. I'll probably be a little less reasonable than Councilman Nutter, but I think he really speaks for all of us. The only disagreement I have with him is I think we got to get away from near approximation and get to equality. One of the parts of the compensation of attorneys is the respect they receive from the courts, and everybody will tell you that part of pay of an assistant district attorney is the respect accorded to him compared to the respect accorded to a public defender because, unfortunately, many times judges confuse the attorneys with their clients and treat the attorney for the indigent person accused of crime. They treat the attorney just as if he were the defendant or she were the defendant. I think it's necessary that we get to reality on the question of equality of treatment. It's got to be a bit discouraging to feel just as you're getting equal, the bar has been raised. But the good part is that it's important that the bar be raised for you as well as for the other side because I don't know how lawyers can be expected to accept so much pay in terms of public 1980 2/23/01 - FY '02 OPERATING BUDGET service. They pay an enormous amount in public service on both sides, the District Attorney and the Public Defender. But I think the Public Defender probably pays much more because of the way in which they're treated by the courts. I just think it's essential that we resolve. And Madam President, I think we ought to be asking from Mr. Dubow -- and you're probably going to be asking him. I may just be anticipating it. That by next week we ought to get a report because I think this has got to be resolved before the budget is finally decided. Your needs are great in so many areas and I think they've just got to addressed. If we want to load up the municipal court with all of these quality of life crimes, it's probably a good thing then we've got to pay the cost for doing so. We've got to make it possible for the cases to be effectively prosecuted and effectively defended at the municipal court level. And you've got to get the increase in staff. I was very concerned by the public announcement on that report that you referred to and the family court.
It's terrible to have these cases wait so long and take so long, not only in the case you talked about do the prisoners stay in jail longer -- and that absolutely makes no sense whatever. And I would like to know who in the City is responsible for saying no? Who makes that decision, do you know? You deal with them; you ask for approval, I assume. You must be negotiating with somebody to get approval to release a prisoner on a given date to go to a particular facility. Who has the power, other than the Mayor?
I'm sure the Mayor works with Estelle Richman who is in charge of health services and the prisons.
She indicates that it's a physical problem and that they're working on it. However, over the last five years due to the early parole to drug treatment programs, we estimate the Health Department and our office and the District Attorney's Office estimates that there's been 1982 2/23/01 - FY '02 OPERATING BUDGET approximately a 30-million-dollar savings to the City as a result of these early releases, and that's not counting the fact that they're not coming back to commit crimes. Again, there's a 44 percent increase in not being convicted of a crime when you go through these programs.
It was tremendously short-sighted from every point of view, from the point of view of recidivism, from the point of view cost to the City. I just think it's necessary because somebody is missing the boat somewhere or somebody's not saying something that ought to be said to somebody to open the lock and permit the City to get the savings both in terms of reducing the recidivism rate and saving money.
It's a short-term expense for a very long-term gain, and a serious long-term gain, I think.
We're certainly putting Mr. Dubow on the spot. We didn't mean to do that. We have a very good relation with him.
That's his job, to be 1983 2/23/01 - FY '02 OPERATING BUDGET put on the spot.
Mr. Dubow, you don't have to come forward. Councilman Cohen is asking that by next week when you give us your report regarding the other departments that you include the Defender's Office and also try to give us some explanation as to the problem of the parolees being in prison and not having beds to go to. Thank you. Thank you very much. Councilman, are you finished?
Thank you. The City Commissioners. (Witnesses come forward.)
Good afternoon. We have a copy of your testimony. It will be given to the stenographer. It will be transcribed in full. Feel free to summarize your testimony, if you will.
Good afternoon. I am Margaret Tartaglione from the Commissioner's Office. I would like to thank you for this opportunity to 1984 2/23/01 - FY '02 OPERATING BUDGET present 2002 operating budget. The $8 million is allotted as follows: Class 100, personal service, $4,163,653. Class 200, Purchase of Services $3,044,035; Class 300, materials and supplies, $590,334; class 400, equipment, $52,784; Class 800, payments to productivity bank, $281,082. This represents additional $3,981 in Class 100 over FY 2001 estimated obligations. The above figures also provide funds for three and a half wage increase effective December 5, 2001 in the amount of $41,079. Please note there is no provision in the above Class 100 figures for additional funding appropriations in the amount of 613,223 for 15 required to operate and maintain voters records and 16 document imaging and the new electronic voting 17 machines. 18 Our rate of attrition has been greater 19 than anticipated. It is expected that over our 20 current number we will be reduced by additional five 21 key employees enrollment in the drop program by 22 early 2002. This will impact already 34.9 staff 23 reduction over the last 10 years due to resignation, 24 retirement, and deaths. It is imperative to address 25 these funding issues as soon as possible in order to 1985 2/23/01 - FY '02 OPERATING BUDGET begin hiring the staff, training and anticipation of the arrival of new voting machines. We have provided you with copies of justification schedules submitted to finance with our FY 2002 operating budget details which have not yet been adopted. Approval of our request for the additional funding will begin our overall spending of $8,745,111. The amount applied to Class 100 funds will bring that figure up to $4,776,876. Although the City's Commissioner has made every effort to reduce our expenditures whenever possible and will continue to carry out cost savings, we respectfully ask the Council to consider approval of our request for funding of 16 positions. This department is instituting sweeping 17 changes of the system by which the citizens of 18 Philadelphia cast their votes. We are forced with 19 devoted work force as we enormous technology 20 advances in order provide level of service to the 21 citizens of Philadelphia, we must have adequate 22 number of employees. The new electronic voting 23 machine system which is tentatively scheduled to be 24 placed for the 2001 general election, can not be 25 implemented without these positions. 1986 2/23/01 - FY '02 OPERATING BUDGET The priority of this department is to assure the citizens of Philadelphia their Constitution right to vote, to certify that each voter counted properly. Once again, thank you for the opportunity to present our Fiscal 2002 operating budget.
