00001 COUNCIL OF THE CITY OF PHILADELPHIA CONTINUED PUBLIC HEARING COMMITTEE OF THE WHOLE - - - Room 696, City Hall Philadelphia, Pennsylvania Monday, March 24, 2003 9:55 a.m. - - - Bill Number 03009, an Ordinance amending Chapter 10 19-1800 of The Philadelphia Code, entitled "School Tax Authorization," by amending section 19-1804, entitled "Authorization of Net Income Tax," to further authorize the Board of Education of the School District of Philadelphia to impose a tax on net income from real property and tangible and intangible personal property of residents of the School District of Philadelphia; all under certain terms and conditions. Bill Number 030012, an Ordinance amending Chapter 19-1800 of The Philadelphia Code, entitled "School Tax Authorization," by amending Section 19-1806 to further authorize the Board of Education of the School District of Philadelphia to impose a tax on the use or occupancy of real estate within the School District of Philadelphia. Bill Number 030013, an Ordinance amending Section 19-1801 of The Philadelphia Code, entitled "Authorization of Tax," to further authorize the Board of Education of the School District of Philadelphia to impose a tax on real estate within the City of Philadelphia; and to restate the rates of taxation in tabular form; all under certain terms and conditions. - - - 2 00002 PRESENT: COUNCILWOMAN DONNA REED-MILLER, Chair COUNCIL PRESIDENT ANNA C. VERNA COUNCILWOMAN JANNIE BLACKWELL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN DARRELL L. CLARKE COUNCILMAN DAVID COHEN COUNCILMAN FRANK. J. DI CICCO COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN JAMES KENNEY COUNCILMAN RICHARD T. MARIANO COUNCILMAN MICHAEL A. NUTTER COUNCILMAN ANGEL L. ORTIZ COUNCILMAN FRANK RIZZO COUNCILWOMAN MARIAN B. TASCO - - - V A R A L L O Incorporated Litigation Support Services 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 3 00003
Good morning, everyone. Good morning, everyone. May I have your attention, please. This is a public hearing of the Committee of the Whole. I would ask Mr. McPherson to read the Bill Numbers and the titles of the Bills. MR. McPHERSON: Bill Number 03009, an Ordinance amending Chapter 19-1800 of The Philadelphia Code, entitled "School Tax Authorization," by amending section 19-1804, entitled "Authorization of Net Income Tax," to further authorize the Board of Education of the School District of Philadelphia to impose a tax on net income from real property and tangible and intangible personal property of residents of the School District of Philadelphia; all under certain terms and conditions. Bill Number 030012, an Ordinance 20 amending Chapter 19-1800 of The Philadelphia Code, entitled "School Tax Authorization," by amending Section 19-1806 to further authorize the Board of Education of the School District of Philadelphia to impose a tax on the use or occupancy of real estate within the School District of Philadelphia. 00004 03/24/03 - Committee of the Whole Bill Number 030013, an Ordinance 3 amending Section 19-1801 of The Philadelphia Code, entitled "Authorization of Tax," to further authorize the Board of Education of the School District of Philadelphia to impose a tax on real estate within the City of Philadelphia; and to restate the rates of taxation in tabular form; all under certain terms and conditions.
Thank you. Good morning and welcome. Mr. Nevels, please identify yourself for the record and proceed with your testimony.
Thank you, Council President. My name is James Nevels. I'm the Chairman of the School Reform Commission. And it is good to be here. Good morning, Madam President, Councilwoman Miller, and Members of City Council. Thank you for the opportunity to review with you the state of the School District of Philadelphia. When I came to you a year ago, the School District faced tremendous challenges: Academically, financially, operationally, in 00005 03/24/03 - Committee of the Whole safety, in leadership, and in our facilities. Most students were not reading at grade level, and 40 percent of students were dropping out before graduation. Financially, the District faced $1 billion in debt. My colleagues on the School Reform Commission, Sandra Glenn who joins me this morning, Jim Gallagher, and Dan Whalen could not believe that we could not identify the reconciliation of budgeted to actual expenditures, and we faced an enormous structural deficit. I would also mention, of course, our colleague Mike Mash, who is no longer with us. And I think we know where he is. And hopefully he will remember and help the School District. His appointment is currently vacant. Let me say this to you, as I've said to a couple of you this morning: What a difference a year makes. What a difference a year makes. Over the past year we have made tremendous strides in reforming public education for Philadelphia's children, being called by some the largest educational reform movement in the 00006 03/24/03 - Committee of the Whole United States. One thing for certain was, things are not the same, and should not be for our children. We are making progress. First and foremost, in July 2002 we hired Paul Vallas to be the School District's Chief Executive Officer. Under his leadership the School District is implementing aggressive policies and improvements to overcome years of status quo. You will hear in greater detail from my colleague, Paul Vallas, and Michael Harris, the District's Chief Financial Officer. But from an overall perspective, I can tell you that one year later, the School District is: Number one, academically focused, as significant strides have been made in reforming our educational system. Educational management Organizations. s, are managing 45 of our lowest-performing schools, and we are working closely with them to ensure that those students are learning. 00007 03/24/03 - Committee of the Whole The District's curriculum is uniform and aggressive, as we work to ensure that all of our students are reading at grade level and achieving in mathematics and sciences. The School District is recovering financially, through significant cost savings measures, that have been implemented over the past year. Thanks to this City Council, and again, I say to you individually and collectively, thank you. Thank you very much on behalf of the children of Philadelphia. The General Assembly -- I should say and the General Assembly -- and we thank them as well -- the School District has received the funding it needed to keep it solvent and ensure that all of our students have the proper educational materials so that they could learn. But we are not out of the woods yet. As you will hear, significant cost-cutting measures have been implemented, some of which have been very difficult. The District cut $25 million via work-force reductions and other efficiencies, as 00008 03/24/03 - Committee of the Whole we promised you and the Commonwealth last spring. We sought your trust. We believe that we have earned your trust by our behavior. The District went on to identify an additional $44 million of other efficiencies within the system, and we have also rectified that. The School District is operationally efficient, issuing an RFP and moving forward on consolidating our administrative facilities. Having staff in four locations, including a $1 million lease on one is not financially or operationally efficient.
We intend to identify a single location very shortly to house all our staff and to build a managerially cohesive culture at the Philadelphia School District. Today the School District is focused on improving climate and safety for our students and our teachers. Learning cannot occur in an environment in which students and teachers are not secure. In September, the School District unveiled its Code of Conduct which establishes a 00009 03/24/03 - Committee of the Whole blueprint for student behavior. The School District's Zero Tolerance Policy is a bold first step to removing disruptive students from the classroom. Some say it's too harsh. But we mean business. As the Chairman of the School Reform Commission, I believe that if being obsessed with the safety of our children and our educators is a vice, then I am for one willing to be guilty of that crime. Parents must be involved in their children's academic experience. And if removing those disruptive students engages their parents, we will have succeeded. Among other initiatives we have taken, include easing students from incarceration back into the classroom. As a year ago, no longer will those students be placed back into a classroom without the proper academic, emotional and social preparation. Doing so has only resulted in repeated incarcerations and failure. The School District is committed to improving our School facilities to provide each and every student a pleasing environment in which 00010 03/24/03 - Committee of the Whole to learn. Last May the SRC journeyed to 70 schools slated for reform. In some buildings the paint was crumbling, the lighting was insufficient for children to learn, and proper running water did not exist. This is patently unacceptable. And these were in the better facilities. Some buildings were so old that they presented safety hazards. 5 billion Capital Plan to build new schools and rehabilitate others, eliminating school overcrowding and creating school campuses that students will be proud to attend. The School District is community-based through the new office of School and Community Relations, that seeks partnerships between schools and communities to engage parents, students and neighbors to take active roles in our students' educations. Our school system is diverse, working for all of Philadelphia's children, regardless of gender, ethnicity or income. And finally, but certainly not 00011 03/24/03 - Committee of the Whole least, the School District is now leadership driven. Since Paul Vallas came to Philadelphia eight months ago, we have seen a tireless advocate for Philadelphia's public schools. In addition, Council people, I can tell you, he's just a good guy, too. There is no 10 person who has worked harder and smarter for the children of Philadelphia than Paul Vallas. There is no person better suited to making the tough decisions with the SRC to improve the education of Philadelphia's children than our CEO. What a difference a year makes. I would now like to introduce the School District's Chief Executive, Paul Vallas.
Thank you. Well, thank you. Thank you, President Nevels, and Madam President. Thank you for this opportunity to come before the Council. I just want to recognize and introduce to the Council a number of our executive staff, most of whom are here and all of whom will be here before the testimony is over. 00012 03/24/03 - Committee of the Whole First of all, Natalie Pakeen, my Chief of Staff, if Natalie can just raise her hand. Tim Spritzer, my Deputy Chief of Staff. Craig Williams, our Deputy Chief Academic Officer. I don't know if Ed Williams has arrived.
If the individuals would stand, I think it would be nice. We would get some --
Great. Let me start out with Natalie Pakeen, my Chief of Staff. Tim Spritzer, the Deputy Chief of Staff. I know you've all had contact with Tim. Dr. Craig Williams, our Deputy Chief Academic Officer in charge of our High School Restructuring Plan.
Excuse me, Mr. Vallas. I understand some of the Council Members cannot hear you.
Oh, great. Great. Okay. Dr. Craig Williams, my Deputy Chief 00013 03/24/03 - Committee of the Whole Academic Officer, also in charge of the High School Restructuring Plan. Ed Williams is -- I don't know if Ed's arrived yet -- our Chief Academic Officer. Karen Burke, our Chief Operating Officer, if she will please stand. Chris Harris, who's the Director of the School District's Capital Program. Ellen Savitz, our Deputy Chief Academic Officer. She's managing the EMOs, the charters schools, as well as the new school conversions, and the academic side of the new High School Restructuring Plan. Kim Seitzer, our Chief Procurement Officer. I saw Kim way in the back, if...
Dexter Green has not arrived yet, but he'll be arriving shortly. He's had to deal with one or two issues this morning. And we always have public safety issues that we have to deal with. But our Director of School Security, Gwen Morris, who manages our alternative schools and our school discipline programs and policies 00014 03/24/03 - Committee of the Whole will also be arriving. Nilsa Gonzalez, our Director of School and Regions, who is responsible for the day-to-day management of the system, in terms of the system's interaction with local schools. And Tomas Hanna, who will be arriving shortly, who's our Director of Teacher Recruitment and Retention. So that is the senior staff. We are also, as I think Jim pointed out, joined by Sandra Dungee Glenn, one of the five Commission members and clearly a force in the changes that we have been pushing, both now and of course long before I arrived. What I'd like to do is to provide kind of a general budget overview, but talk not only about the budget but also talk about the programs, because this budget is driven by our initiatives. When we worked to put together our budget, we did so with an idea in mind that everything that we would do and every decision that we would make budgetarily would support our education reforms and our education initiatives. 00015 03/24/03 - Committee of the Whole And so, I'm going to take a few moments and talk about in general terms the overall budget strategy and the overall budget plan, and then just spend even a little more time talking about the objectives of this budget. And that is, to make our schools safer, to improve the physical conditions of our schools, and to improve the academic programs so that we can enhance education performance. And then I'll be followed by Mike Harris, who can get into the specifics of some of the budget document that we presented to you. Let me start off by saying that one of the first things that we did when we came in was to lay out a five-year financial blueprint for the School District. We were facing, with no changes, a long-term imbalance of about $1 billion, based on what projected expenditures were, as well as based on what projected revenues were. So the fist thing that we did in July was, we quickly began the work on laying out a financial blueprint, a blueprint that would enable us to keep spending in line with revenues 00016 03/24/03 - Committee of the Whole and draw down the deficit financing bond, which we were authorized to issue over a five-year period. So in effect, we could guarantee the School District five years of financial stability. But in putting together that plan, we put that plan together with an eye towards funding initiatives and pushing initiatives that would make schools safer, pushing initiatives that would rehab the terrible condition of our schools, and pushing initiatives that we knew would guarantee improved student academic performance. When we finalized our five-year plan, you afforded us the courtesy to brief virtually every Council Member on the details of that plan, both in terms of the financials and in terms of the academics. So going into the original five-year plan would only be redundant. But let me just say that the first year's results of the five-year plan really exceeded our expectations. We went from a projected $28 million operating deficit to a structurally balanced budget where we anticipate we'll have a slight surplus this year. 00017 03/24/03 - Committee of the Whole But in the process we were able to hit our first-year numbers in our five-year plan. We did that by cutting about $51 million in spending last year and by securing close to $62 million in new revenue, some state sources, but others largely Federal sources. Like the Empowerment Zone Grant, additional Title One and Chapter One money that we had not anticipated, additional funds under the No 11 Child Left Behind Act.
In effect, we were able to secure additional money on top of the cuts so that we were able to balance our budget, but then at the same time we were able to pursue our education initiatives. And let me point out that just in the first year we've begun to lay the foundations of our School Construction Repair Program. Just in the first year, we've begun to institutionalize our After-School Extended Day Program. Today, all of the schools have after-school extended day. There are slots for close to 35,000, 40,000 students. This summer we will probably have 00018 03/24/03 - Committee of the Whole the largest summer school program in our history, about 50,000 students. But the creation of the Office of Accountability, the professional development, and the upgrade in professional development training, the initiatives that we undertook, in terms of setting up an alternative schools network, so that in a Saturday, what we call a Saturday Alternative Program for expulsion for students who are badly behaved. So in effect, we just did not hit our budgetary goals in year one, but we also began to lay the foundation for what is intended to be our long-term educational goals, our long-term educational plan. But now we're preparing for year two. In facing the year two budget, we were -- Well, we were reasonably confident that we were going to be able to hit the numbers that we had anticipated hitting, in terms of our abilities to secure Federal funds. And obviously, while our local revenue base has been pretty close to certain, there was uncertainty as to what would be 00019 03/24/03 - Committee of the Whole available at the state level. So we decided to prepare our budget document, based on Governor Rendell's original budget that he introduced, and that was passed, and that he amendatorily vetoed in Harrisburg. And that was to base that budget on the assumptions in the governor's original budget, particularly for education. Our reason for that is, we felt that we should go with a worst-case scenario, and that we should use that first budget as a vehicle for going in and jettisoning other expenditures in the school system that we felt did not fit with our education plans and education strategies. So rather than going in and cutting core programs, what we elected to do was to go in and to jettison anything that we felt was not directly or indirectly impacting the classroom in a positive way. So the Governor's budget left us approximately $65 million shy from year two of our financial plan. And so to close that hole, we came out with a number of proposals to cut spending an additional $48 million to reallocate 00020 03/24/03 - Committee of the Whole Federal --
Excuse me, Mr. Vallas. Councilman Nutter has a point of information.
I just want to make sure I understand the statement that you just laid out. Your testimony is that the budget in front of us is based on the budget that the Governor introduced. I believe that was on...
March 4th. Trying to keep track of all these days. But I think what I hear you saying is that possibly based on what the Governor's going to put forward literally tomorrow, many of the proposals or assumptions in the budget in front of us today more than likely will change, and possibly change somewhat significantly; is that correct?
Well, yes. Obviously, 00021 03/24/03 - Committee of the Whole the revenue assumptions will change, and obviously in terms of where we provide the additional money, where we refocus the additional money. Programs like After-School Extended Day Class Reduction, those assumptions will change, too.
So even though City Council does not technically approve your budget, but you're here ostensibly for a budget hearing on actually the tax bills, there still remains, naturally, the general perception that we hold, quote, unquote, budget hearings about your budget. We ask you about the assumptions and the proposals. We don't actually approve your budget. There are items in this budget, as I think you well know, that will raise a significant amount of concerns in a variety of quarters. You will come; you will go. The Governor will do what he does tomorrow. We would all hope that there would be a somewhat more extensive budget process on the second go around. I don't know if it's possible that it could be shorter than the first go around. So we'll assume all the best 00022 03/24/03 - Committee of the Whole interests and intentions of the folks in Harrisburg. But you will have left. And we will then be in a position to have possibly, quote, unquote, accepted this budget that's in front of us, with all of its issues attached to it. And I doubt that you will be back after the Governor puts forward his budget, after the Legislature does what it does, and after you then subsequently possibly restore or change many of the assumptions that are in this budget. Is that a fairly accurate portrayal of the current scenario?
Well, clearly, if there is a compromise on the Governor's budget, then there's no certainty; we will obviously make adjustments. But we will afford the Council always an opportunity to come back and to sit with the Council, both collectively and individually, to obviously address some of the issues that this first budget has raised. But if I can just lay out kind of a general overview of what the strategy is, the strategy here is the following: This is a School 00023 03/24/03 - Committee of the Whole District that has not been spending all of its resources or all of its critical resources in the classroom. It's a School District that doesn't have enough teachers, that has not dedicated enough money for school construction, that has had virtually no after-school summer school programs, a School District that has not spent its professional development dollars effectively, a School District that carries positions that have no relationship to the educational responsibilities that the School District provides. And so we feel that, once again, selecting the Governor's first budget was first of all the fiscally responsible thing to do, but then going in and identifying things in our budget that could be jettisoned so that we could meet the year two projections, the year two financial goals of our five-year financial plan, and yet still sustain the programs that we have laid out for you, both privately as well as publicly, and that I'm going to summarize again, was also the right thing to do because it sets the stage. 00024 03/24/03 - Committee of the Whole It sets the stage for a compromise on school funding, for perhaps the Governor's second budget or a compromise on that second budget. And then what we could do with those additional resources, with those additional revenues, is put even more money in the classroom. You see, the five-year financial plan that we've laid out and that we update for you all today is roughly balanced through now to 2008. But in 2008, the deficit financing bond reserve is gone, and there is a structural deficit that needs to be closed, necessitating another round of heavy cuts as early as for the 2008, 2009 budget. And while that may be too far into the future for some, it's certainly not too far in the future for this Council that always obviously thinks ahead. So if the state does begin to restore the funding that has been made available that we had assumed that -- or we had projected that we would get or we would have liked to have gotten, if there is a compromise on school funding 00025 03/24/03 - Committee of the Whole reform, and the $65 million is returned to the School District, then what happens is, we cannot only put more money in education initiatives, but we can in effect correct the long-term structural imbalance that this District faces, in effect, institutionalizing the programs that we've laid out, not for five years or six years, but for 9 years or 15 years, in effect, having transformed 10 the entire financial and academic programs in the School District, re-prioritizing things, so that we can really move this School District forward. So our strategy has been to budget conservatively, to go in and to make changes to the budget that we feel did not directly impact on the classroom, continue to sustain our educational initiatives that we've laid out; and if you can just afford me about 10 or 15 minutes to summarize them. And then also set the stage for Rendell Two, or as some people said, Rendell Two and a half, you know, and whatever actually becomes reality. And then that means for the first time, when this District receives new resources 00026 03/24/03 - Committee of the Whole from the state, those resources are going to go into not only correcting long-term structural problems that this School District has had for a number of years, but also we'll be able to have even more resources for the classroom.
We'll have even more resources for after school, and summer School, and class size reduction. And so that has been our strategy. It's kind of always been our strategy to budget conservatively. So as the state moves along in the budget process, of course we have to let schools know what their resources are going to be in March, because there are significant educational reforms here that the schools need certainty about. And I'm going to describe just a few of them in a second. But while we will move obviously on this budget, we will do what we always do: We will amend the budget, if there are changes in anticipated funding levels from Harrisburg. And we'll certainly afford the Council an opportunity to have input, and to come before the Council to talk about changes we will make or we plan on 00027 03/24/03 - Committee of the Whole making before those changes are actually made. It's the very least that we could do. Now, let me -- I'm sorry.
Councilman Ortiz, your hand is up. Did you want to be recognized?
Madam Chair. Mr. Vallas, you're doing what Rendell is -- You're presenting two different budgets at the same time. And I'd like to find out, when you say you're budgeting conservatively in this go around...
...and you're projecting a series of cuts that do not affect classroom instruction --
-- in classroom. Could you detail to us what those cuts are?
And if any of those cuts that are being done are being projected to be re-integrated into the budget later on, as the budget -- the Rendell Budget Two takes effect or if it comes about, and... 00028 03/24/03 - Committee of the Whole
If I may. I think we should have Mr. Vallas continue with his testimony.
-- also to testify. And after their testimony, we can then ask questions. So Mr. Vallas, would you please proceed with your testimony.
