Committee Hearing, May 8, 2009

COUNCIL OF THE CITY OF PHILADELPHIA2 COMMITTEE OF THE WHOLE3 - - -4 Room 400, City Hall5 Philadelphia, Pennsylvania Friday, May 8, 20096 10:20 a.m. 7 - - - 8 9 PRESENT: COUNCIL PRESIDENT ANNA C. VERNA10 COUNCILWOMAN JANNIE BLACKWELL COUNCILMAN WILSON GOODE, JR.11 COUNCILMAN WILLIAM GREENLEE COUNCILMAN CURTIS JONES, JR.12 COUNCILWOMAN DONNA REED MILLER COUNCILMAN FRANK RIZZO13 COUNCILWOMAN MARIAN B. TASCO 14 BILLS 090212, 090213, 090214, 090215, 090218,15 090219, 090220 and 090221 RESOLUTION 09022616 17 18 19 20 - - -21 22 V A R A L L O Incorporated Litigation Support Services23 Eleven Penn Center 1835 Market Street, Suite 60024 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.267025 26 2 1

Good2 morning. This is a continued public3 hearing of the Committee of the Whole.4 I would ask Mr. McPherson to5 please call the first witness.6 MR. McPHERSON: Mr. Pete7 Matthews.8 (Standing ovation.)9 (Witnesses approached witness10 table.)11

Good12 morning. Welcome. Please identify13 yourself for the record and proceed with14 your testimony.15

Good morning,16 Madam President. I'm Pete Matthews,17 President of District Council 33.18

My name is Irene19 Snyder, I'm President with Local 1510.20

Good morning,21 Madam President. My name is Jeff Gilliam22 and I'm the Business Agent for Local 394.23

Thank24 you.25 26 3 5/8/09 - WHOLE - BILL 090212, etc.1 Please proceed with your2 testimony.3

Let me first say4 good morning, District Council 33, and5 thanks as always for coming out.6 (Applause.)7 COUNCIL PRESIDENT VERNA:8 Mr. Matthews, I think many of us are9 wishing we had your popularity today.10 Please.11

Again, thank12 you, Madam President --13

Up in14 the balcony, please be quiet. Thank you.15 Please proceed with your16 testimony, Mr. Matthews.17

Thank you, Madam18 President.19 Members of City Council, thank20 you for this opportunity to come before21 you and testify on the City of22 Philadelphia's 2009 budget.23 With Philadelphia facing a new24 billion-dollar budget deficit, the Mayor25 26 4 5/8/09 - WHOLE - BILL 090212, etc.1 has put before City Council two scenarios2 to raise taxes and cut back on services3 in order to balance the City's budget.4 Plan A requires assistance and5 approval by the state Legislature. Plan6 B reflects a more drastic approach if the7 Legislature dismisses the initiatives in8 Plan A.9 Under Plan A, the City has10 asked the state Legislature to allow the11 City to extend payments into the City's12 Pension Fund and to grant the City the13 ability to raise the local sales tax by14 one percent.15 Under Plan B, which the City16 will try to implement if the Legislature17 doesn't support the City's requests under18 Plan A, the Mayor has proposed huge real19 estate taxes, even more severe service20 cuts and more layoffs of City workers.21 The proposal to raise real22 estate taxes is especially troubling.23 This tax increase, whether it is24 temporary or not, still hits City25 26 5 5/8/09 - WHOLE - BILL 090212, etc.1 residents with low incomes and senior2 citizens on fixed incomes especially3 hard. For the Mayor to justify the need4 for an increase by saying he needs it to5 prevent the layoffs of police and6 firefighters makes it even more offensive7 for the rest of the City's workforce.8 We absolutely need police and9 firefighters, and I have no problem with10 trying to find a way to make their ranks11 filled. However, the rest of the people12 who work for the City are also needed in13 order to deliver all the vital services14 that make the City work. The members of15 District Council 33 and all other City16 workers also live here, vote here and we17 are a major portion of the tax base, too.18 (Applause.)19

District Council20 33 members deliver services across a wide21 range of job categories, and we contend22 that those services are just as important23 to the viability of the City as safety24 issues.25 26 6 5/8/09 - WHOLE - BILL 090212, etc.1 District Council 33 members2 work in dangerous and unhealthy working3 conditions, from handling sewage waste to4 dealing with citizens' healthcare needs5 to disposing of trash and to inspecting6 abandoned buildings and protecting our7 children.8 District Council 33 members9 make our airports work. Correctional10 officers keep us safe, and our civilian11 workers support our police and12 firefighters.13 From maintaining our highways,14 parks and recreation systems to15 maintaining the City's vehicle fleet to16 enforcing our parking laws and handling17 the City's finances, you know you can18 count on District Council 33 members to19 make Philadelphia work.20 (Applause.)21

Are these22 services something that the City can do23 without? We think not.24 District Council 33 members are25 26 7 5/8/09 - WHOLE - BILL 090212, etc.1 also paid the lowest, making on the2 average base salary of $34,000 per year.3 Even adding in our health benefits of4 $975 per month, the lowest of all City5 unions, we make less than $45,000 per6 year on average. That is hardly a lot of7 money in today's economy.8 It appears that the Mayor, City9 Council and the citizens of Philadelphia10 are locked in a struggle to decide the11 best possible course from a number of bad12 options. As the representatives of the13 largest City workers union, our union is14 also more than just an interested party15 to these discussions.16 With that in mind, I want to17 call your attention to a third way to18 fiscal stability that District Council 3319 believes has not so far been discussed20 enough, and, that is, the elimination of21 costly outside contracts for City22 services that can be performed more23 efficiently at less expense by City24 workers.25 26 8 5/8/09 - WHOLE - BILL 090212, etc.1 (Applause.)2

Cutting waste in3 City government should not be about4 cutting vital services to citizens, nor5 should it be about forcing City workers6 to take wage and benefit cuts in order to7 balance the City's budget.8 Such a punitive approach only9 serves to create morale problems, because10 it punishes unionized City workers, who11 are also City residents and taxpayers,12 for their successful efforts over many13 years to save the City money while14 maintaining high-quality services.15 Contracting out City services16 undermines the transparency and17 accountability the citizens of18 Philadelphia deserve from their19 government. It leads to massive and20 unchecked spending that in a budget21 deficit need to be exposed and corrected22 before the City considers raising any23 taxes and cutting more jobs and services.24 The national crisis, the25 26 9 5/8/09 - WHOLE - BILL 090212, etc.1 subprime lending disaster and the2 collapse of Wall Street have shown that3 the idea that the private sector does4 things better and cheaper is a myth.5 Contracting out City services6 is just a local example of the7 unregulated fiscal irresponsibility that8 has caused the problems with our nation's9 economy.10 (Applause.)11

District Council12 33 has been at the forefront of the13 effort to economically deliver City14 services through a number of15 administrations since 1996, and our16 efforts and the sacrifices made by our17 membership in wages and benefits have18 saved the City hundreds of millions of19 dollars in operational expenses.20 Now with the City facing a21 projected $1 billion deficit over the22 next five years and our contract for the23 City due to expire on June 30th, 2009,24 District Council 33 has a few specific25 26 10 5/8/09 - WHOLE - BILL 090212, etc.1 recommendations to end wasteful2 contracting out that we want to inject3 into the conversation as alternatives to4 raising taxes or cutting more City5 services.6 We believe the areas of7 wasteful spending that we will identify8 can provide immediate savings and will9 also serve as a starting point for10 elected officials to shine a light on the11 outside contracts and cost overruns that12 contribute to the City's budget.13 No responsible government14 should cut the vital city services and15 lay off hard-working and productive16 public employees without first taking17 actions to end the wasteful spending that18 categorizes the system of contracting out19 of City services that can be performed in20 a more cost-efficient way by the City21 public sector workforce.22 (Applause.)23

First, let me24 start by saying that District Council 3325 26 11 5/8/09 - WHOLE - BILL 090212, etc.1 has a strong history of making sacrifices2 in order to help successive3 Administrations operate more4 economically. In fact, our union has5 already saved the City hundreds of6 millions of dollars since 1996, when I7 assumed the presidency of District8 Council 33.9 Even before that, District10 Council 33 made concessions in 1992 that11 amounted to $200 million in savings to12 the City. From then until the end of13 2008, we estimate that District Council14 33 has given back almost $400 million in15 lost wages, work rule changes and16 diminished contributions for our health17 benefits.18 Let me give you a short history19 of our established record.20 In 1996, things were looking21 pretty grim at District Council 33. The22 Council had more than 30 million in23 health and welfare debt on JFK Hospital.24 For the record, the City was as25 26 12 5/8/09 - WHOLE - BILL 090212, etc.1 responsible as the union for this2 shortfall, because since 1992, the City3 had two seats on our Health and Welfare4 Board.5 For years, the financial6 obligations of JFK Hospital had been an7 issue in contract negotiations with the8 City. Much of the City's contributions9 to the union's Health and Welfare Fund10 went directly to pay the obligations of11 JFK Hospital.12 The result of this financial13 crisis was that District Council 3314 members were not getting the best15 benefits for the contributions the City16 was making, and the City was calling for17 more benefit cuts to offset the18 contributions.19 Through proper management by20 the Health and Welfare Fund Board, the21 problems at JFK were solved by selling22 the property, consolidating services at23 the union's clinic at 30th Street and24 negotiating a health benefit plan that25 26 13 5/8/09 - WHOLE - BILL 090212, etc.1 cost the City less, but maintained the2 benefits for our membership.3 In 2004, District Council 334 found a solution to rising health5 benefits costs with a large national6 insurance company with the ability to7 meet District Council 33's need to8 maintain health benefits with the9 contributions that the City and the10 Council had settled in contract11 negotiations.12 Since then, District Council 3313 has been able to negotiate with our14 provider to keep subsequent increases15 much below what other unions pay for16 their health benefits coverage.17 As a direct result of18 responsible financial stewardship and19 innovative problem-solving, District20 Council 33 has been able to maintain21 membership benefits at the lowest22 contribution cost by the City, thereby23 saving hundreds of millions of dollars.24 (Applause.)25 26 14 5/8/09 - WHOLE - BILL 090212, etc.1

Over the years,2 District Council 33 members have also3 contributed to the City's coffers by4 foregoing percentage wage increases or5 settling for small percentage increases6 even in the years when the City was in7 good financial shape.8 Our union's willingness to work9 with the City Administrations on finding10 solutions to large financial challenges11 was again demonstrated in the recent work12 we did with the City on funding the13 pension plan. At the start of the14 current Administration, the Mayor15 proposed floating a new pension16 obligation bond of 4.5 billion that would17 have brought the current 55 percent18 funding level of the Pension Fund to a 9819 percent funding level, reducing the20 City's contribution obligations to a more21 manageable yearly level.22 The fiscal collapse of Wall23 Street put the plan on the back burner.24 Now the City was faced with finding a way25 26 15 5/8/09 - WHOLE - BILL 090212, etc.1 to meet its statutory contribution2 obligations to the pension plan from its3 existing revenue stream.4 Working closely with the5 Pension Fund representatives of AFSCME6 District Council 47, the Fraternal Order7 of Police, the Firefighters Local 22 and8 Alan Butkovitz, District Council 339 helped to forge a plan that would allow10 the City to extend pension contributions11 from 20 to 40 years.12 This plan requires that the13 City obtain legislative approval from the14 state Legislature in Harrisburg and will15 save the City $330 million over the next16 five years.17 In ratifying a one-year18 agreement with the City last July,19 District Council 33 members received a20 bonus payment in lieu of a wage increase.21 The other City workers unions did the22 same.23 We have taken a careful look at24 these lost wages and contribution25 26 16 5/8/09 - WHOLE - BILL 090212, etc.1 reductions by the City and determined2 that the combination of savings generated3 by the one-year agreements last year by4 all four City unions saved the City about5 $30 million in wages and about $226 million in health benefits contributions,7 for a total savings just this past year8 of $52 million.9 In spite of that, the Mayor has10 proposed taking back another $250 million11 in additional concession demands in the12 contract proposals that the City gave us13 just last week.14 In the fall of 2008, Mayor15 Nutter revealed that the City was facing16 a $1 billion budget deficit over the next17 five years. As part of his plan to18 address this fiscal problem, he proposed19 the layoffs of over 200 District Council20 33 members.21 Working closely with the22 Administration, District Council 33 was23 able to reduce the number of layoffs24 immediately to 103 and then to zero by25 26 17 5/8/09 - WHOLE - BILL 090212, etc.1 identifying for the Administration2 positions in City departments that were3 funded but not filled.4 (Applause.)5

By working with6 the Administration to minimize the impact7 of the layoffs, District Council 33 was8 able to preserve jobs, maintain vital9 City services and save the City an10 additional $40 million a year.11 District Council 33 has been12 examining each City department to13 determine where money can be saved by14 ending contracting out and bringing15 taxpayer-funded work back into a16 department to be performed by City17 workers more efficiently and less18 expensively.19 (Applause.)20

Our examination21 of contracting out is ongoing. The22 examples we present here are by no means23 the only contracted-out services that24 cost the City too much. In fact, we25 26 18 5/8/09 - WHOLE - BILL 090212, etc.1 believe this is only the tip of the2 iceberg.3 District Council 33 wants to4 use this preliminary examination to start5 a dialogue with the citizens of6 Philadelphia and our elected officials7 about ways to maintain vital City8 services while saving money.9 Let me now give you a short10 list of some of the savings of our11 District Council 33 unions -- what our12 District Council unions have found that13 the City could achieve if it ended14 outside contracts. Each of these local15 unions will be presenting testimony after16 my comments that will include more17 details about these examples of wasteful18 spending by the City.19 Philadelphia Water Department:20 For most of the last five years, the21 previous Administration tried to get City22 Council to approve contracting out the23 Biosolids Recycling Center of the Water24 Department to a private contractor.25 26 19 5/8/09 - WHOLE - BILL 090212, etc.1 District Council 33's Local 3942 successfully held up approval for that3 period because we believed that the4 financial projections and cost estimates5 used by the private contractor, Synagro,6 were false and deliberately7 misrepresented by the company in order to8 secure City Council's approval.9 When the current Administration10 took over in January 2008, it was fully11 briefed on our objections and concerns12 about the possible consequences of13 contracting out the BRC. In spite of14 Local 394's exhaustive efforts to make a15 case against contracting out, the16 Administration decided to pursue the same17 course as the previous Administration and18 recommended that City Council approve the19 deal on June 19th last year. Synagro20 started implementing its contract with21 the City last October.22 An examination of the23 performance of this company on the24 contract at BRC, as well as a review of25 26 20 5/8/09 - WHOLE - BILL 090212, etc.1 actual invoices from the company to the2 Water Department, has led Local 394 to3 the conclusion that Synagro is not in4 compliance and has in fact violated the5 agreement the company made with the Water6 Department to efficiently and7 economically handle the disposal of the8 City's biosolids.9 We believe that Synagro is10 systematically overcharging the City by11 almost $2 million per year. In addition12 to cost overruns and hidden additional13 costs, we also believe that Synagro may14 also be failing to comply with City15 ordinances regarding collection of City16 wage taxes for their employees.17 When the costs of water,18 electricity and natural gas that the19 contract with Synagro requires the City20 to assume are added in, we estimate that21 this example of contracting out is22 costing the City $10 million per year23 more than if the work remained in the24 Water Department and was performed by25 26 21 5/8/09 - WHOLE - BILL 090212, etc.1 Local 394 members.2 Terminating this outside3 contract --4 (Applause.)5

Terminating this6 outside contract would save the City $507 million over the next five years. Since8 this was a 25-year contract, cancelling9 it would save the City one billion two10 hundred and fifty million dollars.11 (Applause.)12

In addition to13 this example from Local 394, some of our14 other District Council 33 locals will15 also be presenting testimony to you today16 and other examples of the fiscal waste17 associated with contracting out. This is18 a process that we see as ongoing and a19 continuous fight to make the City20 function more efficiently.21 Fleet Management: Our local22 union at Fleet Management, Local 1927,23 will be presenting testimony that details24 savings of at least $2,500,000 that the25 26 22 5/8/09 - WHOLE - BILL 090212, etc.1 City could save by ending contracting out2 of vehicle and equipment maintenance and3 repair.4 Philadelphia Airport: Our5 Local 1510 at the Philadelphia Airport6 has been a witness to a very large amount7 of contracting out of work that could be8 done better and cheaper by the City9 workers, as well as instances of wasteful10 spending that is both inefficient and11 also would impact the security of the12 facility itself.13 Legal Services: The City has a14 longstanding practice of using15 high-priced outside law firms to handle16 contract negotiations with the four City17 municipal unions even though the City has18 a Law Department staffed with highly19 qualified lawyers capable of handling all20 of the City's needs.21 Every City department has22 in-house lawyers who deal with personnel23 issues on a daily basis and are fully24 informed on the various aspects of the25 26 23 5/8/09 - WHOLE - BILL 090212, etc.1 contracts the City has with all four2 municipal unions.3 In spite of this abundance of4 in-house legal expertise, Administration5 after Administration has continued the6 practice of augmenting legal activity7 with high-priced outside anti-union8 counsel. This duplicated cost of9 advising City departments on legal10 matters amounts to millions of dollars of11 wasteful spending every year.12 One of the primary outside law13 firms used by the City is Ballard, Spahr,14 Andrews and Ingersoll, which15 coincidentally is the firm where Governor16 Ed Rendell worked between stints as Mayor17 and Governor, where David L. Cohen, who18 now works for Comcast, developed the19 anti-public sector union strategy that20 this law firm markets to local and state21 governments all over the nation.22 This is a classic example of23 wasteful spending and pinstripe patronage24 that costs the City millions of dollars25 26 24 5/8/09 - WHOLE - BILL 090212, etc.1 in revenue at a time when City workers2 are being asked to make even more3 sacrifices to balance the City's budget.4 (Applause.)5

District Council6 33 would recommend that City Council7 determine the amount of Philadelphia tax8 dollars that are being funneled into this9 law firm and other outside law firms for10 work that could be done cheaper with11 existing legal divisions in each City12 department before considering any tax13 increases and before the Administration14 cuts any more City services or lays off15 any more City workers.16 District Council 33 takes our17 role as the union representing the people18 who make Philadelphia work very19 seriously. This is why I have tried to20 present you with some perspective about21 what we have done over the years to help22 the City, as well as show you that we23 have already saved the City close to $40024 million in the last year alone.25 26 25 5/8/09 - WHOLE - BILL 090212, etc.1 Working together with City2 Council, we can identify even more3 savings by continuing to expose the4 wasteful spending associated with5 contracting out vital City services.6 (Applause.)7

These examples8 of wasteful and duplicated spending9 contribute to the City's fiscal crisis10 and should be reversed before any more11 service cuts or tax increases are12 considered.13 We believe that there are14 millions of dollars more in savings that15 could be generated in addition to the16 examples that we have provided here.17 Therefore, District Council 3318 is calling on City Council, the PICA19 Board and the City Controller to take a20 look at the issue of contracting out of21 City services and end the wasteful22 spending that is not currently being23 addressed.24 You should also know that we25 26 26 5/8/09 - WHOLE - BILL 090212, etc.1 have started negotiations with the City2 for a contract to replace the one-year3 agreement we settled last July.4 We believe that we have5 demonstrated for you here today the6 members of District Council 33 have7 contributed enough over many years, and8 especially in the last year, for us to9 receive a fair contract settlement. That10 is what we will be looking for to achieve11 in our negotiations.12 We don't think that the City13 should balance the budget on the backs of14 City workers, and that is why we have15 taken a strong --16 (Applause.)17

And that is why18 we have taken a strong stand, a very19 strong stand, about making any contract20 concessions.21 (Applause.)22

We have done our23 part to help the City year in and year24 out. We will bargain this contract in25 26 27 5/8/09 - WHOLE - BILL 090212, etc.1 good faith for what we don't have in our2 contract.3 District Council 33 is willing4 to work with the Administration and City5 Council. However, we will not stand by6 and be blamed for the City's fiscal7 situation, nor will we make any more8 concessions.9 (Applause.)10

We simply don't11 believe it is fair for the City to punish12 the members of District Council 33 for13 successfully maintaining and managing our14 health and pension benefits through our15 own hard work, and we expect the City to16 respect our efforts. Remember, District17 Council 33 and 47 receive the lowest18 contribution rate for health benefits of19 any of the City unions.20 Let me conclude by putting our21 efforts to help the City in perspective.22 Recently, the unions representing about23 100,000 state workers in Pennsylvania24 agreed to let the state contribute less25 26 28 5/8/09 - WHOLE - BILL 090212, etc.1 to their health benefits for a period of2 15 months. Their health benefits fund3 has a surplus of more than $250 million.4 Their move saves the state about $2005 million towards the state's budget6 deficit, and the Governor signed an7 agreement to pay it all back starting in8 15 months.9 Our counterpart, AFSCME10 District Council 37 in New York City,11 represents 125 City employees, which puts12 them at more than ten times the size of13 District Council 33. New York is facing14 a $9 billion deficit. Council 37 put out15 a White Paper recently that identified16 $150 million in suggested savings.17 One hundred thousand state18 workers come up with 200 million and 12519 New York City workers come up with 15020 million, and both of these are with21 budget deficits that far exceed22 Philadelphia's.23 District Council 33 and the24 other three major unions have already25 26 29 5/8/09 - WHOLE - BILL 090212, etc.1 saved the City close to half a billion2 dollars this year in wages and benefits3 and identified even more ways to solve4 Philadelphia's next $1 billion deficit.5 We have done and continue to do6 our part. Now it is time for the elected7 leaders of this city to do your part.8 Thank you very much.9 (Applause.)10

And I am11 available to answer any questions you may12 have on our contract negotiations with13 the City.14 (Standing ovation.)15

Thank16 you very much, Mr. Matthews.17 At this time, the Chair18 recognizes Councilman Jones.19

Thank you,20 Madam President.21 Mr. Matthews, first of all, I'd22 like to thank you publicly. As a23 freshman Councilman, kind of the24 briefings we received often came from25 26 30 5/8/09 - WHOLE - BILL 090212, etc.1 department heads and administrators of2 programs, and we were given, I would3 think, only part of the information.4 Until we started meeting with the people5 who actually are charged with doing the6 work did we get the full picture.7 I can speak specifically to the8 Belmont Water Treatment Plant. We had a9 wonderful tour of the facility. It10 showed us how filtration worked, and then11 on my way out of the briefing where I was12 approached by some of the guys who13 actually make sure that we are safe14 there, they pointed out some of the15 issues and concerns that they had dealing16 with some of the operations of that. I17 got a full picture. From that particular18 example, I began to meet with many of19 your local members, who were giving us a20 full sense of what's going on and how we21 can improve as a municipality.22 So I owe you and your23 membership and your locals a debt of24 gratitude and thanks in enabling me to be25 26 31 5/8/09 - WHOLE - BILL 090212, etc.1 able to do my job.2