Thank you, Commissioner. Did you ask the Administration for the additional positions? Did you make that 12 request? 13
We have been making 14 the request in the last four or five years and 15 always been turned down. It's getting worse. 16
Mr. Dubow, 17 you've heard the Commissioner testify for the need 18 of 25 additional employees. She also referred to 19 the fact the new electronic voting machine system is 20 tentatively scheduled to be in place for the 2001 21 general election. How do we expect the 22 Commissioner's Office to operate efficiently if 23 we're not going to give them the help that they 24 need? 25
The Commissioner's Office 1987 2/23/01 - FY '02 OPERATING BUDGET right now has 72 filled positions. The '02 budget has that going to 84.
72 filled positions now. The '02 budget has that going to 84. One of the problems the Commissioner's Office has had over time is they haven't filled the positions that have been funded. One of our concerns about increasing the authorized positions is that they don't even fill what's in their current budget.
Excuse me. You're going to have to identify yourself for the stenographer.
My name is Bob Lee. I'm City's Voters Registration Administrator. In 1991 we had a total of 109 employees. Right now we're down to 72. The increase to 84 is actually positions I think that are currently budgeted, so it's not really an increase to make up for those that we lost through attrition. Even from the 109 down to the 84 is less employees. 25 Currently, I'll tell you, thank God we 1988 2/23/01 - FY '02 OPERATING BUDGET have that imaging system. We got that image in. We put in a new poll book out there on the street. We eliminated the need for our people to carry those heavy binders around. The process works. We are able to review and provide access to documents quickly, efficiently. This system in 1998, we handled 419 committeeman challenges in a matter of three days and challenges to petitions for state 10 representative in a matter of a couple weeks. That 11 system has given us a lot of increased efficiency. 12 However, the law still mandates that we keep an 13 original document. 14 Right now sitting in that office I have 15 300,000 voter registration applications that have to 16 be filed alphabetically in cabinets in a City-wide 17 file. We are in the process of doing that. We just 18 do not have the people to file them. We move people 19 where the priority is in order to conduct an election without taking any risk or without causing any problems of certifying and completing the count. The people that we're asking for are not only going to be needed to run the electronic voting system, they've been needed in order to allow us to comply with federal and state mandates on how we 1989 2/23/01 - FY '02 OPERATING BUDGET operate and maintain our voter registration files.
Mr. Lee, these are all Civil Service positions, are they not?
The 7 unfilled positions, are they Civil Service 8 positions? 9
They are. There's no list 10 existing for any of the positions. 11
What happens in an event like that, if there's not an existing list? They stay vacant for as long as the Personnel Department does not give a test?
I think that's right. I have to talk to the Personnel Department and figure out why there are no lists. How long has that --
Are they clerical positions, Mr. Lee? What type of positions 1990 2/23/01 - FY '02 OPERATING BUDGET are they?
They're various positions. They're called election assistants. Some of them are technicians for voting machines.
I'll have to talk to personnel about that. I didn't know there weren't lists.
And Mr. Dubow, exclude the that there are vacancies on. Do you 11 have a problem with additional? They want 25 12 additional, but -- 13
They want to go from the 72 filled positions now up to 109. That's what their request is. And I think from our perspective, we'd like to understand what they can do with 84 because they've been providing their current level of service with 72 before we entertained going above that.
We're providing the current level of service by not performing certain functions 1991 2/23/01 - FY '02 OPERATING BUDGET in our office that we need to be performing on a daily and weekly basis. That work is backlogged, it's sitting there. It hasn't prevented us from conducting elections or maintaining our files in accordance with law, but I'll give you an example. There are currently 300,000 voter registration affidavits that have been entered into the computer. They're labeled. They're in trays. Some elections are in alphabetical order, others are in batch orders as we enter them. We can locate them, they're not in a cabinet alphabetically. We get a list every week from the Department of Motor Vehicles telling us that 2200 people in Philadelphia have changed their address. We've got to locate that original affidavit, take it, re-label it. Our computer does the transfer. We've got to re-label it, re-scan it, re-index so that nobody thinks it's an error in the imaging system. In addition to that, this year under federal law this year for the first time we've done our first large cancellation of records. We deleted 22,500 records in January. Those are people we designated inactive in 1998. Currently, we have 140,000 voters designated inactive. Those people 1992 2/23/01 - FY '02 OPERATING BUDGET are scheduled to be cancelled in December 2002. If we do not get the 300,000 records in the cabinets before we try to do the cancellation of those records in December 2002, we're going to spend months going from file and tray and file and tray trying to locate those records. Updating the computer, thank God, our poll book is based on the computer and it's based on effort there. We can conduct the election, but we're not maintaining our files. And we need to maintain these files on an ongoing daily basis. We are severely backlogged in maintaining those alpha files.