Thank you. But we'll get back to your... As soon as we're done with the testimony. Let me explain the education initiatives that we are going to continue to pursue and improve upon in this budget. I'm going to take them in the following order: First of all, I'm going to take them in -- I'm going to talk about public safety first, I'm going to talk about capital second, and I'm going to talk about 00029 03/24/03 - Committee of the Whole education third, leaving the most important obviously to last. On the public safety side, this budget will allow us to continue our expansion of our alternative schools programs. We are anticipating that we will have at least to 8 alternative school locations or sites next year, 9 because we are going to be expanding the 10 Alternative Schools Network that we use to handle, not only student discipline problems, but also to handle the students that come through Act 88, the state law which requires that we not return students to neighborhood schools, students who have been incarcerated. In addition, this budgets also expands what we call our Saturday Detention Program, or SMART program as we call it. This is our Saturday School for students that are chronically bad behaved. They are put in Saturday schools as an alternative not only to expulsion, but also students who may be working their way towards expulsion, who need some intensified counseling. The objective here is not to send a 00030 03/24/03 - Committee of the Whole student home for five days, in which case the student comes back from the suspension even more disruptive or further behind than they were before they were suspended, but to put students in Saturday programs. And we have nine sites operating now. The program started at mid-year. We hope to hopefully double the sites in the coming year. And we're obviously working not only locating those sites in our neighborhood high schools, but also we're working with religious institutions, as well as community providers, in order to also expand those sites. So... But in addition to those initiatives, you will see in this budget that there's an expanded investment in intervention. There's an expanded investment in outreach. There's an expanded investment in the creation of crisis intervention teams that can work with high schools and work with elementary schools that are having problems maintaining student discipline. So it's simply not about expelling students. It's also about getting them into more intensified detention or counseling programs, the 00031 03/24/03 - Committee of the Whole Saturday schools being the prime example. And it's also about providing intervention -- providing quicker intervention services. Right now we have intervention teams and we have networks of community providers in all nine of our regions who work with our regions intervening in schools and providing support to schools where we are having problems with student discipline. These initiatives will be sustained, and will be built upon in this budget. Let me talk about capital. On the school construction side, this budget continues the expansion of our Capital Program. 5 billion in school construction over the next five years. Now, that is money obviously that's going to be generated through the issue of 30-year school construction bonds. It's going to be partially subsidized through the state plan com program, which reimburses the local school districts to the tune of about 20, 22 percent of their debt service on school construction if it qualifies. But we are going to proceed forward. 00032 03/24/03 - Committee of the Whole In about two months, we're going to sell our first $300 million school construction bond, and that is already funded or already provided for in this previous year's budget. But next year, we'll be issuing about the same time, March or April, our second $300 million school construction bond. So the school construction program is going to move forward.
And as you know, if I can just summarize the goals of that school construction program, the school construction program is intended to build at least 11 new or replacement high schools to pay for the renovations of -- major renovations, to the tune of $10 million to $15 million in between 13 to 15 neighborhood comprehensive high schools, and then provide for what I call modest renovations in the balance of the high schools. But the school construction program also provides for the construction of, I believe, between six to eight new elementary school buildings, and I believe about a dozen additions or little red schoolhouses so that we can relieve overcrowding. And the budget also provides for 00033 03/24/03 - Committee of the Whole maintenance and repair upgrades in the majority of our schools. We have organized our trades into what we call minute men teams, in the Colonial tradition, and every week teams are in schools spending between one to two weeks, and sometimes more in those schools, repairing and fixing everything that needs to be done. And we anticipate using this program. We're going to go in and do major interior renovations in all of our elementary schools, to the tune of about 35 to 40 a year, on top of the basic repairs that we normally do. So the Capital Plan is driven by a need to expand the number of high school options, to reduce the size of our high schools by creating more high schools, to replace obsolete and falling apart high schools. It's also driven by a plan to relieve overcrowding in our elementary schools, and to provide the basic renovations that our elementary schools need. And let me point out that one of the highlights of the plan is to make sure that every single neighborhood-based high school, 00034 03/24/03 - Committee of the Whole comprehensive high school, has state of the art science labs and technology labs, and library multi-media centers, so that the critical classrooms -- the critical classrooms: Technical, science, library, learning center classrooms in the high schools are on par with any suburban high school out there. The Capital Plan will not address all of our needs. 5 billion construction plans over the next five years, all of the high schools will be fixed and repaired structurally and physically, and overcrowding at the elementary schools where it exists will be alleviated, and all of the elementary schools and the middle schools will have had the needed repairs that they have needed to basically -- so that they remain viable buildings. If we receive more money from the state, obviously, we're going to pump more money into the elementary schools. But this is a pretty ambitious plan. Let me also point out that we are 00035 03/24/03 - Committee of the Whole reasonably confident that we are going to be able to finish the plan on budget, because with the support of the unions, we have been able to receive a waiver for the first three-year construction -- the four-part bidding contract provision, so in effect we can expedite contracts, and we can make sure that those contracts are provided -- are executed in a timely fashion. I will also point out, then -- we'll have an opportunity to answer more detailed questions on this -- that all of our construction programs, as well as our professional service programs, will have MBE-WBE goals. And just to give you an example, the prime contractor who we brought in, the prime manager who we have brought in to manage our construction programs, 43 -- I think 43 or 47. 43 percent of that contract went to women or minority-owned businesses. And this will be a pattern that we will pursue very aggressively when it comes to contracting out. Now, let me talk about the education initiatives. This budget continues to fund the education initiatives that we have laid out 00036 03/24/03 - Committee of the Whole publicly over the last four or five months.
On the early childhood side, simply through a re-programming and a re-prioritizing of how we spend our early childhood money, we are going to be able to put an additional 2500 children at risk into early childhood programs. And we are going to be able to create a comprehensive zero to three program that will identify pregnant teens in the high schools, and make sure that the pregnant teens are assigned a parent advocate or parent trainer, and provide day care and pre-school for the pregnant teens. 5 million to help supplement the program. But we are also reprogramming and reallocating existing revenues so we can expand the slots. If you look at the early childhood budget, we spent $32 million on 2200 students, and many of whom are not at risk in early childhood programs, very inefficient programs. And by reallocating those resources and by upgrading those programs, in terms of the number of students who are in those programs, 00037 03/24/03 - Committee of the Whole we're actually going to be able to reach more students. But there's going to be an expansion of our early childhood initiatives in this budget next year, with the cradle to the classroom, the zero to three program, and there will be at least 2500 additional students in that program. Now, if the Rendell Administration is successful in meeting the Governor's early childhood priorities, then we will be able to increase the number of children in early childhood to an even greater amount. But we estimate that close to 1500 children zero to three will be put in day care under the cradle to the classroom program. So, this will be the most significant expansion of early childhood we've ever had. If I can just go through, we have already made our conversion to the Terranova Test. We already have our Office of Academic Accountability that provides quality review of all our schools and works with the schools to develop plans of reform, plans of quality review, changes that need to be done in the schools, if those 00038 03/24/03 - Committee of the Whole schools are struggling. But the shift to the Terranova, which incidentally, is also going to save us money, has also provided the school system with the test, the results of which can be communicated to teachers and to parents within 30 days of that test being given. And it's given teachers and parents a diagnostic tool that they can understand the results of. This year we got the Terranova results after 30 days, and two weeks after that we sent the results to the parents, so the parents were able to get a breakdown of where their child's strength and weaknesses were. It's also a test that is aligned with the state standards. It's a state that the Archdiocese gives, and it's a test that is very similar in form and in content to the state test, which meaning, when you're preparing kids for the state goals, you're also going to be covering the material in both the Terranova Test, as well as the PSSA test. So those things have already begun. But all of the schools next year, as 00039 03/24/03 - Committee of the Whole we move forward, the education plan lays the foundation for the phase out of our middle schools. What we're going to be looking at doing over the next five to seven years is to reduce significantly the number of our middle schools. Next year three middle schools are scheduled to be converted to high schools; ultimately, 9 to 10 will. And a number of -- at least the same number of elementary schools or of middle schools will be converted to K to 8 schools. And then next year, beginning next year, 45 to 50 K to 5 schools will begin adding grades, meaning parents are not going to have to be stressed out at the end of fifth grade about worrying where their children are going to have to go to School. And as you know, only two to three of the middle schools in the school system are meeting state standards. There is an exodus of students before the middle school years.
Our middle 00040 03/24/03 - Committee of the Whole schools are fed by far too many feeder schools. The vast majority of our schools are on the No Child Left Behind academic watch list, not to mention the state's watch list. So, converting and moving to a K to system and a 7 to 12 system, I think, is the right thing to do. 8 Our hope is within five to six years, if we have 9 middle schools that remain, they will be fed by maybe one or two feeder schools. So, again, those reforms, we are going to -- we will continue to move forward on in this budget. And in addition, and as part of our high school restructuring plan, by converting middle schools to high schools, by supporting the middle school charters that are performing in an exemplary fashion -- and there's four or five middle school high schools that we're going to support the expansion of because they're providing superior academic options. And by building a number of new middle schools, we feel optimistically that within the next four to five years, we're going to have close to 15 and maybe as many as 20 new high schools options. 00041 03/24/03 - Committee of the Whole So what will happen will be, when children graduate from eight grade, they'll have, instead of 3 magnet schools to apply to, maybe 8 or 9 or 10 magnet schools to apply to, not to mention the high performing charters. And to magnetize our neighborhood schools, we are going to be putting magnet programs in advanced placement and honors programs in our neighborhood high schools, and opening the enrollment in those high schools. So in effect, you're going to have high school choice. In effect, when a child graduates eight grade, if that neighborhood school is not a school to their satisfaction, they're going to be able to apply to one of perhaps as many as a dozen citywide high schools, or for that matter, one of as many as two dozen what we call neighborhood-based magnet programs in neighborhood high schools, like international baccalaureate programs and world language academy programs, and math, science, and technology academy programs. So what you'll have for the first time is options. So if that neighborhood school is not to your satisfaction, you just don't have 00042 03/24/03 - Committee of the Whole to line up out at Central or Girls High and say, where am I going to go. There are going to be plenty of options. There will be no excuse for exiting the system or leaving the system because the system does not provide quality academic options. If I could just give you one statistic to drive home the point, we have 61,000 students in high schools. Only of our 46 high 11 schools have advanced placement and honors 12 courses. Only 1,000 of our 61,000 kids take advanced placement and honors exams. I was watching an advertisement that New Jersey Department of Education came out with yesterday trumping New Jersey as the top state, in terms of percentage of kids taking advanced placement and honors programs. We don't have an advanced placement and honors courses, so how can our kids take the AP exams? We have high schools with 2500, 3,000 students who don't have a single honors course in those schools. Only 5,000 of our students took the SAT. 61,000. Now, that's for 00043 03/24/03 - Committee of the Whole all intents and purposes, the college entrance exam. Only 5,000, less than percent. 4 And even more disturbing, only 7400 5 or 7500 of our students -- and correct me if I'm 6 wrong Craig -- took the PSSA, which means probably 7 only half the kids are taking the state exam who 8 should be taking the same exam. That is going to 9 change and is going to change dramatically. 10 So these reforms are not only raising standards as to why, but these reforms are about making institutional changes, phasing out the middle schools, so that our kids can transition to high school through a K to 8 system, so that we don't have 1500 sixth, seventh and eighth graders piled in a building four to five stories high.
And when our children go to high schools, those high schools present them with choices, not only choices citywide, but the neighborhood high schools present them with choices in the neighborhood high schools themselves. But those initiatives are funded in this plan. In addition -- In addition, if I can 00044 03/24/03 - Committee of the Whole just quickly comment on a couple of other initiatives that are also funded. Last week we laid out our plans to reform our curriculum and instruction. This time next year all the school system will be on uniform standardized curriculum instructional models. We've picked models that we feel are the best practice models. Our focus in the initial years is going to be reading and math. And we've gone to great lengths to ensure that all the curriculum instructional models that are adopted are models that are multi-cultural, are models that lend themselves. And our selection of hard core trophies, as well as our approval of supplemental curriculums are guided by not only the superior nature of those curriculums -- and let me point out that the curriculum models we're selecting have the approval of the Federal Department of Education, so we're not selecting curriculum models that we can't secure funding for. But those curriculum models are also selected because we feel that they lend themselves now to what we 00045 03/24/03 - Committee of the Whole call a true multi-cultural curriculum. But in addition to the curriculum and instructional reforms that all the schools will have next year, we are going to support those curriculum and instructional reforms by doing the following things: By increasing the school day and increasing the school year. Next year, our after school extended -- our after school program will really be an extended day program, because any child grades three through nine below grade level in reading or in math will not have their school day end at 3:30. They will have their school day end after one to two hours of additional academic instruction. And we're selling it as extended day because we want to create the mentality out there that this is part of the school day. Our school day runs this long for underachieving children. The same thing in summer school. Children grades three through nine will have to go to summer school if they're below performance in either reading and/or math. And if children have special education needs or if children are ESL 00046 03/24/03 - Committee of the Whole students with English language deficiencies. This will be not summer School, but extended School year, because it will be part of what we consider to be the normal school year for students who are not meeting the academic standards. So while the schools will have curriculum and instructional models, we will spend more time, extended day and extended year, teaching the children who are struggling to those models. But in addition to the more time on task, all the schools next year are going to go through year-round professional development. We have reached an agreement with the teachers union to provide for end of the year professional development of teachers, professional development through the summer, and professional development twice a month two hours a day. So twice a month there will be two hours of professional development time set aside. So, in effect, not only will we have curriculum instructional models and time on task, but we will have the professional development to go with it. And on top of the professional 00047 03/24/03 - Committee of the Whole development, the budget -- this budget provides for curriculum and instruction experts. Every one of our nine regions will have five curriculum coordinators who will work with the schools on continuous professional development and in-service training of teachers.
In addition, we will be designating a reading and math curriculum coordinator in each of the elementary schools and the high schools, so there will be a network of curriculum experts to sustain the quality curriculum instruction by being there to help the teachers, to assist the teachers, and being there to facilitate professional development. And then finally, we will do probably the most massive class size reduction that this system has ever done. Our plan next year is to reduce class sizes in all the elementary school grade levels, grades kindergarten through third in schools that have the additional space. If they don't have the additional space, we will hire literacy interns. We are providing the School Districts with models on how they can reduce their 00048 03/24/03 - Committee of the Whole class sizes, grades four through eight. Now, when you look at this budget, we are going to be jettisoning close to 500 SSA positions because we are going to be hiring over 500 new classroom teachers. So, in effect, we're going to be reducing class size on a massive scale that few Districts in the nation have basically done or have basically embraced. And this will begin next year. Also, at the high school level we are going to be reducing class size at key grades. So, for example, no longer will we say, well, we don't have enough honors chemistry students, so we can't have an honors chemistry course. If we have to have an honors chemistry course with 12 or 14 or 15 students, so be it. And no longer will which stuff 33 algebra students in a freshman algebra course with a single teacher, and then mandate that they master algebra in a year with two-thirds of the kids never having had pre-algebra. Algebra classes, the freshman math classes, will be no bigger than 15 students per 00049 03/24/03 - Committee of the Whole instructor. So, the class size reduction initiatives are going to, I think, significantly transform the nature of the system. So if you have quality curriculum, if you have more time on task, if you have professional development, and you have class size reduction, you're going to see a dramatic change in instruction. And then, finally, all of our curriculum instructional models will have parental outreach pieces: Curriculum guides for parents, homework guides for parents, a system of communicating with parents, simplified report cards, simplified dissemination of test core information. And we are going to be working with our parent truant officers to teach them to do home outreach to parents who are not academically engaged in their child's education. So if a parent is not coming to pick up the report card, or if a parent is not coming to parent/teacher conferences, or not responding to communications that are being sent home to that parent, we're going to make a visit. And we're 00050 03/24/03 - Committee of the Whole going to have a parent make a visit to that home to try to get a handle on what's going on. Those initiatives are in this budget. And then finally on teacher recruitment and retention, as you know, two weeks ago, under the leadership of Sandra Dungee Glenn and Rosemary Greco, we laid out a plan to improve teacher recruitment and teacher retention, through alternative certification, through incentives, through providing more teacher mentoring when teachers enter the system, through student/teacher subsidies so that we can recruit a much larger student/teacher core into the system, the conclusion being, we can retain more teachers. But our end through contracting out with not for profit corporations, like Teach American and the National Teachers Project, to expand our teacher recruitments efforts nationwide, we hope to have at least 500 to 600 additional certified qualified teacher candidates through this program.
And we feel that if we can get the teachers in, we will be able to retain the teachers because they will be provided a mentor, 00051 03/24/03 - Committee of the Whole they will be provided curriculum instructional models, they will be provided smaller class sizes, they will be provided year-round subsidized professional development. So we feel that we can make significant progress increasing the pool of qualified teachers and reducing the attrition. Between two or three years in this system, 40 percent of the teachers are gone. They have exited the system. So we feel that these things are going to help us in the area of teacher recruitment and teacher retention. These things, likewise, are funded in the budget. Now, some people will say, well, how are you doing this, or how are you going to be able to do this, in light of the Rendell budget cuts? And what I'd like to do is just take two or three examples of how we're funding each of these initiatives and how these initiatives fit into our budget process. I've referred to kind of our budget approach as having what we've referred to 00052 03/24/03 - Committee of the Whole affectionately as the financial equivalent to watertight compartments. Let me give you an example of our efforts to recruit, of our efforts in curriculum instruction and professional development. Now, the plan as I summarized is simple: New curriculum instructional models, more time on task, year-round professional development, smaller class sizes, parental outreach. Well, how are we going to deal with all these issues during financial tough times? Well, let me summarize by saying, we already spend $40 million on curriculum, instruction, and textbooks in this system. But because we don't have a standardized curriculum, because we've got schools doing 600 different things, the money is not spent efficiently or effectively. The move towards a standardized curriculum allows us to leverage the fact that we're going to be working with fewer curriculum providers, and we're going to be purchasing more standardize materials so that we can get a bigger bang for our buck. And we can purchase materials 00053 03/24/03 - Committee of the Whole that basically fit within the curriculum strategy. We spend currently $46 million on class size reduction, the bulk of the money going to literacy interns. Now, think of this math. If you have three third grade teachers and they have one literacy intern, you have one teacher that benefits. But if instead of that literacy intern, you hire a fourth third grade teacher, then all the third grade teachers, all the third grade teachers educate eight fewer students. In effect you reduce the class size from 33 to or 15 24. The bottom line is, that money can lay -- our 16 focus is going to be on hiring teachers. 17 In addition -- In addition, there 18 is -- we've been able to secure close to $15 19 million in funding for our summer school programs, 20 through the Arlen Spector Empowerment Grant, not 21 only for this year but for next summer with the 22 commitment for a third summer. 23 We've been able to reallocate $17 million in Title One reallocation for our after school extended day programs. 00054 03/24/03 - Committee of the Whole By doing that, incidentally, we bring our after school extended day and supplemental services in line with No Child Left Behind, making us eligible for even more resources. And we've been working with the School Districts -- We've been working with the School Districts to identify -- to identify local funds that they can use, Title One and Title Two funds that they can re-prioritize to do class size reduction. So in part, it's a securing of additional federal funds, but it's also a reallocation of existing dollars. 5 million for our early childhood initiatives from the Federal Government.
And finally, we've reached in -- I wouldn't say finalized, but we've reached kind of an agreement, a general agreement, that we will be able to secure money from the Parking Authority to finance a borrowing that we will do to do the 00055 03/24/03 - Committee of the Whole one-time curriculum replacements and textbook replacements that need to be done. Because in this push towards a more standardized curriculum, there's going to be a first-year up-front cost that's going to go beyond our capacity to finance, unless we're able to borrow and to secure that borrowing with an outside revenue source. And the Parking Authority has agreed to provide us with a revenue stream, so that we will be able to borrow next year upwards from $20 million to $25 million to also finance this initiative. So, once again, this initiative is watertight. This initiative will be funded regardless of what happens in Harrisburg. But the most important investment, the investment in curriculum, instruction and professional development, and class size reduction, the investment in new textbooks, the investment in the type of programs to provide student support, extended day, extended school year is an investment that we can make because we've allocated the resources. 00056 03/24/03 - Committee of the Whole And then finally, to fund our initiatives in the high schools -- And let me give you another example of how we're going to be able to do our initiatives in the high schools. Our high schools have hundreds of courses that are, for all practical purposes, irrelevant. All you have to do is look at the courses. I think, in many ways, the courses are designed to meet the individual skills of the instructors, as opposed to the needs of the students. And we've identified at least 322 academic courses that we feel are not relevant, that we can eliminate, freeing up $5 million to pay for our advanced placement courses, our honors courses, our international baccalaureate courses; In other words, money that can be simply be reallocated. In the high schools you have small learning community coordinators, you have slick coordinators, you have so-called curriculum coordinators and department heads. While there are already the 00057 03/24/03 - Committee of the Whole positions there to reallocate and re-prioritize so we can make sure that all of our high schools have curriculum and instructor experts and trainers in those schools. So there are resources in the high schools that we're easily going to be able to reallocate. But to supplement our high school resources, we're go going to be shifting $10 million from the privately managed school contracts to our high schools to fund our high school initiatives. Our general feeling, based on our evaluation of these privately contracted schools, is that we're paying them more than they need, we're paying them too much when you consider the amount of overhead that they're spending, and high schools have not been a part of this whole Reform process. So, again, a watertight compartment. There's money to be reallocated in our high schools, and there's money elsewhere in the budget that can be shifted to the high schools to move our high schools forward. So the bottom line here is, this -- 00058 03/24/03 - Committee of the Whole despite the tough decisions that we've had to make budgetarily, this budget is lean and mean. It jettisons what we don't need, and it puts money into the areas where we do need the resources. Because we will continue to make progress on public safety. We will continue to phase in our Capital Program, as we have articulated to you and as we've laid out to you. We will significantly expand early childhood. We will make the curriculum instructional reforms that we have promised, along with the after school extended day care programs, and the professional development, and the more time on task that needs to be done, and we will reduce class size which is long overdue.