Thank you,3 Councilman. I would hope that the other4 Councilpersons that have not been out to5 all the different facilities would do the6 same. Thank you again.7 (Applause.)8

Under your9 testimony, you presented some compelling10 information about cost savings that the11 City of Philadelphia could have by12 working cooperatively with your13 departments, with your memberships and14 with your locals. Is there a work group15 that consists of members of the unions of16 various locals that works with the City17 of Philadelphia to put forth some of18 these ideas that you put forth today?19

Absolutely.20

And that's21 how we've come up with these savings? Or22 how come we don't know about them coming23 from testimony from the departments?24

Obviously the25 26 32 5/8/09 - WHOLE - BILL 090212, etc.1 department does not want you to know2 about them. They wouldn't discuss these3 things, but these are issues that we have4 consistently addressed to the department.5 We've addressed them at every contract6 negotiations, and nothing is done about7 it. These are all factual situations8 that we have down there. We can prove9 and are prepared to prove what we've10 stated here.11

So a lot of12 the ideas put forth are not being13 implemented; is that what you're telling14 me?15

Not being16 implemented and just totally disregarded.17 I read Philadelphia Magazine, the last18 article where the Mayor had stated that19 over the next, I believe it was, 2020 years, if I'm correct, that he could save21 the City $600 million in its plan to come22 after the unions. I mean, you see in our23 one instance alone with a 25-year24 contract that was signed a billion 25025 26 33 5/8/09 - WHOLE - BILL 090212, etc.1 million dollars, and we are prepared to2 sit here and prove that.3 These are instances that we4 give over and over and over that the City5 totally ignores. And one thing about6 contracting out is that it's been proven7 over and over, you get an initial shot of8 money the first year or two. Then it's9 all regressive against the City finances10 after that, either by selling off11 equipment, the contractor has you at his12 mercy or we coming over and doing the13 actual work after the contractor messes14 it up.15 So these are things that we've16 consistently told every Administration,17 but -- and one of the things that we've18 always stated was, the Administration19 really doesn't care. They want a quick20 fix, because face it, a Mayor is not21 going to be in any longer than eight22 years. So usually these problems, if he23 can keep these problems going after the24 first four years, he runs into his25 26 34 5/8/09 - WHOLE - BILL 090212, etc.1 election, what does he care about the2 costs going up, because he don't have any3 more than eight years.4 (Applause.)5

In testimony6 this Council has received from the7 Administration, there was mention of a8 Private Section Task Force that was9 charged with coming up with innovative10 ideas to offer different options to both11 the City of Philadelphia and this Council12 on how to improve service delivery. Have13 they reached out to you at any point to14 talk about ideas?15

No, they have16 not. And before the budget address, I17 would say this: Me and the Mayor would18 have on occasions, quite a few occasions,19 where we would talk about different20 things and different problems that we21 could work out, and it seems like since22 that time, since that budget address, the23 Mayor has just done an about-face, and24 after that budget address, he formed this25 26 35 5/8/09 - WHOLE - BILL 090212, etc.1 committee, if I understand. He did not2 reach out to District Council 33 or any3 of the other locals.4 And might I add that when he5 states that this is a private task force6 that he started, just remember, all the7 problems that we have in this country8 today were by private companies; namely,9 Wall Street, that started it.10 (Applause.)11

I state this12 again. Could you imagine our senior13 citizens if the past Administration that14 switched Social Security, 401(k)'s, could15 you imagine what our senior citizens16 would be going through right now? They17 wouldn't be receiving Social Security18 checks right now.19 So talk about the private20 sector correcting all the ills, I mean,21 it's absolutely ridiculous. They have22 enough problems of their own. How are23 they coming up and saying they're going24 to correct our problems?25 26 36 5/8/09 - WHOLE - BILL 090212, etc.1 I've just proven to you the2 things that we've done over the years3 that are problems that we had years ago.4 I mean, we should be rewarded the fact5 that since -- and in 1992, the City6 reduced our health payments some $200 per7 member per month. That's how we got into8 that $30 million of debt. We corrected9 that. We should be rewarded on what we10 do --11 (Applause.)12

-- to correct13 that problem. And if you remember, in my14 testimony, one of the things that the15 City wanted to do is to get on the Health16 and Welfare Board, because they believed17 in some ridiculous way that we were doing18 some things wrong on the Board. They've19 been on the Board since 1992. We have20 been commended by their people on the21 Board to the way we run the Health and22 Welfare. In fact, one trustee on the23 Board from the City said, We wish we had24 a health plan like yours.25 26 37 5/8/09 - WHOLE - BILL 090212, etc.1 (Applause.)2

That's how good3 we run it. And I also want to stress, we4 get less money than any of the other5 unions. So we do a job -- we do a6 fantastic job with the money that we get,7 and for them to talk about taking from us8 is absolutely ridiculous. We can prove9 what we do with the money that's given us10 through the City.11

Well, one of12 the things that I won't do today is try13 to negotiate a contract, because I'm14 ill-prepared to do it, but I will say15 this, that if we're going to get out of16 this mess, this budget deficit, it's17 going to take dialogue and cooperation18 between the Private Section Task Force,19 the Administration, this Council and our20 unions that do the work, and I, at least21 one member in this body, encourage that22 kind of dialogue. If you have good23 ideas, we should not care so much about24 the author of the ideas, but the25 26 38 5/8/09 - WHOLE - BILL 090212, etc.1 implementation so that all of us come out2 better because of it.3 (Applause.)4

Well, I'd also5 like to say you will not get there by6 making threats as to the leadership of7 myself and the other four unions as to8 stop listening to the screaming masses9 and make ridiculous choices. I don't10 know about screaming masses, but we have11 members here that work hard for the12 benefits they have, and it seems like --13 (Applause.)14

It seems like15 the Administration -- and I dare say some16 members of Council -- don't understand17 that these are their constituents too,18 not working for a whole lot of money --19 it's not a whole lot of money -- to20 provide these valuable services that you21 control. You're control contractors.22 You don't know what they do. You don't23 realize how we go over their work and do24 their work. But mind you, I say this is25 26 39 5/8/09 - WHOLE - BILL 090212, etc.1 a quick fix.2 And another thing --3 (Applause.)4

Another thing5 that I want to make public while I have6 the opportunity, as I said in the past,7 for the past year, I had been working8 with the Mayor. All the members you see9 here, the members you don't see in our10 10,000-member union, the Mayor came11 directly, directly to us and stated, You12 deserve good healthcare. You deserve13 decent wages and benefits. You deserve a14 good pension plan, and he will make sure15 that that comes.16 Now, I understand it's a fiscal17 crisis. We presented to you things that18 we have already done to help along the19 City with that, but to receive a phone20 call 20 minutes before a budget address21 and to inform me that these are the22 things that you were going to be doing --23 when we were talking beforehand, we could24 talk -- I consider that to be underhanded25 26 40 5/8/09 - WHOLE - BILL 090212, etc.1 and low. And as I said this to my2 members --3 (Applause.)4

As I said this5 to the members, this is not anything that6 I'm saying here in this Council, this is7 not anything that I said to the members,8 this is what I said to the Mayor. You9 have hell on your hands if you think that10 we are going to make one more concession11 in this contract. Our members --12 (Standing ovation.)13

You know, I can14 take a lot of things, and you have to15 take a lot of things in this job to go16 forward, but for the Mayor to stand up17 there and insult the union leadership18 like he did was totally ridiculous. It19 was uncalled for, and I have not spoken20 to the Mayor since. And I have publicly,21 after he made those statements, I22 publicly -- I deliberately went to the23 newspapers to say the message that I had24 to say, because I had an agreement with25 26 41 5/8/09 - WHOLE - BILL 090212, etc.1 the Mayor. We would not negotiate in the2 media. You know that yourself, because3 the Mayor has said it numerous times.4 What was that budget address but5 negotiating in the media. He broke that6 promise, and in our first negotiations7 stated that, You know, there's some8 things that we're going to have to do now9 to come in the media and say certain10 things.11 I know you are. You're going12 to try to negotiate in the media and13 you're going to try to turn the tide14 towards you with all of these false15 statements. But I'll tell you, we are16 serious about this. We mean this. We17 said this to our Mayor. It is time to18 stand up to be men and women. This19 fiscal crisis is not our fault. We have20 done everything we can to help it along.21 (Applause.)22

And then the23 Mayor had the audacity to say, The money24 that I had for you, I'm taking it back.25 26 42 5/8/09 - WHOLE - BILL 090212, etc.1 I'm not going to negotiate it. I'm2 taking the money back. So we go into3 negotiations with a list of concessions.4 We go in with our demands, and he says --5 they're saying, If you give us these6 concessions, then you can negotiate on7 what's left.8 Zero from zero leaves zero.9 (Applause.)10

We want to work11 this thing out fairly. We really want to12 sit down and work this out, but13 absolutely, we negotiate for what we14 don't have. We are citizens of the City.15 We want the City to work. We've16 consistently done that, and I don't17 understand where the Mayor is coming18 from. Maybe one of these days he'll19 start speaking to me again and he can20 explain where.21 So that's our position.22

Well, I just23 want to say that, again, we will leave24 the negotiations to the Administration,25 26 43 5/8/09 - WHOLE - BILL 090212, etc.1 but your recommendations on cost savings,2 when we go back to deliberate on what the3 budget should be, we're going to take4 them into consideration.5

Thank you.6

Add that to7 the dialogue and discussion.8 (Applause.)9

Because,10 once again, at the end of the day, all of11 us are Philadelphians and all of us12 benefit from a city that works and a city13 that is as cost effective and efficient,14 but not on the back of people.15

Right. Thank16 you.17

Thank you,18 Madam President.19

Thank20 you.21 (Applause.)22

The23 Chair recognizes Councilwoman Miller.24

Thank25 26 44 5/8/09 - WHOLE - BILL 090212, etc.1 you, Madam President.2 Good morning, Mr. Matthews.3

Good morning.4

And other5 members.6 I just want to thank you for7 your very informative testimony. Much of8 the information that you laid out and was9 presented today was really an eye-opener.10 I personally had no idea just how much in11 terms of dollar amount of concessions12 that you've made.13 I want to thank you for your14 willingness. I mean, even then -- you're15 fired up, and I think correctly. But16 even with that, you just made a statement17 that you're willing to be fair, and I18 think that that's good and that shows19 good leadership.20 So I just really wanted to say21 thank you for the information. It's22 really helped me and I'm sure it's helped23 other people. We certainly don't have24 all the information all the time. I do25 26 45 5/8/09 - WHOLE - BILL 090212, etc.1 believe that you and every other union2 deserves a fair contract, because you are3 a vital part of the constituent services4 and services that we provide to5 Philadelphia citizens. So I just again6 want to say thank you for the info.7

Thank you.8 Thank you, Councilwoman.9 (Applause.)10

Thank11 you.12

We gave some13 pretty strong testimony on the Water14 Department. What I'd like to do is --15 COUNCIL PRESIDENT VERNA:16 Excuse me, Mr. Matthews. I believe17 Councilman Rizzo's light went on.18

I'm sorry.19 COUNCIL PRESIDENT VERNA:20 Councilman.21

Thank you,22 Madam President.23 Mr. Matthews, I came to this24 Council in 1995 respecting the work that25 26 46 5/8/09 - WHOLE - BILL 090212, etc.1 you and your membership do for the2 citizens of Philadelphia, and I want to3 assure you that during this fiscal4 crisis, that your membership will not5 have to bear more and have a personal6 financial crisis. So I just wanted you7 to know that.8

Thank you,9 Councilman.10 (Applause.)11

Jeff Gilliam is12 the Business Agent of Local 394, and I've13 given some testimony on biosolids and14 he'd like to follow up on that testimony15 that I've given.16

Thank17 you.18

Good morning.19

Good20 morning.21

Good morning,22 Council President Verna, members of City23 Council. I would like to thank you for24 this opportunity to testify on the City25 26 47 5/8/09 - WHOLE - BILL 090212, etc.1 budget as it relates to the Philadelphia2 Water Department, as President Matthews3 stated, but before I proceed, I would4 just like to say also good morning,5 District Council 33.6 (Applause.)7

I am here today8 to offer testimony on two specific9 instances of contracting out to further10 illustrate what District Council 3311 President Pete Matthews just told you12 about wasteful spending that should be13 terminated before you consider any tax14 increases on the citizens of15 Philadelphia. However, I would first16 like to address some specific parts of17 testimony that Water Commissioner Bernie18 Brunwasser delivered to City Council on19 April 27th.20 In his testimony, Commissioner21 Brunwasser stated in part that the recent22 water rate increases were, and I quote,23 "largely driven by increasing costs for24 employee healthcare and pensions."25 26 48 5/8/09 - WHOLE - BILL 090212, etc.1 The members of Local 394 take2 great exception to this statement. We3 are members of District Council 33, and4 what Commissioner Brunwasser neglected to5 tell you was that our District Council,6 under the leadership of President7 Matthews, has been able to work with our8 healthcare providers to make sure that9 our members have good healthcare benefits10 at the cheapest cost to the City of all11 the major unions.12 For Commissioner Brunwasser to13 lay the blame on the Water Department's14 fiscal ills on the members of Local 39415 is more than insulting. It is also very16 deceptive and, to be very frank, a damn17 lie.18 Our union contends that too19 much wasteful spending on outside20 contractors who do work that can be21 performed better and cheaper by our22 members, as well as the Water23 Department's willingness to enter into24 bad deals with questionable operators are25 26 49 5/8/09 - WHOLE - BILL 090212, etc.1 the real culprits here. But you won't2 hear that from any department head in3 this Administration, because in spite of4 his rhetoric, "a new day, a new way,"5 this Mayor is just as comfortable as the6 last few Administrations with blaming the7 workers and balancing the City's budget8 on our backs.9 (Applause.)10

Commissioner11 Brunwasser also made it a point to12 testify that the Water Department is13 committed to high-quality customer14 service. As the local union representing15 the people who deliver the highest16 quality service to the citizens and17 ratepayers, we question the Water18 Department's commitment in light of their19 tendency to hamper our members' ability20 to perform at the same time giving away21 hundreds of millions of dollars in22 sweetheart deals and contracts to shady23 companies to do our work.24 It wasn't the Commissioner or25 26 50 5/8/09 - WHOLE - BILL 090212, etc.1 any of the management of the Water2 Department that brought to the attention3 of the Administration and City Council4 the corruption issues in the City of5 Detroit connected with one of the6 companies I am about to show you is7 wasting millions of dollars here in the8 City. It was Local 394 who exposed this9 wasteful spending.10 (Applause.)11

President12 Matthews has told you that the City13 spends too much on contracting out and14 that you need to end this process before15 you consider raising any taxes or allow16 the City to cut any more jobs and17 services. I want to give you two18 examples of where the City can save19 millions in the Water Department. 2 As I am sure most City Council3 members already know, for most of the4 last five years, the Street5 Administration tried to get City Council6 to approve contracting out the Biosolids7 Recycling Center of the Water Department8 to a private contractor. 16 When the current Administration17 took over in January 2008, it was fully18 briefed on our objections and concerns19 about the possible consequences of20 contracting out the BRC. 6 million deal7 to handle that city's biosolids. 11 You should know that even12 though the Water Department testified in13 City Council that they would check on the14 displaced BRC workers and offer training15 to dissatisfied employees, it has not16 happened. 18 The Water Department was firm19 that annual expenditures will be the same20 as when this work was performed by Local21 394 members before the contract was22 approved. Therefore, the FY09 interim23 service fee should be $20,958,349, or24 $1,746,529 per month. 6 Natural gas as listed in the7 assumptions section of Scenario C2 of the8 contract is $1 per therm. 95 per therm,10 a 95 percent increase over the11 assumptions. 14 Are these people paying Philadelphia15 taxes or are they trying to get around16 City taxes by living outside the City and17 being employed and paid as Synagro18 central employees from Maryland? )16

The Water17 Department's testimony before City18 Council did not reveal this wasteful19 spending because it was blended into a20 number of different line items. We know21 where they are hiding this wasteful22 spending, because Local 394 members have23 to deal with the consequences every day.24 By our union's estimates,25 26 57 5/8/09 - WHOLE - BILL 090212, etc.1 terminating this outside contract would2 save the City $50 million over the next3 five years.4 (Applause.)5

Another example6 of wasteful spending directly related to7 contracting out in the Water Department8 can be found in the way the Department9 uses big name outside companies like10 Hazen and Sawyer, Metcalf and Eddy Inc.,11 Black and Veatch Corporation, Gannett12 Fleming, Greeley and Hansen, Camp Dresser13 and McKee and CH2M-Hill to do engineering14 work that can be performed by the Water15 Department's own engineering staff of 16416 people.17 In fact, our local union's18 investigation has shown that the Water19 Department has budgeted $64 million for20 outside professional services and21 engineering contracts, and it has already22 spent $32 million of it.23 We estimate that the City could24 save an additional 32 million or more25 26 58 5/8/09 - WHOLE - BILL 090212, etc.1 this year by calling a halt to outside2 professional services and engineering3 contracts in the Water Department.4 These are just two examples5 that Local 394 has been able to identify6 in the Water Department where the City7 could save about $82 million. We are8 certain that there are even more examples9 that would save even more.10 We ask that City Council keep11 this information in mind as you hear12 about our District Council 3313 negotiations and before you consider14 raising any taxes or allowing the City to15 enter into any more wasteful outside16 contracts while cutting jobs and17 services.18 I would like to thank the City19 Council for allowing me to testify today,20 and may God bless us all, may God bless21 District Council 33. And this city works22 because we do.23 (Applause.)24

Thank25 26 59 5/8/09 - WHOLE - BILL 090212, etc.1 you very much.2 Our next speaker will be?3

Irene Snyder.4 She's the President of Local 1510.5

Thank6 you.7

President Verna,8 members of City Council, thank you for9 the opportunity to testify on the City10 budget.11 My name is Irene Snyder and I12 am President of Local 1510 of District13 Council 33. Our members work at the two14 Philadelphia Airports as well as the15 Philadelphia Regional Port Authority,16 City Representative's Office and the17 First Judicial District.18 I am here to tell you that I19 agree with District Council 33 President20 Pete Matthews' position that wasteful21 spending should be eliminated before you22 consider any tax increases on the23 citizens of Philadelphia.24 I would also like you to know25 26 60 5/8/09 - WHOLE - BILL 090212, etc.1 that our members are twice as motivated2 as the average citizen with regard to3 obtaining the maximum for every dollar4 our government spends. As taxpayers, we5 do not want to see our money wasted on6 jobs that clearly can be done more7 economically in-house. And as employees,8 we obviously want to continue working for9 the City in order to provide for our10 families.11 This discussion should not be12 limited to cutting jobs and services or13 raising taxes. Instead, I urge City14 Council to compel the Administration to15 operate more efficiently in order to get16 more value for every dollar spent. This17 can be done by letting City workers like18 ours in Local 1510 do what we do best,19 which is delivering high-quality services20 at the best possible price.21 The reason I am calling this to22 your attention is because a lot of the23 work that our members can do is24 contracted out under the Airport's25 26 61 5/8/09 - WHOLE - BILL 090212, etc.1 Facility Maintenance Contract. This2 contract is valued over $40 million and3 encompasses work performed by a variety4 of occupations. Although some work is5 clearly beyond the scope of our members'6 job titles, much of it can be done better7 and cheaper by the members of Local 1510.8 (Applause.)9

Let me give you a10 few examples of the unnecessary spending11 that occurs at the Airport.12 The Airport has a bird control13 contract with a company called Pest Free.14 The contract calls for the installation15 of chicken wire at various locations16 where birds nest and the removal of bird17 droppings. Our members in the Airport's18 Building Maintenance Unit and Pavement19 Ground Unit can perform this work with20 the proper training and personal21 protective equipment.22 Another contractor is called to23 clean the drains and gutters on the24 roofs, which cause problems if not done25 26 62 5/8/09 - WHOLE - BILL 090212, etc.1 properly. All too often our Building2 Maintenance members are called to fix the3 leaks that can be traced back to4 improperly maintained drains and gutters.5 Why not let our members do the job right6 the first time and avoid these leaks?7 This will save money --8 (Applause.)9

This will save10 money and avoid potential maintenance,11 safety and liability problems.12 The Airport also has a13 contractor who is responsible for all14 minor repairs to the rubber roofs. These15 roofs have leaked since they were16 originally installed. On any rainy day17 you can walk through the terminals and18 see trash cans being used to collect the19 leaking rainwater. Rubber roofs are20 repaired with either a torch or a21 chemical bonding, and our members are22 capable of doing this work at no extra23 cost to the Airport.24 About a month ago a man25 26 63 5/8/09 - WHOLE - BILL 090212, etc.1 approached one of our window washers who2 was assigned to clean the flight3 information monitors. The man told my4 member that his company was responsible5 for cleaning the flight monitor screens6 only. These monitors were expensive and7 never worked right. It is my8 understanding that the former security9 manager awarded the flight monitor10 contract to a company called Air IT11 shortly before he left the Airport to12 work for them. I was told that the13 original performance specifications were14 lowered so that Air IT could qualify.15 During my investigation of who16 this cleaning company is and its role17 with monitors, I learned that our members18 were being blamed for the faulty19 equipment and that the Airport's solution20 was to contract out the screen-cleaning21 work. The awarding of the original22 flight monitor contract and the23 subsequent screen-cleaning contract24 raises questions about how the Airport25 26 64 5/8/09 - WHOLE - BILL 090212, etc.1 spends the public's money.2 Several years ago, our Building3 Maintenance members worked on obtaining a4 Jettier truck that the Water Department5 had tagged for disposal. This vehicle6 offers a high-pressure water line that is7 used to clean drains. The truck was8 refurbished by District Council 339 members and put back into service at the10 Airport. I am told it has saved the11 Airport well over $1 million.12 The union is suggesting that13 the Airport obtain the Vactor truck in14 the same way that they obtained the15 Jettier truck. By doing this, they could16 save the Airport at least $3,000 per17 month to have the sewage pump pits18 cleaned.19 If the Airport raises the issue20 of disposal of the material, it is my21 understanding that the Airport can obtain22 a permit from the Water Department that23 will allow them to dump the waste at the24 Southwest Sewage Treatment Plant.25 26 65 5/8/09 - WHOLE - BILL 090212, etc.1 The last example that I'd like2 to give you is one that happened a few3 years back, but it shows the Airport's4 lack of respect for the City worker.5 Airport management wanted to install6 security cameras in the employee parking7 lot, but everyone said it could not be8 done. It was our electronic technicians9 who came up with the design that10 successfully brought the system online.11 The Airport then had our technicians show12 the contractor how this was done. After13 our members showed the contractor how to14 do the job, the Airport awarded the work15 for the second parking lot to the same16 contractor. This work would have been17 done better and faster by our members at18 no extra cost to the Airport.19 The outside contracts that I20 have told you about in this testimony are21 just the tip of the iceberg. I am sure22 that City Council has the ability to find23 even more examples throughout City24 government where public money is wasted25 26 66 5/8/09 - WHOLE - BILL 090212, etc.1 while jobs and services are unnecessarily2 cut.3 Thank you, and I'm available to4 answer any questions.5 (Applause.)6