One question I have. It's not clear to me. Are you down to 72 because you chose not to fill these vacancies?
They don't have an existing list. 1993 2/23/01 - FY '02 OPERATING BUDGET
It's not your fault. Is it personnel that's holding up the filling of the jobs?
That's what I'm gathering from what Bob Lee is saying. You need these people, right? You need them desperately now.
Seems to me, we've got to get to the bottom of this. It's untenable to expect the Commissioners to do all they're doing with this depleted staff.
When this new system comes in, the central system -- Bob will you explain the central system and where we'll need these people. It's imperative.
Basically, the configuration of the system is there's going to be a central vote tabulation and reporting center down at Delaware and Spring Garden. There will be five do seven regional report -- vote transmission centers located in various sections of the City where at the close of the polls, the poll workers will close down their 1994 2/23/01 - FY '02 OPERATING BUDGET machine, print out the results tape that comes out of the machine and take the cartridge containing an electronic copy of those votes, put both of those items in an envelope. The Philadelphia Police Department hopefully and thankfully will still continue to pick those up and drive them to these seven regional locations where our employees will place the cartridge into a cartridge reader and the votes will be read and transmitted over a wide area network down at Delaware Avenue and Spring Garden. The vender has estimated we need just to operate to reading stations, we need three people at each of the regional vote transmission centers. If there are seven of them, you're talking permanent 16 employees that you can train and rely on that's 17 going to do that all the time. 18 There is going to be a central system 19 where we're going to have to staff that with about 20 five or eight of our permanent employees. We have 21 also included in this system an identical LAN and backup system at our warehouse. So that if this central system goes down, the votes will be continued to be tabulated at our warehouse on the backup system with only a 10- to 20-second lag. And 1995 2/23/01 - FY '02 OPERATING BUDGET the votes that are not transmitted during that time would be picked up with a final re-transmission at the end of the night. It's a widespread system. It requires staffing by permanent employees.
Mr. Dubow, it just seems absolutely ridiculous to me that we should be spending hundreds of millions of dollars to get new voting machines and we're not going to have the people to actually do the necessary work to get the end results.
Plus, Council President, we will be printing our own ballots. The monies we spend on outside mechanics now, we are going to train our own people and -- this is all savings but we need to train these people before we get this equipment.
Let me just make sure I understand. Are you saying that there will be savings in other areas that will offset these increases?
We won't have to print anymore ballot strips to put on the machines. You'll save in degreasers, any mechanical parts. The contract 1996 2/23/01 - FY '02 OPERATING BUDGET with the vender calls for a two-year primary warranty where the machines and the system itself is warrantied for two years, but it also includes in the price a parts warranty for years 3 through 10. The City Commissioners will not have to buy any parts outside of consumables such as seals and other items for those voting machines for the next 9 years. It's all included in the contract price. 10 Our mechanics, the current ones we have here and a few more that we need will trained by the vender and certified to do those repairs. Our people will be doing the repairs and the maintenance on these machines during the entire 10-year period with interval support from the vender during the first two primary years. So there will be savings as far as there won't be any parts cost outside of consumables for the first 10 years. Our hope is that we will not need the number of outside mechanics that we've had to use to program these mechanical machines. In fact, we hope to eliminate them completely and rely solely on our City staff to do this. And we won't require as much printing as far as for the machine itself. The system prints its own ballot faces and 1997 2/23/01 - FY '02 OPERATING BUDGET you put them on the machine.
Mr. Dubow, I suggest that you sit with the Commissioners and whoever the Commissioners assign to go over this issue. I want a report by next week. And if need be, all of the departments that were asking for more appropriations or more money, we will have to get them in if need be and we'll just have to have another hearing.