To accommodate -- And we will do the type of recruitment and retention that the system needs to do to ensure that we have a quality work force. Let me also point out that we've reached an understanding with the teachers union that will allow us to close the door on movement of teachers from one school to another at the end of June. 00059 03/24/03 - Committee of the Whole In the past, seniority impacts school placements of teachers and personnel well into August. Well, beginning this year, the window is going to close June 30th, which means at the end of June 30th, when we have identified teachers, we'll be able to tell the teachers what school they're going to, what class they're going to be teaching, and what subject they're going to be teaching. 50 percent of the teachers who entered our system last year didn't know the school they were going to be in until the last week of summer or the first week of the school year. And 66 percent of them had no orientation or prior training before they entered the system. That's going to change like that. In addition, we are going to end leveling, so there will be no adjustments in school budgets in October. In other words, schools will not lose this one teacher or two teachers, forcing a changing of all the school rosters. So what this is going do is, this is going to allow our teachers, our new teachers, to 00060 03/24/03 - Committee of the Whole know what school they're going to go to, and be reasonably secure in the knowledge that they're going to have that school, and come October, they're not going to be told, well, that position isn't there, you're going to have to go somewhere else. So this budget finances those initiatives. Now, it doesn't finance the initiatives without some pain. We're going to continue to reduce the size of administrative -- of our administrative positions. As we mentioned, while we're going to be hiring hundreds of new teachers, we are going to be phasing out -- and through attrition, and in some cases eliminating a number of the part-time positions that are in the schools. We are going to be eliminating other positions in the schools that we feel do not directly impact the educational process. And we've articulated what some of those positions are. There are a number of municipal positions, services that we carry, that are also going to be on our elimination list. And we're going to be doing some shifting of positions to the bonds, I think about 00061 03/24/03 - Committee of the Whole 38 of those positions. Because of the size of the school construction bond program, we're going to be -- a number of our maintenance and repair people are going to be working on longer-term projects, so we feel we can certainly justify shifting those positions and those expenses to the bond. But all told, there is going to be a net reduction in personnel in this School District to the tune of 373. But that 373, in that number is going to -- also is going to include a significant increase in the number of teaching positions. Normally, what would happen in this school system, because of the expansion of charters and because of the decline in the system's enrollment, is this system would normally lose about 220 teachers just through attrition or just due to the fact that the student population declined, and more teachers and more students are shifting to the Charters. But what's going to happen here is, that's going to be offset by the need to hire 593 teachers to fulfill our class size reduction 00062 03/24/03 - Committee of the Whole initiatives. So there is going to be a need for 593 classroom teachers because of our class size reduction initiatives. So there will be a net increase in the number of teachers of 374. That's the net increase, minus the teachers who would have attrited out because of enrollment reductions.
So we are going to be hiring more teachers than ever before, and you're going to see the type of class size reduction that you've always talked about seeing in the School District, and that we've always talked about wanting but we have not seen in many, many years. Now, the budget the way it is sets the stage for the state. Because this budget is based on the first Rendell budget, because this budget hits the goals in year two of our financial plan, while at the same time funding our public safety initiatives, our school construction and repair initiatives, our education initiatives, like expanded early childhood, and curriculum instruction reforms, high school redesign, the phasing out of the middle schools, the after school extended day programs, and class size 00063 03/24/03 - Committee of the Whole reduction programs. Because those things are happening, it sets the stage for -- In the event that the Rendell Administration is successful in getting their budget through or some facsimile of the budget proposal that they will be making in the next couple days, we will be able to use those additional revenues, and we will be able to put even more revenues in the classroom, for even more class size reduction, for even larger after school extended day programs, for even larger early childhood program expansions. And we will be able to use those resources to help address the long-term structural needs, structural deficit problems that this District is going to face in 2008 and beyond. I'll bring my comments to a close. I appreciate your indulgence, and I'll turn it over to Mike Harris.
Good morning, Mr. Harris. Please identify yourself for the record and proceed with your testimony.
Thank you. Good morning, Council President Verna, Councilwoman 00064 03/24/03 - Committee of the Whole Miller, and other distinguished City Council Members. Thank you for this opportunity to share with you the financial status of the School District of Philadelphia. The SRC could have brought in many CEOs who would have just attacked the District's structural deficit. However, Mr. Vallas was hired to evolve, advance and better the School District of Philadelphia while we also attempt to bring the finances into balance. And this is my charge. And as difficult as it is to hold to this commitment as we prepare this budget, I do believe the District has found a way in difficult economic times to adhere to the five-year plan that was laid out last summer. But before I begin to talk about next year's budget, I must applaud the efforts of City Council, the City of Philadelphia and the Commonwealth of Pennsylvania for their financial help during the past year. The City's help in securing $317 million in deficit financing, its 00065 03/24/03 - Committee of the Whole $45 million grant, and the Commonwealth's $75 million in additional funding could not have come at a more critical time for the District. And your understanding of the District's precarious financial position and subsequent dedicated revenues have helped stave off possible long-term economic damage to both the District and educational opportunities for Philadelphia's children. And even though it was not me who was here last year to ask for your help, I do thank you in your regards to this effort. In the past year the District has gone through many structural and cultural changes involving the SRC, the appointment of Mr. Vallas, the new management personnel, and initiatives at all levels of the organization. And this change has yielded a window of opportunity through which the District can realize its greatness. And the District's Finance Department is working hard, very hard, to do its part to make these possibilities a reality. In August of 2002, the District put 00066 03/24/03 - Committee of the Whole forth a five-year financial plan that began the work of advancing school and program initiatives while also dealing with the structural deficit that we have inherited. 6 million for 2004 as was projected in August. Frankly, this is no small accomplishment, considering that revenues have come in somewhat lower than projected, health care costs continue to advance at five to seven times higher than the CPI. And this Administration has continued its commitment to identify funding for the District's priorities for positive change. The District was negatively affected by the initial budget of the Commonwealth of Pennsylvania, the initial proposal, as were many other districts across the state. We certainly understand that the Governor and his staff were in a extremely difficult and unenviable position of trying to erase a structural deficit of their own. 5 million. Freezing the Charter School formula was a cost of $8 million. After school literacy cut costs by $4 million -- or cut revenues by $4 million. 8 million. All told, the state cuts left the School District of Philadelphia with $65 million in additional cuts that needed to be identified in order to maintain the goals outlined in our five-year plan. Again, I would point that this is compared to the plan that was laid out. 2. All told, these combined cuts accounted for budget savings of $64 million. At the same time, the District has made every effort to cut expenditures. We are also working to identify funding for the 00068 03/24/03 - Committee of the Whole District's priorities for positive change through new and continued initiatives. 2 for enhanced public safety, and $2 million for early childhood and cradle of the classroom. 2 million for expanded summer school that will be funded through the empowerment grant secured under the leadership of Senator Arlen Spector.
The School District of Philadelphia has undertaken a plan that will positively change the educational opportunities of the children of the city for decades to come. But this plan costs money, and in these challenging economic times, your support is needed perhaps more than ever. This budget represents an effort to continue the advancement towards balanced budgets and enhanced programs. And I look forward to continuing the solid and productive working relationship that the 00069 03/24/03 - Committee of the Whole District and the City have begun. And on behalf of myself, my staff, and the School District, I thank you for this opportunity to present our 2004 financial year budget.
Thank you, Mr. Harris. Maybe you should remain at the table, Mr. Vallas. And I guess Mr. Nevels could also come up. Every Council Person wants to be recognized. The Chair of the Committee and I have decided we're going for the first go around, each Councilperson will have five minutes. Mr. Vallas?
Did I understand you to mention that the Parking Authority will be providing bond capacity to the School Districts? Would you give us the specifics of this initiative?
Sure. Well, first of all, we haven't finalized the initiative yet. But as part of the curriculum and instructional reforms, as I mentioned, there is a lot of money 00070 03/24/03 - Committee of the Whole that the District already spends that it needs to spend better. And we have been able to secure upwards to... well, $9.6 million a year in reading grants, and $4.5 million in early childhood grant, other funds, obviously to help finance our initiatives. But any time you're going to revamp and change the curriculum around, there's going to be some up-front costs. So our plan here is to borrow in order to replace all of the obsolete textbooks. It's going to be a one-time investment that we'll just in the out years have to maintain; but obviously, the one time costs will be one time. And then we have enough money to maintain the curriculum materials that we've brought. So now, in our discussions with the Parking Authority, to address this issue of the Parking Authority's commitment or promise to the School District, what we suggested to them is that if we're going to go out there and we're going to borrow to secure enough funding to do a massive 00071 03/24/03 - Committee of the Whole initial purchase of new curriculum and instructional materials, if they could provide us with an allocation or a dedicated revenue stream, or if they just made a commitment via intergovernmental agreement to provide us with a specific amount of revenues every year, we could use those revenues to offset our borrowing costs. Now, we haven't finalized the proposal yet. And obviously, any proposal we will finalize we will bring to Council and we will discuss with Council. But the they've made a commitment that that will provide us with an allocation every year. And we feel that we can use that allocation to finance the borrowing that we will have to do one way or another --
Mr. Vallas, I'm somewhat confused on that, because I thought that the City would be getting the money, not the School District. I mean, I just don't understand the specifics of all this. And I don't know how that could happen without coming to the City first.
Well, I'm not so sure 00072 03/24/03 - Committee of the Whole that we won't have to come to the City. I'm just... In my conversations with all parties, the -- consistently I've been told that the Parking Authority made a commitment to the school district. And knowing full well that the Parking Authority doesn't have the money to give the School District $40 million to $45 million or $35 million, whatever that amount is, we came out with a way -- we came up with a way in our conversations with both the Chairman of the Board of the Parking Authority, a way that they could meet that commitment, and obviously it could benefit the School District. Now, we haven't finalized any agreement. It's simply a proposal. And once that proposal's finalized, you know, I'm sure I'll be told what the next process is for getting that proposal approved. But right now it's a commitment that they're willing to make, but we have not finalized, just like this budget has not been finalized. We have not finalized --
Well, it's 00073 03/24/03 - Committee of the Whole certainly not finalized, sir. And we'll be having, I'm sure, several more --
I'm sure. But let me point out that we spend about $20 million on textbook purchases a year, which believe it or not, is a considerable amount of money. And that doesn't include all the discretionary money that's spent on textbooks. It's just not spent right. And it's just not spent well. And when you're doing 6,000 different things, no wonder. Our plan, had we not been able to secure an outside funding stream, was to dedicate a small portion of that funding stream, maybe $2 million a year or $3 million a year, to finance a borrowing so that we can do massive purchases in a single year. Our preference, obviously, is to secure another revenue source. And we certainly saw the Parking Authority as one option. But once again, we haven't finalized 00074 03/24/03 - Committee of the Whole anything. It's a proposal that's out there. You know, we try to look for constructive solutions, particularly when it involves commitments that either were made or whatever the context was of those commitments being made to the School District. And I'm sure we'll have an opportunity to have several discussions on that before it's resolved.
Mr. Vallas, on -1 of your detailed budget I see that for FY '04 you do not have any appropriations for the Board of Revision of Taxes.
Yes. We have not included an appropriation for that item in the budget. I directed our finance people to identify initiatives, to identify programs, to identify positions that we felt did not impact on the classroom, either directly or indirectly. And I said that given the initial budget proposals coming out of Harrisburg, those positions should not be in the budget.
But if we 00075 03/24/03 - Committee of the Whole don't have anybody doing the assessments, how do we generate more money for the schools?
Well, I could certainly have a conversation about those positions or how many of those positions are actually, you know, positions where things are getting done. But I'll defer that conversation to, you know, obviously another time. But the bottom line is, it's not -- the School District isn't mandated. Those positions were transferred to the budget a number of years ago, I believe, when the School District had available resources and the City did not. Those positions -- the School District doesn't have any control over those positions. The School District can't manage those positions. The School District can't make sure if the people in those positions are basically showing up every day and doing the work that they need to do in those positions. So there's just -- the School District just doesn't have any accountability over those positions. Now, you know, if it's an issue of the City contributing financially to the financing 00076 03/24/03 - Committee of the Whole of those positions, I'm sure that's something that --
Mr. Vallas, have you had any conversation at all with Mr. Glancey at the BRT?
Well, I think there should be some conversation to ascertain exactly what these employees do...
...and what their responsibilities are. Do they generate monies for the School District? And if we don't fill those positions, what happens? As I said, I think every Member wants to be recognized. I have a number of questions, but I would like to give everybody the opportunity to be recognized. Councilwoman Miller.
Thank you, Madam President. I'm just going to ask a couple questions. I have more. 00077 03/24/03 - Committee of the Whole
Do you have -- Mr. Nevels, or Mr. Vallas, is there currently a listing or directory of how the District is now structured? You talk about a couple new departments, like the Office of Accountability, the Office of Community Relations. Because of so many changes, it would help us if we had a copy of an organizational chart.
Phone numbers, directory or whatever it is that you have that you're operating from.
Okay. Thank you. And one other question for now. It appears that lots of what you're talking about today, and just in terms of laying out goals...
...structured around the No Child Left Behind legislation, can the School District give us something written that 00078 03/24/03 - Committee of the Whole tells us how you're fitting in or how you have fit in to the original piece of legislation --
-- the goals, objectives, you know, where you're doing well, what areas you need to improve on?
Yes. Absolutely. And if I can just take just two minutes, but we will provide you with the information. In fact, I believe in the packet -- and if it's not in the packet, I'll make sure that it is -- we've laid out a chart that identifies the four major areas of No Child Left Behind. It's school choice. It's providing support for children in schools who do not have choice. It is dealing with school management issues when schools are chronically failing. And it's teacher recruitment and retention. And I have really kind of touched in my presentation on all those initiatives. Our school choice initiatives, not only are we following No Child Left Behind by identifying spots in performing schools and giving children the option of moving to those spots, but we're 00079 03/24/03 - Committee of the Whole also creating school choice options. The move towards more magnet schools. They're putting magnet programs in neighborhood schools. Our charter school system. It's very consistent with No Child Left Behind. On the whole -- On part two of No 8 Child Left Behind, the Moore services for children who are underperforming, our after school and summer school programs are completely in line with level two or phase two of No Child Left Behind. Phase three, which is management. The changing of management for failing schools. I like to think we've changed management with a vengeance here. You have privately managed schools, your charter school conversions, your reconstituted schools, all very consistent with No 18 Child Left Behind. And finally, the plan for recruitment and retention, which basically says that by such and such a year all teachers have to be certified and all support staff have to be certified. I've articulated what we're doing in the area of recruitment and retention. So we are 00080 03/24/03 - Committee of the Whole pursuing -- we are pursuing the goals set by No 3 Child Left Behind. We're fine tuning them so that they meet our education priorities. But the goals our pretty consistent with our goals. And I think because of that, we've been able to secure additional funds. We've been able to secure additional resources for our programs. But I will provide you -- If the memo isn't in there, I'll get you the memo by the end of the day, on our note, the memo we provided to the Department of Education on our compliance with the No Child Left Behind Act.
Okay. And one more just short note. When you're thinking about school choice and giving children the option for magnets and high school, I think what you really need to also remember is that -- or if you don't know, I'm sure some of your members know -- there are many, many children that applied to Masterman.
And we could probably use an additional school, elementary school, like Masterman -- 00081 03/24/03 - Committee of the Whole
Yes. And let me point out that with the -- Masterman, of course, has about 400, 450 students in the high school, but they have about 700 students in the middle school. And as you know, we've talked about obviously creating a number of new magnet high schools or open enrollment high schools, but also magnetizing the neighborhood high schools by putting exemplary programs and honors and advanced placement programs in those neighborhood schools. But we're also talking about putting what we call exemplary programs or AP Prep programs in the elementary schools. Because right now, I mean, if we do what needs to be done in our elementary schools in our -- for the middle grade years, we won't have lines forming outside Masterman. But I will tell you specifically to Masterman is, as you know, we're planning on building a new Franklin Learning Center. And we're in -- We have a site, but we're looking for 00082 03/24/03 - Committee of the Whole perhaps a larger site. But one of the things that has been put out is the possibility of using the old Franklin Learning Center, which is only four blocks away from Masterman, as a potential site for another what they magnet school middle grades program. And that's something that my staff has presented to me as an option. And I'll be more than happy to discuss it with you. But your goal is right. We need more options. You know, we have, what? A half a dozen magnet high schools, legitimate. But we have very few magnet elementary schools, and we need to create more options.
I would like to 00083 03/24/03 - Committee of the Whole devote my first five minutes to the standardized curriculum that we discussed, and refer to an article that was just in Sunday's Inquirer around the School District moving to a central lesson plan.
You've outlined very well for me, at least, the factors that drove you to the decision to have a standardized curriculum. I'm curious to know what accommodations, what considerations, what kind of thinking went into considering those high performing schools, schools that were operating above the standardized level --
-- and which suggest strong principles and the like. What kind of consideration at all was given to those schools, as relates to the infusion of the standardized curriculum?
Well, for the magnet schools, for the high performing open enrollment schools, we will most likely exempt from the 00084 03/24/03 - Committee of the Whole standardized curriculum. All the schools have to meet our goals, our objectives. All the schools have to meet our standards. But the handful of high performing schools we have, you know, would be exempted. The schools that would be exempted from the standardized curriculum are the privately managed schools, because we can't dictate to them, although we will certainty hold them accountable for academic performance or non-academic performance. The charter schools, of course, are not required. We could note mandate that the charter schools use the standardized curriculum. And then of course, the magnet schools, like the Mastermans or the Cappas or the Centrals, or the Girls High. Those schools would probably be exempted. But there's only 20 schools which by Federal Government's definition do not -- are considered to be schools that are improving enough not to be on the No Child Left Behind list, so to speak, and -- 00085 03/24/03 - Committee of the Whole
So I would say that there's -- many of those schools would be allowed to stay with their own curriculum plans.
But that will leave about 200 -- and I would say about 220 schools using the structured curriculum. I would also say this: We are going to make the curriculum instructional models, though, available, and the professional development available to all the schools --
-- whether they're privately managed or Charters, because the curriculum selections -- these are top notch curriculum instructional models, which have the full support of -- you know, of the Federal Government. We wouldn't have gotten the $9.6 00086 03/24/03 - Committee of the Whole million reading grant had we picked the reading curriculum that they disapproved of. But we will provide that support even to schools that are not mandated under the law to use our curriculum models.
Okay. My second question in this area: You mentioned in your testimony that you have identified at least 322 academic courses that are, and I use your word, not relevant.
Given that the ethnic makeup of the Philadelphia public school system, and what are we doing in that area about African-American studies?
Sure. Well, let me respond -- And once again, indulge me a bit as I can go through details. And we will provide you with an addendum to our curriculum instruction materials we put out last week. You should have gotten it 00087 03/24/03 - Committee of the Whole all already. But just in case you didn't, we will provide another copy, that lays out how we're going to address the issue of multi-culturalism in the curriculum. And I think you'll be pleased. First is the following. And you have to understand, because there's no -- You can have a high quality curriculum and a multi-cultural curriculum. Anybody who thinks that -- It's like saying that you can't have MBE-WBE and have quality school construction. When we expanded our MBE-WBE program in Chicago, the prices of our schools went down and the construction got better because we had competition. So, I see both as part of the same thing. You can't have a quality curriculum that isn't a multi-cultural curriculum. But while the curriculum models that we've selected, like hardcore trophies, are superior curriculum models, they were also selected because these are curriculum models that are multi-cultural. And the reading materials that are selected to support the hardcore trophies 00088 03/24/03 - Committee of the Whole curriculum are multi-cultural materials. We have a task force that we've put together. There is a part of that task force includes a number of scholars from the African-American community, and elsewhere, to focus on this issue of multi-culturalism. It's not that I'm going to make everybody happy like that. But the bottom line here is, the curriculum models that we've selected were selected in part because they lend themselves to multi-culturalism. In addition to that, the curriculum supplements that we're selecting, like, we're going to allow the Hundred Books Challenge and the Greats Books to be used as a reading supplement -- not substitute --
-- but supplement, because they are superior models. Though what we've told the Hundred Books Challenge and what we've told the Great Books is: Look, you know, Western European authors should not be the exclusive authors of the books in the Hundred Book Challenge or the Great 00089 03/24/03 - Committee of the Whole Books.