Thank7 you very much.8 Any questions from members of9 the Committee?10 (No response.)11 COUNCIL PRESIDENT VERNA:12 Seeing none, we will call on our next13 witness, please.14

Our next speaker15 is Vince Fragale. He's the Business16 Agent of Local 1927, Fleet Management17 employees.18

Thank you, Pete.19 President Verna, members of20 City Council and distinguished guests, I21 thank you for this opportunity to testify22 before Council on the City budget as it23 relates to the Office of Fleet24 Management.25 26 67 5/8/09 - WHOLE - BILL 090212, etc.1 My name is Vince Fragale. I'm2 the Business Agent for the Office of3 Fleet Management employees Local 1927 of4 District Council 33. Our members are5 responsible for servicing and maintaining6 all City vehicles and equipment in the7 general fleet, as well as vehicles and8 equipment in the Water and Aviation9 Departments.10 I am here today to offer a more11 detailed testimony on instances of12 contracting out to further illustrate13 what District Council 33 President Pete14 Matthews just told you about wasteful15 spending that should be terminated before16 we consider any increase in taxes on the17 citizens of Philadelphia.18 It is our contention that there19 is too much of our tax dollars spent on20 outside contractors. Study after study21 has shown that while there may be some22 short-term benefits, that in most cases23 it has been shown to be much more costly24 and less efficient. Our members have25 26 68 5/8/09 - WHOLE - BILL 090212, etc.1 done the work better and cheaper for many2 years. They have worked diligently at3 their respective jobs, providing this4 city with a workforce that could be5 counted on.6 In recent years, the Office of7 Fleet Management has increased its amount8 of contracted-out work due to the9 ever-increasing amount of funding in the10 vendor contracts and a shrinking11 workforce. This practice needs to be12 examined in more detail in order to stop13 what amounts to costly duplicating of14 services. This has been primarily due to15 the decisions made at the administrative16 levels of City government. In most17 cases, departments have little or no18 choice but to contract out the work due19 to the reduction of money in the General20 Fund and an increase of the funding in21 the 200, 300 and 400 class funds. This22 forces the departments to contract out23 the work that was previously done by City24 workers.25 26 69 5/8/09 - WHOLE - BILL 090212, etc.1 Since 1998, our department has2 seen its workforce go from 565 City3 workers to its current level of about 3104 employees. While the City workforce has5 gotten smaller, the amount of money6 directed towards private contracts have7 grown substantially. Our workers take8 pride in the work they do, many times9 correcting the substandard work done by10 outside contractors. Our workers believe11 that if they were given the ability to12 perform the work, it would have been done13 right in the first place.14 (Applause.)15

In addition, when16 Fleet Management contracts out, their17 employees that live outside the City and18 sometimes outside the state will reap the19 benefits of being employed by the City20 without any of the sacrifices. All City21 workers by law must reside within the22 City. This is not a requirement of23 outside contractors. When the work is24 done by Local 1927 members, who are City25 26 70 5/8/09 - WHOLE - BILL 090212, etc.1 residents and taxpayers, you can be2 certain that the tax revenue as well as3 most of the money our members spend to4 support their families will remain in the5 City.6 (Applause.)7

President Pete8 Matthews has stated that the City spends9 too much on contracting out in general10 and that this practice should be examined11 before considering to raise taxes or12 allowing the City to further reduce its13 workforce or cut City services. Here are14 a few examples of how millions could be15 saved by keeping the work in-house.16 Below is a quick review of17 Fleet Management's budget that was18 presented to City Council. Fleet19 Management has allowed Local 1927 to20 identify $2,543,000 in contracted-out21 work that could be done cheaper, quicker22 and with better quality by our members.23 (Applause. )24

Here is a25 26 71 5/8/09 - WHOLE - BILL 090212, etc.1 breakdown of the several outside2 contracts in Fleet Management:3 Janitorial services, we spent4 $240,000 out of the General Fund, 95,0005 out of Water Fund and $10,000 out of6 Aviation. It comes to a total of7 $345,000 for janitorial services that are8 contracted out that I know my members can9 do better.10 (Applause.)11

Heavy equipment12 general repairs, there's 164,000 spent13 out of the General Fund, 120,000 out of14 the Water Fund and 138,000 out of15 Aviation. I know my members can do that16 work better and more cost efficiently.17 (Applause.)18

Auto collision19 and light repairs, there's 372,000 spent20 out of the General Fund, 370,000 spent21 out of Water and 42,000 spent from22 Aviation. That comes to a total of23 $784,000. I know my members can do it24 better. I want my body shop fully25 26 72 5/8/09 - WHOLE - BILL 090212, etc.1 staffed.2 (Applause.)3

It was promised4 to me. I want my members back.5 Emergency tire repairs, out of6 the General Fund we spent $198,000,7 $30,000 out of Water. It comes to a8 total of $228,000 we spent on emergency9 tire repair. I know my members can do it10 better.11 (Applause.)12

Engine and13 transmission repair, we spent $272,00014 out of the General Fund, 129,000 out of15 the Water Fund and $20,000 out of16 Aviation. It comes to a total of17 $421,000. I know my members can do it18 better.19 (Applause.)20

Steel rim wheel21 clean and paint, $14,000 out of the22 General Fund. I know my members can do23 it better.24 (Applause.)25 26 73 5/8/09 - WHOLE - BILL 090212, etc.1

Upholstery2 services, $40,000 out of the General3 Fund, $15,000 out of Water. It comes to4 a total of $55,000. I know my members5 can do it better.6 (Applause.)7

Welding services,8 $40,000 out of the General Fund, $30,0009 out of the Water, $10,000 out of10 Aviation. I know my welders can do it11 better.12 (Applause.)13

Towing, 44,00014 out of the General Fund, $6,000 out of15 Water. I know my tow operators can do it16 better.17 (Applause.)18

Fabrication,19 retrofit, install safety equipment on20 City vehicles, $40,000 out of the General21 Fund, $10,000 out of Water and 94,000 out22 of Aviation. I know my members can do it23 better.24 (Applause.)25 26 74 5/8/09 - WHOLE - BILL 090212, etc.1

This comes to a2 grand total of $2,543,000, but that's3 just a small piece of it. In Class 200,4 Fleet Management contracts out a total of5 $6,490,000 of work that I know my members6 can do better.7 (Applause.)8

Again, these are9 a few of the services we have identified10 that we absolutely know we can do11 quicker, cheaper and better quality and12 less duplication of efforts by Local 192713 members. We ask that City Council take a14 long look at this information and demand15 that the City end all of this contracting16 out before you consider raising any more17 taxes or allowing the City to enter into18 any more wasteful outside contracts while19 cutting jobs and services.20 (Applause.)21

Thank you for the22 time and consideration on this matter.23 I'm available to answer any questions24 that you may have and we'll provide any25 26 75 5/8/09 - WHOLE - BILL 090212, etc.1 information you may need.2 (Applause.)3

Thank4 you very much.5 The Chair recognizes6 Councilwoman Blackwell.7

Thank8 you, Madam President.9 Good morning, gentlemen.10 (Good morning.)11 COUNCILWOMAN BLACKWELL:12 Mr. Matthews, I apologize for being out.13 My phone, they were blowing my phone up.14 In fact, I was speaking at a school to a15 bunch of young men, and the theme was16 believing in yourself, as ironic as that17 is, because it appears that here today18 it's kind of where we are.19 We regret that -- and I20 personally regret -- that for you and for21 your union to feel so pushed against the22 wall that you have to come in here23 because you have no other recourse. We24 appreciate your leadership over the years25 26 76 5/8/09 - WHOLE - BILL 090212, etc.1 and certainly want you to know that we2 respect you. We understand the battle,3 and we're with you.4

Thank you.5 (Applause.)6

And let me thank7 you, Councilwoman Blackwell, for all the8 support that you've given us over the9 years. We really appreciate it. Thank10 you.11

Thank12 you.13 (Applause.)14 COUNCIL PRESIDENT VERNA:15 Mr. Matthews, do we have another speaker?16

Yes, we do.17 Local 696 President Bobby Davis is also18 the Vice-President of District Council19 33.20 (Applause.)21

Good morning --22

Good23 morning.24

-- Council25 26 77 5/8/09 - WHOLE - BILL 090212, etc.1 President Verna and members of City2 Council and this great union that we call3 District Council 33.4 (Applause.)5

My name is Bobby6 Davis and I'm the Vice-President of7 District Council 33 and the President of8 Local 696.9 We are facing the hardest times10 in our city's history. As we prepare11 ourselves for the difficult task that we12 are facing, the reality of13 revolutionizing our future must be met14 with the understanding that the City15 works because we do.16 (Applause.)17

Do not let anything18 or anyone confuse you of that fact. It19 is with continuous pride that we serve20 the citizens of this great city because21 we work and we live here.22 For years, we were asked to do23 more with less, and now we are asked to24 do more with nothing. It is the reason25 26 78 5/8/09 - WHOLE - BILL 090212, etc.1 why our members/employees are working2 under stressful working conditions and an3 environment full of tension, leaving many4 with the impression that the job is yours5 but you are damned and/or dared to6 perform at a high-performance level.7 Employees are making suggestions, but8 response by the Administration is9 sometimes met with, You should be10 thankful that you have a job. City11 employees are more than thankful, and we12 count our blessings in many ways. We do13 not need to be threatened with job14 security to perform our duties and15 responsibilities.16 I do not envy the tasks that17 the Councilmembers are faced with during18 the five-year budget crisis, but with all19 due respect to all of you, the City of20 Philadelphia is counting on you to look21 under all that appears to be hidden.22 (Applause.)23

Every penny of24 revenue counts. 1 $800,000 that nobody is watching. 14 Supermarket scanners are covered under15 the City ordinances which require four16 inspections a year. At last count, we17 had 86 locations of this type throughout18 the City. License fees are $525 a year19 for six or more scanners. Most of these20 locations have six or more scanners. 8 Medium scales, we have9 approximately 400 medium scales10 throughout the City of Philadelphia. The11 license fee is $125 each. 13 Large scales, we have14 approximately 66 large scales throughout15 the City of Philadelphia. The license16 fee is $125 each. 18 Load racks, we have19 approximately 64 load racks throughout20 the City of Philadelphia. The license21 fee is $90 each. 1 City of Philadelphia, and this estimate2 is low. The license fee is $90 per3 truck. 5 Public parking garages and6 lots, we have approximately 275 to 3257 locations throughout the City. The8 license fee for both lots and garages are9 $25 per parking space. 50 per space. Revenue generated from11 the license fees alone are $8,125 per12 year. If a garage has 10,000 parking13 spaces total in the City, this could14 generate an additional $250,000 in15 license revenue. If lots have the same16 amount of 10,000 spaces, this could17 generate an additional 25,000. 20 Give or take a couple of21 dollars here or there, the grand total22 that no one is watching is approximately23 $758,000 per year. 1 the state. 14 Wendy's, a restaurant,15 advertised that they were selling16 quarter-pounders that weighed a quarter17 pound. 20 Shell Gas Station at Broad and21 Godfrey Street was cheating its consumers22 out of gas. 2 This occurred when no inspections were3 being done. In another incident,4 customers were calling and complaining5 that they were having engine trouble due6 to faulty gas. An inspection was done7 and it was determined that they were8 mixing improper fuel together. )14

By Commissioner15 Burns' own admission, she stated that the16 Department of License and Inspection17 exists to enforce The Philadelphia Code18 and, through education and enforcement of19 the Code, thereby protect the citizens of20 the Philadelphia.21 I believe through an RGI22 project between License and Inspection23 and Local 696, we can carry out these24 functions efficiently, effectively and25 26 84 5/8/09 - WHOLE - BILL 090212, etc.1 cost effective.2 I thank you for the opportunity3 to speak before this distinguished body.4 May God bless you and the City of5 Brotherly Love and Sisterly Affection.6 (Applause.)7 COUNCIL PRESIDENT VERNA:8 Mr. Matthews, do we have another speaker?9

Yes, we do,10 Madam President. Charlie Gaskins is the11 President of Highway Local 403. He12 doesn't have the testimony, but he'd like13 to say a few words.14 COUNCIL PRESIDENT VERNA:15 That's fine. Thank you.16

Hello, everyone.17

Good18 morning.19

My name is20 Charles Gaskins. I'm the President of21 Local 403 out of District Council 33. I22 represent the second half of the Streets23 Department, which is the Highway24 Division. We mostly have tradespeople.25 26 85 5/8/09 - WHOLE - BILL 090212, etc.1 One of the things I'd like to2 make clear is that I've worked for the3 City for 38 years. God, let me see June4 the 1st. I came to work for the City of5 Philadelphia because of racism in the6 Carpenters Union years ago, and I became7 an employed person and I was very glad8 for that.9 In our local we came up with10 ideas to help save money year in and year11 out. Everyone talks about recycling. We12 did something a few years ago with the13 help of our Chief Highway Engineer, Kevin14 Kotchway, who came into existence an15 operation called HIP, Hot-in-Place, where16 you recycle the asphalt that's already17 out there. The contractor came from18 Canada. He had three different types of19 workers working there. You had private20 engineer workers from the building trades21 union in Philadelphia, you had Canadian22 workers who were non-union and you had23 the City workforce.24 We saved the City money by the25 26 86 5/8/09 - WHOLE - BILL 090212, etc.1 City not having to buy asphalt. We saved2 the City money by the City not having to3 mill the streets. Over the years, you4 know, when the oil prices went up,5 asphalt prices went up, and under the6 Street Administration, that program was7 taken out. And I realize that people8 have to be politically correct, but our9 Streets Department Commissioner evidently10 didn't put up a good enough fight,11 because the City lost a lot of money back12 then. That's not the employees' fault.13 It's not the union's fault. Well, they14 have since wised up and put that program15 back into place, and I also believe that16 there's hope of even purchasing a machine17 like that.18 We have tradespeople. When you19 have contractors doing all the work20 that's being done in this city, we have21 construction inspectors, who go out and22 try to provide the services to make sure23 that the City is getting what they're24 paying for. Well, those people's jobs25 26 87 5/8/09 - WHOLE - BILL 090212, etc.1 have been cut dramatically. So how are2 you protecting the citizens' money that3 you say you want to protect?4 We have Survey Division people5 cut in half. They bring in there some of6 their own revenue. In my pocket I have7 at least 24,000 -- 24 rather and my8 semi-skilled are supposed to be laid off.9 Those semi-skilled workers don't do just10 semi-skilled work, which is running the11 jackhammer a lot of times or pneumatic12 tools. They also rake asphalt out of13 class, because the City hasn't hired any14 asphalt rakers or enough of them. They15 also drive trucks, because you haven't16 hired enough of them. They also operate17 equipment when they paving the streets,18 because you haven't. I've informed our19 workers we will no longer work out of20 class, because you're trying to take21 workers away.22 This local, as a lot of other23 locals here, have not been rewarded for24 helping. We are tired of it coming off25 26 88 5/8/09 - WHOLE - BILL 090212, etc.1 our workers' backs. Our workers are2 stressed out. We can't help it if the3 political things that go on, tax rebates4 or tax incentives for people to come and5 buy condominiums where they don't have to6 pay a certain amount of taxes for ten7 years, they don't have nothing to do with8 that.9 (Applause.)10

They don't have11 nothing to do -- our workers don't have12 nothing to do with the fact that even13 though everyone knew that when Governor14 Rendell ran, he wanted casinos. Our15 workers don't have nothing to do with the16 fact that you have played games, from the17 past Administration to this one, to18 getting those things done where you would19 have revenue coming in. This city used20 to be twofold, manufacturing and21 services. Today it's down to just one.22 No one seems to care.23 Our workers know they make24 less. My trade is a carpenter. I know25 26 89 5/8/09 - WHOLE - BILL 090212, etc.1 my carpenter brothers on the building2 trades side on the outside make twice as3 much per hour than I do.4 (Applause.)5

I have a unit6 called Street Lighting. The Street7 Lighting Division is responsible for the8 alley lights. A few years ago you had a9 company called Carr and Duff put in all10 new alley lights, but you let that11 division get cut in half. How do they12 take care of the alley lights if they13 have no employees? Only recently did you14 give me a few. It doesn't make any15 sense.16 With all this work that's going17 on in this city, to continue to cut the18 workers out that do this work, we have19 surveyors, bridge design -- and another20 thing, more importantly, our workers can21 come in as semi-skilled laborers and rise22 up to be anything they want to be. You23 talk about young people not wanting to24 stay in this city. Well, we offer them25 26 90 5/8/09 - WHOLE - BILL 090212, etc.1 things. When they come here, if they2 want to go to school and learn some3 things, they can become anything they4 want, from a bridge designer to a5 surveyor to a construction inspector or6 anything else.7 (Applause.)8

You're taking9 that away.10 You got trade schools in this11 city. You have trade schools in this12 city, and nobody is tapping into them.13 They're young people. You want them to14 stay, but you don't want to invest in15 them.16 You had a program out there in17 Fleet Management -- and somebody correct18 me if I'm wrong -- for apprentices. You19 no longer have it. That was ridiculous20 to remove it. Ridiculous. Because you21 had young people coming here, learning22 and they were going to also add it to the23 workforce.24 It's time for somebody to stop25 26 91 5/8/09 - WHOLE - BILL 090212, etc.1 putting all this weight on the unions'2 back and our workers' back. It is time3 for this to stop.4 We have all kind of ideas, if5 someone would listen. But sometimes it's6 not politically correct and sometimes --7 and I hope I don't make too many people8 angry. The Mayor comes into office and9 they appoint commissioners and they10 create new job titles, Deputy Mayor of11 Transportation and this and that.12 (Applause.)13

You created all14 these jobs, all these titles and they15 know nothing about what we do. They know16 absolutely nothing. And then you have17 some people when they get these titles,18 they get paranoid and schitzy, so they19 don't believe any of our workers or some20 of our chief engineers or the department.21 They tell them they don't want to believe22 what they have to say. And then if they23 know they're right, they dare not go back24 and tell the Mayor.25 26 92 5/8/09 - WHOLE - BILL 090212, etc.1 We're at a disadvantage. A few2 years ago I met with Mr. Goldsmith and I3 asked to meet with him with my business4 agent, and we wanted to talk about some5 things, and he had the Commissioner of6 Streets there, and no disrespect to her,7 and I asked why was she there. I wanted8 to meet with you. And he told us, well,9 he didn't know what we did. I said,10 Well, quite frankly, she doesn't either.11 I'm being honest. I am a12 tradesman. We have a bunch of13 tradespeople in my local. We have a14 bunch of skilled people in this room,15 represented by all these union officials.16 It is time that we get our just do. Not17 every time you turn around take something18 from us.19 (Applause.)20

I don't have21 paper in front of me because I was22 speaking from my heart. I have 38 years23 with the City. Christmas of 2010 is my24 last day for the City of Philadelphia. I25 26 93 5/8/09 - WHOLE - BILL 090212, etc.1 thank God for this job, but I hate to see2 it going down the way it's going. I hope3 that you have new people coming on board4 in Council who will sit down and dare to5 say, Let's think outside the box and6 listen to these people that represent the7 unions.8 (Applause.)9

I believe there's10 enough work in this city to go around,11 but when it comes to the taxpayers of12 this city getting more bang for their13 buck, they definitely get it when our14 workers do the job. And I'll give you an15 example. The example I'm going to use is16 the man that owned the equipment for17 Hot-in-Place, which is called HIP, as I18 said before. He had people from the19 operating engineers working on equipment20 and using equipment. He had people from21 Canada that were non-union, and he had22 our workers when they originally started.23 Today, all City workers run that whole24 operation. That's something to be proud25 26 94 5/8/09 - WHOLE - BILL 090212, etc.1 of. Our workers started from nothing,2 learned that whole operation and learned3 it all, and it saved the City money.4 (Applause.)5

So I would hope,6 in closing -- and I thank you for your7 patience and your time. I would hope in8 closing that -- to me it's nothing wrong9 when you really sit down and be fair to a10 union. All unions aren't about fighting.11 We want the same thing you want here. We12 want our members to have a job. We want13 the taxpayers to get what they deserve.14 But we get tired of hearing about -- and15 I'm going to tell another example. In16 the wintertime, when it snows, everything17 on TV is PennDOT. Do you ever talk about18 the workers in this room and these locals19 that go out and salt the streets?20 (Applause.)21

Everything is22 PennDOT. That's wrong. We stay away23 from our families overnight and24 everything else. We had an ice storm a25 26 95 5/8/09 - WHOLE - BILL 090212, etc.1 few years ago and contractors couldn't2 even get in the City.3 As I said, I've been here 384 years. I don't need to have nothing down5 on paper. It's in this head.6 (Applause.)7

So, once again, I8 appreciate the time that you've given me,9 and thank you very much.10 Thank you, Pete.11 (Standing ovation.)12 COUNCIL PRESIDENT VERNA:13 Mr. Matthews, do you have any other14 speakers?15

No. That's it,16 Madam President.17

Thank18 you.19 I want to thank you all for20 coming in. I think your testimony was21 very good, and, more importantly, I think22 we as members of Council -- I know I'm23 not just speaking for myself, but for24 everybody in Council, we want to thank25 26 96 5/8/09 - WHOLE - BILL 090212, etc.1 you for all the wonderful work that you2 all do, and we applaud you.3 (Applause.)4

Thank you.5 Thank you. I want to thank you, Madam6 President.7

And8 we wish you luck. We wish you luck.9

Thank you, Madam10 President, for your patience. Thank you11 for listening to us. We look forward to12 working together with you and the rest of13 City Council. Especially thank you to14 the Councilmembers that are here, and15 thank you, District Council 33, for16 showing up.17 (Standing ovation.)18 COUNCIL PRESIDENT VERNA:19 Mr. Matthews, can I see you up here a20 minute, please?21