Thank you, Madam President. I agree with all that was said. We've come a long way and it would be foolish to not see the forest for the trees. I want to thank you the Commissioner and certainly Bobby Lee. We all call him at the drop of a hat, and he always has the answer. Thank you. Let me ask you, for election court with the judges, do you have any -- or should we have asked the courts? Do you have any say in that? We know, for example, in my areas in the 18th District they skipped it. My people have to go to two other 1998 2/23/01 - FY '02 OPERATING BUDGET districts instead of being able to have --
It wasn't our decision. We used to have courts throughout the City. The 5 courts decided that over the last few years that the 6 number of court orders that were being applied for 7 and granted on election day had substantially 8 decreased, which they have. Therefore, their 9 problem was the personnel and labor and cost they 10 were putting out there and they actually decreased 11 it down to 12, I believe it is now. This year we 12 had a total of 4400 court orders compared to'92. 13 That's down about 800. In '92 we had 5200. 14
The courts were 15 here. I didn't think about it until I saw you. So 16 I will get back to them in that regard. Thank you. 17
I think it's 18 imperative that you get in touch with -- or Mr. Dubow get in touch with you or you'll get in touch with him, but I think that you have to sit down and go over approximately how much savings there will be. I think it's ridiculous for us to be spending all that money for new voting machines and not have personnel to give us the end result. Councilman Cohen. 1999 2/23/01 - FY '02 OPERATING BUDGET
Madam President, I'm very concerned about the fact that we have published our calendar with specific dates as to when Council intends to take action on the budget. I don't know, but it may be a policy of the Administration or maybe they're just taking advantage of circumstances. We've got a lot of work piled up and I just want to be clear that I would intend to delay our program because under the Home Rule Charter there is need whatever for Council to complete the budget work until the end of May. And with the PICA law in effect, assuming that their requirements were in order on us, it would only bring up the day forward by 10 days to May 21st. I think there's a lot of work to be done and I'm concerned that the Administration may be sitting this out, knowing that we intend, I think, by March 22nd or March 23rd to complete the budget and I think they may be using the time against us because there are a good number of questions we referred to Mr. Dubow. He's the point man taking all the hits for the Administration today. He's really a very nice fellow. I think the Administration has to be on noticed that we are going to be prepared to extend 2000 2/23/01 - FY '02 OPERATING BUDGET the dates from March 23rd as long as necessary to get all these matters resolved satisfactorily.
And it's certainly not the Commissioner's fault that they didn't have a list to fill their vacancies.
They haven't been able to fill these jobs, I gather, over the last four or five years.
We will definitely see what we can do, I assure you. And Mr. Dubow, again, I'm going to tell you, we want you to work with these groups. Thank you. The Chair recognizes Councilman DiCicco.
Thank you, Madam President. Good afternoon, Commissioner. Sorry I got here late. I was in an office in a meeting. I did overhear some of the testimony, so the question I'm about to ask, if it was already asked, I'll yield to the stenographer's report. As a result of the last federal election, the general election in November and all 2001 2/23/01 - FY '02 OPERATING BUDGET the problems related to the presidential election in Florida and other states, there was some mention, I believe, that the federal government is looking to set aside some funds upgrading voting machines throughout the country. Has anyone contacted you? Do you have any information that you can share with us? Because we have appropriated I think was it $20 million, $21 million for new voting machines, and I was wondering if you know of anything that may be coming did down the pipeline either from the Feds or Harrisburg.
We don't have anything. Naturally, anything passed federally would probably channeled through the state governments. But I think the key thing to remember is a person was asked what it would take to update the voting systems throughout the country. They said since we put a man on the moon, we ought to be able at least have undated voting system. And the answer was, you can but it will cost as much as it cost to put that man on the moon.
We only did that once, though. We vote twice a year.
It cost so much 2002 2/23/01 - FY '02 OPERATING BUDGET that's why we only did it once. (Laughter.)
I have serious thought whether if there is some action down there, whether there's going to be enough funding there that it would go across.
You know, the moon could be a good source of absentee ballots, we don't want to go there right now. (Laughter.)
Thank you. Are there any other questions? Thank you all very much. SEPTA is next. (Witnesses come forward.)
Good afternoon. Thank you for your patience. Please identify yourself for the record. Welcome. And begin your testimony.
Thank you. Good afternoon. Council President Verna Members of the City Council, 2003 2/23/01 - FY '02 OPERATING BUDGET thank you for the opportunity to speak this afternoon in support of the $63.5 million Fiscal Year 2002 SEPTA operating budget request and to highlight key initiatives undertaken last year. Included in this request, funds to leverage state operating assistance and the City's Phlash contract services. I'm also joined at the table today by board members Jettie Newkirk --
Excuse me, Mr. Leary. Identify yourself for the record for our stenographer.
I'm sorry. My name is Jack Leary, I'm the general manager of SEPTA.
And joining me to my far right is board member Jettie Newkirk and board member Christian DiCicco and also Frances Jones.
We just have to get used to seeing Mr. DiCicco regularly. The others are like household names to us, but we'll get used to him as well.
