Committee Hearing, December 2, 2004

COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING COMMITTEE ON APPROPRIATIONS - - - - Room 400, City Hall Philadelphia, Pennsylvania Thursday, December 2, 8:57 a.m. - - - - BILL 040872 - An Ordinance authorizing transfers in appropriations for Fiscal Year 2005 within the General Fund from the Council to the Director of Finance. BILL 040994 - An Ordinance authorizing transfers in appropriations for Fiscal Year 2004 within the General Fund... PRESENT: COUNCILWOMAN JOAN KRAJEWSKI, Chair COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN DARRELL CLARKE COUNCILMAN FRANK RIZZO COUNCILMAN JUAN RAMOS COUNCILMAN MICHAEL NUTTER COUNCILWOMAN DONNA REED MILLER COUNCILMAN JACK KELLY - - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 I N D E X BILL 040994 PAGE DIANNE REED, Budget Director......... BILL 040872 DEBRA KAHN, Secretary of Education... 3 12/02/04 - APPROPRIATIONS - BILL 040994

Good morning. The Committee on Appropriations is now in session. Will the Clerk please read the title of the bills.

Bill No. 040872, an ordinance authorizing transfers in appropriations for Fiscal Year 2005 within the General Fund from the Council to the Director of Finance. Bill No. 040994, an ordinance 13 authorizing transfers in appropriations for Fiscal Year 2004 within the General Fund from certain or all City offices, departments, boards and commissions to certain or all City offices, departments, boards and commissions.

Thank you. Is someone from the Administration here to testify? Good morning.

Good morning. Dianne Reed, Budget Director. I'm die and read. I'm here to testify on Bill 040994. This is the year-end transfer ordinance for Fiscal '04. 4 12/02/04 - APPROPRIATIONS - BILL 040994 And what the ordinance is doing I go to have transfers 11.7 million from Debt Services from various purposes in Operating and other departments including overages from such things as from storms both winter and summer last year. The increase in population at the prisons which resulted in higher overtime costs and larger than expected claims expenses from lawsuits. So we are hoping that the Committee will suspend the Rules and put this on First Reading today. I have with me department heads who have supporting testimony should you have questions.

Thank you. This is just year-end transfers. Any other questions from members of the Committee? (No response.)

Thank you. Anyone else here to testify? Now Bill 040872. Before we begin, again, I'd like to recognize Councilman Nutter is here, 5 12/02/04 - APPROPRIATIONS - BILL 040872 Councilman Clarke, Councilman Ramos, Councilman Goode, and Councilman Rizzo.

My name is Debra Kahn. I'm the Secretary of Education for the City. I am here to testify in favor of Bill 040872. Let me start by saying good morning to the Chair, Councilwoman Krajewski, and all the Members of the Committee. The testimony will be read into the record and I am asking also for a suspension of the Rules so that we can expedite the process of adoption of this bill. For the record, let me say what this bill would do is transfer the funds that 4 million that have been appropriated for the College Research For Opportunities Program to the Finance Department so that we can expedite payments of the scholarships for the children and colleges who are participated in the program.

Thank you. Are there any questions from members of the Committee? The Chair recognizes Councilman Ramos. 6 12/02/04 - APPROPRIATIONS - BILL 040872

Thank you, Madam Secretary. Are you aware of any money awarded to any of the colleges that are now participating with our young people? Have they gotten anyone gotten any of the money yet?

None of the funds have been paid out yet. Students were notified their applications were approved. None of the funds have been paid.

So it's very important we get this done soon. This is a fantastic program. We need to expedite this so state colleges that can use the money to be able to provide the education that our young people, particularly our inner City kids, need at this time.

That's absolutely correct. The participating final exams are around the corner. We need to be clear for their financial records so they can enroll again for the spring term.

Thank you.

Councilman 7 12/02/04 - APPROPRIATIONS - BILL 040872 Nutter.

Thank you, Madam Chair. Good morning, Madam Secretary. A couple questions. I know there have been a number of documents floating around. I may not be up to date on them as possible, but I'm looking at a letter dated November 30, 2004, from Mr. Zies to the Chair of the Committee. Maybe there's been another letter or maybe a breakdown where it talks about the number of public school graduates and a listing of the money. It looks like we're at 2699.

Correct.

2, expended so far.

Correct.

Is that for the entire school year?

Yes.

So for both semesters?

At this point, the City's commitment or obligation for both semesters. 8 12/02/04 - APPROPRIATIONS - BILL 040872 However, I should also point out that amount is likely to grow because there were about 200 applicants who deferred their enrollment to the spring.

Is there a process that the students have to go through on a semester basis in order for us to determine in fact that they are still eligible for the scholarship?

Yes. We would have to verify again for the spring semester their enrollment status.

When will you do that?

As soon as January.

Okay. When this great program was announced and then there was fairly significant amount of subsequent discussion when this conversation first started, the program was only for public school students; is that correct?

That's correct. And at City Council's urging we did expand eligibility for that program to include 9 12/02/04 - APPROPRIATIONS - BILL 040872 graduates of parochial and private schools.

Your concern at the time was you would not have funding for non-public school students?

We had indicated we thought we had funding for the current year but that in subsequent years it was possible that the City's obligation or commitment of $4 million might not be sufficient.

And this report indicates we're well within that range even including parochial school graduates and other private school graduates?

For this initial year, that's correct.

So out of that discussion and debate, notwithstanding what the concern was, the subsequent action by a variety of people the many members of City Council and others resulting in expansion of the program did allow us to cover a number of students who initially would not have been covered; is that correct?