Sure.22

Our23 next -- we will wait until our visitors24 leave until we call our next witness.25 26 97 5/8/09 - WHOLE - BILL 090212, etc.1 (Pause.)2

We're3 going to continue on with our hearing.4 Our next witness?5 MR. McPHERSON: Our next two6 witnesses are Lauren Bornfriend and Pete7 Hoskins.8 (Witnesses approached witness9 table.)10

Thank11 you for your patience. Please identify12 yourself for the record. Nice seeing13 you, Pete. Welcome.14

Good morning.15 Good morning. My name is Pete Hoskins --16

Pete,17 before we start, we have any number of18 people that want to testify today. I19 think when you called to say you wanted20 to testify, you were all told you would21 have three minutes. So now that we're22 alone, so to speak, we're going to abide23 by the three minutes.24

Sure. That will25 26 98 5/8/09 - WHOLE - BILL 090212, etc.1 be easy. Thank you so much.2

Thank3 you.4

President Verna,5 members of City Council, my name is Pete6 Hoskins, President of the Board of the7 Philadelphia Parks Alliance. I am here8 today with the Alliance's Executive9 Director, Lauren Bornfriend.10 Thanks for the opportunity to11 testify on behalf of the tens of12 thousands of citizens and families,13 schools, sports teams, churches,14 synagogues, mosques, businesses, tourists15 who use and enjoy one of the most amazing16 treasures that we in Philadelphia have,17 our parks and recreation facilities.18 These are hard times. We know.19 Last year at this time the Parks Alliance20 was rightly applauding you, City Council,21 and Mayor Nutter for approving the most22 significant increase in funding in23 Fairmount Park in decades and new funds24 for the Recreation Department. This was25 26 99 5/8/09 - WHOLE - BILL 090212, etc.1 a major breakthrough aimed at finally2 turning the tide on 30 years of3 flat-lined budgets for Philadelphia's4 parks. It was also a demonstration of5 your leadership on behalf of restoring6 our parks after many years of neglect.7 But today we are confronting a8 financial crisis and a declining budget.9 This current economic crisis10 does not diminish the desperate need to11 fully fund the parks, though we12 realistically understand that it does13 delay it. Mayor Nutter and City Council14 reduced the Fairmount Park budget by 2015 percent in November of last year. This16 effectively eliminated the two and a half17 million dollar increase and took an18 additional 600,000 from the Park budget.19 This budget proposal you are now20 considering keeps the annual current21 budget at just $12.6 million. That's22 less than the 12.8 million the Park had23 in 1985.24 The Philadelphia Department of25 26 100 5/8/09 - WHOLE - BILL 090212, etc.1 Recreation has also suffered from a2 dwindling budget and much-deferred3 maintenance. In addition, the City's4 November 2008 rebalancing plan cut the5 Department's budget of $40 million by 206 percent. The City's 2010 contingency7 plan would further reduce the budget by8 an additional eight and a half million.9 The Parks Alliance applaud the10 dedicated staff at Fairmount Park and the11 Department of Recreation who work12 tirelessly in spite of fewer and fewer13 resources.14 So we are asking you, please15 reinstate the historic increase for16 Fairmount Park that you supported last17 year as soon as possible. The Mayor's18 mid-year budget rebalancing plan calls19 for the increase to be reinstated in20 Fiscal Year 2011. It's easy to throw21 numbers around, but what is the real22 effect when we cut funding for parks and23 recreation? If we see our parks and24 their many facilities and historic25 26 101 5/8/09 - WHOLE - BILL 090212, etc.1 amenities as assets for Philadelphia, we2 see that we actually lose the value of3 those assets, assets demonstrated to be4 worth hundreds of millions of dollars a5 year in real estate, health,6 environmental, tourism and many other7 economic and social benefits as outlined8 in last year's economic impact study by9 the Trust for Public Land.10 We must continue to find ways11 to reinvest in our vital parks and12 recreation assets. We must find a way to13 return to the trend we began with you14 last year.15 Thank you very much.16

Thank17 you.18 Good morning.19

economic engine. The economic value of4 Philadelphia's parks and recreation5 system is hundreds of millions of dollars6 annually. 12 For instance, Philadelphia's13 citizens already save nearly $70 million14 a year in medical expenses by using15 parks. 23 That's a great return on24 investment. 1 invested more in our parks. 13 Healthy, vibrant urban parks14 and recreation are now at the center of15 political, economic and policy16 discussions. They are recognized as17 essential tools for community and18 economic development, cultural and19 environmental revitalization, healthy,20 fit citizens, retention and attraction of21 residents, businesses and tourists,22 protection of land and water, crime23 prevention, education and quality of24 life. 4 And citizens do, too. On5 November 4th, 2008, over 266,0006 Philadelphians cast their vote in favor7 of amending the City Charter, ushering in8 the first major reform of our park system9 in 140 years. 14 In an open and transparent15 process, over 200 citizens from many16 neighborhoods and professions stepped17 forward and applied to serve on the new18 Commission of Parks and Recreation. 9 So even in the midst of these10 difficult times, we remain hopeful for11 several reasons. 2 Please don't cut one more cent from their3 budget, and look to reinstate the4 increase next year. 9 MR. 11

Thank you,12 Mr. Chairman.13 Ms. Bornfriend, Mr. Hopkins --14 Hoskins -- Pete and I go back 20 years,15 so I have no excuse for butchering his16 name.17 I just want to take a moment to18 thank you both for what you do for the19 Parks Alliance and ultimately our parks.20 As a new Councilperson, I've been21 following the lead of Councilwoman22 Blondell Reynolds Brown and Councilman23 Clarke on the park merger and had to sit24 through a lot of the interviews, over 10025 26 107 5/8/09 - WHOLE - BILL 090212, etc.1 of them, and it was incredible the amount2 of talent and commitment to our parks3 that we have.4 I applaud you guys for also5 recognizing that the City is in a6 temporary, temporary, temporary financial7 crisis and doing your part by way of8 cutting back on needy and overdue9 improvements to the parks.10 I also know that in bad times11 we need to plan ahead for better times,12 and, Pete, no one knows that better than13 you in your role in the MDO's Office or14 the Water Department or the Zoo. You15 know about that. And one of the things16 in hidden treasures that I found to be17 true is some of the mansions that we had.18 I had no idea the history of19 architecture, art and culture that we20 have within them, whether we talk about21 Rittenhouse where the first paper mill22 was established or whether we talk about23 the Ohio House where the centennial24 celebration area was or Benedict Arnold's25 26 108 5/8/09 - WHOLE - BILL 090212, etc.1 mansion that we have within the park, and2 trying to market that in a time where3 people are financially challenged to take4 vacations, to try to market it as a5 staycation, because all of these things6 are well affordable kinds of day trips7 that families can go on, and I don't know8 to what degree you're working with our9 Administration to try to market some of10 those hidden treasures.11

Well, actually,12 the tourist agencies have been a very13 important partner through the last14 several years with us, and you may have15 even noticed in the last couple of years16 some of the ads touting our city as a17 place to visit are using the parks that18 much more than ever. So it's a very19 important part of it, yes.20

For example,21 they reopened the true Smith's22 Playground, not the one in South Philly23 but the one in the 4th District, and they24 have the largest wooden sliding board and25 26 109 5/8/09 - WHOLE - BILL 090212, etc.1 they have new equipment, and I remember2 because I have duties as an uncle as well3 as a councilman, and it was a real cheap4 event to take my nephews and nieces there5 to experience that, and they were all6 tired out by the time they got out of7 there. But a lot of people don't know8 about all of the venues that the park9 has.10 If you go right up, there's a11 frisbee park. I think it's the first12 frisbee park in the history of the13 country. And all of these things are14 affordable and free. And what I'm trying15 to coin is a term called a "staycation."16 So instead of going on a vacation, you17 might want to do a staycation and18 experience some of the things that the19 park has to offer.20

Well, I would21 just like to note that when the new22 Commission meets, that I would like to23 ask the Council President to ask you to24 do their orientation, because you sound25 26 110 5/8/09 - WHOLE - BILL 090212, etc.1 like you know the park so well as a2 member of Council, I think it would be a3 great idea to have you do that.4

Well, I work5 closely with Councilwoman Blackwell, who6 happens to have the Zoo, and I'm trying7 to negotiate that out of the 3rd District8 into the 4th, but I don't think she's9 going to let it go.10

More seriously on11 your point about the staycation, that's12 actually a very important aspect of the13 value of our park system and all the14 richness that is there and the15 institutions that are there as well, the16 Zoo, the Art Museum and on and on and on.17 So you're really on target, and we want18 to work with Council and the19 Administration and the tourism agencies20 to help make that a reality.21

One of the22 things that I talk to some of the tourist23 associations about, if you're a visitor24 to the City and you want to have adult25 26 111 5/8/09 - WHOLE - BILL 090212, etc.1 entertainment, you go east towards the2 waterfront, but if you want to have some3 family entertainment, you go west and4 experience the museums along the Parkway,5 but also if you keep further west, you6 hit places like the Zoo, the Please Touch7 Museum, the Japanese House Horticulture8 Center and the Mann Music Center. So9 kind of if we marketed it that way, we10 can do day trips out that end of town and11 really capture some of the tourist12 dollars that is a revenue generator to13 the City of Philadelphia. And I just14 thank the Parks Alliance and all of its15 members for what they do to keep the16 parks up.17

Thank you.18

Thank you.19 MR. McPHERSON: Thank you.20 Our next set of witnesses are21 Carol Goertzel and Margaret Zukoski.22 (Witnesses approached witness23 table.)24 MR. McPHERSON: Please identify25 26 112 5/8/09 - WHOLE - BILL 090212, etc.1 yourself for the record.2

Yes. 3 Good afternoon, members of City Council,4 and thank you for this opportunity. I'm5 Margaret Zukoski. I'm the Associate6 Director of the Pennsylvania Council of7 Children, Youth and Family Services. 14 Private non-profit agencies in15 Philadelphia have been serving children16 and families for over 150 years. They17 have a long history in this city. 1 including ranging from prevention2 services such as parenting education,3 truancy prevention, school-based4 services, foster and kinship care, group5 home, residential, and supervised6 independent living services. 10 I am here today on the behalf11 of the members of the Pennsylvania12 Council to support the Philadelphia13 Department of Human Services' Fiscal Year14 2010 operating budget request for15 $590,878,000. 20 For decades, social service21 research has reported on the relationship22 between economic stress in families and23 child abuse and neglect. 1 services aimed at supporting families and2 protecting children must be maintained3 and readily accessible. Non-mandated4 prevention services frequently are most5 vulnerable during budget cuts. 9 At DHS, Commissioner Ambrose's10 testimony on April 22nd, she reported on11 a number of initiatives that DHS has12 undertaken to reform its services. 16 First, Commissioner Ambrose has17 created the Division of Performance18 Management and Accountability. 22 We have consistently asked and advocated23 for a reliable and valid monitoring24 system. 1 critical to ensure that the services that2 DHS contracts for and provides are3 delivered. 8 She's also created a provider9 relations forum. 1 Currently, we're used to2 having -- its normative behavior for us3 to expect and accommodate delays in4 payments. This year, however, has been5 extraordinary. )12

At this point in13 time, there are a number of providers of14 prevention services who are owed well in15 excess of a half a million dollars.16 They've been waiting since September '08.17 We did a survey last week where18 providers -- we asked them to tell us19 about their interest they've accrued on20 payments. Ten providers accrued a half a21 million dollars on interest for payments22 so they could keep services in place23 waiting for DHS payment. I want to let24 you know that payment services were not25 26 117 5/8/09 - WHOLE - BILL 090212, etc.1 delayed even though providers were not2 paid.3 We're working with the DHS4 Commissioner and her Deputy Commissioner5 Cynthia Figueroa and Joe Cronauer to6 rectify these problems, but I'm here7 today to tell you that the private8 provider community no longer has the9 funds available. Private dollars will10 pay this interest next year in order to11 be able to continue to provide service.12 We are not expecting a rate increase this13 year. Last year some providers got a one14 percent increase. This year we're15 flat-lined. We can no longer afford to16 use the privately raised private dollars17 to subsidize the service.18 One more thing and I'll finish19 up.20 While there's been a lot of bad21 press and reports recently in the paper22 about DHS and its providers, I want to23 end on a positive note and say there's24 still really very good services being25 26 118 5/8/09 - WHOLE - BILL 090212, etc.1 delivered. Permanency for children in2 foster care continues to go up every3 year. Even though the number of children4 in foster care has decreased, the5 percentage of children reaching6 permanency continues to grow. The number7 of children returning to the system after8 having achieved permanency has dropped by9 50 percent in the last seven years.10 That's great news.11 I know my time is up. Thank12 you very much for this opportunity.13

Thank14 you.15 Please identify yourself for16 the record.17

Thank you for18 this opportunity. 7 So I'm coming here to talk a8 little bit about the DHS work and the9 importance of keeping the budget whole,10 not that there aren't problems. But as11 part of our work, we mentor pregnant and12 parenting teens. 22 In our truancy programs, we23 work with families. 1 fall between the cracks. 5 We really believe that there6 needs to be strong support for prevention7 services and that as you're looking at a8 very tight budget, you can't have kids be9 stopped from going to some of the10 placement services and not have a very11 strong community-based prevention system12 that the providers of services in the13 community deliver. And also remember,14 like our budget is relatively small. We15 have a $10 million budget, but we employ16 over 130 people, and they also work in17 the City of Philadelphia primarily and18 they are the taxpayers and they have19 children of their own. 1 Pennsylvania, and in Philadelphia you2 need -- a family of three needs to earn3 about $20 an hour in order to pay for4 everything themselves, and 42 percent of5 the working families in Philly earn under6 200 percent of the poverty level, and7 that's under what the union folks who8 were here before said was their ceiling9 often of 45,000. Forty-two percent earn10 under that. And this provides many11 stressors on families. We don't want12 kids left alone. We need the Department13 of Human Services. 8 We work with kids who have lost9 somebody to death. 12 And I just want to reiterate13 again that the DHS, even though there are14 issues -- we're owed $500,000 right now15 for our prevention services. 17 And we do give our invoices. So there is18 a mismatch in terms of some internal19 workings, but the DHS budget really needs20 to be whole, because we need to make sure21 that we can do everything possible to22 serve the kids and families that are in23 need in this city. 3

Thank4 you for your interest and your5 dedication. I know you all do a very6 good job.7 The Chair recognizes Councilman8 Jones for very brief statements or9 questions.10

Yes, Madam11 President. Your order shall be12 punctually obeyed.13 COUNCIL PRESIDENT VERNA:14 Please.15

Just real16 quick. You mentioned that you're having17 a problem getting payment. Is this a18 result of the new configuration from the19 state's way that they want fee for20 service kind of contracts? Could you21 explain for the record how that is --22

Yes. I can say23 specifically how that is, and then24 Margaret can say a few more words from a25 26 124 5/8/09 - WHOLE - BILL 090212, etc.1 broader perspective.2 Yes, and for the first two3 months, we're paid on what's called4 program funded. Then it's switched to5 this fee for service. And like every6 month or two months, we get something7 back saying, No, send your invoice in8 this way. No, send your invoice in that9 way.10 So I don't know if the problem11 came from the state or from the12 Department itself, because we're not13 privy to that, but that really did create14 a problem. So we're providing in our15 truancy already over 100 more kids. We16 had like 350. We're providing to over17 450. We're not paid more for that.18 We're told we don't have enough staff,19 but we're not even being paid. Yes, that20 is a major part of the problem. Thank21 you.22

I would like to23 add to it. I think it's a very complex24 problem. There are two issues that face25 26 125 5/8/09 - WHOLE - BILL 090212, etc.1 DHS in this past year. One was, foster2 care providers were required to complete3 a whole set of fiscal forms that were4 mandated by the state, and this was all5 part of a Title IV-E allowability issue.6 That delayed payments at the beginning of7 the year. That's a state requirement8 that came down. Also, as Carol9 mentioned, the switch from fee -- from10 program to fee to services and prevention11 programming. As we understood it, this12 came down as part of a state mandate. It13 did cause a number of problems as we14 tried to work out how we could switch15 these programs that had operated under16 one payment method to another.17

Now, are18 most of your members operating on lines19 of credit provided by a bank?20

Many providers21 are using or have exhausted lines of22 credit. As I said before, just a sample23 of ten agencies indicated that there was24 about a half a million dollars that they25 26 126 5/8/09 - WHOLE - BILL 090212, etc.1 have expended on interest payments.2 These interest payments are being paid by3 privately raised dollars. It's not4 reimbursable from the City. These are5 dollars that typically would be used for6 other supportive services to children and7 families. From our perspective, it's a8 huge waste of money that could be going9 to other supports.10

And,11 finally, there was mention in the12 Commissioner's testimony of breaking down13 silos of communication between the14 prevention side of the house and those15 who deal with the reports of abuse. How16 is that progressing?17

I would just --18 not to have anybody feel uncomfortable, I19 would say that that's progressing very20 slowly, honestly, and the inclusion of21 providers in all of the discussion of how22 they should proceed, even though there23 are committees set up to do that, has24 been slow indeed.25 26 127 5/8/09 - WHOLE - BILL 090212, etc.1

Well, that2 concerns me a great deal, because it is3 critical that you guys talk with each4 side of the house for the benefit of the5 children that are assigned to you.6

I would just like7 to qualify. Excuse me. There have been8 forums set up for provider discussions9 with DHS. Again, are they moving as10 quickly as we'd like? No, because we're11 not getting paid. But absolutely I12 believe that there is a commitment from13 the Deputy Commissioner Figueroa and the14 Commissioner Ambrose to get things15 moving, not as quickly as we'd like, but,16 again, I'd also like to mention that17 Commissioner Ambrose has convened a18 provider leadership forum that meets19 fairly regularly where we can raise these20 systemic issues. That's been an21 important point. And you're right,22 you're absolutely right. I think when23 we've seen the system work most24 effectively for children and families25 26 128 5/8/09 - WHOLE - BILL 090212, etc.1 have been the times when providers and2 the Department are really connected and3 really supportive of one another.4

And I would say5 Cynthia Figueroa, new lead in prevention,6 has especially been working with7 providers as closely as she can.8

I just know9 I, for one, as a Councilperson am going10 to be looking to that communication,11 because when it happens, it means a12 benefit to the kids that are receiving13 those services. When you see something,14 you report it back and we address it, we15 save lives.16

That's right.17

Thank you,18 Madam President.19

Thank20 you.21 The Chair recognizes22 Councilwoman Blackwell.23

Thank24 you, Madam President.25 26 129 5/8/09 - WHOLE - BILL 090212, etc.1 We've worked with PathWays for2 a very long time, even before they were3 PathWays Pennsylvania, and it is just sad4 that whenever there are cuts, those who5 need them most and who can do most for6 those in need are first sacrificed.7 But we do appreciate what you8 do and want to do our part to support9 your agenda and your program.10

Thank you very11 much. We really appreciate your support.12

Thank13 you.14

Thank15 you. Thank you again.16

Thank you very17 much.18

Our19 next witness is Frank Cervone.20 (Witness approached witness21 table.)22

Good23 afternoon. Welcome. Please identify24 yourself for the record.25 26 130 5/8/09 - WHOLE - BILL 090212, etc.1

Thank you, Madam2 President. I'm Frank Cervone and I have3 the pleasure of serving as the Executive4 Director of the Support Center for Child5 Advocates. We're the volunteer lawyer6 program for abused children in7 Philadelphia. I'm joined -- please.8

I'm9 Jane Cuiler, C-U-I-L-E-R, Borgerhoff,10 B-O-R-G-E-R-H-O-F-F, and I'm the11 Executive Director of Center City Crime12 Victims Services.13

18 The City of Philadelphia's 1119 victim service agencies seeks $730,000 in20 City funding in the forthcoming year to21 provide support, courtroom accompaniment22 and advocacy to more than 40,000 victims23 of crime. 1 been cut on an average of 19 percent per2 agency, and we need you to help fill some3 of this gap. 17 Mother and baby's lives were both18 threatened by drug dealers, and the19 mother could not endanger her relatives,20 who may also unfortunately have been drug21 involved. 1 Another case, ten-year-old2 Melissa disclosed to her school counselor3 that her uncle had been touching her4 while she was staying over at her aunt's5 house. Melissa and her nine-year-old6 niece, Susan, told a DHS worker that the7 uncle had touched them in their private8 parts with his hand on multiple9 occasions. The girls revealed that they10 had told their adults, caregivers, about11 the incidents. Susan said, Grandmom12 thinks we're lying. 21 And mother was allowing the girls -- the22 father to see the girls even though he23 had a prior conviction for statutory24 rape. 11 We're willing to take our share of the12 cut. The current Administration's13 proposal, as you well know, is for a 2214 percent decrease in DA funding. 18 In summary, we're performing an19 important government function, a public20 function, yet as private non-profit21 organizations, we are treated differently22 from other City-supported functions and23 agents. 1 testimony this morning by our public2 servants calling for increased raises to3 their benefits. 10 It's a much deeper boat, taking on more11 water than the one you heard this12 morning. In a time when court backlogs13 and staff shortages at the Police14 Department and the DA's Office have15 generated delays in trials and problems16 for victims of crime in Philadelphia, the17 victim services agencies have18 increasingly been called upon to fill19 those gaps. Our counseling, our aid and20 intervention on behalf of violent crime21 victims have become increasingly22 important. 1 community. 14

We15 did not impose on the District Attorney,16 believe me.17

I think you will18 ultimately, because it will be your19 budget.20

Thank21 you.22

We will23 appreciate your graciousness.24

Thank25 26 136 5/8/09 - WHOLE - BILL 090212, etc.1 you very much.2

Thank3 you. I have no further general comments4 to add, but I am here to answer any5 possible questions and also just to say6 that we really are concerned that as the7 economic difficulties affect our8 community, that could lead to a rise in9 stress and a rise in crime, and if the10 services available to people who have11 become victims of crime are decreased,12 that's just going to sort of create a13 vicious cycle and make it very difficult14 for people to return to their normal15 productive lifestyles.16

Thank17 you very much.18 Councilman Jones.19

Briefly,20 because we have a lot of people. I21 appreciate your testimony. One of the22 things I'd like, particularly under the23 victims and witness kind of resources, is24 to look at a concept called community25 26 137 5/8/09 - WHOLE - BILL 090212, etc.1 courts that we are exploring. Its2 origins are out of Brooklyn, New York and3 Red Hook, and it kind of batches together4 these kinds of services in a holistic way5 so that victims' rights and victims'6 support systems are there as well, and we7 wanted to kind of get you --8