Difficult for you? You know how difficult it is for me? (Laughter.) 2004 2/23/01 - FY '02 OPERATING BUDGET
Last year was a time spent constructive reassessment to build on SEPTA's strengths in delivery of safe, convenient, accessible public transit services to the citizens of the City of Philadelphia. This was also a time that we evaluated our organization and our operations and made some very important changes advancing our business plan, restructuring decision-making paths, and establishing new policies and practice for the day-to-day management of SEPTA's complex system. Focusing on infrastructure, significant improvements were made to stations, customer amenities and track and power lines. A major escalator renewal program we launched. New escalators with installed at Juniper, Margaret-Orthodox, Pattison, and Olney Stations. While contracts were let for the replacement of seven additional escalators at City Hall Station, Cecil B. Moore Station, Spring Garden, two escalators at Erie Avenue and two at 30th Street at the Regional Rail Station. Our inspection and maintenance programs were revamped with the objective to sustain good 2005 2/23/01 - FY '02 OPERATING BUDGET state of repair for the equipment and decrease the time needed to complete repair and maintenance work. Also, significant accessibility improvements and enhancements were also made during the year, including installation of audiovisual public address systems at designated key stations, 69th Street, Pattison, Olney, Cecil B. Moore, Market East Railroad Station, just to name some of them. Our in-house resources also completed ADA upgrades at several Philadelphia rail stations, including Market East, Queen Lane, Chestnut Hill West, Forest Hills, and Bala. We implemented a range of route enhancements last year to meet the diverse travel needs of the marketplace within the City. Improving access to jobs remained a very high priority particularly for the growing ranks of newly employed Philadelphians. Routes 1, 14, 37, 68, the R, the L, and R1 Regional Rail service to the airport were all expanded to serve new growing business centers. Route 80, a new limited stop line operating out of Olney Terminal has significantly improved travel time for North Philadelphian residents who work in Horsham area businesses. 2006 2/23/01 - FY '02 OPERATING BUDGET Our ridership today reflects steady increases, demonstrating the growing viability and importance of public transit serve service to our City and to the region. I'm pleased to report to you million more trips were taken on SEPTA in 7 year 2000 than in the year 1999. And that trend is 8 continuing this year. 9 SEPTA also worked very hard to develop 10 partnerships to build and strengthen the communities 11 we serve. We are pleased to be part of the City's 12 block buster showing at the 2000 Republican National 13 Convention and SEPTA received many letters of praise from across the state and across the nation commending the City for being such a gracious and attentive host. We were also proud of our participate City's Minority Enterprise Development MED Week Program and symposium. And our commitment to customer security and comfort let us to a partnership between SEPTA's Transit Police and the School District of Philadelphia to create a pilot Transit Truancy Program. All of our safety and risk management programs, including investigation in claims management have been brought together now under the 2007 2/23/01 - FY '02 OPERATING BUDGET direction of an assistant general manager for risk management. Many of you know Jim Jordan. And our general counsel has implemented fundamental structural and procedural changes within the legal division. Together, these divisions have forged a new working partnership to address critical safety and claims issues. We remain vigilant in disseminating information about safe travel on the system and we are resolute in our message. Our primary concern remains safety of all our customers all of the time whereever and whenever they select SEPTA to travel.
I'd also like to mention just a few key accomplishment that enhance the quality of life for our community and our business constituents. Automatic voice broadcasts began on the Market/Franford line announcing accessible stations and accessible connecting routes. We published an accessible SEPTA guide and have installed mobile data terminals on our customized community Transit, all 323 vehicles. Ten new railcars were put into service to support increased customer demand. And the last of the new 60-foot articulated buses, 155 have been 2008 2/23/01 - FY '02 OPERATING BUDGET delivered and placed in service here in the City of Philadelphia. Through the ongoing diligence of our police force, crime on the system is now at an all-time low. We proudly participated in the ribbon cutting with Mayor Street to launch Phase I improvements of Suburban Station and work has begun on the Frankford Transportation Center, a signature transportation investment project here in the City of Philadelphia. Our work began on the installation of automatic train control systems on the Market/Frankford elevated structure. A major track rehabilitation project was undertaken on Route 34 along Baltimore Avenue. Erie-Torresdale Station and Allegheny Station construction is now near completion. And construction has begun on the Route 15 Girard Avenue Light Rail infrastructure system. 7 percent, about half the rate of inflation while at the same time expanding service levels. These 2009 2/23/01 - FY '02 OPERATING BUDGET efforts notwithstanding, we are faced today with serious financial issue for the foreseeable future. Our budgetary horizon reflects real world concerns, including staggering increases in key expenses. 03 a gallon. Now, we use million 9 gallons a year. That's a $7 million increase. 33. Again, a million dollars increase. 12 Prescription drug costs have increased 125 percent. 13 That's an increase of $14 million. And nationwide 14 medical costs are expected to increase by double 15 digits, creating a financial impact for organizations such as SEPTA. Other escalating costs, such as the delivery of Paratransit continue to strain our limited resources. Compounding all this is the disappointing news that the Governor's budget submission does not provide SEPTA with an increase needed to meet even our normal 3 percent inflationary cost. Now, under state law we cannot present an unbalanced budget. With the prospect of 35 to 50 million dollars in increased costs, we must work to 2010 2/23/01 - FY '02 OPERATING BUDGET find responsible solutions to these issues by looking at all possible avenues. To increase revenue sources, increase our subsidy funding to decrease expenses. Some of these choices may be very difficult, including the possibility of a fare increase, the first in over six years. But to be responsible in addressing our financial situation, every option must be made. Definitive action must be taken if we are to sustain current City service levels and continue to strengthen the viability and the value of our system. Now, as to the issue of school tokens, we support Councilman Goode's effort to hold public hearings on this issue and we'll do what we can to help get all the facts on this important subject before Council. SEPTA remains committed to working with the School District, legislative officials, and all interested parties. In spite of our financial condition there are important and exciting new capitally funded projects that will take place this year, included construction of new stations, Berks, Church, and Huntingdon on the Frankford side of the Market Elevated structure, and the Market Elevated 2011 2/23/01 - FY '02 OPERATING BUDGET reconstruction project in West Philadelphia will begin as well as certain selected Broad Street subway stations.