So what we've told them is, they have got to -- they have got to work to make sure that their programs, which are very effective in schools where they're run well are -- their programs are multi-cultural. And they're going to have to meet our standards. In addition to this, the professional development, because it's just not multi-culturalism, it's also pedagogy. It's fine to have, you know, multi-culturalism immersed into your curriculum. But as Sandra Dungee Glenn always says, if the teachers don't know how to teach in an urban classroom, then they're not going to accomplish anything. The year-around professional development is going to be focused on the following: Contin area, instructional methods, which includes teaching teachers about the most effective instructional approaches in inner city schools, technology, and classroom management. So all of the teachers that come in, 00090 03/24/03 - Committee of the Whole both existing teachers that go through the professional development training and re-training, and, most importantly, the new teachers that enter in the system are going to be acclimated to the classroom. Because, you know, when you hire 600 or 700 teachers, and 66 percent of the teachers, half of them don't know what classroom they're going to have until the second week or first week of school, and two-thirds of them haven't had any prep before they've entered school -- you know, we can't assume that the colleges of education are really equipping them for the classroom -- you've got a real problem. So it's not only about the curriculum instructional materials, but it is also -- it is also about the training. And then finally, as part of the high school redesign, as part of our clean-up of the high school curriculum, we are going to provide quality courses, like African history courses, you know, African American history courses, like courses -- like courses about great civilizations, Asian history courses, Latin American history courses. 00091 03/24/03 - Committee of the Whole We are going to develop those courses, and those courses are going to be part of the permanent high school curriculum. So that's the approach that we're taking. Now, we are -- It will be at least a couple years. Our focus right now is on reading and math, and to begin to get --
-- some of the multi-cultural courses obviously developed. But we will not be -- We will not have the social studies curriculum models complete probably for another year. It's just a question of how much can we absorb all at once. But we will address this issue, and I think we'll address this issue in a very aggressive way.
Councilwoman, I'm sorry. Your time was up some time ago.
By September 2003 the curriculum models will be in place. And the 00092 03/24/03 - Committee of the Whole curriculum models will be multi-cultural, particularly the reading and literacy curriculum models. In terms of the course work development, I don't know what the time line is. The objective is to get those courses developed as quickly as possible. But hopefully, they'll be part of the high school curriculum come September. But there may be a year delay in that because you want to have developed quality courses. You don't want to replace some of the, you know, let's just say meaningless courses with courses that are not -- that don't -- that are not of quality. And if you're going to -- But our goal is to expedite that as quickly as possible.
You're welcome. The Chair recognizes Councilman Kenney.
Thank you, Madam President. 00093 03/24/03 - Committee of the Whole Mr. Vallas and your staff, I want to thank you for the opportunity I've had over the last number of months to have actually people from the School District come to my office and ask me what I think, which is a new experience for me. And I'd like to thank you for that. The issues that Council President Verna raised and that her questioning relative to the BRT and some other things, the Parking Authority, I really do think these are things that with the right discussion and conversation and cooperation, we could work these things out, to everyone's benefit. The thing I would caution you on -- And this is something that I've experienced as a native Philadelphian. You are going to find people who are going to try to nitpick you to death, who are going to try to put a little roadblock up here or there, or a land mine here or there. And the reason I think that that happens is because you're coming here with a lot of new different ideas which to me make a lot of sense, on discipline, on curriculum, on 00094 03/24/03 - Committee of the Whole facilities, on other types of things that really weren't addressed in a very comprehensive way. If you're successful, you're going to prove the last or years of what we've 6 been going through wrong. So there's going to be 7 people who are really going to have a need to make 8 sure that you don't succeed. 9 But I would say to you, don't stop 10 thinking outside the box. Don't stop the 11 enthusiasm. Don't stop the new ideas. Don't stop 12 trying to bring some reasonable approaches to 13 educating our kids in this City, because it's an 14 exciting time, I think, in this city right now. 15 And I want to commend you for your 16 enthusiasm and for really your desire to make a 17 big difference and not keep things the status quo. 18
So we may have 20 fights as time goes on. You may get beat up in here from time to time. You may get beat up in the press from time. But if you stick your eyes on the prize, I think at the end we're all going to be a better City for it. One of the things you've talked 00095 03/24/03 - Committee of the Whole about which was a step-child in the last Administration was the magnet schools. I think the magnet schools offer us an opportunity to give our children, as you said in your testimony, a choice.
When it comes to an eighth grader and their parents making a decision on what to do. In the last Administration, magnet schools were treated as step-children. The acceptance standards were: We were having lotteries for magnet schools, which is totally insane. But those kinds of things, I think, make a difference. One of the things on your ability to reform the finances of the District and to stay afloat, I read in the paper some issues relative to disability reform, the use of disability, and the way the disability claims and other things are managed in the system. Could you be a little more expansive on what's being changed, and how much we're going to save now and into the future? 00096 03/24/03 - Committee of the Whole
Sure. I'm going to turn that question over to Mike. But let me respond to some general comments you made at the beginning. My commitment to the Council is, any amendments that we make to the Council on this budget, we will be more than happy to come back to the Council and have a hearing on those changes. This budget by no means is in any way to be characterized as a throwing down the gauntlet. We felt that we -- We have a tremendous opportunity here in a very short period of time to restructure not only the way we've done business in the schools but where the resources have gotten. Just imagine -- Just imagine system-wide class size reduction. Just imagine institutionalized after school extended day programs. Just imagine not only magnet schools, but magnet programs in neighborhood schools. And if the Governor's successful with his initiatives, as we pray he is, it means not only are these programs going to be sustained, you know, for 10 or 15 years, but it also means 00097 03/24/03 - Committee of the Whole that the long-term structural problems that this District has faced financially are also going to be corrected.
Rest assured, we will be back here. Any major amendments that we will make to the budget, we'll be more than happy to set up the same formal presentation to talk to you about our recommendations. Okay.
I think if you're talking about how we're going to handle workers' compensation --
We think it's an area that we have a lot of room to improve in. And we've got a strategy laid out by which we're going to do that. First of all, we did bring in a consulting firm who has helped us lay out and 00098 03/24/03 - Committee of the Whole mapped out a strategy for us, and we're down the path of doing that. We have -- Currently, the biggest thing we've done to date is, we've released an RFP for the third-party administrator. We felt strongly that while we will not -- I can't comment one way or the other on our current TPA, we think that we need to go outside and at least test the market and see who's out there. The City just went through the same process, I understand a six-month process or so, to do that. But we have -- Right now on the street is an RFP to look at third-party administrator work. Also, we are going to release a worker safety and absence management proposal -- request for proposals that should be out this week. It should have been out today, actually, if not tomorrow. And it will be to bring in basically a safety loss program that is currently not in place at the District. We are in the process of working with our Law Department, our Human Relations 00099 03/24/03 - Committee of the Whole Department to get a light-duty program. The District does not have a light-duty return to work program. It is allowable but has not been developed before we got in. So it is a cumbersome process. You have to go through a lot of work on that front. But we are dedicated to that --
So you can't associate any numbers at this point. I mean, projected savings or --
Yeah, yeah. I'm sorry. I'm sorry. Yes, we can. We expect to save about $4 million in workers' compensation claims over the coming year. Currently, we spend approximately $20 million a year on workers' compensation claims. So our goals, modest goals, we feel are to save at least $4 million. We expect we'll be better than that.
Councilman, if I could follow up, I want to thank you again for your support. And I also started out in my comments, what a difference a year makes. And I also want to thank everyone in attendance here on Council. 00100 03/24/03 - Committee of the Whole But specifically, one thing I would like to address is that as the Chairman of the School Reform Commission, we committed ourselves to providing information and speaking directly and candidly with you. And please, please keep in mind that just because it's written on a budget sheet doesn't mean that we're not going to have conversations with you. You are going to hear plenty from this gentleman and the other gentleman at the end. And just as we set the stage last year for ongoing conversations, those are going to continue.
Councilman Kenney, your time is up, sir. At this time, this hearing is going to go into a recess until 1:30. Thank you. (A luncheon recess was taken from 11:30 a.m. to 1:45 p.m.)
The Committee of the Whole is now back in session. And the Chair recognizes Councilman Nutter. 00101 03/24/03 - Committee of the Whole
Thank you, Madam Chair. Madam Chair, is this a continuation of my original point of order from earlier today or is this an actual questioning round? Because I actually was not finished that point of order. So is this a continuation of that or is this an actual round of questioning?
Thank you, Madam Chair. Good afternoon, Chairman Nevels, Mr. Vallas, Mr. Harris.
Let me ask... We received on Friday a series of documents and testimony, one of which was what we generally refer to on the City side as the big book. Fortunately, you guys only have one; the City has two. And I received FY 2004 Proposed Budget Executive Summary. And then this morning 00102 03/24/03 - Committee of the Whole at the hearing we received a second copy of an Executive Summary. This one has down at the bottom a revised March 24, 2003 date on it. Now, which of these documents are we working from?
Councilman, the one we delivered to you this morning is the corrected version. The one we delivered to you on Friday, unfortunately, contained some --
Unfortunately, the copy we delivered on Friday, we recognized contained some typos and other issues. The basic material inside was consistent, but we wanted to give you a corrected copy. And we do apologize for that, but understand that you... Thank you for accepting it.
All right. So our situation now is, we received a document on Friday which we read through, and now we have a new document this morning that has changed numbers in it; is that correct?
Most of the changes are 00103 03/24/03 - Committee of the Whole for this year's budget are, for all practical purposes, minor in nature. So the desire here was to get a draft out on Friday in everyone's hands, and then to have a final clean-up draft today. So I don't think the numbers are -- at least the numbers for this budget year, are different.
No. There's some additional material in there today, but the core numbers regarding the five-year plan, there was a typo in the second five-year plan that we have just corrected and some other typos in the narrative manner, so...
I don't know. Councilman, are you looking at what we received today, the differences on page, I believe it's, what, 2?
And if you then refer back to , the documents are 00104 03/24/03 - Committee of the Whole totally different.
Yes. Well, I had noticed that, Madam Chair. So, Mr. Harris, I believe, characterized them as minor changes or typos. I'm left with the impression that we're actually talking about a few million dollars. And I think only the Federal Government talks about millions of dollars as a typo.
No, Councilman. I mean no disrespect or flippancy by my comment. I simply -- And I don't have the Friday copy in front of me, since we've been working to correct it and clean up the one that's in front of you, which I feel very strongly is accurate.
If you'd like me to explain the difference, Councilman, I would have to see it.
I would greatly appreciate that. He needs a copy of this document. 00105 03/24/03 - Committee of the Whole Mr. Harris, what I'm looking at is of the Friday document compared to of the document from today. The first... No. Actually, now I need a copy of the old document. The first thing I notice is that for FY '04, I believe the document from Friday for the expenditure reduction column had a total of $164.2 million, and today that document, the new documents, says, $112.5 million. Could you explain what the difference is?
Yes, Councilman. I see the difference now, and I do understand what happened. And again, I can't apologize enough. But the FY -- On the first five-year plan from 2003 to 2007, the FY '04 column is... in the document you have in front of you today, is the reflection of the original five-year plan. What you got on Friday was the first year -- on that page, was the first year of the revised five-year plan. If you would go back and look at the second five-year plan going from '04 to 08, if you look at the '04, the FY '04 column, that -- 00106 03/24/03 - Committee of the Whole basically that is the new --
Well, that makes reference back to the $164.2 million.
Councilman, what happened was, we laid out, in the first one in the package that goes from '03 to '07. In the package you got Friday, the FY '04 column was wrong because it was not from the original five-year plan. What the '04-'08 you have now is basically -- It was a transposed -- The wrong column got put in the wrong spreadsheet. And so what you saw on the first five-year plan basically was actually the revised plan for '04-08.
Mr. Harris, I think what I'm trying to understand is, on 00107 03/24/03 - Committee of the Whole in the new document dated today, for expenditure reduction in the FY '04 column, you now have on , $112.5 million. On of today's document for FY '04 for expenditure reduction, you have $164.2 million, which is what the document said on Friday. So what I'm now trying to figure out is the difference between the Friday document, this morning's document on , and today's document on . Why do the numbers keep changing in that column?
The numbers changed, Councilman, because I put the wrong column in the wrong spreadsheet on Friday. And I do apologize.
is the original five-year plan for '03 through '07, laid out last August --
-- or last September. What is part of this package, in going forward as a five-year plan, we wanted to 00108 03/24/03 - Committee of the Whole lay out a new five-year plan. The which is the five-year plan '04 to 08 --
-- basically, the FY '04 column is a revision to the original plan, and the spreadsheet is a revision to the five-year plan that lays out and ties to the budget, so --
All right. I appreciate the apology. Why don't we say this. And you tell me if I'm wrong. You're telling us now that on the new document for today...
...that represents the five-year plan that you laid out back in September of 2002.
And that 00109 03/24/03 - Committee of the Whole represents a new five-year plan, also changing and recognizing a new budget year.
Or budget period '04 to 08, and that's what represents.
That's correct. And I would also, if I may add, that the number that you see jump from the 112 in expenditure reductions to the 164 in expenditure reductions is reflective of the matter brought up earlier, which is, this document is reflective of the Commonwealth's budget as we knew it at the time of publishing this document. So therefore to adjust to that, we did need to increase our expenditure reductions.
To maintain the same revised deficit balance that we had intended to lay out in our first plan, so...
Okay. Well, let me ask you this question: I mean, the , five-year plan, the March '03 five-year revised five-year plan reflects the state budget as we know it today, and your best assumptions, and your 00110 03/24/03 - Committee of the Whole best effort to lay out this is what could happen if this budget happens?
And we know with some amount of certainty that tomorrow the Governor is going to put forward Phase 2, or Part 2, rather, of his budget proposal, right?
And I think it would be fair to say, although I'd like to hear your perspective on it... Do you have any belief that what the Governor puts forward tomorrow will change in any way what the Governor put forward on March 4th, the result of which would be a change in what you've given us today?
My assumption is that there will be a significant change. And to add to that, our hope is that there will be a significant change.
Well, we would all hope that. So then let me ask you for the moment, for today, as opposed to some other day in the future, how good of a use of our respective 00111 03/24/03 - Committee of the Whole times is it for us to have extensive discussion about this particular budget, which everyone now agrees across the rope here that more than likely the budget in front of us will not be the budget that ultimately gets approved by the SRC?
Well, I think it's very valuable to have that discussion, because once again, what we're trying to do is to set a stage. We're trying to use a worse case scenario. And we've got to understand -- And I'm certainly not trying to be condescending. This body certainly understands the legislative process in Harrisburg. The state budget deliberations could go into June or July. Meanwhile, schools need to know what their resources are going to be. When we start recruiting teachers, when we start doing class size reduction, we are already two weeks' late in getting out critical information to the schools about what they need to do to gear up for next year. So we have to give them a budget document. And we don't want to base that budget document on an even -- an optimistic forecast on what might emerge from Harrisburg. 00112 03/24/03 - Committee of the Whole But that said and done, we're also motivated by a desire to eliminate -- to balance this budget based on a worse case scenario, so that we can fund our initiatives, in hopes that if there are additional resources coming from Harrisburg, we have at least re-prioritized to such an extent so that those resources can go into additional class size reduction, those resources can go into an expansion of early childhood, those resources can go into even larger after-school and extended day programs. And if you look at the five-year plan, whether you look at the first chart with the incorrect cited column or the second chart, the bottom line is, at the end of 2008, we hit a wall. And that is the structural deficit wall. That's when the deficit financing bond reserve is gone. While we would like to be in a position so that we won't hit that wall, and if we've cleaned out of this budget things that are not supportive of the educational process and things that we consider to be unnecessary, and that means, some of the additional money we get from Harrisburg can also help us eliminate that 00113 03/24/03 - Committee of the Whole structural deficit so that the initiatives that were put into place become permanent.
Well, I can appreciate that. Why don't you then share with us in the budget, as introduced by the Governor has now actually been signed by the Governor, after, I believe, he used -- I think, the appropriate color is the blue pen.
So that's not to be confused with the color of the day. Tell us what the impact of the signed budget is for the School District.
There is no money for the General State Aid Formula. So, he's basically gutted most of education funding.
So as we sit here and speak, again, there's no money for education at the moment.
Is that what you're saying? 00114 03/24/03 - Committee of the Whole
Well, there is very little new money for education or there's very little money for education.
How would the budget the Governor signed last week impact the projects and proposals that you've laid out earlier today?
Well, you know, I think the Governor's veto of that budget was designed to bring everybody to the table, because most School Districts would have to either dramatically increase property taxes or they would have to dramatically reduce their school days, or their school years, or their teachers' salaries.
Okay. I took down a couple of the things you said in the last response. You talked about this budget being used to set a stage, and that you wanted to clean out certain things, or cut out things that were unnecessary.
You know, we have 00115 03/24/03 - Committee of the Whole schools that have many positions. In many of the high schools, it's not uncommon to have 10, 12, 4 teachers in positions where they may not actually 5 be teaching or certainly not teaching full-time. 6 They may be teaching part of the day. 7 It's not uncommon in high schools to 8 have things like slick coordinators, curriculum 9 coordinators, department chairs, and small 10 learning center coordinators. 11 There are many courses at the high 12 school level that we consider to be irrelevant. 13 For example, there's I believe 152 foreign 14 language courses. Now, I mean, that's -- I mean, 15 those are by category. Not to mention over 100 language arts courses, and et cetera, et cetera. So there is clearly a great degree of course inefficiency. And I would like to replace many of those courses. Courses that are not relevant, courses that are not certainly relevant to either a vocational education career, a quality college preparatory career, with honors and advance placement courses, or courses that I think are of a substantive nature So those are things that can be 00116 03/24/03 - Committee of the Whole re-prioritized, and those are things that we will be re-prioritizing. But let me just give you other examples. There are many positions at the local school level: Student aides, teacher aides, classroom aides, SSAs, NTAs. Schools are inundated with supplemental positions. I would much rather prefer to go out and hire, you know, 500 more teachers, even if it's going to cost me 500 part-time two-hour or three-hour a day -- I'm sorry, three-hour a day SSAs, or basically classroom aides who only work half a day. So it's just a question of re-prioritizing what your local school budgets are. And obviously we control a lot of their budget allocations.
Were those items a part of -- I believe it's in the testimony -- the $48.5 million in cuts? Can you give us a list in a line item fashion --
-- of those cuts, how much in terms of funding they represent, 00117 03/24/03 - Committee of the Whole and if you can --
-- I mean, why don't you give us maybe the top three at the moment?
I'll summarize the top three. First of all, the salary freeze, $5.7 million.
The salary freeze, $5.7 million. The SSAs, $5.2 million. The elimination of vacancies and over-appointments, $4.8 million. Administrative cuts -- Further administrative cuts, $4.2 million. There's a number of non-mandated transportation obligations that cost us in aggregate maybe about $2 million. There's other reductions, about $3.2 million. So those are kind of the big items. There's... Let's see. Elimination -- I mentioned vacancies. And more effective use of existing staff in classrooms. That's what we have. I mean, we have some classrooms in individual schools where the ratios are just -- just 00118 03/24/03 - Committee of the Whole inappropriate. And we have to have -- And I'm not talking about 33 to 1 ratios. I'm talking about even 22 to 1 ratios. And that would save us upwards to about, perhaps, $3.2 million. Obviously then, there is also the municipal positions which is, I believe, $3.8 million. So, those are the categories. But I'll be more than happy to provide you with a copy of the breakdown.
Well, if you could send that to the Chair, the two Chairs jointly leading this committee. Let me ask Mr. Vallas, and then I know my time is up: The question was asked earlier with regard to the School District employees who are assigned to the Board of Revision of Taxes. Now, are those individuals on that list of $48.5 million in cuts?
And they're considered for the moment in the category of cleaning things out, and things that are unnecessary? Is that a part of that?
I would characterize 00119 03/24/03 - Committee of the Whole them as things that are unnecessary. And they are assistant positions. They are not the principal positions.
They are assistant assessors. They are not basically assessors. They are assistant assessors. But, no; I would characterize those positions as positions that should not be in the education budget.
Okay. And... Well, how would you suggest or what is the proposal for how their work would be carried out? I think they're working on behalf of the school district; isn't that correct?
Well, one could argue. But again, I'd be more than happy to have conversations about those positions, both in terms of who controls them, who runs them, who makes sure that they come to school every day or they're basically in their offices every day. I'd be more than happy to have a conversation with you on that or with anyone on that. But the bottom line is, we don't think the 00120 03/24/03 - Committee of the Whole positions that -- it's appropriate that those positions be in the budget. And obviously, when we're talking about hiring hundreds of additional teachers and, you know, re-prioritizing to the extent that we're re-prioritizing, we've got to make some critical decisions. And I felt that this was one item that we could identify that could be placed elsewhere. And as I mentioned, we'd be more than happy to discuss where those positions should be funded or how they should be funded. But I wanted to prepare a budget that I felt eliminated positions that didn't have a direct impact on the classroom.
