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
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
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
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
Thank19 you again.20 We have gone through the list21 of all of the witnesses that called in to22 testify. There is only -- there are two23 people who we tried to get in touch with24 to advise them that we have concluded our25 26 275 5/8/09 WHOLE - FY '10 BUDGET, PUBLIC TESTIMONY1 hearing for today. They're certainly2 more than welcome to come tomorrow. And3 if anybody comes in, they can certainly4 leave their written testimony and it will5 be made a part of the record.6 This hearing will be continued7 until tomorrow, at 10 o'clock; that's8 Saturday, May the 9th, at 10 a.m. Thank9 you all very much for your attention.10 (Proceedings end at 3:05 p.m.)11 * * *12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 276 C E R T I F I C A T E2 WE HEREBY CERTIFY that the4 proceedings of the City of Philadelphia5 Council Committee the Whole are contained6 fully and accurately in the stenographic notes7 taken by us on Friday, May 8, 2009, and that8 this is a true and correct statement of same.9 10 11 12 __________________________________ 13 MICHELE MURPHY Registered Professional Reporter14 15 16 __________________________________17 JOSEPHINE CARDILLO18 Registered Professional Reporter 19 20 (The foregoing certification of21 this transcript does not apply to any22 reproduction of the same by any means, unless23 under the direct control and/or supervision of24 the certifying reporter.)25