Councilman, in a9 way, we're leading that parade. We're in10 the municipal courts in the police11 districts. We're meeting kids in the12 community. We're visiting with families13 in their homes. So we'd like very much14 that community orientation. We are five15 citywide -- four citywide organizations16 and seven neighborhood-based victim17 services organizations. So we have an18 office in West Southwest, Jane's office19 in Center City, Northwest, South20 Philadelphia is here today.21

Well, I look22 forward to working with you to further23 that concept and seeing how we can get24 some holistic local justice involved as25 26 138 5/8/09 - WHOLE - BILL 090212, etc.1 opposed to what we currently kind of do2 in these kind of towers of justice.3

We hope you don't4 let us go under.5

No. We6 won't. Thank you.7

Thank8 you very much.9

Thank you, Madam10 President.11

Our12 next witness is John Rowe, Utility13 Service Fund.14 (Witness approached witness15 table.)16

Good17 afternoon. I know you've been very18 patient. Thank you for waiting.19

Thank you, Madam20 President, members of City Council. I am21 John Rowe, Executive Director of the22 Utility Emergency Services Fund. 2 By way of background, UESF3 provides emergency utility assistance to4 restore utility service or prevent5 utility terminations for low-income6 families. Each grant is matched dollar7 for dollar by PECO, PGW or the8 Philadelphia Water Department. 8 million assisting over 7,00011 families. 16 We are year round. 20 I present this testimony on21 behalf of UESF and on behalf of the22 Coalition of Concerned Community-Based23 Organizations. 1 Intercultural Family Services. 10 In each of the past two years, we served11 approximately 3,000 families. 15 The need was so great that16 funds were exhausted rapidly during the17 three-month period from July to the18 beginning of October. compare UESF assistance in this program2 by zip code and poverty by zip code. The Office of Housing and5 Community Development is proposing an FY6 2010 budget cut that would eliminate this7 program for low-income families. 12 These are very poor families13 with an average income of $12,030 a year,14 about 70 percent of the federal poverty15 level. 1 off statewide. Last year, 60,000 were2 shut off, a 50 percent increase. )13

Can14 you almost conclude your testimony?15 We'll give a copy of it to the16 stenographer and it will be transcribed17 in full.18

Thank you.19

Thank20 you.21

We're grateful to22 City Council for its support, and on23 behalf of the Utility Emergency Services24 Fund, the Coalition of Concerned25 26 144 5/8/09 - WHOLE - BILL 090212, etc.1 Community-Based Organizations and2 low-income families, we respectfully3 request that the $1 million to continue4 this program of providing essential5 utility assistance to low-income families6 remain in the budget. These funds will7 be leveraged into $2 million, will8 prevent problems before they occur and9 will have a positive long-term and10 measurable outcome for all Philadelphia11 communities.12

Thank13 you so much.14

Thank you.15 (Applause.)16

We17 are really running behind the scheduled18 time that people were to testify. So if19 someone cannot wait, we will be happy to20 take your written testimony and the21 stenographer will transcribe that in full22 so it will be on record.23 Again, I thank you.24

Thank you.25 26 145 5/8/09 - WHOLE - BILL 090212, etc.1

Thank2 you so much.3 Our next witness is Shelly4 Yanoff.5 (Witness approached witness6 table.)7

Good8 afternoon.9

10 Thank you. I'm Shelly Yanoff. 20 As you know, many of the21 programs that serve children and youth22 have suffered serious cuts in the last23 several years. 1 lives of kids and youth in the City as2 well as their families. In child3 welfare, we're about $29 million short of4 what we were two years ago, and as you5 know, state support for some important6 programs is very fragile right now. 16 But the bottom line does haunt17 us. 19 We begin by acknowledging the20 protection that does exist already in the21 law. 1 We urge you to speak with the2 state and to expand some of the3 exemptions. There is House of4 Representative leadership that is5 prepared to introduce bills in the state6 to expand the exemptions so that seniors,7 disabled, low-income people are protected8 should property taxes be raised. There's9 a strong possibility that the state will10 act on this. 11 We urge the Councilmembers12 consider funding from a wide range of13 sources - some property tax with14 appropriate exemptions, some wage tax,15 suspending property tax abatements for16 two years, much as wage tax reductions17 have been frozen, some business taxes,18 particularly of businesses whose profits19 exceed an agreed-upon number annually and20 some sales tax. 1 schools, safety and clean neighborhoods2 trump tax issues in people and businesses3 deciding to move or stay. 10 There's an old African saying11 that when the elephants fight, the grass12 gets trampled. We urge you and the13 Administration to come together to create14 a revenue package that seems fair and15 does not trample the services that16 children and families need. 3

Thank4 you. Thank you very much.5 Our next panel will be Sue6 Rosenthal, Walter Palmer, Gary Hall,7 Shela Harper and Pauline Burker.8 (Witnesses approached witness9 table.)10

Good11 afternoon. Welcome. Kindly identify12 yourself for the record and proceed with13 your testimony.14 It's good to see you again. We15 see you once a year.16

Right. Not17 only do you see me once a year, Council18 President, but we brought with us again a19 member of our Board from Health District20 10, who passed her 90th birthday this21 year.22 COUNCIL PRESIDENT VERNA:23 Wonderful.24 (Applause.)25 26 151 5/8/09 - WHOLE - BILL 090212, etc.1

This is Mary2 Aponick.3 COUNCIL PRESIDENT VERNA:4 Welcome.5

And she6 deserves the most credit for sitting as7 long as we did.8 COUNCIL PRESIDENT VERNA:9 Talking about birthdays, I understand10 it's the stenographer's birthday, and we11 certainly want to wish you a very happy12 birthday.13 (Applause.)14

I would like to15 introduce Gary Hall, who is the Chair of16 Health Center 5. He will speak first and17 then I will continue.18

Good morning.19

Good20 afternoon, I think. Time goes by when21 you're having fun.22

Yes. You should23 have some --24

We25 26 152 5/8/09 - WHOLE - BILL 090212, etc.1 have it.2

Giving honor to God,3 President Anna C. Verna, Honorable4 members of City Council, fellow5 Presidents of the Community Health6 Advisory Boards, support staff, friends7 and neighbors, good morning.8 Place yourselves in the chair9 of an eye doctor. You are being prepared10 for an eye examination. The eye doctor11 places eyedrops in your eyes so that your12 eye lenses are wide open for the13 examination. Then the doctor has you14 wait in the doctor's chair so that the15 eye solution can have its time to open up16 your lens.17 Today, I want to be the eye18 doctor that makes you sit back in your19 chair and relax as I place the eye20 solution of health advocacy in your eyes21 and into your hearing. The solution of22 health advocacy will prepare your sight23 with the help of special lenses.24 Here are the special lenses:25 26 153 5/8/09 - WHOLE - BILL 090212, etc.1 The health data on diagnosis, the summary2 comparison for the first quarter Fiscal3 Year 2009 versus Fiscal Year 2008 visits.4 These lenses will allow you to5 see the need for services. Look at the6 number of patients with hypertension and7 diabetes. Look at the number of children8 defining the need for pediatric services.9 Look at the rise in the number of10 patients using the health center from11 Fiscal Year 2008 to 2009.12 Now let's continue looking at13 the health data. Do you see14 contraceptive management? Do you see15 pulmonary tuberculosis screening, acute16 upper respiratory infection, pain in the17 limb, asthma, dermatitis, HIV counseling,18 HIV disease, chest pain, anemia? If you19 have seen all of these things listed,20 consider yourselves with great vision.21 Hence, the vision is to keep22 the health centers open. We need your23 sight and insight to keep us open to a24 very needy community that is fighting for25 26 154 5/8/09 - WHOLE - BILL 090212, etc.1 its wellness.2 Now it is time to leave the3 doctor's chair. Your sight has been4 examined and your lenses have been5 prepared for its view and question.6 Do you see the need to be a7 part of a health advocate infrastructure8 that promotes wellness for its community?9 Thank you, and may God bless10 you and keep you and your families.11

Thank12 you very much. Thank you.13

Walter Palmer14 was not able to stay until now, but asked15 me to say just a few words for him.16 The combined health centers17 serve 25 percent of the Philadelphia18 population and are seeing a dramatic19 increase in the privately insured. I20 believe that the City, Health Department21 and health centers should make a22 concentrated effort to attract insured23 patients in order to bring more dollars24 into the City treasury.25 26 155 5/8/09 - WHOLE - BILL 090212, etc.1 The fiscal crises we face are2 seeing an increase in the numbers of3 working-class and middle-class residents4 that look to Rite Aid, CVS, Eckerd's,5 Walgreens, hospital ERs and even the6 Internet for their health and medical7 assistance. We can do better.8 I am Sue Rosenthal, Chair of9 the Community Board, Public Health Center10 10 in Northeast Philadelphia.11 The Administration is creating12 a plan to charge those who are treated at13 our City health centers. Members of City14 Council, no. You cannot allow the Health15 Department to refuse services to those16 who cannot afford to pay for their17 healthcare.18 Talk about blood from a stone.19 To be forced to refuse service to those20 who cannot pay is to relegate the21 untreated to potentially even more22 serious illnesses. We cannot allow this23 to happen.24 I am also concerned about25 26 156 5/8/09 - WHOLE - BILL 090212, etc.1 Philadelphians with incurable diseases.2 A diabetic requires daily testing of3 sugar levels. This is done using test4 strips now provided by our centers. But5 if you recall, we were told when the6 departments reported to you that all7 over-the-counter supplies were going to8 be cut out of the public health centers9 because they can be obtained in10 drugstores. Under plans for FY 2010,11 medical supplies such as these test12 strips will no longer be provided by our13 health centers.14 We appreciate last year your15 having increased the health center budget16 to enable the filling of many long-time17 vacancies. By this addition to the18 budget, we were able to dramatically cut19 the waiting time for initial appointments20 in all but one health center. Thank you.21 While I am sure you know the22 figures that prove the value of our23 health centers, let me put them on24 record. Eighty-seven thousand25 26 157 5/8/09 - WHOLE - BILL 090212, etc.1 Philadelphians were treated in 340,0002 visits in our eight health centers last3 year. The first half of FY 2009 saw an4 increase of 5.5 percent of new clients.5 Sounds like a small amount, 5.5 percent.6 Really? In human beings, this meant7 4,785 new clients were treated at 18,7008 additional appointments.9 This increase is a forewarning10 caused by more joblessness, which will11 result in the need for more health12 services to be delivered by centers.13 We ask you to fund all health14 centers -- don't close any, please. We15 don't like play Plan B and Plan C. It16 will be a tragedy -- so that they are17 fully staffed and without the requirement18 that they charge for services. The19 health centers must also have the funds20 to continue to provide medical supplies,21 such as I have given as an example.22 Thank you, Councilpersons, for23 your support year after year. Your24 support of the health centers has25 26 158 5/8/09 - WHOLE - BILL 090212, etc.1 improved the quality of life for2 thousands of Philadelphians. Indeed,3 your support saves lives. We know you4 will do your best this year also.5 Thank you.6

Thank7 you very much.8 Are there any questions or9 comments from members of the Committee?10 (No response.)11

Thank12 you again for coming in to testify.13 We will now call upon Paul14 Levy. Is Paul Levy here?15 (Witness approached witness16 table.)17

Good18 afternoon. Welcome.19

1 Court. My name is Paul Levy. 1 the criminal justice system have come2 together to work collaboratively to solve3 problems. Under one roof across the4 street at 1401 Arch Street, Assistant5 District Attorneys and Assistant Public6 Defenders work cooperatively with the7 Philadelphia Police. 15 Because it is a partnership, there is no16 one departmental budget for the Community17 Court. 1 communities. Over 55,000 clients have2 been served. Most importantly, it has3 reduced the rate of recidivism; that is,4 people who go through the Court tend to5 learn from this Court and not recommit6 crimes. 2 million to15 renovate the space and secured a half a16 million dollars from the Pew Charitable17 Trust to fund the start-up phase and18 secured $165,000 from the Bureau of19 Justice Assistance for a lot of the20 computer technology. Most importantly,21 each year since 2002, we have taken out22 of our operating budget $400,000 a year23 to support this court and the24 coordinating staff. 1 million a year through the DA,2 Public Defender, First Judicial District3 and the Health Department. So we4 represent about a 27 percent share of the5 Court's costs. 9 We are really proud of this10 relationship that we have been able to11 put together, but we are quite concerned12 that reductions in the budget either to13 First Judicial District or in the DA's14 Office really puts us in a situation15 where we're going to have to contemplate16 completely withdrawing our support from17 this court. We've been asked on multiple18 occasions whether we could fund staff19 from the First Judicial District or fund20 criminal justice expenses, and by design,21 the CCD is here to supplement but not22 replace City services. So funding,23 coordinating and administrative support24 we think is appropriate. 8 And I know, Councilman Jones,9 you're looking to see how to expand. We10 have something that is serving ten police11 districts. 20

Thank21 you very much.22 The Chair --23

I'm sorry. One24 thing. We have appended comments. I25 26 165 5/8/09 - WHOLE - BILL 090212, etc.1 apologize, Councilwoman, but we e-mailed2 a whole series of people in the last day3 or so to simply say, Can you give us your4 opinions on the Court, and we've appended5 to this comments from the Police6 Department; from Ellen Greenlee, the7 Public Defender; from Lynne Abraham; from8 Project HOME; from University of9 Pennsylvania. It's very rare that10 Police, DAs, Public Defender, social11 service advocates, public health12 advocates all agree on one thing:13 They're all supportive of this court. We14 really urge you to listen to what they15 say and not simply what I say.16 I apologize for interrupting17 you.18

Thank19 you. Thank you very much.20 The Chair recognizes Councilman21 Jones.22

In my brief23 time here, I have not found one project24 that I am totally committed to having25 26 166 5/8/09 - WHOLE - BILL 090212, etc.1 expanded throughout the City of2 Philadelphia more than the concept of3 community courts. I had an opportunity4 to go up to Red Hook, New York and see5 where it originated from and then6 juxtapose that to what we do here in the7 City of Philadelphia, and I just want to8 thank you guys for being trailblazers in9 that regard here in the City of10 Philadelphia.11 At some point, the powers that12 be, whether it's CJAB or the13 Administration, have to really quantify14 what your contribution to reducing15 expenses of taxpayers on having to deal16 with a multitude of services that are17 associated with these quality-of-life18 crimes, but also wind up -- and I guess19 at some point we're going to get some20 people a lot smarter than us to evaluate21 just what it would have meant had that22 court not been there and what it would23 have meant in an estimated $100 a day24 where those small petty crimes would have25 26 167 5/8/09 - WHOLE - BILL 090212, etc.1 resulted in jail time and what that would2 have equated to by way of burden to the3 City of Philadelphia's already overtaxed4 budget.5 So I won't belabor it here, but6 I just want to put on the record that7 this is a concept that we're going to8 look at and look at expanding to other9 parts of the City of Philadelphia. And10 the interesting part of it -- and I'll11 end on this -- is that I have two12 different police districts that couldn't13 be more different than night and day in14 my area. The 19th District is a place15 where we have experienced some high16 levels of crime, and, in fact, every 2817 days, someone is getting shot. Sometimes18 not fatally. But in the 5th District, I19 have an area where the biggest crime is20 quality-of-life crimes, people having too21 good a time on commercial strips and22 drinking a little too much. But that23 concept of community courts is equally24 applicable to the 19th District when we25 26 168 5/8/09 - WHOLE - BILL 090212, etc.1 start talking about quality-of-life2 crimes that can range from graffiti to3 drug use and things of that nature to the4 overzealous partygoers and college5 students up in the 5th. That same6 sentencing structure, that same support7 structure can be applied to either8 district, and that's what makes Community9 Court such an intriguing possibility for10 expansion and with an eye towards11 reducing the cost of incarceration,12 trials and other things, social services13 applied to our budget every day. And I14 just wanted to put that on the record and15 say thank you for being helpful in16 providing us information that might17 indeed see it expanded.18

I just should add19 one thing, and I thank you for those20 comments. Our experience -- we borrowed21 this idea from the Times Square Community22 Court in New York, and just as they23 started with one court in the business24 district -- and then you know because you25 26 169 5/8/09 - WHOLE - BILL 090212, etc.1 visited Red Hook -- the idea was then2 applied elsewhere. I think there's ample3 room to do that in Philadelphia, but if4 we're here to say one thing, let's make5 sure we don't lose the original one in6 our effort to create new ones.7

I support --8

I know you agree9 with that.10

I support11 that.12 Thank you, Madam President.13

Thank14 you very much, Mr. Levy. We appreciate15 your coming in to testify.16

Thank you very much.17 I appreciate it under your very busy day.18

Thank19 you.20 Our next witness is Marianne21 Bessey.22 (Witness approached witness23 table.)24

Good afternoon,25 26 170 5/8/09 - WHOLE - BILL 090212, etc.1 Madam President and members of City2 Council. My name is Marianne Bessey and3 I represent the Philadelphia Chapter of4 the League of Humane Voters and the local5 group, Friends of Philly Zoo Elephants,6 and the reason I'm here today is to7 testify about concerns regarding the City8 funding of the Philadelphia Zoo.9 In this time of recession and10 budget cuts that we've been hearing about11 all morning, it's particularly important12 to expose as much waste, fraud and13 inefficiencies in City funding as14 possible in order to save taxpayers15 money.16 City Council every year17 approves through your budget process18 millions of dollars of financial support19 for the privately run Zoo through, one,20 water subsidies; two, sewer and21 sanitation subsidies; three, renting the22 City-owned property of 42 acres within23 Fairmount Park for just a dollar a year24 to the Zoo; and, four, the Zoo receives25 26 171 5/8/09 - WHOLE - BILL 090212, etc.1 millions more in funding for capital2 improvements to Zoo facilities varying3 year to year.4 As a publicly funded entity,5 the Philadelphia Zoo must be held6 accountable for receiving public funds.7 Publicly funded entities must be8 responsible to public inquiries and must9 operate with transparency. In addition,10 if an entity wants to benefit from public11 financing, it should also be willing to12 respond to public concerns on all issues.13 In our experience, the Philadelphia Zoo14 has failed to do any of these things.15 For example, for over two16 years, the citizens of Philadelphia have17 asked the Philadelphia Zoo to take action18 regarding elephants at the Zoo. Among19 other things, local citizens have20 circulated petitions and obtained over21 10,000 signatures in support of sending22 the elephants to a sanctuary and23 permanently closing the elephant exhibit.24 I brought the petitions with me. I25 26 172 5/8/09 - WHOLE - BILL 090212, etc.1 didn't make copies because I didn't want2 to waste all that paper, but they're3 certainly available to you, and I can4 make copies if anybody is interested.5 Should I keep going?6 COUNCIL PRESIDENT VERNA:7 Please go on.8

There's a9 wonderful sanctuary in California. The10 Performing Animal Welfare Society offered11 to take all three of our elephants --12 Petal since died -- over two years ago at13 no charge. The Zoo instead is waiting14 for a breeding facility to be built. And15 the estimated costs of keeping elephants16 in conditions here at the Zoo that the17 Philadelphia Zoo officials have admitted18 are inadequate is close to a million19 dollars. So talk about waste. 1 public by claiming that the elephants are2 going to a sanctuary. The Zoo is calling3 the breeding facility outside Pittsburgh4 where it plans to send the elephants a5 sanctuary even though a sanctuary is a6 permanent home for animals where they can7 live out their lives in peace. 17 First, the method of management18 that's used in this breeding facility and19 at the Philadelphia Zoo is abusive and20 outdated. Two, the plans to breed the21 elephants are very risky. 1 training based on dominance, and that2 means the use of bullhooks, and I have a3 photo of a bullhook here. I wanted to4 bring a bullhook, but it's considered a5 weapon, so it couldn't make it through6 security clearance. 13 Second big reason that it's a14 bad idea is, attempting to breed these15 two elephants at all at their age is a16 high-risk gamble on the Zoo's part. S. 9 And that's what brings me to10 the last reason. 12 The Philadelphia Zoo plans to13 maintain ownership of Kallie and Bette14 and has talked about some day returning15 them to Philly even though the entire16 42-acre Philadelphia Zoo isn't big enough17 for elephants. 20 Zoos will sometimes claim that21 captive breeding is important for22 conservation purposes, but experts in the23 native-range countries disagree. 13 And a second failure on the14 Zoo's part to be accountable is the Zoo's15 refusal to provide information upon16 request to the public, and I'll give just17 one example. 1 Philadelphia Zoo has repeatedly refused2 to disclose this information. Now, many3 citizens became very concerned about the4 elephants after Petal died last summer,5 because Zoo officials had repeatedly6 claimed that Petal did not have7 arthritis, when some of us saw her8 showing signs of it. 1 Philadelphia City Council to do is to2 halt all funding to the Zoo until they3 are held accountable. Number one is to4 send the -- forget the plans to breed5 these elephants for the reasons that I6 stated. 7 It's risky to the elephants. 12 Secondly, hold the Zoo13 accountable for giving public information14 that should be publicly available to15 concerned citizens for asking for --16

I'm17 sorry.18

Am I done?19

Can20 you start to conclude your remarks?21 Thank you.22

Okay. Thank you.23

You24 can conclude your remarks.25 26 179 5/8/09 - WHOLE - BILL 090212, etc.1

That's okay.2

Thank3 you very much.4 Are there any questions from5 members of the Committee?6 (No response.)7

Thank8 you again.9

Thank you.10 (Applause.)11

Our12 next witness, Connie Naylor and Bobby13 Skinner.14 (Witnesses approached witness15 table.)16

Good17 afternoon. Please identify yourself for18 the record and proceed with your19 testimony.20

Good afternoon.21 I'm Bobby Skinner and I'm here today as a22 living example of what can happen when23 funding is given to the homeless24 shelters.25 26 180 5/8/09 - WHOLE - BILL 090212, etc.1