Okay. Thank you. Thank you, Councilman Nutter. Your time is up.
Council President, if I might just interject a word, at your indulgence, I want to acknowledge Councilman Nutter's support. 00121 03/24/03 - Committee of the Whole Again, what a difference a year makes. And also thank Council President Verna for assisting us during a very difficult time to secure funding from the public bond market. You may remember that. I know a number of you do. This budget is one that is a better budget than last year. Please do keep in mind, though, that we promised you then, and we had also done now the right thing, in terms of assuming a lean, mean financial situation, we're a year deeper into a recession. We are a year deeper into difficulties with budgets at the Commonwealth. We have looked at every line item, every person. We have in the last year eliminated positions. And with your support, we would ask your help in assisting us to come to a conclusion on the difficult decisions that we have to make physically going forward. So, thank you again.
Thank you, Madam Chair. 00122 03/24/03 - Committee of the Whole Mr. Vallas, before I move on, I just want to make sure that what I have in front of me is a correct document. Your remarks today have "draft" written on them. I would like to have --
-- something other than a draft. I think we all have this document.
No. Those remarks -- My remarks are -- That is the document. But, once again, our eagerness was to provide the Council with not only the big book that's been provided in the past, but also supplemental material. And while we worked through the weekend to finalize the budget and to make sure that all the numbers were in the right line, my directive to Tim and company -- and which is why we spent time meeting with all the Council Members individually -- was to give you as much information as we could get out, so that we could 00123 03/24/03 - Committee of the Whole basically -- you could have enough background material for this meeting. But that summarizes my remarks. I've made no additions to that since Friday.
Okay. In reference to -- In your remarks it indicates an area that I have a specific interest in, is your zero tolerance policy.
And based on the numbers, you know, I look and I see the 870 students who were released from court order placements, those 870 students. Based on 210,000 students, and you have 850 that are in alternative schools, I've gotten some calls recently that suggested that there are kids winding back up in the same school that they were originally disciplined and supposedly supposed to go to a different school. Do you have a written policy on -- If you talk to teachers, you talk to parents, with 210,000 kids in the system, and you only have 850 problem students, that's pretty good. That's not a lot of students. 00124 03/24/03 - Committee of the Whole But if you listen to -- If you listen the parents, and you listen to the teachers and you listen to the custodial workers, and you listen to the school crossing guards, that number is kind of surprising to me, 850. So I'd like to know how a student and the criteria to get -- to be considered in the same category that the 850 are in because, you know, out of -- that's less than -- If you do the arithmetic, that's a very small percentage, if it's even a percent, of the students in the entire system, when we hear these supposed horror studies of conduct in our schools. So could you comment on that, please?
Sure. Well, let me respond by saying that it's actually double that number, because I believe that -- And again, the rough number is 850 students not being allowed back into their neighborhood schools because they've been released from the correctional facilities or the juvenile detention centers. That's Act 88. And incidentally, in your packet... in the blue book, we have breakdowns and summaries 00125 03/24/03 - Committee of the Whole and discussions of all the subject areas that we've covered: High schools, discipline, everything, with hardcore numbers. So we really worked hard to put this material together. And you'll see that it's very, very comprehensive. If somebody can -- Who can refer to the -- What's the safety? That's right. He reminds me that there's an index in the front. 11. Okay. If you turn to , this kind of lays out the serious incident reports in their totality. But we'll provide you with the information. But let me point out that in addition to the students that are not allowed back in the detention -- in their neighborhood day schools because of Act 88 -- And 80 percent of those students are in school, they're just in alternative schools or evening programs. There's another 800-plus students who have been expelled from the system via the zero tolerance policy. So the actual numbers of students not being allowed into their day school because of the zero tolerance policy in Act 88 is closer to 1700. 00126 03/24/03 - Committee of the Whole But let me point out the number of students that we've expelled probably dwarfs any other major school system in the country, even New York which is about four times our size. And at the end of the day, you're simply not going to be able to expel every single student who is a bad behaved student. To a certain extent, we're going to also have to work at better school management and better classroom management, because it's going to take a comprehensive approach. The only thing -- And I'm not even saying that this is preventing us from expelling more kids, because we've been very aggressive about expulsions. And I think by the time this year is over we would have probably expelled more kids than any other major school system. I'd be surprised -- In Chicago, a school system twice as large, at our peak we expelled 750 kids, and we were considered to be one of the tougher schools when it came to zero tolerance. But right now, the alternative -- you can't -- the alternative schools are at -- 00127 03/24/03 - Committee of the Whole are busting at the seams. CP has 1700 students. That's created its own problems in the Kensington area, with some friction between the Edison students and the CP students. We're -- Now we've put out an RFP to identify alternative school providers who we can expand the alternative schools network so that we can get students into alternative quality, alternative placements that are smaller in size and that perhaps are closer to their neighborhoods. So we're moving very aggressively. But you're going to have cases where students are allowed back in the school because perhaps their time under Act -- Article -- Act 88 has expired, because it's intended to be a transition program by state law. And sometimes students who are expelled for specific reasons will be readmitted back into the system, because sometimes expulsions are permanent, and sometimes expulsions can be for a semester or for a year.
How do I respond to a letter or a phone call that suggests... 00128 03/24/03 - Committee of the Whole
...alleges that the children that are sent to alternative school placements are not winding up in alternative schools, that they're winding up in other schools in some other area of the City, not an alternative school?
Well, the way you respond is by calling my office, which many people do, and communicating that letter, that concern to me. I then -- What I usually do is, I will have Gwen Morris investigate. And if Gwen Morris finds that a student has been transferred inappropriately, basically that student will be sent back to the school system that they came from.
If they were a discipline problem, and they were supposed to be sent to an alternative school, first of all, I 00129 03/24/03 - Committee of the Whole would wish you could tell me that that isn't the case, that if they're deemed to be a discipline problem and should be going to an alternative school, that they shouldn't be going to another school that's five blocks away. They were going back to the one they came from.
Well, there's two or three different type of categories of transfers. Sometimes it's the kid who's transferred to an alternative school for violating the zero tolerance policy. That student should not suddenly show up at a neighborhood school. But then, a lot of times there's the disciplinary case of that student who's a disciplinary problem at one school. They haven't violated the zero tolerance policy or gone through expulsion hearings. And sometimes what will happen is, to escape expulsion, sometimes the parent themselves will try to transfer her kid to another school. So when those cases happen, and it's brought to our attention, we respond. We are always taking action against students who show up 00130 03/24/03 - Committee of the Whole at a school that they're not supposed to be attending. I've also told all of our regional superintendents and I've told our principals when I've had my principle meetings with them individually, that if you feel that a student is being transferred to your school from another school, you know... Because a bigger problem is the students that are causing disruptive behavior in one school being transferred to another neighborhood school... You shouldn't take any student that you feel is being transferred for disciplinary reasons, and you should bring those issues to our attention so that we can take appropriate action. So I'll be more than happy to, first of all, get you information by tomorrow on your letter so we can get all the facts in the case. And... But, you know, I mean, the rule of thumb is, I tell people if you call us and you bring it to our attention or if we get a request through the school safety officer, or for that matter, through the Bully Hot Line, we will investigate those cases and we will get them 00131 03/24/03 - Committee of the Whole resolved.
I'll wait until the next go around, because I'm a bit confused on the policy itself. Because if you, in fact, say that a person -- a child is a discipline problem and they're supposed to go to an alternative school, I want to find out in the next go around what's not happening, how they could wind up in another school, or back to their own school, if they've been told that they're going to be sent to an alternative school. And I'll wait for the next go around for your response.
Mr. Vallas, I think it would help if we had copies of the Zero Tolerance Policy and the Code of Student Conduct.
We'll be more than 00132 03/24/03 - Committee of the Whole happy to provide another copy.
Okay. And I just have a question along those same lines. Does Act 88 have an age limitation on expulsion? I mean, what would we do with a second grader, say, that...
Well, there's more of a problem with the younger children. I mean, we can be in the expulsion business. But the bottom line is, there aren't a lot of facilities out there that can provide alternative placement for primary care children. So our approach has been to develop a model to make sure that schools have time out rooms or, you know, alternative placement rooms. We've begun to put all of the teachers through training on how to deal with students of primary age who are having problems, and the SMART program is simply not limited to the older kids. If we have younger kids that are chronically disruptive, this is the Saturday Detention Program, we actually enroll them in alternative placement. 00133 03/24/03 - Committee of the Whole But whether we like it or not, we're going to have to get into the alternative placement business. And let me point out that in a system this large -- And let me just say that we inherited a situation where they weren't expelling too many people at all, and where intra-school district transfers of disruptive kids was the practice rather than the exception. So I think we've made great strides towards cracking down on disciplinary problem students. But you're always going to have cases where students or sometimes parents will try to avoid the neighborhood school, so she'll show up at a neighborhood school, or try to avoid an alternative school so they'll show up at a neighborhood school. And they'll try to enroll that child in that neighborhood school. And sometimes the principal, unwilling to just accept or just to reject somebody out of hand, will try to accommodate that student. Because this is a school system that has the 30 percent plus mobility rate. So there are always children moving from school to school for 00134 03/24/03 - Committee of the Whole reasons other than disciplinary problems. And when you have that type of mobility, a lot of times students who are moving for disciplinary reasons will fall through the cracks. But a lot of times all we can do is clarify the policy and then be reactive, and then basically tell principals, which we've done, that if they have a concern over somebody who's being transferred to their school, they should not accept that student.
Thank you. And just for a point of clarification, the number of students that Councilman Rizzo was talking about in the very beginning were those students that are moving, transitioning from youth detention back into the Philadelphia Public School System. And... But, how many students attend Boone, Miller? How many people does CEP contract to serve?
Sure. Right now, I can give you those numbers off the top of my head.
CP, I believe, has 1700 students at their one facility alone. 00135 03/24/03 - Committee of the Whole
I'm guessing a little bit. I think Miller probably has about 250, 300 students. And as you know, CEP is going to be taking over Miller operations, because we need to first of all depopulate. The CEP campus is far too close to Nueves Esperanza and to the Edison School. And I believe Boone probably has about 300 students. Of course, there's also Shalfa.
But we're busting at the seams, which is why we've gone out with RFP. And right now the Delaware Valley... There's a alternative school. I forgot the name of it -- I apologize -- that we've approved. And there's at least three other alternative school providers that we are negotiating with. And of course, we've been working with Reverend Lusk on setting up an Alternative Schools Charter, three sites, about 150 students apiece. So our hope next year is to have about ten sites with six different providers, because we've got to get into the alternative schools business. 00136 03/24/03 - Committee of the Whole Right now there's a lack of capacity. That doesn't mean we won't expel. I mean, you know, we've expelled more kids than any school system in the country, not to mention the very tough Act 88, which doesn't allow students back in. But the bottom line is, this is going from a system that rarely expelled and that always transferred for disciplinary reasons to a system with one of the tougher zero tolerance policies in the country. So, you know, it's a transition. It's a transition for teachers, principals. It's certainly a transition for administrators. So you've got to be patient with us while we refine the program. We've also worked very closely, Madam President, with City agencies to coordinate the services that are provided for those students particularly who are being released from detention centers. So they have the probation officer. In other words, all the students that are -- that are exiting through Act 88, 80 percent of those students are now in some sort of 00137 03/24/03 - Committee of the Whole alternative placement. And they're all being screened before they're being put in those alternative placements. So we're really at the cutting edge. But it's going to take a while. We're always going to have individual -- Not a day goes by that I don't get e-mailed or called or someone contacts me directly or comes through the hot line or we deal with the Safe Schools advocate, that we don't have a case that we have to check into because perhaps procedures weren't followed or maybe procedures were followed too aggressively. So, it's a process. But we've been very aggressive here. And we'll certainly stand by our statistics.
First to give Mr. Vallas a little rest, I'd like to address some 00138 03/24/03 - Committee of the Whole questions to Mr. Nevels. The appointment of Mr. Vallas's superintendent; who was responsible for that appointment? Who made it? I raised the question in an approving sense because it's the one good thing I know that has occurred in the school system. And I'll explain further why I said that.
And I'll explain further why I said that. And if the School Reform Commission had something do with it, since I'm a constant critic of your having taken -- your existence takes away from the City of Philadelphia the power, in my judgment, the City of Philadelphia ought to have, and that is to make its own decisions, rather than have people from the state, who don't live in Philadelphia, who are not Philadelphians, who are not responsible to anybody. We don't welcome, at least I don't, and the body of people I speak for don't welcome outside control. We think Philadelphia ought to 00139 03/24/03 - Committee of the Whole be Mr. Vallas's boss and not a State School Reform Commission. And from that burden, and as I've explained to Mr. Nevels, it's not intended to be personal at all to him or any member of the Commission. It's just that it offends me, and I think it offends people who are concerned about sound municipal government, that a City the size of Philadelphia is deemed to be incapable of running a School Board, while people from outside the state who have had practically no contact with the school before, suddenly are brought in as experts. So from that point of view, did the School Reform Commission discover Mr. Vallas? How does he come to be our superintendent? If you deserve credit, I want to give it. I want to be able to say, School Reform Commission, you did one good thing.
And I'm trying to take it, Councilman. I'm trying to take the credit. There was a search committee that was formed. And on that search committee it was 00140 03/24/03 - Committee of the Whole headed by Commissioner James Gallagher, the President of Philadelphia University, and my colleague, Sandra Dungee Glenn. And they coordinated that search. It was a national search. Hydrogen Struggles, the international search firm, was involved. And a number of candidates were interviewed. The candidate list was narrowed. The cream clearly rose to the top. And we've had the good fortune for a little over seven months to have Mr. Vallas on board. So, believe me, on behalf of the SRC, thank you for the compliment.
And I would hope that you feel the same way a year from now, Councilman. Thank you.
Well, at least there's one thing I can say happened to benefit the school system, because Mr. Vallas is unlike a number of other school superintendents, some of whom I thought did a good job and some of whom I thought did not. But Mr. Vallas has appeared to 00141 03/24/03 - Committee of the Whole me to be both a man of vision and a planner, and combines both, and an activist. He does things. For example, let me give you an illustration of why I became a convert. And that was because the Central High School athletic field at Summerville and Ogontz Avenue for years have been plagued by a heating problem. And twice a year I would call plenty of time before an election, and say, what's with the heater, because May can be cold. Sometimes you don't need the heater. November can be very cold sometimes. Sometimes you don't need the heater. It might be warm. What's the situation going to be? And they've always promised me they're going to do their best, and they would arrange some patchwork, which never worked. When the heat was needed, it wasn't there. I got all kinds of complaints and we lost voters, who just wouldn't come, and we lost election workers who couldn't stand the cold. I called Mr. Vallas, assuming that I was going to meet the same kind of nonsense. Mr. Vallas didn't believe the story, I think, when 00142 03/24/03 - Committee of the Whole he first heard it, because he couldn't imagine it existed. But he said, the heat will be restored. It will be there. It will be done permanently. Now, that was just about a week before the election. I poo-pooed it. I wrote in my note, among the promises not to be kept. I wrote that. Well, you know, the next morning there were three trucks in front of Central High School, and they stayed there for the day, almost to election day. You know what? We got permanent correction of the heating situation and saving the School District lots of money, instead of twice a year expending a lot of money for temporary purposes. It's a permanent employment. I began to believe him on that, so I raised a few other questions. And on all questions, whenever he's promised something, he's followed through. Now, I'm not used to that. I'm used to even good people, people whose whole heart 00143 03/24/03 - Committee of the Whole seemed to be in developing good schools always had good intentions. And I don't know why they weren't able to do what he did. For example, he's coming in and he's developing a Capital Program. And he means it. And I didn't believe it when I fist heard it. I said, the man's out of his mind. Because why is it that he could think of how to get it done, but nobody else was able to do it, even though we've had a number of visionaries, and well-intentioned superintendents. So I want to pay that respect. Of course, there will be criticism later down the road for Mr. Vallas, so we shouldn't think that everything's going to be glory.
But I did want -- Yes, the heaters coming up in May. You have two months. But it's working fine. And, you know, it's improved the condition for the sports teams. Central High sports teams suffered terribly, and they could never do anything. But he apparently has the knack of making principals 00144 03/24/03 - Committee of the Whole and other administrative officials really feeling responsible for results; not only good ideas, but they've got to produce some and they've got to work at them. And I think that's probably the key to his success. So, Mr. Vallas, we welcome you, based upon your record. And if the School Reform Commission is in any way responsible for your being here, we thank them, but say to them, it's time for them to leave, having done the one good thing. Now, you don't have to comment, Mr. Vallas.
Thank you, Madam Chair. 00145 03/24/03 - Committee of the Whole
Actually, what I'm going to do, I'm going to get around the five-minute rule. I'm going to get all my questions in and let you guys take up the time with the answers. First of all, let's go down the list here. You earlier referenced the Masterman School. I know that -- It's my understanding that Masterman at some point in time had submitted an expansion plan. And I was talking to the principal, Miss Braverman, about working with her last year about that, so I'd like to get a response from that. 00146 03/24/03 - Committee of the Whole Did you first get the expansion plan --
The issue with respect to the minority participation on...
...school expansion, capital programs and purchases, I'd really like to get a sense of where we're going to go with that.
And one other 00147 03/24/03 - Committee of the Whole issue that's been brought up on two or three occasions during the course of the hearings today, both in terms of questions and responses. I'm still not clear in terms of the responses on the BRT issue.
And actually, the Parking Authority issue. And I'm getting a sense that your preference is that we talk about that at a later time or date, maybe not on the record, given the potential sensitivity of some of that. But my concern is that the time line in that discussion, do we have that --
Well, let me respond to all four of your questions. First of all, let me take the last ones first. We will have time to talk about both. This is not where the discussion will end on this budget. Then we'll have time to talk both privately and publicly, if need be, on the BRT issue, as well as the Parking Authority issue. Let me point out that if there is -- When there is a change in the state budget relative to the Governor's original budget on education, we will come before this Council to publicly discuss our recommendations for changes. So we will have this process again. So if it's passed in June or July, and then we're going to make changes in mid July, we will come back, at this Council's call, to discuss those changes before we pass those -- approve those changes. And Mr. Nevels has -- That's our commitment as a team here to you that we will do that. So, this is not the end of the process. 00149 03/24/03 - Committee of the Whole And so -- And obviously, any final issue regarding the BRT and the Parking Authority will be discussed with the Council. I will point out that my motivation with the Parking Authority was to address this issue of the money that was committed to the School District, knowing full well that the Parking Authority doesn't have $40 million to give to the School District. It just doesn't happen.
So the feeling here is, if we could get a small revenue stream, we could get then do a financing to do the massive one-time or up-front new textbook and curriculum instructional material purchases that we're going to need to move this system forward. We were thinking of doing the financing ourselves, but obviously rather than the ear-marked $2 million or $3 million out of our $20 million school books -- school textbook bond to finance that, certainly if we're able to secure the money from the Parking Authority to do that, then obviously that means I don't have to touch the regular line. 00150 03/24/03 - Committee of the Whole
I understand the political realities of the Parking Authority, and the uncertainties of the Parking Authority, as we move ahead.
But I just want to show you, you won't be reading in the paper about what we're doing. Any final agreement we reach will be before you. Regarding MBE-WBE, I will provide the Committee with an outline of our MBE-WBE strategy, along with the material concerning our diversity curriculum. I have those materials with me. I will get it to the Committee before the end of the day. And Kim Sanctor is here to talk about that. When we reconvene tomorrow, I'll certainly allot her or you can allot her time to talk at length about that initiative. But I will tell you this: Not only are we going to be very aggressive about MBE-WBE; in Chicago our MBE-WBE targets were over 50 00151 03/24/03 - Committee of the Whole percent. And it took us a number of years to achieve that, but by the time we were done, close to 55 percent of all our school construction dollars had gone to minority and women-owned businesses, not to mention the work hours performed. But obviously, we're going to set realistic goals, but those goals will be achieved. But they will also include outreach. They'll include monitoring of vendor assistance, to make sure that when someone is entering into a contract with us if and they've committed to certain MBE-WBE numbers, those numbers are achieved. And it's also going to include working with contractors, both general and subs, so that we can get them to form partnerships before the bid process begins and --
With respect to what you did in Chicago, in your attempts to achieve lofty goals, such as you've indicated, did 00152 03/24/03 - Committee of the Whole you run into any legal impediments during the course of --
No. We had three goals. Goal number one was to do targets. First of all, we did mandate them. Okay. These were targets, and we exceeded those targets, number one. Number two, the second thing we did was we worked really aggressively to make sure that the workplace was a diverse workplace. And we actively recruited. We had jobs fairs. We did a number of things. We monitored our own work sites. We had assist agencies. And I don't think one of -- You know, I think rarely if ever did we ever have a protest. And over 50 percent of the hours that were performed on the job sites were performed by minority workers. This is all documented.