I'm also pleased to announce that Philadelphia will be the host City for the 2001 American Public Transportation Association International Annual Meeting later this fall with some 3,000 transit professionals from across the country and around the world expected to attend. We are looking forward to showcasing our City and our public transit system and providing a boost to the hospitality sector of the Philadelphia economy. Finally, I would just like to just briefly mention our current discussions with the transport workers union, local 234. As we near the end of the current contract set to expired on March 15. The SEPTA Board and the management team remain committed to the principles forged with the Transport Workers Union. Our approach for these contract discussions is partnerships and solutions for the 21st Century. Our goal is to work together in partnership to find solutions and frame a contract that is good for our employees, creates growth and job security while at the same time is 2012 2/23/01 - FY '02 OPERATING BUDGET fiscally responsible to all of our customers and our taxpayers of the region. Council President Verna, thank you again for the opportunity to provide testimony this afternoon and the City Council's generosity and continued support of SEPTA and your commitment to enhance public transportation in this region is greatly appreciated, and we look forward to working with Councilman Goode, Chair of your Transportation Committee, and the other members of the Council to address some of these problems. We'd be happy to answer any questions you might have. Thank you.
Thank you very much. The Chair recognizes Councilwoman Blackwell.
Thank you, Madam President. Thank you again, Mr. Leary. And thanks again certainly to Jettie and Frances with whom we work regularly, weekly, always. And again, to Christian DiCicco, we look forward to gaining the same type of relationship with you. Mr. Leary, can you comment on the partnership between the SEPTA Police Force and the 2013 2/23/01 - FY '02 OPERATING BUDGET School District on the Transit Truancy Program.
Yes. We have been working very closely with the School District. Our police chief is with me today, Police Chief Richard Evans who can provide us some of the details. But both systems have been working very close. They work together. They patrol the subways and the system. They identify individuals and return them to school. I think we can tell you exactly how many, and we have the details. Chief Evans can comment on that.
Good afternoon. My name is Richard Evans. I'm the chief of SEPTA's Transit Police. About three years ago, we joined with the School District in a truancy intervention program which we target stations once a week and we intercept truant children that are using our stations and we take them back to a designated school, designated by the School Board. Last year we brought 700-some children back a school. This year the numbers are about consistent. We expect by the end of the school year we'll have taken the same number of children back to school. We additionally started a program during school dismissal time. It's called Operate Safe Rail. We put plain-clothes 2014 2/23/01 - FY '02 OPERATING BUDGET officers on the elevated trains and several stations either east or west of the major boarding point. We invite school principals and vice principals to join us on the platform. The plain clothes officers identify children who are disorderly and we ask them to exit the train where the school officials are stationed and we introduce them to the school officials and then allow them to catch the next train home.
That's great. And it's been working pretty well with students not being left at their own school, at a designated spot? Do you know how they get to their own schools? I guess in the morning they would have to have transportation to their own schools. How does that work?
I'm not certain how the school Board handles that, Councilwoman. We turn them over to the school officials at that point.
Thank you. The Chair recognizes Councilman Goode.
Thank you, Madam President. 2015 2/23/01 - FY '02 OPERATING BUDGET Good afternoon, Mr. Leary. Let me firs thank you and your staff sincerely for responses to many requests from my office and let me thank Frances Jones in particular for responses to constituent service and community issues. I will say that I do have one bone to pick, though. I do have a serious issue I want to address here and put on the record. And it is not with you or your staff; it's actually with your Board Chair, Mr. Deon. I'd like to go through time line in terms of where we have come from last year. Last year this time there was an issue of school tokens or student transportation, however you want to frame it, that was raised and there were members of this Council, including the vice chair of Transportation Committee Councilman Cohen who sought to withhold the total subsidy until that issue was resolved to this Council's satisfaction. I didn't believe coming in as a freshman Councilperson in my freshman year that I was prepared to take that action. Instead, I asked for hearings to be held, although hearings have been held the prior year under the leadership of 2016 2/23/01 - FY '02 OPERATING BUDGET Councilman DiCicco. And I thought that in the end, recognizing the context of the situation, that we could pursue a different route, understanding that in my belief, which is still my belief, this issue is probably resolved best at the state level and through state subsidy, but that is something beyond our control. Pursuant to that, within weeks of us ending our budget process last year, I went to meet with State Representative Dwight Evans to begin to brainstorm about we might do on this issue in his capacity as Minority Chair of the House of Appropriations Committee. He laid out what I thought a very good strategy, and I'm not sure that it wasn't a good strategy now, in many ways we might approach this, but in particularly, who I need to talk to. Subsequently, he arranged through former board member Herman Wooden for me to sit down with Jettie Newkirk and Pat Deon. Unfortunately, Pat Deon was not able to make that meeting, but subsequently I sat down with him in my office. At that point, we talked about the whole issue of school tokens and other issues that I needed to be 2017 2/23/01 - FY '02 OPERATING BUDGET resolved, many of which were resolved to my satisfaction. All of which probably except the student transport issue which he said that he would work diligently on. He in particular said to me that he had already spoke with the House Majority Leader about looking for money in the state budget to provide this type of funding. He said he would speak to him again because of the impending school financial crisis at that time. He didn't think it was an appropriate time to deal with the student transportation issue because of the competing needs with other student needs in terms of we didn't know how we were going fund a contract, we didn't know whether schools were open. He said once the issue is resolved between Philadelphia and Harrisburg what we're going to do with the other student needs with the school crisis, that's the time when he would approach the Majority Leader again about the state subsidy. But as I look back now on that conversation, I'm particularly concerned by things I remember about it and what he thought our political approach might or might not be. In view of the fact that the local subsidy provided to SEPTA was 2018 2/23/01 - FY '02 OPERATING BUDGET significant in terms of being tens of millions of dollars, it's not significant in terms of the overall picture of operating expenses. He made a comment which I will put on the record and I don't mind putting on the record because I think that we are in a very political situation right now with regard to this issue. He said that the City Council could never withhold a subsidy because that would force SEPTA to just cut off service at the boarders of the City.