Could2 you pull the microphone a little closer,3 please.4

I'm here as a5 living example of what can happen when6 funding is given to drug and alcohol7 programs in the homeless shelter.8 I am a proud graduate of Ready,9 Willing and Able. I'm also a proud10 graduate of the Gaudenzia House, and I'm11 here today just to ask that the funding12 that is being given will continue to be13 given.14 I'd like to just say that as a15 young man growing up in Philadelphia, I16 had some high hopes and some high dreams17 of owning my own business and becoming a18 productive member of society. Because of19 some bad decisions and choices that I20 made in my life, I wound up on drugs and21 alcohol for a number of years. For many22 years, I seen no hope at all. I didn't23 know where I was going to go, didn't know24 what I was going to do. My life had25 26 181 5/8/09 - WHOLE - BILL 090212, etc.1 become a shambles. I was living and2 eating out of trash cans, stealing and3 robbing every day just trying to survive.4 For many years, this is how I lived.5 I was married for a number of6 years. Drug and alcohol destroyed my7 marriage, took me away from my kids and8 away from my mother and my brothers and9 the people who truly loved me. Because10 of the way I was living, no one really11 wanted to be around me, and I didn't even12 want to be around myself. But because of13 the programs that are offered to people14 such as myself, I was able to -- I'm15 sorry. I was able to get into the16 programs and get the help that I was so17 desperately looking for and needed, and18 all I needed was just an opportunity, an19 opportunity to prove to myself that I20 can -- I was able to live a better life.21 I am two years clean and sober22 today. I am a proud owner of my own23 home. I'm a proud taxpayer.24 COUNCIL PRESIDENT VERNA:25 26 182 5/8/09 - WHOLE - BILL 090212, etc.1 You're saying you've come a long way.2 Wonderful. Continue your --3

I just -- I'm4 just so happy for the programs that are5 here for people like me. I am one, but6 I'm one of thousands who only ask for the7 opportunity to make better of our lives8 so we are not a drain on the City, but we9 can get back to the City that we so10 proudly love. I help out in my11 community.12 I was asked to come here today13 and speak out on the behalf of the14 homeless and those who are addicted to15 substances. I would just like to say16 that if we cut the programs or if we cut17 the budget that funds these programs,18 there will be so many people out there on19 the street who will be robbing your cars,20 robbing your houses. This is such a21 beautiful city, and it remains beautiful22 because of the love that the City has for23 the people who live here, and I am one of24 those people who came today just to thank25 26 183 5/8/09 - WHOLE - BILL 090212, etc.1 you for what you have given to me. It's2 hope.3 My children now love me. My4 mother allows me to come back into her5 house. My brothers call me every day.6 COUNCIL PRESIDENT VERNA:7 That's great. You seem very sincere.8

And I feel good9 to be alive today. And I just ask that10 the money that's allocated to these11 programs continue to go to these12 programs.13

Thank14 you. Thank you. You seem very sincere,15 and keep up the good work.16 (Applause.)17

Thank you very18 much.19

Thank20 you.21 Please identify yourself for22 the record.23

Yes. My name is24 Connie Naylor. I'm a formerly homeless25 26 184 5/8/09 - WHOLE - BILL 090212, etc.1 person. I'm now living with a tad of2 disabilities, which unfortunately make me3 unable to work or go to school, but what4 I do do when I can is volunteer for an5 organization called Vote for Homes. Vote6 for Homes is a coalition of approximately7 60 different social service agencies in8 the City where we also try very hard to9 make sure the homeless, the low income10 and elderly and ex-offenders get the11 right to vote, because they all have one.12 And we get -- we help register them to13 vote. We also get them to the polls so14 they can.15 But also one thing I'd like to16 talk about is affordable housing.17 Affordable housing is a necessity in this18 city. We have gotten to the point where19 it's going to be more and more people who20 are living in the streets or in shelters21 because the economy is so bad anymore,22 and I'm just hoping that we cannot make23 any more cuts to the Office of Supportive24 Housing, because if you cut ten more25 26 185 5/8/09 - WHOLE - BILL 090212, etc.1 percent from the budget outside of what's2 already been taken back in December,3 we're going to have at least4 approximately 850 more people living on5 the streets, not being accepted into6 shelters. This is over a time of one7 year. And if you take any more than8 that, there's going to be more and more9 people, all the way up to almost 3,00010 people on the street without any housing,11 if you went to 30 percent. And12 definitely the Plan B by Mayor Nutter13 would not work with that exact ten14 percent, because, like I said, there's15 going to be more and more homeless people16 in the City of Philadelphia.17 And it's not just the poor.18 It's the people with median incomes even19 who are losing their property because20 unfortunately the type of mortgage they21 had. But this is so much to fight for.22 I volunteer with them for one23 thing. When I was homeless, I didn't24 have to live on the streets, and I'm so25 26 186 5/8/09 - WHOLE - BILL 090212, etc.1 grateful for that, but I did live in a2 shelter, and the shelter provided me with3 a lot of good people to help me get my --4 start on my path again, and one of the5 things that we cut unfortunately in the6 $784,000 out of the budget for OSH in7 December is, one, the program that Bobby8 was in has taken a big hit as far as9 extra services and personnel that's10 needed to help run that program or in the11 ability to make -- and the ability to12 make it sure that other people were able13 to get into their program. A lot of City14 shelters had their case management cut,15 which are some of the people that help16 the people who are homeless try to get17 into a job, try to get into some kind of18 housing.19 Again, the affordable housing20 is a necessity for Philadelphia. There21 are more solutions to -- while the22 shelter is only a temporary solution, it23 helps meet the needs, basic needs, of24 homeless men, women and children in our25 26 187 5/8/09 - WHOLE - BILL 090212, etc.1 community. The City of Philadelphia must2 continue to find solutions to address the3 larger affordable housing needs in our4 community.5 City Council can create housing6 needs or -- excuse me. City Council can7 create more affordable housing through8 the inclusionary housing and the Housing9 Trust Fund. The Mayor's budget proposes10 cutting up to $9 million previously11 committed for affordable housing. This12 funding is used to build new affordable13 homes, support home repairs and prevent14 foreclosures, evictions and homelessness.15 Please restore funding to the Housing16 Trust Fund now and pass the second half17 of the inclusionary housing bill ensuring18 that developers have the incentives they19 need to build affordable housing.20 (Bell rung.)21

I also hope City22 Council will follow the Mayor's proposed23 budget and make sure that essential24 services are protected in our city. Even25 26 188 5/8/09 - WHOLE - BILL 090212, etc.1 a minimum ten percent cut for the Office2 of Supportive Housing budget would have3 dire consequence with little savings. A4 ten percent cut would mean up to 8525 people will lose their beds in6 Philadelphia shelters over one year, and7 the City would save only $3.2 million in8 a 3.4 billion budget.9 The savings would be small, but10 the pain and suffering of homeless men11 and women and children would be so much12 more of the cost of the other City13 service budgets, like the hospitals, more14 homelessness on the streets and15 especially in Center City Philadelphia,16 because we know unfortunately the17 homeless like to stay there sometimes.18 So thank you for not voting to19 cut ten percent from the OSH budget so20 that people have a place to protect them21 from the rain, the snow and the heat.22 This is why I volunteer, to help23 vulnerable citizens become productive.24

Thank25 26 189 5/8/09 - WHOLE - BILL 090212, etc.1 you very much. We do appreciate your2 coming in to testify. Thank you again.3

Thank you.4

Thank you.5

We6 will now hear from Mr. Thomas Lockhart.7 (Witness approached witness8 table.)9

Good10 afternoon. Kindly identify yourself for11 the record and proceed with your12 testimony.13

My name is14 Thomas C. Lockhart. I'm an advocate for15 the homeless also. I'm affiliated with16 Project HOME and affordable housing. I17 wish you good afternoon, Madam President,18 and to the rest of the Council.19 There was a time period when I20 used to live underneath this building.21 On January 15th, 2007, I walked into the22 middle of City Hall and said, Okay, you23 win, I quit.24 You know, my life has turned25 26 190 5/8/09 - WHOLE - BILL 090212, etc.1 around and it's changed ever since then.2 But if it wasn't for the services3 provided by the City to the people who4 are caught in the midst of their own5 misery, I might have never had that6 opportunity. And in the cutting of funds7 to the Office of Supportive Housing and8 to Behavioral Health, you really limit9 the options that are available for people10 to get help and also to be treated by the11 agencies that provide certain services12 for them. You'll lose the people who go13 out into the street and reach out to the14 person sleeping on the sidewalk.15 I know if it wasn't for the16 system, I wouldn't have had clothes.17 There were times where I wouldn't have18 had food. I wouldn't have been able to19 receive medical attention. I suffered20 from extreme conditions of exposure. I21 had been beaten on several different22 occasions. And these services were23 available. Without those services, I24 probably would have died.25 26 191 5/8/09 - WHOLE - BILL 090212, etc.1 Very soon there will be a new2 class of homeless on the street. With3 the economic state of conditions in this4 country, you'll find more and more5 families who have lost their homes due to6 not being able to pay their mortgage, due7 to not being able to pay their rent.8 Real soon you'll find people standing in9 front of Suburban Station with their kids10 asking for change so that they can feed11 their children.12 Most recently in California, a13 couple who had a combined income of14 $350,000 applied for welfare. They were15 six months back on their mortgage. They16 had just lost both their cars and they17 were being -- and their house was being18 repossessed and they were only eligible19 to obtain $150 a month in food stamps20 because they still had assets. Well,21 when their assets are gone, what are they22 going to do?23 Real soon we're going to find24 that this situation is a viable option25 26 192 5/8/09 - WHOLE - BILL 090212, etc.1 that's going to happen to the City of2 Philadelphia. And if the services are3 not in place, what are you going to do4 when there's a family standing in front5 of Suburban Station or Market East trying6 to feed themselves?7 We have to have affordable8 housing. We have to have a sliding scale9 for services. We have to have agencies10 that are in place and in position to help11 people.12 Most recently, I have met a13 young lady who lost her job because her14 landlord wasn't a licensed landlord.15 When she applied for rental assistance,16 she couldn't get it because he was not a17 licensed provider. So subsequently when18 he got licensed, he moved to evict her in19 the middle of the winter. The shelter20 was full. She's been living with a21 friend. She's been robbed three times in22 the process, and because she hasn't went23 through the shelter system, she's outside24 of the loop, yet she still looks for a25 26 193 5/8/09 - WHOLE - BILL 090212, etc.1 job every day, and she has three2 children.3 Me myself, I personally walk4 around and try to get homeless and5 addicted people into different agencies6 through my own efforts and through7 efforts of agencies that I'm affiliated8 with, but this situation is about to9 become a crisis situation.10 (Bell rung.)11

You're going to12 find us back into what it was in the '70s13 where we had mass amounts of homeless.14 With that, I wish you -- God15 bless you. Thank you.16

Thank17 you very much. We do appreciate your18 coming in to testify.19 We will now hear from -- I'm20 sorry. The stenographer would like a21 five-minute break. So we'll be with you22 very shortly. And, Mr. Weeks, are you23 present, Paul Weeks?24

Yes.25 26 194 5/8/09 - WHOLE - BILL 090212, etc.1

You2 will be next to testify, sir.3 (Short recess.)4

All right.5 We're ready.6 Mr. Paul Weeks, please come7 forward for your testimony.8 (No response.)9

We'll go10 to Dr. Debbie Plotnick. Is she here?11

Yes.12 (Witness approached witness13 table.)14

Good15 afternoon.16

Good afternoon.17 I'm afraid there's no doctor, just a18 couple of Master's degrees, but thank19 you. And thank you very much for having20 me here. My name is Debbie Plotnick and21 I am the Director of Advocacy --22

Pull the23 mike down to your mouth, please.24

18 I'm even willing to say it straight. 20 I know it's not politically21 expedient to raise taxes. 1 taxes. 5 That's why I've come here6 today, to ask you to listen to your7 constituents' voices. 14 This very year another15 remarkable, perhaps historic, experiment16 in democracy took place right here in17 Philadelphia. 18 Citizens made that very clear. Don't19 downgrade the parks, the streets, the20 libraries, recreation for families and21 especially for kids. Quality of life and22 after-school and summer programs not only23 help keep kids out of costly trouble,24 financial and otherwise. 1 strong foundations for people to stay in2 the region and for the next generation of3 Philadelphia citizens. Listen to the4 advocates, the ones who are here today5 and ones like myself, who represent the6 underserved and unvoiced. 14 But when your constituents15 really thought about making these usual,16 obvious seeming, seemingly easy cuts,17 they soon realized that the results would18 be nothing less than the cliche states,19 penny wise and pound foolish. 1 inpatient. 6 So where does that leave us in7 these hard economic times? It means that8 City Council, the Mayor and all9 Philadelphia's citizens have to accept10 the unpopular and painful choice to11 increase revenues. And no matter how we12 try to soften our language, it still13 means that taxes have to go up. 22

Thank you23 for your testimony. Just let me say24 that, yes, there were forums held25 26 200 5/8/09 - WHOLE - BILL 090212, etc.1 throughout the City. None were held in2 my district, and when we had Council3 hearings in my district, my constituents4 said don't raise their -- do not their5 property taxes. So their voices were not6 heard at those forums.7 The other thing, we do not want8 to cut social services, and know that9 Council has offered an alternative10 solution to this budget. It would be11 nice if you all would ask the Mayor to12 listen.13

Thank you.14

Thank you.15 Mr. Weeks.16 (Witness approached witness17 table.)18

Good afternoon,19 Councilwoman.20

Good21 afternoon.22

Good afternoon,23 distinguished Councilwomen and24 Councilmen.25 26 201 5/8/09 - WHOLE - BILL 090212, etc.1 I'm here to talk about a less2 redeeming word than the powerful and3 passionate testimonies that I've heard4 today, and I've been here since 9:30. I5 want to talk about --6

You have7 three minutes to talk about it.8

-- casinos. Why I9 want to talk about casinos is because10 it's an important issue, and since11 following this issue, I have not heard12 the point of view of somebody that has13 experience. That's the only reason I'm14 here.15 Twenty-three years of casino16 experience, 17 years working for Donald17 Trump, six years prior working as a18 dealer inside the casino industry, and I19 want to offer what I believe is the20 missing piece of the puzzle for those21 remaining Councilpeople. The missing22 piece of the puzzle is that experience.23 Because we've come to a crossroads in24 this -- this is a metropolitan moment, as25 26 202 5/8/09 - WHOLE - BILL 090212, etc.1 the paper called it. I believe that2 since we are here because it's law, we3 need meticulous regulated casinos,4 meticulous regulated casinos. I've seen5 the ills and I've seen the thrills of6 casino life inside and out. I would ask7 for your undivided attention on these8 three points.9 The vision of these casinos10 should be as follows: Foxwoods, there is11 good news and there is bad news. The12 inside industry on Foxwoods is that they13 are good employers to their employees and14 to their customers. That's the good15 news. However, Market East Gallery site16 is a disaster waiting to happen.17 (Bell rung.)18

Not just for the19 Foxwood corporation, but for the City as20 well, because location, location,21 location is the most important factor22 when you talk about these casinos, not23 transportation. Not transportation.24 That's the fundamental key.25 26 203 5/8/09 - WHOLE - BILL 090212, etc.1 Plus, multi-level casinos never2 ever, ever do well. Playboy Casino and3 Sands Casino is a perfect example of4 that. Moreover, metaphor to a casino is5 like an elephant. A casino resort --6

Mr. Weeks,7 I don't want to stop you from your8 testimony, but the testimony today is9 about the City budget. We had the10 hearing yesterday about the casinos. But11 your message really should be directed to12 the state, because they determine the13 casino issue in terms of makeup, what14 they do programmatically, and while we're15 we appreciate your testimony, we have no16 jurisdiction over that.17

I thought the same18 thing you just said, but Ms. Ortiz, she19 assigned me this opportunity and I just20 wanted to give you the last 30, 4021 seconds of it, because I believe it is22 information that is pertinent.23

All right.24 Thank you.25 26 204 5/8/09 - WHOLE - BILL 090212, etc.1

I apologize.2

That's3 okay. Go ahead.4

The segue is a5 little difficult.6 I just want to have the7 remaining points. Again, Foxwoods, bad8 and good news. I believe I'm here to9 consult with the Council, because the10 operation as we go forward, I believe, in11 my experience, that no one has ever12 talked about the details of said casinos13 opening up, and I'm going to finish with14 the details.15 I believe, in my opinion, that16 if you're going to have this and do it17 well for the City of Philadelphia, that18 these casinos need to open up at 10:0019 a.m. in the morning, close at 4 o'clock20 in the morning, because the 6 o'clock21 turnaround time is very important for the22 casinos internally and also for the23 municipalities to get everything24 straight. It also offers you traffic25 26 205 5/8/09 - WHOLE - BILL 090212, etc.1 relief as well.2 There's a legislative3 component. I believe we should get4 commitments from both the casinos to have5 no table games, not even poker, for ten6 years. On-site training facilities for7 those who need employment, those who are8 coming out of our high schools and do not9 want to go to college, training them well10 and giving them incentive to go to11 college at a later date.12 And I'll end with this: This13 is a great city. It has a great14 opportunity, but they must be15 meticulously regulated. You need a16 gaming czar for the City of Philadelphia17 that works in correspondence with PA, and18 you need two gaming deputies. Also you19 need a citizens board, because, again,20 casinos, if you don't meticulously21 regulate them, they will expand and they22 will move into areas that you do not want23 them to move in. But if it can be done24 with meticulous regulation, we can25 26 206 5/8/09 - WHOLE - BILL 090212, etc.1 successfully do this in Philadelphia,2 since it is law.3 Thank you very much.4

Thank you.5 May I suggest that there was a hearing6 yesterday on the Foxwoods. I would7 suggest you check with the Clerk's8 Office. That hearing was recessed. I'm9 not sure if it was recessed to a date10 certain, but you could find out if they11 did recess to a date certain, they will12 give you the date, and you can come back13 and have your testimony at that time.14

I appreciate that15 information, Councilwoman.16

Thank you17 for coming down. Appreciate it.18

All right.19

Ms. Peggy20 Amsterdam.21 (Witness approached witness22 table.)23

Good afternoon.24

Good25 26 207 5/8/09 - WHOLE - BILL 090212, etc.1 afternoon. You have three minutes, so2 you might want to sum your testimony up.3

Thank you.4 Good afternoon, members of City5 Council. My name is Peggy Amsterdam, and6 as President of the Greater Philadelphia7 Cultural Alliance, I represent over 3758 regional arts and cultural institutions.9 On their behalf, I'm here to testify in10 support of keeping arts and cultural11 funding intact in the City's Fiscal Year12 2010 operating budget and Five-Year Plan.13 Like all sectors, arts and14 culture is hurting in our current15 economic environment. Our institutions16 are walking a tightrope between17 increasing public demand and decreasing18 resources. Endowment, corporate and19 personal investment funds are down. As a20 result, overall contributions to cultural21 organizations are also down. However,22 unlike some companies whose products can23 be sold at a higher price to make up for24 a loss, Philadelphia's non-profit arts25 26 208 5/8/09 - WHOLE - BILL 090212, etc.1 and culture organizations deliver2 programs at a fraction of the true cost.3 We could raise the prices to4 fully cover our costs, but that means5 they would triple, and that would mean6 closing our doors to a large portion of7 the City's residents. In fact, 438 percent of all admissions to arts9 organizations are free. Free. That10 makes it possible for the arts to be11 available to all Philadelphians. It's12 the kind of public service we can't13 afford to keep up without your continued14 support.15 The other option, of course, is16 to cut costs, and cultural organizations17 are already doing just that. One-third18 have or are planning staff layoffs, and19 that means fewer jobs for Philadelphians.20 The staffing cuts have come in lieu of21 program cuts as organizations struggle to22 meet what is actually an increased demand23 for their services by keeping their24 activity levels intact. But if25 26 209 5/8/09 - WHOLE - BILL 090212, etc.1 contributed funding continues to decline,2 then programs will be the next thing to3 go. That means fewer arts programs in4 Philadelphia schools and fewer5 after-school and summer program options6 for Philadelphia youth.7 This recession is full of tough8 choices, and we respect that the City9 needs to make tough choices as well.10 Nevertheless, Philadelphia's proposed11 arts and culture spending remains a12 fraction of the City's operating budget.13 Currently, the City spends $14.89 per14 capita on the arts. That amount is less15 than cities such as Charlotte, which16 spends $22; New York, which spends $43;17 and San Francisco, which spends $69.18

Is that19 2008, 2009 dollars?20

I can find out21 for you. I believe it's FY08.22

It will be23 very helpful, because we are all in the24 same predicament. Some of these cities25 26 210 5/8/09 - WHOLE - BILL 090212, etc.1 are worse than we are.2 (Bell rung.)3

Proceed.4

We're a5 world-class city, and to stay6 competitive, we need to keep the7 investments that provide a solid return.8 Time and again the arts have proven9 themselves to be that kind of investment.10 Every dollar invested from local11 government returns $5 in local tax12 revenue. And don't forget what arts and13 culture is doing to support some of14 Philadelphia's other key industries, too.15 In this region, arts audiences spend16 almost $185 million per year at our17 hotels and over $250 million per year at18 our restaurants.19 The distinctiveness of a great20 city is derived from its assets.21 Philadelphia's arts and culture sector is22 often cited as one of our most23 extraordinary assets and it is an24 inseparable part of our identity. Unlike25 26 211 5/8/09 - WHOLE - BILL 090212, etc.1 other businesses that take advantage of2 the chance to move when it most benefits3 their bottom line, the roots of our4 cultural institutions are deep and5 strong. They are woven into the fabric6 of who we are, what we have been and who7 will we become. When we're all gone, the8 Philadelphia Museum of Art will still be9 standing tall.10 Most importantly, though, the11 mission of every cultural organization is12 to meet the needs of our residents.13 Evidence of the needs being met show in14 the 15 million visitors to cultural15 organizations each year and the 35,00016 school groups that visit cultural17 organizations and in the 24,000 people18 who volunteer their time and energy to19 help those organizations keep their doors20 open.21 Residents are now relying on22 arts and cultural offerings even more.23 The Rosenbach Museum and Library, for24 example, reported that attendance has25 26 212 5/8/09 - WHOLE - BILL 090212, etc.1 increased as the economy has decreased.2 Families are turning to arts and cultural3 organizations for activities that provide4 real value for their money. The Please5 Touch Museum is expected to see6 attendance of 400,000 this year. They7 reached their goal in just six months in8 the middle of this recession.9 Four out of five cultural10 organizations are experiencing level or11 increased attendance and, even more12 importantly, level or increased13 individual donations. This, at a time14 when no one has a dime to spare. The15 public is doing its part, and their16 actions demonstrate that arts and culture17 are a valuable asset to Philadelphia and18 the region. But the public alone can't19 keep these organizations afloat.20 That's the bottom line of our21 non-profit status. We're not in it for22 the money. We're in it for the public23 good. We're here to provide a service24 that we believe is more vital to our25 26 213 5/8/09 - WHOLE - BILL 090212, etc.1 community now than ever before. A great2 city does not force its people to choose3 between food for the body and food for4 the mind and spirit. It finds a way to5 nurture both.6 So I urge all of you to match7 our residents' support with continued8 City funding for arts and cultural9 organizations. It's an investment that10 improves Philadelphia's competitiveness,11 its quality of life, its educational12 network and ultimately its bottom line.13 Thank you for allowing me to14 speak here today, and, again, I urge you15 to continue your investment in the arts16 and culture sector for the sake of all17 Philadelphians.18