If you can pull that off in Philadelphia, that will be a minor miracle, not to have a protest at a construction site. 00153 03/24/03 - Committee of the Whole
We have plenty of protests out there, but usually they are protesting, you know, the park district site.
It doesn't matter. It's going to one side or the other.
It will happen. But the third thing that we did which was very helpful is, we did things like, we did wrap-around insurance so that fledgling minority companies could do the work but didn't have the resources or couldn't get the insurance were able to get insured. We also did things like quick pay, accelerated pay so that we would pay our contractors and subcontractors in a timely manner. And the contracts we would negotiate would always require that the generals pay the subs within something like 60 days or 30 days of getting paid by us themselves. So we're going to bring all those traits. Now, clearly, you know, having numbers that high are maybe too ambitious. But there's no reason why can't have a legitimate quality at the outset 25-5 MBE-WBE program and hit 00154 03/24/03 - Committee of the Whole those numbers. And I will cite once again the Commission's recent approval of the prime contractor who's going to oversee our Capital Plan, and the fact that 43 percent of that contract is going to minority and women-owned businesses. And this is a tremendous contractor who has done this and has experience, and the minority participants are legitimate minority participants. I will make a final comment about Masterman. The problem with Masterman is, if you look at Masterman, where are they going to build that additional building, on the only parking space that that has? That will only wreak havoc in the school, but it will wreak havoc in the community. What I suggested to them is, first of all, I said, why should I build an addition for Masterman when I can build a new Masterman, when I can build a second Masterman? So rather than just adding an addition to Masterman, let me build a new magnet 00155 03/24/03 - Committee of the Whole high school. And if there's a question of overcrowding at Masterman, the Franklin Learning Center will soon be vacant, and the Franklin Learning Center is three to four blocks away from Masterman.
I think the thought was in maintaining the atmosphere of Masterman at that location, sometimes there's a certain synergy about a location --
And that was the thinking, you know, if you have a satellite Masterman, so to speak, then you may not be able to recapture the same type of atmosphere that's there at that school.
My thinking here was to have -- If we're going to open up new magnet 00156 03/24/03 - Committee of the Whole schools, they should be like Cappa or like Masterman. They should be modeled after those schools. So it's not so much a satellite of Masterman as is -- it's another Carver or Cappa, Central magnet school. But one solution, and, you know, it's going to take some convincing, is if Masterman itself needs additional space, the new high school construction aside, the Franklin Learning Center which will be moving to a new high school when that high school is constructed, offers a building that is an excellent building within walking distance of Masterman. So you could easily -- You could easily relieve some of the space by perhaps having part of the middle grades program at that school. It's within walking distance. But I think I'm meeting with the Masterman community meeting this week, and I'll be more than happy to keep you informed.
Councilman, your time is up. Do you mind waiting for the second go around? Thank you. 00157 03/24/03 - Committee of the Whole The Chair at this time recognizes Councilman Goode.
Thank you, Madam President. Good afternoon. I'm going to skip all the budget issues, because even after tomorrow we still won't know what the budget can --
-- will look like. I also will skip some of the programmatic issues, because I've looked at your framework for what you can work with the budget as you've proposed so far. I want to deal more so with the implementation of your reform strategy, and the fact that I have a lot of confidence in the work that you've done, and Mr. Nevels, and your team that you've assembled, who I've met with. But there are no principals and no 21 teachers here. And so, there's a whole 'nother layer of implementation here that really is a case of where the rubber meets the road. So I want to start with, what is the role of principals under your reform strategy? Is 00158 03/24/03 - Committee of the Whole it an increasing role or a decreasing role?
Well, it's an increasing role, because as we move towards a more structured standardized curriculum, that's going to necessitate greater familiarity on the part of the principals with those new curriculum and instructional models. You know, as we -- as we refine our Capital -- not our Capital Program -- our public safety program, that's going to put additional burdens on the principal, because obviously this is a Zero Tolerance Policy that has to be followed and has to be adhered to. Obviously, we also have to support our principals consistently. As we move to do system wide class size reduction -- and I can't diminish the opportunity that we have to really significantly reduce class size -- you know, the budgetary templates that we're going to be providing to the principals is something that they're going to have to be trained on. Because I have a lot of schools in this District -- we do -- that have very small class sizes. And then we have schools five blocks 00159 03/24/03 - Committee of the Whole away that have 33 kids in every classroom. So as we present them with the model, we're going to be able to give them the resources to reduce class size through the third grade, but they're going to have to help us get the numbers down through fourth and eighth grade. That's going to put additional burden on the principals. But that said and done, we're going to have to provide them with support.
-- in a number of ways because you've raised the bar in terms of reform. But do you view the system as being more centralized or decentralized, in terms of administration?
I think in some ways it's going to be more centralized, because we're going to require a standardized curriculum, we're going to -- obviously, as we provide more support to schools when it comes to the school discipline policy, that naturally centralizes the system. We're going to be more aggressive 00160 03/24/03 - Committee of the Whole about working with the schools to show them how to allocate their resources, particularly their Federal Title One resources. So it is going to be more centralized. But then on the other hand, in certain ways we're going to do more decentralization. Our goal is to make sure that all of the schools have parent councils, to make sure that there are parent outreach programs in all of the schools, that there are what we call parent help desks, that the councils that are at those schools have some input when it comes to -- when it comes to how the schools supplement their curriculum or what supplemental programs they provide. So while it is going to be more centralized in the areas where it needs to be centralized, to maintain standards and quality control, we are going to really work very hard to establish greater parental representation and community representation in local governance.
I guess you know where I'm going is, in terms of accountability, how do you expect, in the context of what you just 00161 03/24/03 - Committee of the Whole said, to hold principals accountable for academic performance? I mean, what real responsibility and authorities do they have individually?
Well, you know, we realize that to a certain extent many principals have one arm tied behind their back, because, you know, they don't have site selection. They don't have total control over the resources in their schools. There are a lot of obstacles that principals face. But look, on the operations side, we're deferring more to principals when it comes to decisions or when it comes to recommendations. You now have an operations side that's not going to ignore a principal when that principal calls complaining about custodians or an engineer or what have you. There is going to be more receptiveness. Plus, our move towards working out an arrangement so that we close the window on teacher movement for seniority purposes --
Can you specifically address how you're empowering principals, in terms of the reform process. Tell me what powers and authority and responsibility they will have, under your reform strategy, that they didn't have before.
I believe, from a school maintenance standpoint, a school operations standpoint, principals are going to have more control. So in other words, this whole idea that schools close after 3:30 is gone.
So if their after school extended day programs and supplemental programs are --
In terms of academic performance, we're going -- because we're going to be providing these structured curriculum models, because we're going to be standardizing professional development, obviously, we're going to expect the principals to implement our reform 00163 03/24/03 - Committee of the Whole initiatives. And those reform initiatives are initiatives that have to be followed. So to the degree to which principals work to implement those initiatives and the degree to which those initiatives are resisted by individuals within those schools, that would be grounds for taking disciplinary action against those individuals.
But there are no 11 new powers, in terms of empowering principals, in terms of academic performance?
You know, there's no 14 new statutory powers. We do have the power to dictate curriculum. We do have the power to dictate professional development. So the degree to which we use our powers to mandate certain things, and we exercise those powers through our principals, to that degree the principal's authority is going to be enhanced.
Yeah, it is centralized. 00164 03/24/03 - Committee of the Whole
Thank you, Madam President. Mr. Vallas, we've had discussions before about the varying degrees of needs of children when it comes to their education choices and the diversity of the District. One of the things I guess we're all hoping is, that if after moving through our school system a student has the ability to choose to go on to a college and to ultimately get a good job so they could raise a family and be good taxpayers in the City.
I think one of the things that was lacking recently was attention to vocational education. And I would you to speak a little bit about how we get our kids involved who want to choose that course or path in life, the voc ed course. When I was younger, voc ed was not 00165 03/24/03 - Committee of the Whole looked upon as a very terrific choice for a young person in the public school system. I disagree with that theory and concept. I think that dignified work can be done with the hands as well as your head. And I want to know what you're looking to do to enhance the image of voc ed as a choice for kids, and also how we can determine which kids make more sense in moving in one direction or another, either the college -- Everybody that wants to go to college should have the ability to go, if they desire. But some young people would like to build, you now, beautiful cabinetry and be able to stick their head inside of the electronic ignition of a car, and other kinds of things that can make good livings and provide dignified work. Could you talk a little bit about that?
Yes, absolutely. And I know Craig Williams is here, and he can certainly articulate the details much better than me. But let me summarize what we are going to do. In a nutshell, the first thing we're going to do is, just as we're reviewing our 00166 03/24/03 - Committee of the Whole college preparatory curriculum courses, the courses that are being offered in the schools that are of the college preparatory nature, we're also reviewing all of our vocational education courses. The idea -- The goal in mind of jettisoning that stuff which is -- which are courses in name only and not in substance, in upgrading the legitimate courses that are out there, that's number one. And obviously, Paul Betelman's committee, his task force on business school partnerships and the provision of that task force that talked about setting up these business councils, to help set standards and to help guide our career to work programs is obviously something that's going to be part of that. So, first of all, it's cleaning up what's there. Secondly, it's working with the academies to jettison the academy programs that are just academy programs in name only, and to expand those academy programs that are legitimate academy programs. Because we can be doing much more in terms of electronics and automotives, et cetera, 00167 03/24/03 - Committee of the Whole if we simply clean up what's there and support the academies, because in the past the academies have been -- It's like many things that the School District has done. You've got programs in there but they atrophy. No one supports them. Even if they're good programs, they never really get the support. I mean, not a day goes by that the robotics people don't contact me asking for minimal School District support for their robotics clubs. The third thing we're going to do is, we are going to expand the number of vocational educational program offerings by in effect going off site. We've been negotiating with City colleges, community colleges with Devrie, with a number of public and private technical training institutes so that we can enroll our kids in off-campus job training programs as part of their high school experience. So what will happen will be, after year two in high school, the year three and four, 00168 03/24/03 - Committee of the Whole the day will be spent taking your college -- your courses required for graduation. And the afternoon will be spent at city colleges or community colleges enrolled in a vocational/technical education program. That is the third thing. The fourth thing we're going to do is, part of our agreement, the support that we receive from the unions in getting the four-part bidding contract waiver, was that we sign a project labor agreement with the unions, which we're happy to sign. And that agreement which will in effect say, if you're working on a school project from Philadelphia, you've got to hire union labor, and you've got to pay them union scale. Part of that includes an apprenticeship program. So all the unions have communicated to us an eagerness to ensure that we establish an apprenticeship program as part of the project labor agreement that is legitimate. And we hope within the next month or so to finalize the project labor agreement so that we have a legitimate apprenticeship program. 00169 03/24/03 - Committee of the Whole And then finally fifth. The fifth thing that we're going to do is, we are going to begin forming what we call student businesses. So, students that are in vocational ed, whether it's the culinary arts, whether it's automotive engineering, whether it's computers, technology, whatever, they will be allowed to form little student business clusters. So we will in effect give them work in the School District.
One of the things in -- if you ever look at the wrought iron fencing that's done in many of the schools in Chicago, that fencing was done by private companies in Simeon High School, because the Simeon High School students were part of a fencing contract. Well, we're going to do the same thing with culinary arts. We're going to do the same thing with landscaping. We are going to do the same thing with computer clubs. So the idea in mind is to identify these students who are in this vocation, but then to give them some work over the summer. This will allow us to partner them with companies that are doing business with the schools, or contractors 00170 03/24/03 - Committee of the Whole that are building our schools. So if we can accomplish those five basic things in the next couple years, I think we can go a long way towards repairing the damage that's been done for years of neglect. I will close by just making one final comment. The struggle that we face in vocational ed is also the reality that for many children to get into the legitimate well-paid vocational technical education jobs that are out there, they've got to have a 10th or 11th grade reading or math level or they're just not going to cut it. So there's no substitution for us providing them a quality education, as you well know, in the basics. So those are our five areas that we're approaching. But I'll make sure that my staff provides the Committee with a summary of the high school component, as it applies to vocational ed.
You're 00171 03/24/03 - Committee of the Whole welcome. The Chair recognizes Councilman Ortiz.
President Verna, but prior to the Councilman speaking, I just want to bootstrap on a comment that was made by the CEO in connection with Councilman Kenney's remark. I would like you to keep in mind as Council people the following scenario: We've got a five-year Capital Program that's about to be initiated. In probably each of your Districts there is an eighth grader who, by virtue of the project labor agreement, and so on, who could be laying brick, and doing any number of trade functions, in terms of the completion of schools and the construction of schools five years out from now. I think that's really exciting. I mean, just think about that. The largest non-stadia construction project in the city's history, and our children, a child in eighth grade right now, has an opportunity to learn a trade as a result of this incredible opportunity. Sandra Glenn and I have talked about it at length. This is a commission that is committed to it. 00172 03/24/03 - Committee of the Whole And of course, as we look at our existing Dobbins and Bok schools as well, we're committed to this. Work is honorable, and we're committed to it. Thank you for the indulgence, Council President.
Mr. Nevels, just as a follow-up to your remarks, because I was actually going to ask a question concerning your vocational education in the area of trades. It's my understanding that the -- Well, I'll just speak for Bok, Bok in particular... has a real problem with getting the young people that are coming out of the training in the building trades to connect them with employment and apprenticeship opportunities in the trade unions. Do you have any information available on that today, just to see just how much -- We were -- I was still in recruiting once, to try and get people interested, minorities in particular, in signing up for some of the apprenticeship programs through the building trade unions. 00173 03/24/03 - Committee of the Whole And the response that I got back from Bok through another party was that they've tried it; it doesn't work; they're not able to get their young people in the building trades here in Philadelphia. So I was going to ask that question. But since Mr. Nevels raised the issue, I'd like to know if there's some communication that needs to take place with the trade unions to find out whether that's true, the response that I received. What is it we need to do?
I'm sure it's true. It was certainly true where I came from, and it's been true nationally. It's difficult for many individuals to get into the trades. But let me tell you, it's a two-part problem. Part number one is, we're not giving the young people the skills that they need to even give them a chance to get in. Okay? But part number one is the fact that the vocational education programs have been shells of what they should be. So you know what? We almost create an excuse for not allowing the young people in because they're not taught the skills. 00174 03/24/03 - Committee of the Whole Now, we're going to eliminate that. We're going to eliminate that because we're going to teach them the skills. And one of the reasons that we're eager to form like our student businesses is so that we can give them the experience, too. That's number one. Number two, is the second part of the problem, the fact that many of the trades and apprenticeships are either in reality or the perception is that they are closed. And of course we can all draw our own conclusions. And I think we probably share the same conclusions. But the bottom line is the project labor agreement and the $1.5 billion that we'll spend on school construction is designed to be -- to serve as kind of a battering ram to knock down that door so that our young people can have those opportunities. But we got to train them. You got to train them. Because if we don't do a good job training them -- You know, go to our vocational ed gems, Dobbins and Bok. You know, you walk in and you don't see, you know, electrical engineering. You don't 00175 03/24/03 - Committee of the Whole see, you know, refrigeration and air conditioning. You don't see automotive training going on in those schools. So the bottom line here is, we're going to make sure that we're training them so that they have the skills for those apprenticeships and internships that they open up. And then the second thing we're going to do is, we're going to use things like the Project Labor Agreement as a way to open those doors. And the Council's going to have an opportunity to monitor us. I will also make a final point in that both -- We will build a new Dobbins high-tech, state-of-the-art, vocational educational high school. We're looking at national models. Dobbins is one of the replacement schools we have planned. We're also very eager, if we're able to secure additional money down the road -- once again, the Rendell second budget -- to do a new Bok Vocational and Technical Education School. And when we do them, we will attempt to build those schools and to partner those 00176 03/24/03 - Committee of the Whole schools with the trades on the outset so that they become vocational technical education centers that the unions have a vested interest in. So we think we'll make progress. And obviously the Council is going to be able to hold me accountable in the next year.
Thank you. I loved that last statement, that the unions have a vested interest in. Been asking for four years for the unions to have a vested interest in this City, four years. Let me say at the outset, Mr. Nevels, Mr. Vallas, I've sat at this chair now for 18 years. I've seen stuff come before us, in terms of the Board of Ed. And it's always been a woe and us. It's always been about the negatives, in terms of the public education system. It's always been about the things that they cannot do because they don't have the money. And Irv Davis, may he rest, always -- always... 00177 03/24/03 - Committee of the Whole (Laughter.)
No. He's retired. He's retired. UNIDENTIFIED VOICE: He's resting.
No, but he rests. I didn't say he rest in peace, did I? I didn't say rest in peace. (Laughter.)
I said rest, because he's retired. But he always viewed how to structure a budget so that the true figures would never show. And Mr. Nevels, I've been one of the harshest critics about the state takeover of this City of the Board of Education. But I have to give you credit. The first hurdle, in terms of us going forward, is to give hope to people that things can change. I think between the appointment of Mr. Vallas and the policies that have been pursued, there is a certain sense of hope within 00178 03/24/03 - Committee of the Whole parents across the City. Because I visit the schools. I have two kids in public schools that I go to, and I take them every morning. And now that my wife is traveling to Harrisburg every day, I got to get up and take them to school and stand there with the parents. Yes, Blondell, I do that. But there is hope. And Mr. Nevels, I got to give you, as I criticized before and I kept on. Because we needed that. And we still have those privatization companies out there that I would hope we can phase out, and I think Mr. Vallas hopes the same thing. I think the first hurdle has been achieved, which is hope. There's a relationship now between yourselves and the PFT which we never had before. You're the first individual that has come before this Council in 18 years and said, I'm going to achieve new buildings, smaller classes, more teachers, and better training, and we're going to raise those averages, and we're going to cooperate and bring the teachers into the process. That message has never before been said to this 00179 03/24/03 - Committee of the Whole Council in that way. Other people brought things, policies. Children Achieving was a nice slogan, but it was also tied into the fact that we don't have it. We don't have the resources. You're coming in, you say, look, I have a certain amount of resources. I'm going to do certain things. Hopefully, the Governor will act upon what he has said he's going to act upon. But I have to salute you, Mr. Nevels, and salute you for the hiring of Mr. Vallas.
My friends in Chicago speak very highly of him. And they're all very much, in terms of education, Congressman Guiterrez is one of the persons that really told me -- In fact, he called me up, he says, you stole Mr. Vallas from us and we want him back. And I don't think we're going to give you back. Not unless this thing doesn't work. If this thing doesn't work, then we'll send you back. But, you know, in terms of the building -- And I want to get into -- you spoke 00180 03/24/03 - Committee of the Whole to, because I want to get you on the record.
I'm going to come back to education. But in terms of, I mean, 1.5 in terms of construction that is going to go on. I want a time line. And I want to know how blacks, women, Latinos, how the contractors of this City, minority contractors of this City are going to be able to get the opportunity to be part and parcel not only of the subcontracts but the prime contracts and all of the other stuff that goes down. And then, I think Wilson Goode asked a question the other day, because we were having hearings about contractors and building in this City. And it really doesn't translate that if you hire a black contractor or Latino contractor, that means that you're going to hire black people, Latinos, and so on, to do the work that needs to be done. It means, do you have a black contractor? It means, do you have a Latino contractor? But the workers are non-minority. 00181 03/24/03 - Committee of the Whole And we would like from you -- I would like -- if it is going to be minority contractors I want minority workers, and not just -- And laborers are very good, and they earn a lot of money and they are terrific. But I want electricians, plasterers, roofers, floor layers, bricklayers. I want us represented in each and every one of those schools. If those schools are going to be built in our neighborhood, God darn it, let it be built by our hands. Okay. And Philadelphians. People from Philadelphia. And I want to hear you say on the record that that is going to happen.
Well, let me respond by saying, yes, on the record, that will happen. And I like to think that -- that we have a track record. I certainly -- Karen Burke, who runs operations was chief of staff for me in Chicago who ran the operations program that built 76 new school buildings and renovated 500, and had the MBE-WBE set-asides. I don't even want to even call them -- We'll just call them set asides. 00182 03/24/03 - Committee of the Whole Targets.
I don't want set-asides. I want a commitment, not set-asides. These -- These -- I want -- You say these things are going to happen, and they're going to happen. You're going to make it happen. You and Mr. Nevels are going to make it happen.
They are going to happen. They are going to happen. It's a priority of the Reform Commission.
And tell me how, and tell me what it is that's going to happen so I can come back with a record and say to you: Paul, you didn't do this.