That is correct. 10 12/02/04 - APPROPRIATIONS - BILL 040872

The attached list shows the name of the school, the number of students, and what college that number of students are attending. What I would be interested in, if you could provide to the Chair, is a ZIP Code analysis of all the participating students. Could you do that?

Yes.

And you could forward that to the Chair?

Yes, we will.

The total is $4 million. The anticipated students is 2699 at the moment and there are another 200 students deferred until January?

Correct.

What do you suspect that amount to be?

We would be verify their enrollment could be upwards of over $300,000.

So that takes you about $34 million?

Correct. That's our 11 12/02/04 - APPROPRIATIONS - BILL 040872 estimate.

What happens to the other million dollars.

We have committed and in two letters, one dated November 17th and one yesterday, what the Administration would do with any left over funds would be to hold it in reserve for scholarships for future years through the Corps Philly Program.

Carry over into a subsequent year and be added on to a new $4 million, is that what you're saying.

That would be the idea, yes.

So if you spend the 300,000 to cover the deferred students this year and basically $3 million, your expectation at the moment is that next year there will be $5 million available from the City?

That would depend on the outcome of the budget still yet to be submitted. In the Administration's $4 million is included for each of the following next 12 12/02/04 - APPROPRIATIONS - BILL 040872 fiscal years.

Are you saying budgetary concerns the '04 budget?

The budget has not been introduced, let alone adopted, but it is in the Five-Year Plan.

Do you plan to provide any regular updates either to the Chair or to the Council President about the remaining dollars as a part of -- I know there have been recent letters. I don't think I had a chance to see yesterday's version. But is there any process or procedure anticipated that there would be a regular updating of the status of those funds?

Absolutely. We will provide complete reports at whatever intervals Council will request.

Are the funds being kept in a segregated account or is it just in the General Fund?

Well, right now the funds are in the budget, in City Council budget. What we would be doing, and I think we 13 12/02/04 - APPROPRIATIONS - BILL 040872 testified to this previously, we had engaged the local non-profit, the Philadelphia Education Fund to administer the program because of their experience in administering scholarship programs. What we would be doing is contracting with them to transfer to send the City dollars that are owed following a invoice and they would then issuing the checks to the respective colleges.

Last question. It looks like we've got on the list here this attachment. This 431 number of non-public school scholarship award. I guess that's the 372 and the 59?

Correct.

How many public school students.

1,430 graduated from district schools and 116 from charter schools.

Last question. How many students applied?

I think we processed roughly 300 applications. A number of those were submitted -- I'm sorry 3,000. And what 14 12/02/04 - APPROPRIATIONS - BILL 040872 we found in the course of going through those applications is many numbers of students either didn't complete the process or actually indicated they were attending other colleges.

Were any students turned down?

If they did not complete the application process by submitting whatever required documentation then they simply could not be awarded.

I understand. Did any submit all of the documents needed and for whatever reason not approved?

As long as they met the eligible criteria, that couldn't happen.

If you provide that to the Chair, I'd appreciate it. Thank you, Madam Chair.

Any other questions members of the Committee? (No response.)

Before I continue I not Councilman Kelly and Councilwoman Miller are here. 15 12/02/04 - APPROPRIATIONS - BILL 040872 Therefore, that ends our public hearing. - - - - 16 COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING COMMITTEE ON APPROPRIATIONS - - - - Thursday, December 2, 2004 - - - - Public meeting conducted by the Committee on Appropriations, held in Room 400, City Hall, Philadelphia, Pennsylvania, on the above date, to consider action on the following: BILLS 040872, 040994. PRESENT: COUNCILWOMAN JOAN KRAJEWSKI, Chair COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN DARRELL CLARKE COUNCILMAN FRANK RIZZO COUNCILMAN JUAN RAMOS COUNCILMAN MICHAEL NUTTER COUNCILWOMAN DONNA REED MILLER COUNCILMAN JACK KELLY 17 12/02/04 - APPROPRIATIONS - PUBLIC MEETING

We will go into our public meeting. The Chair recognizes Councilman Nutter on Bill 040994.

Thank you, Madam Chair. Madam Chair, I move that bill 040994 be reported out of this Committee with a favorable recommendation and a further recommendation that the Rules of Council be suspended to permit first reading at our next session. (Duly seconded.)

All those in favor? (Aye.)

Opposed? (No response.)

Bill 040994 reported out of this Committee with favorable recommendation with a suspension of the Rules so as to permit first reading at the next Session of Council. The Chair recognize Councilman Ramos for Bill No. 040872. 18 12/02/04 - APPROPRIATIONS - PUBLIC MEETING

Thank you, Madam Chair. I move Bill No. 040872 reported out of Committee with a favorable recommendation and move that the Rules of Council be suspended so as to permit first reading of Bill 040872 at Council's next scheduled session. (Duly seconded.)

All those in favor? (Aye.)

Opposed? (No response.)

Bill 040872 reported out of this Committee with favorable recommendation with a suspension of the Rules so as to permit first reading at the next Session of Council. Thank you all very much. That ends our public hearing on Appropriations. Thank you. (Council adjourned at 9:12 a.m.) 19 C E R T I F I C A T I O N. I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Thursday, December 2, 2004, were reported fully and accurately by me, and that this is a correct transcript of the same. RE: COMMITTEE ON APPROPRIATIONS _________________________ Lisa C. Bradley, RPR