Thank you19 very much for coming down to testify. We20 appreciate your testimony, and we're21 going to check on these figures.22

Yes. And I'll23 get you a date.24

That will25 26 214 5/8/09 - WHOLE - BILL 090212, etc.1 be fine.2

Thank you.3

Thank you.4 We're going to now hear from5 the Philadelphia Museum of Art, Gail6 Harrity and company.7 (Witnesses approached witness8 table.)9

Good afternoon,10 Councilwoman Tasco, City Council. My11 name is Gail Harrity. I am the Interim12 CEO of the Philadelphia Museum of Art,13 and as you will likely recall, that just14 a few weeks ago, I spoke to you at the15 Museum's budget testimony highlighting16 information that is mostly quantifiable,17 such as the 90,000 school children we now18 serve annually, our reach across all19 councilmanic districts, the total number20 of close to one million visitors who come21 to the Museum each year, and the Museum's22 economic impact of 242 million in Fiscal23 Year 2008.24 However, I am here today to25 26 215 5/8/09 - WHOLE - BILL 090212, etc.1 introduce you to a remarkable person,2 Oneisha Johnson, whose remarks will bring3 to light some of the intangible but4 vitally important aspects of the Museum's5 impact across the City. Oneisha will6 describe how her experience as a staff7 member at the Museum in 2000 and 20018 changed her life.9 The Museum's strength, as you10 know, is twofold. It has a world-class11 collection of art and an extraordinary12 collection of people who make connections13 with the Museum every day, and it is14 those encounters between people and the15 Museum's wonderful collections that are16 inspirational and even transformative.17 So the great, yet unquantifiable, impact18 of the Museum on the City of Philadelphia19 is the way in which the Museum encourages20 imaginative thinking, creative expression21 and self-exploration, and often helps22 people find their way in life. There is23 no way to measure the magic that the24 Museum can have. The stories simply have25 26 216 5/8/09 - WHOLE - BILL 090212, etc.1 to be told.2 So with that, I thank you, and3 I return the microphone now to Oneisha4 Johnson.5

Thank you so6 much, Ms. Harrity.7 Good afternoon to City8 Councilwoman Tasco and all members of the9 Philadelphia City Council. My name is10 Oneisha Johnson, and it is a pleasure to11 come before you today in support of the12 Philadelphia Museum of Art.13 In 2000, I was offered14 employment at the Philadelphia Museum of15 Art, regardless of being homeless. A16 seed of hope was planted. I was not17 judged amongst my colleagues, nor was I18 looked upon any differently. I felt19 equal, which helped me gain self-esteem.20 I was able to walk with my head21 up high, which made me happy to go to22 work.23 Three times a week on my lunch24 break, I would walk through the art25 26 217 5/8/09 - WHOLE - BILL 090212, etc.1 galleries. At times I would quietly join2 groups as I listened to the history of3 the art pieces. My favorite artist is4 Vincent Van Gogh.5 Not only did I observe art, but6 I also observed the people that walked7 through the Museum. I observed my8 colleagues and individuals that were9 there to enjoy art. I saw diversity and10 culture.11 I no longer work at the Museum12 and I am no longer homeless, but since13 that time, I have returned to the Museum14 frequently. I bring my children so that15 their lives are filled with the beauty of16 art and their minds are filled with the17 ideas of artists.18 In fact, I am very excited19 about this weekend because we are20 planning a family trip to the Museum on21 Mother's Day for a Sunday's brunch and a22 visit at the Cezanne and Beyond23 exhibition.24 When I was homeless and worked25 26 218 5/8/09 - WHOLE - BILL 090212, etc.1 at the Museum, I would sometimes come to2 work feeling depressed. My manager,3 Ms. Flo Stringer, who I am so glad to say4 is here at City Hall today, along with5 her co-worker and boss, Stuart Gerstein,6 spoke to me and Ms. Flo said to me -- to7 summarize what she stated -- Oneisha,8 there are situations that go on in my9 life that are not perfect, but what helps10 me is that when I come to work, I use it11 as an escape from all distress that goes12 on outside of these walls. I leave all13 problems at the doorstep. So I have14 decided to use coming to work as an15 escape from all other problems. It gives16 me mind rest from everything else. She17 stated, This is what helps me. Try it18 and see how it works for you.19 I tried it, and it worked. I20 have adopted her words of wisdom and use21 it this very day. I have learned many22 things from that statement as I apply it23 to my life. I have learned, one,24 prioritizing; two, to work well and25 26 219 5/8/09 - WHOLE - BILL 090212, etc.1 effectively under pressure; three, to2 never allow my situation to stop me from3 reaching my destiny. I learned to press4 on.5 The Philadelphia Museum of Art6 planted a seed of empowerment. I was7 strengthened. I learned that there is8 nothing that can hold me back unless I9 hold myself back. I understood that10 circumstances will arise. I saw11 situations on the left side of me, but my12 destiny in front of me. I have learned13 to reach forward and to deal with14 circumstances at another time. I call15 that multi-tasking.16 The Philadelphia Museum of Art17 has planted a seed of hope and a better18 life. I met a colleague who a year later19 became my husband. I walked into the20 Philadelphia Museum of Art with nothing,21 but walked out with dignity, art22 educated, a new apartment and a husband,23 which led to children. The experience24 empowered me to write a book called "In25 26 220 5/8/09 - WHOLE - BILL 090212, etc.1 Prison With No Walls," which I hope will2 be published soon, and to begin planning3 an organization called "Redeemed4 Empowerment Incorporated."5 The Philadelphia Museum of Art6 is art within itself, painted with7 non-traditional colors of diversity and8 culture. This represents the new era and9 generation of today. The Philadelphia10 Museum of Art stood before the change and11 stands today as the product of the fruits12 of change.13 Thank you.14

What a15 wonderful testimony.16

Thank you.17

Thank you18 so much. I am so proud of you.19

Thank you.20

I will21 tell you, I worked at the Philadelphia22 Museum of Art when I was very young, and23 one of the employees there inspired me to24 go back to Temple, and I got my degree25 26 221 5/8/09 - WHOLE - BILL 090212, etc.1 while I was there. So it's a wonderful2 place to work. You learn an awful lot.3 And I thank you, Gail and the4 Philadelphia Museum of Art, for giving5 her an opportunity. She seems like a6 young lady who knows her destiny.7 I'm looking forward to your8 future. We will follow you, and keep in9 touch with us and let us know how you're10 doing.11

Thank you so12 much.13

Thank you,14 and God bless both of you. Thank you.15 We wish the Museum well. Thank you.16

Thank you.17

Thank you.18 COUNCILWOMAN TASCO:19 Councilwoman Blackwell.20 Oneisha, I didn't get a21 husband, but I had a husband. That's a22 nice inspiration.23 Councilwoman Blackwell has a24 comment for you.25 26 222 5/8/09 - WHOLE - BILL 090212, etc.1

I just2 wanted to agree with the sentiments of3 the Chair, minus the last one she made,4 and I never worked there, but all the5 rest were just fine. Thank you. That's6 true, too, I did have one as well.7 Thank you.8

It's a9 great, great place to work. I learned so10 much.11 Give us a minute. We're going12 to take our picture.13 (Pause.)14

We were15 inspired by her testimony and certainly16 wish her well in her future. And she's17 young and she's going to go a long way,18 and I'm going to live a long time so I19 can watch her, watch her grow.20 We have the Coalition for21 Essential Services.22 (Witnesses approached witness23 table.)24

Good afternoon.25 26 223 5/8/09 - WHOLE - BILL 090212, etc.1

Good2 afternoon.3

We'll introduce4 ourselves. First, my name is Andre5 Butler. I am a member of the Coalition6 for Essential Services, also a member of7 the Philadelphia Unemployment Project and8 a member of TURN.9

Thank you.10

Good afternoon,11 Councilwoman Tasco and Councilwoman12 Blackwell and Councilman Jones and13 Councilman Greenlee. I'm Jonathan Stein,14 general counsel at Community Legal15 Services.16

Good afternoon,17 Councilwoman Tasco and all of the18 Councilmembers. My name is Louise19 Carpino. I'm the President of Local 810,20 AFSCME DC 47.21

Thank you.22 We appreciate your testimony.23 Don't forget, Councilmembers24 listen in their offices. I was doing an25 26 224 5/8/09 - WHOLE - BILL 090212, etc.1 expo this morning, and before I went, I2 was watching it on television. So we are3 paying attention. You might not see us.4 We've been in here every day all day,5 trying to answer the phone calls.6 Thank you.7

You're welcome.8

You may9 proceed.10

For the record, on11 behalf of the Coalition, we thank you for12 such -- Councilwoman Tasco, we were also13 informed of that, that the hearings were14 better attended this year and that you15 are listening this year. So we thank you16 for that, very much so.17 The Coalition for Essential18 Services basically was formed --19

You20 identified yourself, right?21

Yes, ma'am.22 We were formed because the23 people of this city need a voice, and24 they needed something to be able to speak25 26 225 5/8/09 - WHOLE - BILL 090212, etc.1 when it seemed that there was only one2 person speaking, and that was the3 executive branch. And so we're here to4 give what seems to be the voice of the5 people. And the voice of the people is,6 if they're going to be increasing taxes,7 fair taxes, progressive taxes and no8 service cuts. I was very encouraged.9 I've been here since this morning. I10 heard District Council 33 talking this11 morning. I was very encouraged to hear12 those particularly were asking the13 Council to look at cutting some of the14 waste before they look at raising taxes15 and/or cutting workers. We're encouraged16 by that. We hope that Council listened17 very diligently to what DC 33 had to say18 this morning.19 But we know in order to20 preserve the service cuts, there has to21 be some raising of revenues, and so we22 have a couple of very good proposals. We23 are thankful that Councilwoman Sanchez24 proposed her bill yesterday, but we'd25 26 226 5/8/09 - WHOLE - BILL 090212, etc.1 like to go a little bit farther than2 that.3 A couple of them would be, on4 the business, we know that the gross5 receipts tax is a very regressive tax on6 small businesses, but we have a7 suggestion. Our suggestion would be to8 roll back the gross receipts tax from the9 present rate of 0.014 to 0.028. That's10 about, I guess, a hundredth of a cent11 roughly or maybe ten-hundredths of a12 cent. It's not that much. But if you do13 that and you also exempt small businesses14 who make upwards of a half a million15 dollars, you can still raise $70 million,16 and that would still not be a burden on17 the small businesses and that would still18 help keep health centers open, rec19 centers open, not have the cuts in the20 labor force. It would be something that21 we think would be very progressive as22 opposed to being regressive.23 Also, on the wage tax, if we24 rolled back the wage tax to a very small25 26 227 5/8/09 - WHOLE - BILL 090212, etc.1 percentage, that also -- because we want2 to get the taxes where they're spread3 around to everybody, not just on4 people -- not just on the hardship on the5 poor.6 So these are things we'd like7 for Council to consider, and we think if8 they do these things, we could have less9 or no service cuts and have a more10 broader based tax system in the City.11 I will pass the mike on to12 counsel Jonathan Stein.13

Thank you.14

Thank you,15 Councilwoman Tasco. I'm Jonathan Stein,16 general counsel at CLS.17 I have earlier given testimony,18 which is essentially the theme of19 preserving essential services through20 fair and equitable taxation, and I'd like21 to just limit my remarks this afternoon22 to just where we are today. And where we23 are today is with the City Council's24 proposal as an alternative to the25 26 228 5/8/09 - WHOLE - BILL 090212, etc.1 Mayor's. And with due respect to the2 Council proposal, which I know has3 reflected a lot of thinking and an effort4 to be fair in taxation, I don't think5 that proposal will ultimately succeed. I6 think it has some weaknesses that are7 obvious to all of us.8 A state sales tax requires9 state legislation, and we have no idea10 whether this Legislature with one of the11 houses --12

But that's13 part of the Mayor's budget.14

Yes.15

We just16 extended it two more years.17

Yes, it is, but I'm18 just saying relying on any state19 legislation is probably an iffy20 proposition for any revenue increase.21

Gotta have22 faith.23

And on the $20024 million loan, as creative an idea as that25 26 229 5/8/09 - WHOLE - BILL 090212, etc.1 is, I think it has some real serious2 costs, and I think it's obviously going3 to get the strong opposition of the City4 Administration. And because of that, I5 think there's a real need to think6 seriously about spreading revenue7 increases across the board, particularly8 in the business privilege tax and wage9 tax area, and that they have to be10 seriously considered and for business11 privilege -- and one has to remember that12 part of the reason why we're in the13 predicament that we are now is that in14 the last ten years, we've cut precisely15 these two taxes, wage and business16 privilege, by $1.2 billion, billion with17 a B. And there's no reason why given the18 crisis we're in we shouldn't consider a19 temporary rollback for a few years in20 both these taxes to make up the revenue21 we need.22 Wage taxes, just to say the23 obvious, we know are paid in part by24 commuters who are non-residents. There's25 26 230 5/8/09 - WHOLE - BILL 090212, etc.1 a one-half percent difference between2 what residents and non-residents pay.3 That half percent can be eliminated again4 on a, quote, temporary basis to make up5 the shortfall.6 And with regard to the casino7 money that requires the two percent8 threshold to be met in revenue9 shortfalls, if indeed one believes the10 figure of 1.97, just short of two11 percent, I think one could make a12 prediction that as this recession13 continues -- and we're not going to get14 out of this for a long time -- we will be15 meeting that two percent figure quite16 soon, which would allow that casino money17 to be redirected to something other than18 wage tax reduction.19 (Bell rung.)20

So in conclusion, I21 would say I think we need to seriously22 consider as an alternative wage and23 business privilege tax, and we hope the24 Council will give some consideration to25 26 231 5/8/09 - WHOLE - BILL 090212, etc.1 that.2

Thank you3 very much.4

I'd like to first5 testify on behalf of my membership, Local6 810.7 I'd like to thank all of City8 Council for their attention to our9 issues, and most especially10 Councilmembers Curtis Jones, Jr., Wilson11 Goode, Jr., Bill Green, Maria12 Quinones-Sanchez, Jannie Blackwell, Donna13 Reed Miller, Blondell Reynolds Brown,14 Bill Greenlee, Marian Tasco and Council15 President Anna Verna. Local 810 hopes16 that all of Council's questions that were17 posed at the FJD budget hearings will18 soon be answered.19 The courts have communicated20 again to Local 810 that the Mayor's 201021 proposed budget for the FJD could result22 in the layoffs of 76 adult23 probation/parole officers and/or pretrial24 court officers and the layoffs of 3525 26 232 5/8/09 - WHOLE - BILL 090212, etc.1 juvenile probation and/or domestic2 relations hearing officers.3 Our members are supervising4 over 60,000 adult offenders in the5 community, over 5,000 juvenile offenders6 and also conduct 2,500 support hearings7 weekly, ensuring that the children of8 Philadelphia receive essential child9 support.10 All of these departments are11 currently understaffed due to last year's12 budget cuts and a history of declining13 funding for the courts from the City.14 Additionally, the proposed15 budget could force the courts to close16 for two days a month. That's already17 backlogged, and this could be extremely18 dangerous and create the very distinct19 possibility that violent, dangerous20 offenders' cases could be thrown out21 simply because they're not presented in22 time.23 The proposed cuts to the courts24 will dramatically impact the supervision25 26 233 5/8/09 - WHOLE - BILL 090212, etc.1 of adult and juvenile offenders in the2 community and also the essential support3 for our children. These are safety and4 health issues that cannot and should not5 be ignored.6 Local 810 today is asking City7 Council not to let these risky cuts8 happen. Local 810 is asking9 Councilmembers to ensure that the Adult,10 Pretrial, Juvenile and Domestic Relations11 Departments within the courts be funded12 adequately so that offenders can be13 properly supervised in the communities14 and that children's essential support15 orders be made.16 Thank you for all the support17 you've shown for our members. Our18 members know that this City Council cares19 about their work and the important way20 that this work impacts public safety in21 our communities.22

Thank you23 very much.24

This is testimony25 26 234 5/8/09 - WHOLE - BILL 090212, etc.1 about the taxes and the budget.2 I'm testifying on behalf of the3 Coalition for Essential Services.4 The Coalition has offered5 specific principles concerning6 maintaining City services and funding7 those services through fair and balanced8 taxes. Our flyers with specific9 proposals have been distributed to10 Councilmembers.11 I would like to emphasize the12 need for City Council to pass a budget13 which is fully funded by taxes and other14 fees over which the City has control.15 (Bell rung.)16

Our Coalition is17 very concerned about the City's reliance18 on an increased sales tax as the major19 source of revenue to fund the 2010 budget20 in both proposed budgets, whether it is21 the Mayor's or City Council's. Since the22 state budget with any enabling23 legislation is not likely to be passed24 until the end of June and the City budget25 26 235 5/8/09 - WHOLE - BILL 090212, etc.1 is due to be acted upon by the end of2 May, the Coalition is very concerned that3 any City Council budget action without4 approval by the state authorizing the5 40-year pension amortization or sales tax6 increase would permit the Mayor to enact7 a contingency budget with massive cuts in8 City services, including layoffs of9 employees providing those necessary10 services and would create untold harm to11 the citizens of Philadelphia. The Mayor,12 Councilmembers and citizens have said13 that tax increases should be fair and14 equally shared. However, there has not15 been discussion about rolling back16 business tax or wage tax reductions. We17 believe legislation was introduced on May18 7th concerning business and wage taxes.19 We welcome that legislation and will20 encourage City Council to enact rollbacks21 in those reductions, reductions which22 have created the loss of 1.2 billion in23 revenues since Fiscal Year 2000. This is24 roughly the deficit the Mayor states the25 26 236 5/8/09 - WHOLE - BILL 090212, etc.1 City faces over the next five years.2 We ask that all options for3 fair taxation be considered so that City4 services can be restored to their former5 level, no cuts in services occur, and6 those who can best afford to pay taxes7 pay their fair share.8 Thank you very much for the9 opportunity to speak today.10

You're11 welcome. Thank you very much for your12 testimony. We appreciate it.13 We have Philadelphia14 Unemployment Project -- oh, I'm sorry.15 Please forgive me.16 Councilman Goode has a17 question. I didn't see his name over18 here.19

Good20 afternoon, Mr. Stein.21

Good afternoon.22

How are you?23

Okay. Good.24

I was not25 26 237 5/8/09 - WHOLE - BILL 090212, etc.1 going to give up the opportunity to talk2 taxes with you, particularly since you3 were a member of the Tax Reform4 Commission. And during your tenure on5 the Tax Reform Commission, did you study6 the City Controller's tax structural7 analysis of 2001?8

I think we must9 have at that point. We're talking about10 something about six years ago. Yeah.11

Are you12 familiar with how Philadelphia compares13 to other cities in terms of the different14 taxes in terms of how high our taxes are15 versus others?16

I have some passing17 familiarity. I would have to review a18 lot of material to really answer your19 question, I think.20

While the21 data from the tax structural analysis22 report is somewhat dated, I'm sure that23 it has not changed that much until24 recently when, of course, tax rates have25 26 238 5/8/09 - WHOLE - BILL 090212, etc.1 changed across the nation, but if you2 look at the sales tax in the major U.S.3 cities, Philadelphia ranks sixteenth. If4 you look at the resident income tax,5 Philadelphia ranks tenth highest. If you6 look at residential property tax,7 Philadelphia ranks seventh highest. If8 you look at business gross receipts tax,9 Philadelphia ranks the fifth highest. If10 you look at the general business income11 tax, Philadelphia ranks the second12 highest, according to the report. Would13 that change anything in terms of your14 testimony?15

Nothing, no,16 because -- I mean, rankings nationally17 are really an interesting, more18 academic -- maybe of academic interest19 than practical interest. I think what's20 key is that we want the fair21 apportionment of taxation among different22 groups in the City. We have a community23 of people in the City where everyone has24 to feel that everyone pays their fair25 26 239 5/8/09 - WHOLE - BILL 090212, etc.1 share. If a whole community of people,2 let's say, businesses as a community, are3 not seen as bearing any additional4 burden, I think there's something5 basically unfair about that, and6 particularly for the business tax, when7 we know that many of those taxpayers are8 out-of-City businesses, they're large9 businesses, they're businesses that will10 never move into the City, and why11 shouldn't we roll back a tax cut for Sony12 or a Coors Beer. You can go down the13 list of lots of large companies.14

I was not15 speaking about any specific taxes in16 terms of what we should or should not do,17 but in terms of whether you believe our18 ranking compared to other cities makes a19 difference in terms of how we make our20 decisions in the end.21

I don't think so.22 I think you are independent enough to say23 what's fair without respect to what other24 cities are doing. I mean, look, New York25 26 240 5/8/09 - WHOLE - BILL 090212, etc.1 City got rid of its ten-year tax2 abatement on real estate. That may be a3 model that you feel is compelling to4 follow here to deal with tightening your5 tax abatement, but I think you6 nevertheless have to make a decision of7 what's right for Philadelphia, what's8 fair for Philadelphia and make your9 judgment based on that score.10

A second11 question not based just upon tax rates12 but in terms of what cities use in terms13 of where they draw their revenue from,14 the same report says that the top ten15 cities other than Philadelphia on average16 drew about five percent of their revenue17 from business income, but Philadelphia18 draws 12 percent of its revenue from19 business income.20 The same report said that the21 other cities among the top ten drew about22 six percent of their revenue from23 personal income, but Philadelphia draws24 about 33 percent of its revenue from25 26 241 5/8/09 - WHOLE - BILL 090212, etc.1 personal income.2 And the same report says that3 among the top ten cities other than4 Philadelphia, they draw 62 percent of5 their revenue from property taxes, but6 Philadelphia draws 41 percent of its7 revenue from property taxes.8 Does that surprise you?9

I don't think that10 changes my views.11

I didn't ask12 whether it changed your views. I asked13 whether it surprised you at all, that14 there is that disparity between --15