I assured him that while I was a freshman in my freshman year that I would probably not take the approach of trying to withhold the total subsidy. I would do what hurt probably a little bit and seek to cut 5 to 10 percent of it and transfer it to the School District to meet our needs. And not to be in a position of political posturing right now, recognizing through research that my office is doing, I recognize this is a highly state-subsidized five-county regional authority and that to deal with the issue of student transportation costs, it's going to come through one or two sources in terms of operating expenses. It's going to come from fare revenue or it's going to come from subsidy. That subsidy is mostly 2019 2/23/01 - FY '02 OPERATING BUDGET government subsidy. The overwhelming majority of that government subsidy is from the State. If the State is not our partner in this, then we cannot resolve this issue. My concern is, a year later as we're approaching budget time again, it was your board Chair that was supposed to reach out to the Majority Leader of the State House to resolve the state part of this. We don't know where to turn. Essentially, I think this Council probably is prepared to look at what it can do on a local level in terms of perhaps providing additional local subsidy toward that end, and we do have hearings scheduled on April 3rd at 10 o'clock to deal with that issue and to deal with what we plan to do in terms of a whole comparative look at how SEPTA performs versus other transportation systems in the top 10 cities in the United States. But I am concerned about, one, whether SEPTA is going to show up on April 3rd at 10 o'clock ready to talk seriously, and what SEPTA is really prepared to do in terms of reaching out to the State. We are prepared to do our part to resolve this issue. But I am not just going to at face 2020 2/23/01 - FY '02 OPERATING BUDGET value accept that our lobbying efforts without your lobbying efforts to the State are going to work, particularly in view of the fact that we as the City, Administration, and Council cannot do anything to jeopardize other student needs. We don't want to cut student transportation costs at the expense of books, at the expense of teacher salaries and looking at $189 million deficit the School District is facing. We need state help. So we need your involvement on that issue. And I have to tell you that I've been burned once on this issue. You will probably hear of many members of this Council raise this issue again today. We need you to take very seriously outreach to the State in terms of trying to direct some of that state subsidy toward this problem as we look at how to direct local subsidy to this problem. Thank you very much.
Thank you, Councilman. Councilwoman Blondell Reynolds-Brown.
Thank you very much. Good afternoon. Councilman Goode has 2021 2/23/01 - FY '02 OPERATING BUDGET quite beautifully laid out the big picture with regards to school tokens. I have some specific questions around the same question. I think it's important to point out that there's some value -- there's already of the value of partnerships because you indicated that with your three-year-old truancy initiative with the School District, it's working. So I should mention that last year when colleague Councilman Cohen raised the issue, I decided to look to the leadership of the Chair of the Transportation Committee, my colleague W. Wilson Goode, as it relates to school tokens and actually decided to wait a year to see what would happen. Leadership was taken on behalf of the Chair of this committee in this body. Has there been any additional discussion at board level? Has it ever even been an agenda item at board meetings with regard to this issue, when we know that last year extensive discussion and debate happened on this floor on the issue of school tokens?
Let me begin, and then perhaps the board members might want to comment. On Councilman Goode's comments, let me say I will take those comments back to my Board 2022 2/23/01 - FY '02 OPERATING BUDGET Chair and remind him of his discussion with you and willingness to approach the Majority Leader on this issue. I will also commit to you that we will be there on April 3rd at the meeting. We have been struggling with this issue all year long. This is not an issue that we have just easily discarded. Just to characterize it again, I know you're aware of this. But we spend approximately $45 million every year to transport 32,000 school children in the City of Philadelphia. This amount comes directly out of the SEPTA operating budgets. Now, to offset a portion of that, we receive million dollars in fare revenue 15 from school tokens and school transfers. But the balance of the $30 million has just sort of become part of the SEPTA -- we found ways to make it part of the SEPTA overall budget. If you remember my comments as part of the budget process, we are by law required to submit a balanced budget. We cannot submit an unbalanced budget. So without that $15 million, we are put in a position of having to reduce services somewhere else. We're really trading these resources from one place to another and we've just been able to find -- 2023 2/23/01 - FY '02 OPERATING BUDGET
I'm sorry. Let me just say again, we spend $45 million carrying the 32,000 school youngsters in the City of Philadelphia. And of that $45 million, we receive $15 million in tokens. The problem is, we are by law required to submit a balanced budget. We cannot have a deficit budget. And without that -- that $15 million is turned right back into service. And so we're put in a position of having to take the $15 million away from one group and give it to another group or take the service away from one group. And we've never been able to deal with that. We just don't know how to deal that. I think this idea of approaching Representative Evans and the Majority Leader and building a coalition to get some help from Harrisburg may be an approach that would actually deliver some results. I know the school department was very successful this year in expanding their subsidies from Harrisburg. Unfortunately, we were not. We lost $6 million from the Governor's budget at Harrisburg. 2024 2/23/01 - FY '02 OPERATING BUDGET So I will take this information back. I want you to know that we have not just been cavalier and discarded this. We have been struggling with this all year long and just do not have an answer at this time.