A couple ways that you make it happen. And once again, let me take you through about four or five things. The first way you make it happen is by -- is by adopting a board policy, an anti-discrimination policy which stakes out what your goals are going to be. And the Commission has already taken steps to do that. That puts everyone on notice in this $1.8 billion agency that a priority of ours is 00183 03/24/03 - Committee of the Whole equal opportunity. Because I see this as an economic development issue, not as a quota or set-aside issue. I've always defined it in economic development terms. That's the first thing you do. The second thing that you do is, you do aggressive outreach. That means you reach out to providers. You reach out to contractors, to vendors, to professional companies, to professional services, so that you're putting a list together of eligible companies, be they professional companies, accounting companies, auditing companies, be they contractors, general contractors, be they providers, so that you know that they are out there. And if you do outreach, you can communicate to them what's available and what the opportunities are. The third way you do that is by requiring in your contracts that there be MBE-WBE goals. And that means -- And that means if you've done the outreach, if you have the assist agencies, if you've identified other providers and you're notifying the providers of those opportunities, and you're organizing job fairs and 00184 03/24/03 - Committee of the Whole contractor fares and professional service fairs so providers can get together, both majority and minority providers, to form partnerships, then you're going to get the reaction that you need. And then the fourth thing that you need is, you need to be prepared to get into the business of assisting minority companies, legitimate minority companies, because many minority companies are not able to compete for some of the larger contracts. I'm not talking about just being minority -- the minority vendor. I'm talking about being the majority vendor. But, by assisting --
I want to eliminate that word minority out of the language.
But by assisting them, you assist them in the following: You assist them by doing wrap-around insurance so that they don't have to go out and shop around to get the insurance, which is sometimes cost prohibitive. You do it by setting up a process so that the contractors can get their compensation in a timely manner, because many companies, 00185 03/24/03 - Committee of the Whole particularly new companies, minority and women-owned businesses that are fledgling businesses that have the ability to get the job done, they don't have the capital, they don't have the capital resources. They can't afford to wait 180 days to get paid. Okay. And the third thing that you do is you -- The third thing that you do on the compensation side is, sometimes you can work with financial institutions to provide them with some assistance on big projects or you can put contractors together on specific projects. So those are things that I feel that we have done before, and we know how to do it, and we are going to do here. Now, when you set goals -- When you set goals -- When you set targets or goals for minority and women-owned business opportunities, you also give the school -- give the providers goals when it comes to the hiring, so that they do have a diversified work force. And if you set the goals, and if people know that their ability to get additional contracts --
What happens if 00186 03/24/03 - Committee of the Whole they don't meet it?
All the contracts have provisions in them, basically penalty provisions, where you can take action or you can fine or you can basically punish a company or take the contract away or fine that company or for that matter bar that company from bidding on future contracts. And you've got have a monitoring device. Just this last board meeting we introduced -- we introduced a proposal to set up a monitoring mechanism to monitor our MBE-WBE programs. And the individuals or the groups that are participating in this monitoring program are going to be prominent assist agencies that you're familiar with.
I'd like to speak to you about that monitoring, because the monitoring processes that we've had so far --
-- have failed. And we've had that testimony here. So what I would like -- and I see Bill is here, Bill Miller. And what I would like is, I will contact -- I would like to set up a meeting with the African-American round table contractors.
I would like to bring in the Latino contractors and females and have a very serious conversation along these lines, because Blondell Reynolds and I have -- and other folks, Michael Nutter, and other folks in this Council, I think we have reached the threshold in which we are on the way of making a reality, I think the will to make this happen. It's taken 40 years, taken 40 years to get this done. I think we are at the point, and I believe that you and you, Mr. Nevels, are two individuals that are serious about this. Because of your track record in Chicago I have a certain level of trust because my friends -- my friends have said that. Okay. I would like to set up 00188 03/24/03 - Committee of the Whole this meeting.
I would like to get into a real discussion before this $1.5 billion is spent, contracted out, and done; and before the huge companies, the huge developers, the huge contractors can come in and say: We got this contract, and then let them dictate how it is going to be -- how it's going to happen.
I will set that up. Tim Spritzer in my office, and I will make sure we have our capital people there. And we'll be more than happy to have a dialogue on just how we can make this work.
This is the beginning of making that work. If we can -- if we can get Philadelphians to build the Philadelphia schools, I think you would have done more than you would ever believe. Okay. Thank you, Madam Chair. I think I'm through with my five minutes.
And thank you again for 00189 03/24/03 - Committee of the Whole your support.
Thank you, Madam Chair. Mr. Vallas, let me finish up one area that I was talking about earlier, and then I'd like to go into a new area with Mr. Harris. It will be difficult to keep track on this record, but we talked a little while ago about the Board of Revision of Taxes issue and the staff. Let me first, before my time runs out, say that based on the information I have and my understanding, at least, of how the Board of Revision of Taxes functions and operates, that without additional information, but also respecting your budgetary process and the need to look for savings everywhere you can, that is not a particular action that I could support at this time, given the fact that we are, one, finishing up the appeals process at the BRT; two, before you know it we will be back in the assessment process over there; three, I have no idea at the moment -- and maybe you can share with us -- how you would 00190 03/24/03 - Committee of the Whole propose that the funding be made available to support these positions and the potentially devastating impact that the deletion of funding for those individuals would have on the Board of Revision of Taxes entity in itself; and secondly, quite honestly, the impact that it would potentially have on the School District and the City of Philadelphia. Again, it is certainly my understanding -- and I've been over to the BRT a fair number of times to know and understand -- that the end result of the work of these individuals is the assessment of properties, evaluation of those properties, and after you go through all the mathematical gymnastics, results in the numbers that you have in your book and the numbers that are in the City's book. And so, I don't know who you think is going to do this work. And we can certainly have a philosophical debate about whose payroll they should be on. But if the end result is... I think in your big book is the anticipated receipt of $447 million in real estate tax for the School 00191 03/24/03 - Committee of the Whole District's Budget, I think somebody needs to perform this particular function. And if there are questions about what the people do or how they do it, those issues need to be addressed. And in subsequent discussions, maybe we can figure out a better way to do this or a different formula or something like that. But I'm going to strongly encourage you at the moment here not to lock yourself into that kind of position, because at the moment, again, just speaking for myself, and understanding the nature of their operation and the importance to the School District and the City, I don't think that it's a particularly viable solution at the moment. Now, I do need to ask you a couple questions about that. Have you had an opportunity to talk with the Chair of the Board of Revision of Taxes, Mr. Glancey, about its operations or the function of the 85 employees?
Okay. Have you had an opportunity to talk to any of the workers over there about what they do and how they do it? 00192 03/24/03 - Committee of the Whole
I've talked to individuals who are involved at the institution.
Is there a functioning either memorandum of understanding or a cooperation agreement between the School District and the BRT about what those individuals do and how they do it? You raised some concerns about the nature of their work, or whether they work hard, or whether they come to work, or how they do what they do. I mean, how does this all function?
Well, let me respond to that. I've been reluctant to characterize their work in any form at this point. I've just pointed out that it is a function that the School District does not perform. It's a function that another institution performs --
I'm sorry. Can you pull that microphone either a little closer -- 00193 03/24/03 - Committee of the Whole
Or can we get a little more volume on that? I'm having trouble hearing you.
I've been reluctant to really generalize about anyone's performance, other than to say that if we're downsizing our budget and we're eliminating things that don't impact the classroom, these positions, the need to be included among other positions that we're going to be eliminating. Now, that said and done --
Well, I think if you don't have any money, it's probably going impact the classroom.
Well, you know, we could debate whether or not the assistant assessors in their elimination or the elimination of some of them would in any way impact the property tax collections. But, you know, we're not closed-minded on any proposal that is before us. And one of the reasons that we come to the Council is not with the finished budget, with the state -- with the gauntlet, in throwing that gauntlet down, 00194 03/24/03 - Committee of the Whole and saying: This is our budget; take it or leave it. We'll certainly take suggestions or recommendations from the Council and touch base with Council Members before any final budget proposals move forward. But again, we're -- You know, we're laying out a proposal, as we see it, that I think is responsible within the parameters of what I've established, which is to eliminate things that don't impact on the classroom. I could -- We could probably engage in a long debate on what these individuals do. But I certainly wouldn't want to have that discussion, at least publicly, at least not initially. But we'll be more than happy -- We'll be more than happy to have -- We're not locked on anything here. We haven't finalized this budget. It's more or less of a -- This is our proposed budget, and we'll be making -- we'll be making -- I'm sure we'll be making some changes as we go along.
Okay. Well, I'm 00195 03/24/03 - Committee of the Whole glad to hear that.
Councilman, if I might be responsive to an observation made earlier, this is a budget that was prepared against a backdrop. And that backdrop, again, is the fiscal and financial realities that we confront, a Harrisburg situation, and so on; and an economic, I dare say a war-time recession that we are in. We would be remiss as budgeteers and as reformers to not put on the table the tightest budget that we possibly could. And being a great respecter, as I know you are, and I am, of a solid budgetary process that is iterative, and I underline that again, it is iterative, that we would look at every... every line item. A year ago you said to me, in order to get $45 million you're going to have to do some things that are responsible. And we did those. We cannot come to you in the second year not having looked at that. Now, you know and I know that there are different ways in which to perform a given function and to vest the responsibility for that function in wherever the supervisory role should 00196 03/24/03 - Committee of the Whole be. If you would like us to supervise those individuals, that's something that we can do. And we're willing to be open to that. But with that comes the ability to establish the accountability measures. Part of those accountability measures could also include, perhaps, even outsourcing, that if the School District is responsible for it. Otherwise, there is also the possibility of moving the responsibility and the fiscal responsibility for that group of individuals to another place. We're willing to discuss that. But again, we cannot be remiss and bring you a budget that is not responsible. And that's what this reform is about, in part, fiscal responsibility, which ultimately redounds to the benefit of the children.
Thank you. And I do appreciate that. And I would only encourage you to have continued discussions with Chairman Glancey and the people over there, and just get a better understanding of what's going on.
I do want to ask in that same area -- And this is from . While I did notice the elimination of the 85 positions from the Board of Revision of Taxes, I notice that you have maintained funding support for the ten positions over at the City Controller's Office. Can you explain to us the difference?
Yes. Right now they do provide us with auditing services. And our feeling was, it was cheaper to have those auditors there providing us with services directly, rather than providing the services -- rather than outsourcing those services. So in looking at those positions, those positions do have a direct impact. There are a number of auditing functions that we're required to perform. And since we have ten working auditors who at least have some familiarity with the system available to us, that we would put together an auditing schedule that would help accommodate our needs.
Councilman, I would also add that under the Home Rule Charter, it's 00198 03/24/03 - Committee of the Whole our understanding, obviously, that the City Controller has the responsibility and the duty to be our auditor. So to that degree that they have that official role, we felt that --
I understand. I'm clear on the Controller's role. Mr. Vallas and Mr. Harris, unfortunately for you, the Chair is going to allow me a fair amount of leeway for a few other questions that I have. Fortunately for you, after I ask those questions, I'm going to leave. I will come back, and if you're, unfortunately, still here, I'll ask you some more questions. Mr. Harris, let me ask you in the big book on Page VI-2.
Yeah, or I guess in the front. I guess technically that's Roman Numeral VI-2. You have in the first line item there estimated 2002, 2003 for real estate tax current, $447.9 million; is that correct?
Okay. And is that what you're still anticipating receiving in the current fiscal year?
That is our current -- Yes, that is the most updated understanding we have that we will get both -- It's consistent with what we -- the information we have from the City who we rely on for these estimates.
Okay. Do you know what the impact of this year's round of appeals from the real estate assessments will have on that particular figure?
Okay. You're anticipating a $12.7 million increase in revenue from the real estate tax --
Okay. And that represents a 2.8 percent increase over the current fiscal year. 00200 03/24/03 - Committee of the Whole
That's correct. And again, Councilman, that's -- the information is garnered from and consistent with what the City has provided us.
Okay. Well, the reason I wanted to ask you about that is that on the City's budget and brief book on , the City is estimating that real estate revenues or revenues from the real estate tax will grow by 2.4 percent. Can you tell me why you're estimating at 2.8 and the City is estimating at 2.4?
Oh, this is -- contains -- This is off of current and delinquent.
Councilman, I'm being informed that this reflects the actual receipts that we have in hand. And we will go back and look at the five-year plan. But my understanding is that this is consistent with what the City has put forth. 00201 03/24/03 - Committee of the Whole And that was the information when we put it in the book. But I will go back and over the evening we'll look at it.
Okay. Well, when you say consistent with what the City has put forward, from what document are we talking about?
We were talking from the City's budget document, but also I think it's informed by conversations that my staff has on an ongoing basis with members of the City's Revenue Department and Budget Office. And I will confirm that for you as soon as I can.
Okay. Well, again, I would... At least from the document that I'm reading, which is the City's operating budget and brief, if you go to , you're going to find the City operating those revenues at 2.4 percent growth. So I'm just trying to understand the difference between.
I will find that for you. But I assure you we're not intentionally inflating, because we don't have the -- we're not privy to the information of what has gone on in the real estate tax. 00202 03/24/03 - Committee of the Whole I mean, we have to rely and historically rely on what's happening at the City and the Revenue Department.
Also, when we make our estimates, they're not finite estimates. We have conversations with finance people. We have conversations with the revenue collecting agencies. So we are going to make adjustments. A 2.8 versus 2.4 discrepancy is -- Well, it's not -- You know, it's not that significant a discrepancy. But a lot of times what we will do is, we are updating our five-year numbers consistently, based on new information we get on Federal grants, new information we may get on actual property tax revenues, new information we get about perhaps lawsuits or litigation that is being brought against the City. So a lot of times while we will base our estimates on a specific document, those estimates may be fine-tuned and modified along the way. In the event that revenues increased at 2.4 percent, as opposed to -- as compared to 00203 03/24/03 - Committee of the Whole 2.8 percent, the minimal impact on their budget obviously would be absorbed, because it just means you would take a slightly, slightly larger amount from the deficit financing bond reserves. So obviously, it wouldn't have any significant -- any major -- any significant impact on this year's budget. But obviously the way it plays out three or four years down the road is obviously of concern. That's why we budget in five-year cycles, as opposed to just simply coming out with a single-year budget document.
I understand. I just want to make sure that we're accurate on our numbers. They become important as, you know, we enter into discussions about tax rates, tax revenues, and tax receipts, and tax caps, and a whole host of other things. And so, I also want to make sure that the number in the book -- And we can clear up the 2.4 versus the 2.8 percent discrepancy. But you're building a budget around the expected receipt of presently $460,724,000, is that correct, from real estate taxes?
And that's what you're expecting in the next fiscal year; is that correct?
That is what we currently have as projections at the time this book was printed.
And that is notwithstanding appeals and a whole host of other issues. That's what you would like to receive, and that's what you've built a budget around; is that correct?
Okay. And do you have any expectation to receive more than that in real estate taxes?
Again, I think we need to go back and look at the information and make sure that we have the most accurate information. And certainly the proposed budget -- And by the time, as Paul said, by the time we have a final budget approved, this number may change, so I cannot say today that I know exactly the 00205 03/24/03 - Committee of the Whole $460,724,000 will be the number that will be in the final budget that gets presented to the SRC. We will continue to refine the numbers, both on the expenditure side and the revenue side, over the next seven weeks.
Well, the reason I ask is... I mean, obviously, as you can imagine, it is important for us to know what the actual number either is or ultimately will be, as the City has multiple responsibilities, as it relates to taxes, and the impact of tax rates, and tax assessments, and any ability that we might have to maintain the population we have and not drive people out of the City because of excessive, exorbitant, outrageous assessment increases. Now, the School District and the City, to some extent, have been the beneficiaries of the fact that the City of Philadelphia has not changed its tax rates in the last eleven years. And so, you give us a budget which we don't approve, we reauthorize the taxes, you pass your budget, the assessments get done in the summer. Actually, some of that work is done by the assistant assessors that you're now proposing 00206 03/24/03 - Committee of the Whole to eliminate. The numbers come back, and you actually get more than you budgeted. And then, at least in our most recent experience, we then have to fight about: You're trying to get the extra that comes as a result of an assessment process that you have nothing to do with; and the citizens end up paying more because we don't change the tax rates. And we have in the most recent situation a fight about what most of us would refer to as a windfall that the School District and the City enjoy the benefit of, while the taxpayers have no one to turn to because we never changed their tax rates. So now I want to ask you: We have a certain tax rate, City and School District. And let's say that next summer the assessments come in at whatever they come in. And if the rates are adjusted to reflect the assessment amount times the rate, and that generates $460,724,000, are you going to be satisfied to get what you put in the book?
Well, let me respond by saying that obviously when you're facing a $65 00207 03/24/03 - Committee of the Whole million reduction based on anticipated budget receipts, and while it's uncertain just what course Harrisburg is going to pursue, you're always reluctant to -- You know, you try to budget conservatively. But obviously, if there's more revenue available, that will certainly give you additional options on perhaps restoring some of the things that you've identified as perhaps being controversial. The bottom line here is, we think that we've, you know, estimated conservatively what our revenues are going to be. And we think that we're certainly cutting -- You know, this is a School District that from now until since last year has eliminated over 1,000 positions. And by this time next year we'll be 1400 positions down from where we were two years ago. So we certainly think that we're budgeting conservatively. And we certainly think that we're doing all that we can to downsize the District --
I understand that. 00208 03/24/03 - Committee of the Whole
I understand that. I'm not questioning that. What we're talking about --
-- is the nature of the relationship between the taxing entity, which is us.
And the people who have to pay the tab. Now, if you need additional funding, the question is, are you asking us for an increase in tax rates? Because that's the way that you provide additional funding, not by way of a back-door tax increase by never touching the rates and taking advantage of increasing assessments that people can't necessarily pay just because the value of their home went up. So are you asking us to change the tax rates upward to generate more revenue?
Not by taking advantage of a system that is broken and never changing the tax rates. So you're saying that you have a deficit, but you're not asking us to increase the tax rates; is that correct?
No, we're not asking that the tax rates be increased. We need to live with what the assessment base generates in additional income.
Okay. If the assessment base is reflective of the budget that you put forward.
Yes. And if it's not and if it generates less money, then we will make the appropriate additional adjustments that need to be made.
All right. I understand that. And we would have some responsibility to deal with that ourselves. But what you've said to us is, what, four sixty-seven 00210 03/24/03 - Committee of the Whole twenty-four is the number, or it might be some other number, based on what happens in Harrisburg. You understand that I am now on a mission to eliminate the back-door tax increase, that you get what you ask for, and not then seek to get extra that no one planned for. You pass a budget, we pass rates, the whole assessment process takes place after the fact, and then there's this scramble --
-- to get the extra that no one budgeted for that, that no one approved, that no one voted for. Now, that's wrong. And it's not a true representation to the taxpayers of this City, that when we approved the budget for a certain amount, the assessments went up, which they had noting to do with, which you had nothing to do with, none of the numbers changed, and everyone gets to be the beneficiary, while the rest of us sit around and say: Well, it wasn't us; it was somebody else that did it. If you need more revenue, come and 00211 03/24/03 - Committee of the Whole ask us for more revenue, but don't get it in the back door. That's not personally directed at you. It's a system issue. It's been here for a long time. Some of us believe that it is wrong. I just want to make sure that we give you what you ask for but no one is getting over on the taxpayers to get a little more because of quirks in the system or refusal to step up to the plate and say: They need more; let's give them more; and do it up front. That's the issue.
So whatever the number is, I want to make sure that that's the number. I don't want to hear another number later on. I don't want to have this fight again during either the fall or next spring about what the true needs are, and that -- and you to say, we'll we have had this conversation -- that, you know, pencils are going to be taken out of our kids' hands; and lunch is going to be cancelled; and no more recess; and, you know, books, you know, won't be able to go home because: Oh, my 00212 03/24/03 - Committee of the Whole God, they're actually trying to exercise budget restraint and not tax people out of their houses.
All right. And let me point out that I have never said that, nor will I ever say that.
My one reservation about -- or my two reservations about these type of initiatives -- And I'll be honest: We've been very low key in laying out our position on these issues. But I've had two reservations. And that is, first of all, I feel that the whole issue of property tax reform is a comprehensive issue that hopefully the Rendell Administration will begin to address, because it when it comes to education, it is a -- you know, it is a product of, you know, our tax funding formula that is far too dependent on local property taxes. So we want to be in a position to help move Governor Rendell's initiatives along. But I also have a concern, and I -- And I need to point this out. Our concern is always when we go to rating agencies, for a School District that has 00213 03/24/03 - Committee of the Whole no bond rating, but -- from one agency and doesn't have an investment grade bond by another, and we lay out our plan to issue school construction bonds and to restore credibility to the system, believe me when I tell you -- And once again, you know as well as I do that these rated agencies always look at issues: Property tax caps, proposals to limit property tax growth, proposals to freeze property taxes. It is a constant issue. So for us to take a position of support on an issue like this, at the same time that we're trying to restore public confidence or I should say financial institution confidence in the credibility of this system's financial plan, puts us at a disadvantage.
Look, I'm not expecting you to host a parade or declare a holiday about it. I think it's a partnership issue. I mean, I want the School District to be as fully funded as the next person.
I want it to function and operate. You know I have a child in 00214 03/24/03 - Committee of the Whole the system. I'm not doing anything that negatively impacts what goes on in the School District.