Those numbers don't16 surprise me, no. But I still maintain17 that you have to make a decision of18 what's fair for the City and try to do19 your best to apportion taxes among all20 classes, all people in businesses and be21 wary that if you're relying on the state22 Legislature to adopt legislation to deal23 with taxes, it may be this year a weak24 read to rely on.25 26 242 5/8/09 - WHOLE - BILL 090212, etc.1

So when you2 say that everything should be on the3 table and we should share the burden,4 you're saying that but we should not rely5 upon the sales tax?6

Pardon me?7

But you're8 suggesting we should not rely upon the9 sales tax or any tax that requires state10 authorization.11

Right. Right. I12 think that's a weak read as much as -- I13 know people have been invested in that as14 a budget item. I think one has to look15 to what taxes you really have control16 about, and you do control your business17 privilege tax, your wage tax and real18 estate tax.19

I'm not sure20 we control the wage tax yet.21

Well, some of it22 you do, and if that two percent level23 gets met and you can deal with the casino24 money, certainly the difference between25 26 243 5/8/09 - WHOLE - BILL 090212, etc.1 residents and non-residents is within2 your power to adjust, and I think it3 would be appropriate to say to4 non-residents, Look, you have to adjust a5 bit for two or three years, that half6 percent difference between residents,7 non-residents has to go.8

Two things.9 One, we're not at the two percent yet, so10 we're not at the point where we can make11 that decision. And, second, we're never12 going to sell a non-resident tax13 increase.14

Well, you don't15 have to sell it. You can do it, and16 particularly if the state isn't17 forthcoming in some other areas that you18 feel they should be doing. They haven't19 been paying for the court system for20 years. So, I mean, they have a lot of21 IOUs to the City, and the question is22 what are we really getting for not23 equalizing the wage tax.24

I agree with25 26 244 5/8/09 - WHOLE - BILL 090212, etc.1 you, but the logic has been that if we2 take money from one pot, then they're3 basically going to take it back from4 another. In other words, we're asking5 them for hundreds of millions of dollars6 in terms of what we need in terms of7 revenue, in terms of the pension workout8 and in terms of the sales tax, and so if9 we do something else on wage, we're in10 trouble of losing that.11

No. I understand12 that's a dicy area, but I'm just saying13 that whether you address the non-resident14 issue or not, some rollback of the wage15 tax cuts I think is in order just because16 of the crisis we're in.17

Once we18 reach two percent, which may not be19 before July 1st.20

Well, maybe you21 plan for the likelihood that you'll be22 reaching two percent sooner than people23 think on the second floor.24

Okay. Thank25 26 245 5/8/09 - WHOLE - BILL 090212, etc.1 you, Mr. Stein.2

Thank you.3

Thank you,4 Madam Chair.5 COUNCILWOMAN TASCO:6 Unemployment Project, please. Thank you.7 (Witness approached witness8 table.)9

Long time, no see.10

I know.11 Welcome back. Short visit.12

Right.13 My name again is Andre Butler.14 I am the Vice-Chair of the Philadelphia15 Unemployment Project, being reelected16 again last night.17

Well,18 congratulations.19

Thank you. Thank20 you.21

Don't22 speak too close to the mike.23

I'm glad to see24 the Councilmen that are here, Greenlee,25 26 246 5/8/09 - WHOLE - BILL 090212, etc.1 Curtis Jones, Councilman Goode,2 Ms. Miller, yourself.3 I was here, I guess it was, a4 month ago when there was the budget5 hearings for the Health Department, and I6 was very pleased to hear especially the7 ones that are present in this room today8 making it very adamant that they were9 quite upset that there even was a Plan B10 being considered about closing a health11 center, and that there was talk of12 possibly charging fees even though13 supposedly there's some federal law about14 that they always should have been15 charged.16 I recall Councilwoman Blackwell17 saying that at some point we as leaders18 have to make an ethical and moral19 decision when it comes to things like20 that about charging fees that charge or21 doing anything that we think is morally22 and ethically incorrect, even if there23 was a law involved. I was very pleased24 to hear that. So was my organization.25 26 247 5/8/09 - WHOLE - BILL 090212, etc.1 The health centers -- I use2 Health Center 10. And I'm a caterer.3 I'm a banquet server. I have no health4 insurance. There are many days, many5 days where the decision is between the6 token for the bus fare or the medication,7 the token for the bus fare or going to8 the health center. Many days. And if9 the fees were charged, countless numbers10 of our clients have to make that same11 decision, if not a worse decision. Do I12 pay the $5 for the co-pay or do I get a13 convenience pass or tokens to go to work.14 That's a decision I don't think anybody15 in this room would like to see citizens16 of this city have to make.17 The health center is a very18 vital part of our city. I think we need19 more health centers. Health Center 10 is20 the busiest in the City, and it covers21 the whole Northeast. It's way, way, way22 overloaded. And to think about cutting23 or possibly closing that one or any24 health center, I think it's totally25 26 248 5/8/09 - WHOLE - BILL 090212, etc.1 unconscionable for the City of Brotherly2 Love.3 So I would encourage the City4 to look at the possibility, as some of my5 colleagues were saying -- keep one thing6 in mind. Over the past 13 years when it7 comes to taxes, the City has lost over a8 billion dollars in tax revenues. And9 think about where that money could have10 actually gone and what it could have11 actually done and how it could have12 possibly saved us from the financial ruin13 in which we now are.14 So I'm thankful, and I would15 like to continue to urge the Council, the16 people that have spoken out in favor of17 not closing health centers to keep18 championing that particular effort. We19 at the Unemployment Project will stand20 100 percent behind you, and we look21 forward to this city being more vibrant22 than what it is now.23 Thank you.24

Thank you.25 26 249 5/8/09 - WHOLE - BILL 090212, etc.1 Thank you for taking the time to testify2 with both groups, and thank you.3

You're welcome.4

Next we5 have Ms. Madeline Shikomba.6 (Witness approached witness7 table.)8

Correction. We9 represent the Don't Tax Me Out campaign.10

I beg your11 pardon?12

We represent the13 Don't Tax Me Out campaign.14

Well, you15 can say that when you open your16 testimony.17

Okay.18

That's19 fine.20 Would you identify yourselves,21 please, for the record.22

My name is Vivek23 Ananthan, V-I-V-E-K, A-N-A-N-T-H-A-N.24 It's an Asian name.25 26 250 5/8/09 - WHOLE - BILL 090212, etc.1 I've been living in the City2 since 1972. That's about 37 years. And3 that actually give me a lot of chances to4 know what's going on around here.5 When I came in 1972, there were6 2.2 million people. Now it's been7 reduced to 1.5 million. That gives us a8 lot of indication what's going on within9 the leadership and the City since.10 But at any rate, I don't want11 to get into so many details. But I have12 seen the good part and the bad part in13 this city, but right now what I'm going14 to do is, I'm going to represent the15 Don't Tax Me Out campaign, and we are16 making the following proposals. These17 proposals are not new. You have probably18 had them presented by previous speakers,19 and they're likely to be restated again20 by future speakers.21 These proposals are designed to22 ensure that the current City crisis is23 shared by everyone and not24 disproportionately placed on the backs of25 26 251 5/8/09 - WHOLE - BILL 090212, etc.1 the long-term residents, senior citizens,2 middle class, the working class and the3 poor.4 The proposals: Eliminate5 current and existing tax abatement;6 introduce a land value tax; retain7 business privilege tax; reduce City8 Council's jobs and Mayor's staff; and9 drop full down retirement plan for10 Council; release non-violent offenders.11 Furloughs: City workers are12 asked to take a three-day furlough. It13 will fall on the holiday. Since most14 City workers do not work on the holidays,15 there will be little or no disruptions of16 services.17 Reductions in the City Council18 and the Mayor's Office: The Mayor has19 proposed some reduction in his job.20 However, there has been no mention21 that -- we are suggesting a cut in staff22 salary. A five percent cut in all staff23 earning over 75,000 is suggested.24 It is suggested that City25 26 252 5/8/09 - WHOLE - BILL 090212, etc.1 Council reduce its budget by asking all2 staff and Councilmembers who earn over3 75,000 to take a five percent cut.4 A review of the job serving5 each Council: Members range four to 126 staff members with a budget range of as7 low as 37,500 to as high as 5308 thousand -- I'm sorry; 530,700. This9 excludes the staff of Council President10 and the Minority and Majority Whips. Why11 is there such a disparity?12 Furthermore, why do legislative13 aides who work for City Council earn as14 much or in some cases more than members15 of City Council? Why is this?16 Eliminate the use of City17 Council cars. City Council be encouraged18 to use their own vehicles for City19 business and be reimbursed for mileage.20 Many businesses, including the federal21 government, does this. These are hard22 times, and the City can't afford to23 continue this practice at this time.24 This adds to the burden that the25 26 253 5/8/09 - WHOLE - BILL 090212, etc.1 taxpayers must bear.2 Thank you.3

Thank you4 very much for your testimony.5 Next.6

My name is7 Anthony Hillard. I'm by myself as I say8 greetings to the Presiding Chair Council9 Tasco, to all other present10 Councilmembers and to the Councilmembers11 that will be reading the transcripts.12 As we propose a way to close13 the --14

Could you15 speak into the microphone, please.16

Certainly. I do17 apologize.18 We propose that a way to close19 the revenue budget of at least $2120 million would be by releasing non-violent21 offenders from jail, and this, of course,22 would be done with the approval -- with23 judicial approval.24 Now, the City pays for 1,25025 26 254 5/8/09 - WHOLE - BILL 090212, etc.1 non-violent offenders $43,750,000. Now,2 if we were to take the same 1,250 members3 and put them on probation or parole, it4 would only cost the City $875,000.5 Therefore, this will be a total savings6 of $42,875,000 per year.7 Now, through rehabilitation8 programs, non-violent offenders released9 from jail can become working taxpayers10 who can contribute to the City of11 Philadelphia by paying their bills,12 mortgage, debts and child support. Why13 keep non-offenders in jails at high costs14 to the City when they can be15 rehabilitated and become productive16 citizens?17 Now, the facts are that the18 total number of offenders in county19 prison is 9,661. The total number of20 sentenced non-violent offenders in county21 prison is 1,636. Yearly costs per county22 offender in prison would be $95 a day,23 which will come to a total of $34,675 per24 year, which is an average yearly per25 26 255 5/8/09 - WHOLE - BILL 090212, etc.1 county offender on probation or parole2 would only be $6,080 a year. Average3 caseload for county parole or probation4 officers would be 117 officers.5 Releasing 1,250 non-violent offenders6 from jail means hiring 11 new county7 probation or parole officers. And a8 professional quote, Enhance probation and9 parole. Adjudication have taken a10 variety of actions, including increasing11 the number of parole officers and12 ensuring that inmates are not returned to13 custody for technical violations of14 parole. Philadelphia should pursue both15 these actions.16 Now, the saving calculations,17 as I stated prior, for 1,250 non-violent18 offenders would be -- times the $34,67519 per year would equate $43,343,750. And20 for the non-offenders, 1,259 offenders,21 at $6,080 per year if they were on parole22 or on probation would equate $850,000,23 saving the City $42,439,750 per year,24 which would come to about a 50 percent25 26 256 5/8/09 - WHOLE - BILL 090212, etc.1 savings each year.2 And to that, I surrender to my3 next colleague.4

Thank you.5 * * *6 (Stenographer Michele Murphy7 relieved by second-shift stenographer8 Josephine Cardillo.)9 * * *10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 257 5/8/09 WHOLE - FY '10 BUDGET, PUBLIC TESTIMONY1 (First-shift Stenographer2 Michele Murphy relieved by second-shift3 Stenographer Josephine Cardillo.)4 * * *5

Please6 proceed with your testimony.7

My name is8 Madeline Shikomba. I'm here for the9 Don't Tax (indiscernible) Campaign.10 Our fourth proposal is to11 retain the business tax. I'm surprised12 that we don't have too many City Council13 members here, but I hope that they read14 the testimony that I'm about to give.15 Over $50 million is owed to the16 City by business, which they have failed17 to pay their business tax. Now there is18 a proposal to decrease or eliminate the19 tax as this might bring jobs to the City.20 This is like rewarding AIG all over again21 and penalizing those who paid their taxes22 or letting those who don't pay their23 taxes get more of a tax reduction.24 If this isn't AIG, I'd like to25 26 258 5/8/09 WHOLE - FY '10 BUDGET, PUBLIC TESTIMONY1 know what it is. The federal government2 is now pouring money into this, and now3 we want to pour money at the expense of4 the poor. The government is rewarding5 those who helped cause the debts in the6 first place. Businesses who haven't paid7 taxes or who are delinquent are now being8 rewarded more money and penalizing those9 who have. Is this fair?10 The dropping or decreasing of11 the taxes is not going to add a single12 job in this tight economy. Business will13 only use the money to cover the bottom14 line, show profit for themselves and15 their shareholders, and to increase their16 already-enormous salaries.17 We believe the current tax18 should be retained on all companies for19 the gross receipts of $500,000 or more.20 We suggest a slight reduction in the tax21 to those businesses having a gross22 receipt of less than $500,000. This23 would lessen the burden on the small24 business owner.25 26 259 5/8/09 WHOLE - FY '10 BUDGET, PUBLIC TESTIMONY1 As said previously, the speaker2 was concerned about the -- he was talking3 about all of the businesses and taxes and4 how Philadelphia (indiscernible) taxes5 among the businesses and said that we6 were about fifth or sixth. He didn't7 talk about the citizens. Let me report8 to you about the citizens.9 We pay, if we working, 3.910 percent wage tax; 8 percent sales tax; 811 percent real estate tax, cutting it off12 at 19.9 percent, rounded off, 20 percent,13 that's 20 percent before taxes is taken14 out by the state and federal.15 If you want to talk about16 figures, why don't you talk about the17 figures for the poor and how much they18 have to pay out of they salary rather19 than working about businesses all the20 time? Are we giving them a break? Are21 we reducing the wage taxes? No.22 The second proposal, real23 estate tax versus land tax: To raise the24 tax on the people by 19 percent is an25 26 260 5/8/09 WHOLE - FY '10 BUDGET, PUBLIC TESTIMONY1 intolerable burden on the people of2 Philadelphia. It is intolerable because3 it will only hit the long-term residents,4 senior-citizen residents, working class,5 and the poor. Those that have will not6 be affected.7 How do you expect the people to8 meet such a demand? The City is already9 declared in distress due to the large10 number of people who live below the11 poverty line. The average median income12 in this state alone is less than $50,000,13 and if they're already paying 20 percent14 of that in taxes before the taxes take15 place, this is problem.16 (Timer bell rings.)17

Therefore, we18 call for the elimination of tax19 abatements. Since this council is20 reluctant to do this, we call on a land21 value tax.22 This idea has already been23 presented to you by the Center for the24 Study of Economics. They spoke on a25 26 261 5/8/09 WHOLE - FY '10 BUDGET, PUBLIC TESTIMONY1 hearing to you of May 6th and presented2 data to you to demonstrate how fair this3 will be on all of the citizens of this4 city. With this tax, everyone would be5 contributing.6 Increase the land and freeze7 the existing tax on the building. And8 this way, everyone has to pay tax,9 including those who are receiving tax10 abatements, such as Comcast, as well as11 some nonprofits and all of those not12 paying building tax. This is more13 equitable and fair.14 If you want to know figures,15 look at it this way: Average tax on a16 $300,000 home is $8,000 a year. We get17 1 percent in transfer tax when they buy,18 about approximately $3,000. We get no19 money outside of that out of the year.20 On a $325,000 home, it's $8,00021 in taxes. Multiply that by ten years,22 and that's $80,000 that the City is23 losing.24 Even if they come in and bring25 26 262 5/8/09 WHOLE - FY '10 BUDGET, PUBLIC TESTIMONY1 the City wage tax, they only pay 3.52 percent if they earn $100,000; that's3 only 3500. You still short $4,500 from4 taxes you're not collecting.5 Figures don't lies, but liars6 do figure, okay? It's about time that we7 look at the figures and determine that8 this tax abatement is not helping the9 City; it's hurting it. After five years,10 it's a diminishing return. The City is11 not gaining any money; they're losing12 money by leaps and bounds.13 Now, I know that some of our14 proposals to you may seem like this is15 only a drop in the bucket. That may be16 true, but I have this to say: The17 filling of a bucket with water begins18 with the very first drop.19

Thank you.20 Thank you very much for your testimony21 and thank you for taking your time to22 come out and present your thoughts to us23 and providing us with some very24 provocative information. Thank you.25 26 263 5/8/09 WHOLE - FY '10 BUDGET, PUBLIC TESTIMONY1

You're welcome.2 COUNCIL PRESIDENT VERNA:3 Mr. James Royal.4 (Witness comes forward.)5

Good6 afternoon.7

Good afternoon,8 Your Honor, Madam President and to the9 Council.10 COUNCIL PRESIDENT VERNA:11 Please proceed with your testimony.12

Thank you very13 much.14 My name is James royal. I'm a15 member of the United Block Captains16 Association, and we subsequently work17 with a group called the Strawberry18 Mansion Business Association.19 We're here today to talk about20 the City as a whole, and we want to help21 change that direction. We know this is22 not about the gambling situation, but the23 real reason why we're here is because of24 money.25 26 264 5/8/09 WHOLE - FY '10 BUDGET, PUBLIC TESTIMONY1 Gambling is no way to fund your2 city budget government. And so, our3 organization has proposed that we also,4 while we're going through these economic5 downturns -- because we, like all others6 that have testified, we're opposed to the7 various tax increases and the proposed8 service cuts and all of the other little9 gimmicks that are being used now to10 generate more capital.11 But the real issue is, we don't12 have jobs, and that's really the reason13 why we're here today.14 If we going to put gambling15 anywhere, it should go down to the Navy16 Yard. The mall in Center City is really17 one of the last venues for family18 activities, where a family can go in a19 wholesome environment and have degree of20 fun and activity.21 But the real issue here is, we22 need to create new jobs. And our goal is23 to convince Council and the24 Administration that converting PGW and25 26 265 5/8/09 WHOLE - FY '10 BUDGET, PUBLIC TESTIMONY1 the Water Works in order to create new2 jobs, reduce the cost of gas, reduce the3 cost of water, but create thousands of4 new jobs. And that's really why I'm5 here.6 And that conversation ought to7 start right now because there's going to8 be some type of interruption of service9 or some type of deletion of service10 that -- there's going to be something.11 And everybody is pretty much got their12 eye on that.13 Our goal is to get beyond just14 the issue of cuts. What can we do to15 create a real floor, a real safety net,16 where people are paid real wages. In our17 area, in Strawberry Mansion, the18 unemployment rate is really around 5019 percent; it's not this 14 and 13 percent20 I keep hearing. There are people that21 work in the neighborhood that are working22 five, six, seven days a week that don't23 live there, but the people that live in24 the area don't have a job.25 26 266 5/8/09 WHOLE - FY '10 BUDGET, PUBLIC TESTIMONY1 We talking about moving to the2 new fuel. We took the president at his3 word, and so we're going to be4 conscientious about this. Hydrogen is5 the best new fuel source, it's the6 cheapest source, it's the cleanest7 source, it will help reverse global8 warming, and, also, it will do two or9 three other things.10 Fifty percent of our children11 that go to public schools suffer from12 some type of respiratory problem. When13 you switch over to hydrogen, that14 reverses global warming. That helps all15 of those people who have the respiratory16 problem. It cleans the air, but that17 comes up when we have public hearing.18 And so, we look forward at some19 point in the near future to really start20 talking about how do we create real jobs21 in the future, because, on any business,22 it's the wages and it's your utility23 costs that's the biggest costs. And so,24 as a part of the Strawberry Mansion25 26 267 5/8/09 WHOLE - FY '10 BUDGET, PUBLIC TESTIMONY1 Business Association, naturally, we're2 here to cut down the costs on the3 small-business owner.4 But in the meantime, if people5 don't have any jobs -- and that's how we6 got to this point. If they don't have7 any jobs, small business can't make it8 because they don't have a job.9 And so, we encourage City10 Council to think about these things, as11 we will continue to be encouraged to work12 with you in the future.13 Thank you so much.14

Thank15 you. Thank you for taking the time to16 come in and express your views. Thank17 you very much.18 Our next witness is Eric Tars.19 (Witness comes forward.)20

Good21 afternoon. Kindly identify yourself for22 the record and proceed with your23 testimony.24

Yes. My name is25 26 268 5/8/09 WHOLE - FY '10 BUDGET, PUBLIC TESTIMONY1 Eric, E-R-I-C, Tars, T-A-R-S. 4 Good afternoon and thank you5 for this opportunity to speak. As I6 said, my name is Eric Tars, I'm the human7 rights staff attorney for the National8 Law Center on Homelessness and Poverty,9 the legal arm of the national movement to10 prevent and end homelessness. 17 Another 2,879 emergency beds are filled18 with homeless men, women, and children19 every night. Since 2008 alone, the20 number of homeless family with children21 in Philadelphia has increased by 1622 percent. 2 Our organization, along with3 over 75 percent of Americans, believes4 that housing is more than a commodity or5 a budget concern; it is a basic human6 right. S. adopt a second21 Bill or Rights, including the right to a22 decent home. 23 signed th Universal Declaration of Human24 Rights, again affirming housing as a25 26 270 5/8/09 WHOLE - FY '10 BUDGET, PUBLIC TESTIMONY1 human right. S. 20 Mayor Nutter has submitted a21 budget proposal that minimizes its impact22 on vulnerable populations by maintaining23 emergency and transitional beds. 12 In Illinois, providing housing13 and services to homeless individuals14 reduced annual health care and jail costs15 by over $2400 per person. In Rhode16 Island, the annual savings averaged over17 $8800 per person. 24 I urge the Council not to make25 26 273 5/8/09 WHOLE - FY '10 BUDGET, PUBLIC TESTIMONY1 further cuts to the City's homeless2 budget. I further encourage the Council3 to restore previous cuts and, where4 possible, increase funding for homeless5 services and affordable housing. )21

-- and a wide range22 of housing options combined with23 services, residential treatments, and24 safe havens.25 26 274 5/8/09 WHOLE - FY '10 BUDGET, PUBLIC TESTIMONY1 In this period of massive2 unemployment, increased foreclosures and3 general economic crisis, now is not the4 time to cut back on resources for5 badly-needed shelter and support6 services. By considering alternative7 strategies to bolster the budget for8 homeless services, Philadelphia will not9 only save money but will demonstrate its10 commitment to the human right to housing11 and fulfill the promise of human rights12 made back here in 1776.13 Thank you.14

Thank15 you very much. We appreciate your coming16 in to testify.17

Thank you.18