A couple of additional follow-up questions. Currently, SEPTA provides discount to universities. Help me understand again how the discount you provide to universities differ or does not differ from the discount currently provided to students who attend Philadelphia public schools. Can someone speak to that?
Yes. We have a bulk discount program. Let me back up. The base fair of SEPTA is $1.60. $1.60 is very heavily discounted if you buy a token. A token is $1.15. We have weekly passes and monthly passes that are also very heavily discounted. Almost 35 percent of our ridership buys a discounted pass of some sort. Businesses and universities are also made -- a program Compass, Company Pass Program I think it is, is made available to businesses and universities that buy bulk, buy large numbers. I'd have to look to the 2025 2/23/01 - FY '02 OPERATING BUDGET staff to tell me the number. I think it's 500 minimum. And in the same time, they do all the bookkeeping, and usually employee withholding and payroll deduction kinds of arrangements are put together to facilitate this. I believe it's about a 5 percent discount on a transit pass if you buy in bulk.
And so how does that -- one way that differs is that you say the business or university pay for a portion of the discount, correct, which would not happen with students?
Let me look to the staff. I think there's some universities, I think maybe University of Pennsylvania for some of its students picks up some of the cost. I know there are some businesses that pick up as much as 50 percent of the cost of the pass just as part of their regular way of doing business and attracting employees as an employee benefit.
New York has a swipe card which helps them towards being a contributor to this whole notion of discounted school tokens. Has SEPTA ever explored that 2026 2/23/01 - FY '02 OPERATING BUDGET possibility?
Yes. We have a swipe card now. Our monthly pass if you notice on the back of it has a magnetic card, it's a swipe card on the buses. We have a swipe card in the subways, using the subways with a monthly pass. What New York has at this point that we don't have is a steward value card. If you buy a SEPTA pass for $34.50 a month and you can swipe it and it allows you in and out for the month, the New York system would allow you to buy three months worth of value on the card. You could put a hundred dollars on the card and then every time you swipe it, it subtracts a certain amount. We have looked at that. We are looking at a wide range of fair collection kinds of technologies and so forth and have made no decision at this point. It is something in the future.
Okay. You're still in the investigative stage?
Back to what you mentioned, the bulk discount program, that type of model could not be used with the school 2027 2/23/01 - FY '02 OPERATING BUDGET District, or is used with School District? Where is the difference? I'm trying to get a handle on the difference.
Excuse me one second. Let me introduce Bernard Cohen from the staff.
Excuse me. Please identify yourself for the record.
My name is Bernard Cohen, Assistant General Manager, Transit Operations.
C-O-H-E-N. The pass discount program that you're referring to is a program that is available for, as the general manager said, for companies or for any large institution that's going to buy large volume of monthly or weekly passes.
The School District could do the same THING. The difference is that the token is 2028 2/23/01 - FY '02 OPERATING BUDGET actually a much deeper discounted form of fair medium than the pass is. The pass is discounted by us by percent if you buy large volumes of the 5 passes. The token discount percentage off the base fare is 28 percent. So really, if the School District continues to buy tokens the way they've been buying, they're getting a 28 percent discount off the base fare. Whereas, the bulk pass program that you're talking about is a 5 or 10 percent discount off of the monthly or the weekly pass. So it's a different program.
So you're saying that SEPTA does discount the School District when you take the 15 million from the 45 million, the balance is the discount that SEPTA is offering to the School District?
No. What we're saying is that for every trip that a school student in the City of Philadelphia takes, the token that's purchased by the School District only covers about half or last than a half of the actual cost of that trip, and SEPTA's operating budget picks up the other half. So that even though we are being paid for the token, we're actually picking up 50 or 60 2029 2/23/01 - FY '02 OPERATING BUDGET percent of the actual cost of that trip, and that's the subsidy that's really hidden because it comes out of SEPTA operating budget.
I will yield to Councilman Ortiz and I just have a couple of different questions separate from this issue.
I think when you put it that way, you give the wrong impression. You sell the tokens to the school for $1.15. Anyone, not the school alone -- the impression is given that this is a discount that is given to the public school system. It is not a discount that is given to the public school system. Anyone can buy tokens for $1.15, right.
So it is not a discount. And then the school has to sell them and they sell them to students at a cheaper basis incurring a cost to the school system that really they cannot incur at this point in time. So I think what I'm trying to say is I think that you were getting the impression that this discount is for the school. No, anyone in the City can buy at this point at that level. 2030 2/23/01 - FY '02 OPERATING BUDGET
Just a point on that. The State does provide a subsidy to the school department to pay a portion of that cost of that token, so there is a third avenue that ways in here in this equation.