All we're asking or some of us, at least, are asking is there are multiple constituents.
As we care about the children in these schools, we also have to respond to their parents, and many other people who for whatever reason, either their kids are grown or whatever their status in life is, who don't have kids in the system, but who are paying the tab, are trying to figure out: How do I do this. I want to support public education as well. I'd still like to live in my house. So therein lies the balancing act. And I think through true partnership and the spirit of cooperation that you have demonstrated, we'd like to come to some rational conclusion about this. And as far as the Governor's plan is concerned, which I support, I think the property 00215 03/24/03 - Committee of the Whole tax issue at the moment will not necessarily touch Philadelphia. We have an even worse circumstance in tax, which is the Wage Tax...
Which is far more onerous in Philadelphia than the property tax is, especially compared to the other 66 counties in the Commonwealth of Pennsylvania. Because they have been doing what we refused to do, which is they actually have changed their tax rates upward, and they're driving their constituents out of their minds. They don't have a wage tax or anywhere near the kind of tax that we have here. And so I believe the Governor's plan is the right plan. We should be taking those additional dollars and reducing the Wage Tax. But that doesn't help us on the property tax side, which is a local issue, which I believe we have local solutions to that particular problem. But we don't want to do it in a vacuum against the interests of the School District.
I want you to be able to float as many bonds as you want. I want you to be able to convince Fitch and S & P, and whoever else you have to talk to, this is what we have; it's secure; we know what we're doing; it's not, you know, the wild west down here and that everybody's running around doing whatever they want to do. But that comes from the partnership and the conversations --
-- and the kinds of things that Mr. Nevels was talking about that we did last year. We were very surprised that we were able to do what we did last year on the deficit financing and get it done in a way that, in essence, one question was asked. It saved the School District $248 million in debt service payments, because the original deal was $300 million for 30 years, $750 million total cost. We asked one question: Can't you cut the length of time for the payback? And Mr. Nevels and the attorneys and 00217 03/24/03 - Committee of the Whole other people worked on that total cost I believe is $502 million. That was one question, $248 million. That ain't bad for a day's work. I think if we work on these kinds of things together, we'd actually be able to get some stuff done to not only help the kids, but not drive either their parents or other taxpayers out of the City. Two last questions. If you can get to us a complete list of the details on either capital improvements, new construction, and rehabilitation for all of the buildings, and for most of us I think it will be helpful if it's done in a district...
District by district, so we can understand it, and naturally the entire list is made available for all of our colleagues who are Members-at-Large.
That list will be specific for really the first two years, but more generally --
I understand. Last question: Act 46, and I believe it's either 00218 03/24/03 - Committee of the Whole a cousin or a nearby relative, I believe is, was that Act 87?
88. Okay. I was close. I'm not sure what 88 was. In the current environment, and I think most of us are now willing to acknowledge that actually Act 46 resulted from some decisions that were made a number of years ago about how the District was going to function and operate and basically run it, until it ran out of the money. And the legislature responded to that, and Governor Ridge at the time, as a result of which is Act 46, subsequently Act 88 which --
-- the result of which, I think, is many of you sitting at the table today, passed in an environment where people were not really talking at all, seemingly, with each other, but at each other. There were questions about the fiscal sanity of the Philadelphia environment and how all of this was functioning and operating, but also placed significant restraints, I believe, in 00219 03/24/03 - Committee of the Whole our ability, as one of the taxing authorities responsible for the School District, to do some things similar to what we talked about with regard to property taxes or other taxes because of Act 46 constraints. Do you have any opinion at the moment, given the changed political environment and a little bit of the changed fiscal environment, especially with Governor Rendell's proposals, about the need for Act 46 or some of its constraints in the current environment?
Well, let me respond by saying, when we've made our quiet case for our reasons why we're concerned about, obviously, legislation, particularly with the tax base, we've really never evoked or used a reference to Act 46. I certainly think, given the environment that -- you know, I -- you know, I would -- you know, I would not see Act 46 as an obstacle. Maybe other people would. But I would not see that as an obstacle. The only time I've -- The only time I've cautioned restraint is because, obviously, of some of the larger capital and bond rating, you 00220 03/24/03 - Committee of the Whole know, issues more than anything else; but, no, it's never been a big issue for us. You know, we've always felt that there's a way to get around Act 46 if a -- you know, if a compromise is reached with all parties on some sort of property tax limitation. Because again, you know, Act 46 focuses on the base number, not the initial -- The proposals that have been put out have been proposals that have talked about increases and extensions. So I don't see where Act 46 would have any applicability to any of the proposals that you've been putting forward. I certainly don't see Act 46 as an obstacle to any of your initiatives, Councilman.
Mr. Vallas, it may come up as a part of the conversation with regard to the Governor's proposal on property tax revenues or property tax relief from the legislature, winding its way through the system and somehow coming over to us. I don't think we know all the details of that yet.
But if the issue of millage rates becomes a subject of discussion, in terms of transferring property tax relief dollars back over to the City for Wage Tax reduction, we may potentially run into an Act 46 issue.
I'd just like to put that on the radar screen for the moment. Again --
-- I would say in the current environment there's probably not necessarily a need for Act 46, given the fact that I think we have resumed, from a public policy standpoint and a fiscal standpoint, some enhanced level of sanity about how the system is going run and what --
-- and whose going to fund what, and who's going to do what, and who's not going to do what. But on that particular issue I am concerned about Act 46.
You're welcome. The Chair recognizes Councilman Rizzo.
Thank you, Madam Chair. Mr. Vallas, I'd like to go back to the Zero Tolerance Policy. So I understand, a student is a discipline problem in a particular high school. In your testimony it says, to date the District has placed more than 850 students in alternative schools -- in alternative school placements as a result of discipline re-assignments. And I mentioned to you that I've gotten calls and also from teachers that are telling me that kids are winding up leaving one school and not going to an alternative environment, but going to another high school. And they find out when this student arrives at this other high school that this particular 00223 03/24/03 - Committee of the Whole student had a very serious problem at another building.
My question is -- And you indicated that parents go to another school and get them enrolled without the knowledge of the principal. How could that be? I mean, don't you have communications within your organization --
-- that when a student goes to another school, that before that child is admitted, you know that's -- that's -- that's the red flag that I heard in your testimony. But why would they even be going? Why would they be placed in another school, rather than -- you mentioned bursting at the seams of the alternative environment.
-- are being moved from one high school to another and not to an --
Well, I think my response -- Again, let me restate the point -- is that we've expelled more kids than any other School District in the country.
But let me also respond by saying, these are the exceptions, not the rule. In a system this large a system that is just getting used to a tough discipline policy, sometimes certain kids are going to fall through 00225 03/24/03 - Committee of the Whole the cracks. And as I mentioned the first time -- the first time you -- you asked me these same questions, what we -- what we -- As a matter of policy, we do not want intra-school district transfers. And when they occur and when parents bring them to our attention or when principals bring them to our attention, we take the appropriate action. Now, let me tell you: Just the other day it was about -- actually about two weeks ago, I got a call from a reporter who said that kids are being transferred from one school to another, and they cited four cases. Okay? So I had all four cases investigated. In at least three of the four cases there was a rational explanation. In one case, the student who returned to her school had been adjudicated as -- by the hearing officer as basically not committing an offense that could justify the expulsion. In the second case the student was, in fact, the victim 00226 03/24/03 - Committee of the Whole In the third case it involved a student who had actually -- who had gotten in a fight with students, who had been disruptive, because the student in effect was -- was -- had certain problems. He was -- Believe it or not, the student was a bed-wetter, and kids are harassing him and hassling him. But in the fourth case, there was a gray area. This involved a student who was expelled because through the Zero Tolerance Policy it was discovered that the student had a nail filing object, a sharp object. And the student made the case -- had made the case to the principal that -- that -- and the parent had made the case that -- In this case the student -- This was the sister's backpack or whatever. And the student had decided that to readmit the student. So a lot of times when we get these cases, usually in the majority of cases there's a rational explanation. Now, that doesn't mean that things don't fall through the cracks. That doesn't mean that there aren't exceptions to the rules. 00227 03/24/03 - Committee of the Whole I've asked Gwen Morris, who monitors our programs and responds to these issues and initiatives, to articulate what the process is. But generally, what we tell principals is if there are concerns about students who are showing up at their doorstep asking to be transferred and they communicate it to the regions or through us, we will take appropriate action; and that when in doubt, don't allow the student to transfer. And I've been more forceful in that the last five or six weeks, because -- because this has been a concern that perhaps some of the intra-district transferring is still going on. But what we also do is, obviously, working through the Safe Schools Advocate, who sends me e-mails constantly, and working through our own Bully Hot Line, you know, we get calls with regularity about parents who are concerned about disruptive kids. And what those calls -- Those calls are processed. And we respond to every single one of these calls. I'm going to ask staff to provide you and the Committee tomorrow with a breakdown in 00228 03/24/03 - Committee of the Whole detail of all the disciplinary actions, and just with kind of a standard procedure; just, for example, what we did last month, in terms of expulsions and responding to calls that we received, such as the calls that -- that -- that you've raised about parents who have concerns. But I would say one thing, and it's really important to say, too, is: In this environment of much tougher discipline policy, look. I mean, I met with... You know, Arnold Schwartzenegger came to our schools the other day. And they were referring to us as the two kindergarten cops. Okay? So it's not like -- It's not like -- We've gotten hit on both sides for being too aggressive and not being aggressive enough.
But in this day and age, in a lot of circles, the assumption here is that we're going to have automatic expulsion. Automatic expulsion. A kid's a problem, let's -- The kid's got to get out of school. Find another school for that student to attend. Part of this problem is going to be addressed by us making sure that we have tougher 00229 03/24/03 - Committee of the Whole in-school discipline policies, and that schools are dealing with the students at hand. Because one of the things that's emerging very clear in many of the high schools is, number one, the old district never wanted to expel anybody; but also, number two, there was always this eagerness to simply transfer the problem somewhere else. So we're going to have to cope more effectively with the students in the schools, too, because we simply can't transfer everybody. But let me ask Gwen to take you through the process.
Gwendolyn Morris, Executive Director of Alternative Education. The one thing I do need to clarify. We have expelled over 800 youngsters, not the Act 88 youngsters this year. And quite often some of those cases that are referred from high schools are cases that do not rise to the level of what we consider Level 2 or an Act 26 offense. So, upon review and by our Office of General Counsel, we sometimes do return some of those to the same school because it is an incident 00230 03/24/03 - Committee of the Whole that does not rise to the level of dangerous. Sometimes youngsters misbehave. Sometimes youngsters may commit infractions. But remember, Act speaks specifically to dangerous 6 behavior, weapons, drug possession, and so forth, 7 and so on. 8 And as Mr. Vallas said, we do 9 respond immediately to occasions where youngsters 10 have been moved. 11 When Mr. Vallas came, he said: No 12 lateral transfers. And to my knowledge -- to my 13 knowledge, those have not occurred. 14 However, we do have some individuals 15 who, within their own schools, move kids from 16 school to school. And when we discover that, we 17 typically respond to that appropriately. 18 The system does allow youngsters to 19 move from school to school outside of the regular 20 transfer process, youngsters may have created a 21 problem in a previous school. 22 When the receiving teacher 23 recognizes that this youngster has been moved for 24 disciplinary reasons, they typically will put us 25 on notice, either through a letter to Mr. Vallas, 00231 03/24/03 - Committee of the Whole quite often, or to myself, or to Dexter Green, our Chief Safety Officer. We try to respond immediately to those particular issues. We did have a number of requests From high schools that, upon review by Office of General Counsel, those youngsters offenses did not rise to that level. And those youngsters were assigned to the Saturday Detention Program. So in that case that youngster will remain in that particular school and will be assigned to the eight-week Saturday Detention Program, along with their parents' involvement. So there are a number of ways youngsters are moved. But typically in terms of the expulsions, those serious offenses, serious assaults, guns, knives, those kind of things, those youngsters are moved.
Thank you. Thank you. Mr. Vallas, Just one other observation. The Truancy Program...
Your Chief, Dexter Green, does a great job and... But I would 00232 03/24/03 - Committee of the Whole like to understand better the role of the School District Police. I've had the -- I've had the Police District Commanders tell me that on occasion they've seen kids congregating in a particular area. School District car go by. Just keep going.
Are we making these observations -- Are the School District Police that are mobile making these observations? And if they're not, they should be, and taking an action when they see kids on the street that should be in school.
And another issue, Mr. Vallas, and it's just a housekeeping issue --
-- and I'll say it all in one breath. There's a lot of confusion about the school safety signs, the yellow flashing lights, whose responsibility. I've recently called a particular school, and the principal's 00233 03/24/03 - Committee of the Whole office, assistant principal, weren't aware of who is responsible for the maintenance of those lights, especially if there's a power interruption and the timers need to be reset. Couldn't the School District Police -- Couldn't the School District Police also be responsible if they see these things malfunctioning, not to have the parents of the students have to call a Council Office to say that lights are on at 10 o'clock in the morning instead of 8 o'clock in the morning? Couldn't some of these observations of deficiencies be noted by the School District Police and dealt with? And I think you need to communicate to the principals who's responsible for what. I mean, if they believe that PECO Energy is the responsible party to get a timer changed at a school area -- at a school, obviously they don't know, especially when it's at the principal's -- that's the response from the principal's office.
So I'd appreciate 00234 03/24/03 - Committee of the Whole maybe communicating --
-- that information and having the School District Police, when they see these lights not functioning properly...
The City spent, School District spent, Archdiocese spent a lot of money in installing these lights. And if they're not performing at the appropriate time, we might as well -- we shouldn't have even put them up.
Well, let me respond by -- All good points. Let me point out that the security personnel are supposed to, any time they identify kids congregating, they're supposed to take the appropriate action or make the appropriate notification. Any time signs are out or is there is a safety issue, they're supposed to report that. Some are more aggressive than others at doing that. So, the Safety and Security as a rule are supposed to report those things. 00235 03/24/03 - Committee of the Whole That doesn't mean that we get everybody reporting in an aggressive way. We'll make sure that we remind Safety and Security what their functions are, what their responsibilities are. But once again, as always, we get -- For example, we get inquiries about Crossing Guards on a daily basis. Even though we're not responsible for the Crossing Guards, we will contact the Police Department and try to get Crossing Guards shifted around. We get inquiries about the absence of stop signs at certain corners. What we'll do is, we just won't say that's not our responsibility. We'll contact the appropriate Street Department, and sometimes we'll try to negotiate or get a stop sign installed. It's the same thing with these signs. Even though the signs are on school or around school grounds, and even though I think Streets and Sanitation has the responsibility to maintain them, it's still incumbent upon us. (Inaudible voice from the audience.)
They're not? We are. 00236 03/24/03 - Committee of the Whole Okay. So you do it. Then how many requests do you get a day to do or a week? (Inaudible voice from the audience.)
Okay. All right. Well, I've just been corrected. Basically, it is our responsibility. And what I'm being told by our operations people is, we get inquiries regularly from priests -- from priests -- from Council people and principals. But we'll make sure -- We'll get a directive out to all of our Safety and Security personnel as well as the principals just reminding them what the process is for funneling those complaints, so that there's no confusion over who has responsibility.
Well, that's great to hear. And thank you, because you are, and I describe you as, a very -- You're a nuts and bolts guy. And I like the fact that you --
Yes. And like Daylight Savings Time, I guess, is a few weeks 00237 03/24/03 - Committee of the Whole away?
Well, a lot of the principals say that the schools' closed by the time they get the lights adjusted to compensate for the hour of change.
It would be a tragedy to see -- It would be a tragedy to see an accident occur.
There's power interruptions that throw these timers off. So my point being, that when you call a principal's office --
-- and they don't know what they're supposed to do, that's kind of discouraging.
The same thing on the discipline policy. I will once again reiterate, through the schools and regions, about what the intra-school transfer policy is, so that there's no confusion. I did it earlier. I think it was about a month and a half ago, when I had concerns that there were still -- Well, after the -- after the inquiry by a number of people in the media about intra-school transfers, even though most of the complaints were not validated, I said we need to remind the regions and the principals that if a student is just jumping into their school, they need to have -- and they feel that that student is being transferred for disciplinary reasons, we need to take the appropriate action. It's in our interests to limit the 00239 03/24/03 - Committee of the Whole number of intra-school transfers anyway. The bottom line is, we want to slow down and reduce this mobility rate, and -- But we'll make sure that we send another directive out, clearly stating about the prohibition of transferring students for disciplinary reasons.
My last comment, question, is the parent truant officers. Do they report to the principal or do they have any interaction with the school police?
They have interaction with the school police and the principals, although they are assigned by region. Now, some of the regions have elected to designate certain parent truant officers to work with individual schools. Now, the reason that they're working at a regional level is, there aren't a lot of them. I mean, 250 parent truant officers, but 264 schools. We're hoping to double the size of the program next year, and then we will begin assigning them to individual schools. Let me make one more point. In 00240 03/24/03 - Committee of the Whole hiring the parent truant officers, we elected not hire them directly ourselves, but to go through community based organizations. The reason being was, many community based organizations, like PAN? PAN and others were already in this business and doing these things. But those community based organizations work out of the regions. But in some cases, like with espirit, for example, their parent truant officers are almost assigned to individual schools. So we're refining the program. And we hope that as we expand the number of parent truant officers through -- and we're looking at expanding the number of community based organizations who do it, the parent truant officers will spend more time working with individual schools, as we move forward.
I'd just like to follow up for 30 more seconds, Madam President. I'd like to ask Dexter Green... We on occasion -- I on occasion get complaints about vehicles speeding through the school zone when the 00241 03/24/03 - Committee of the Whole lights are flashing. Are the School District Police, the Police Districts are spread pretty thin right now with Operation Safe Streets and other commitments. Are your police allowed to enforce speeding through the school zones, like perfect example: Saul School on Henry Avenue. There's signs there, miles an 10 hour. Well, to many of the motorists, that means 11 35, instead of 55. And it's a posted 35 area. 12 Could the School District Police go 13 out there and at least make a presence? Just show 14 your car or show the police, to maybe slow these 15 folks down?
We can make a presence. Currently, we're not able to write the tickets. But that's something that --
We're not allowed to write the tickets, but that's something that could change. I mean, we have -- My folks have police powers, but that's not one of the powers that we went after. 00242 03/24/03 - Committee of the Whole
I think even your -- If I requested a presence to have a car during the school --
Just your presence alone. You know, they put the empty police car on the Atlantic City Expressway.
That's right. We'll put the little dummies in the cars, the little crash dummies in the cars.
All good ideas. 00243 03/24/03 - Committee of the Whole And -- And -- And -- And -- And I will tell you, we have taken the initiative. We're going to try to step it up to another level next year, of actually closing off critical streets that students have to cross, with the horses. And it's really something we want to do on a much more massive scale, particularly during the times that schools are opening up and schools are closing. Because you're right: A lot of our schools have no campuses, and the kids have to walk. You know, there's a lot of traffic in front of the buildings. Obviously, we won't close off Broadway --
All right. The 30 seconds has been up a long time ago.
Thank you. I don't know whether it's Councilman 00244 03/24/03 - Committee of the Whole Cohen or Councilman DiCicco who wants to be recognized. Who is that? Is that Councilman Cohen?
Those lights are on. You have your light on and you have Councilman DiCicco's light on.
Yeah. Well, the reason I'm sitting here is that hearing at that end is a bit difficult, and hearing here is much better. And that's the reason I switched my seat in DiCicco's absence. Also, it's nice to be thought of as maybe looking like him, since he's maybe two years younger than I am. (Laughter.)
First to Mr. Nevels again, I always try to bring you in to make sure that you're fully occupied. Tell me, sir, how would you define the role that the School Reform Commission plays, in a way which would tell us why it's necessary to take away control locally from the people of Philadelphia. 00245 03/24/03 - Committee of the Whole What does the School Reform Commission do that a School Board composed from Philadelphians and appointed, say, by the Mayor in the usual fashion... What can you do that the old School Board couldn't do? As you see it. You've seen them in action. You replaced them. Tell us what you offer the people of Philadelphia.
I believe what the School Reform Commission offers, Councilman, is the enumerated powers -- the exercise of the enumerated powers under the law. And that includes the ability to have -- the ability in the past to have terminated some contracts, to have made some of the sweeping changes that you and I talked about last year. I know that there were some concern and some questions as to the efficacy of the School Reform Commission doing that. But that's one of the -- But those powers that are set forth in that legislation makes for a more powerful, if you will, body to serve the City of Philadelphia and to serve its children.
But was there 00246 03/24/03 - Committee of the Whole anything inherent in the lack of powers of the old Philadelphia School Board to prevent them from having done it? They issued contracts. They made decisions the same way you did.
I think that there was a slight difference, I think that the --
Sure. I believe that the prior School Board did the best job that it possibly could. But I think that one of the things to keep in mind is that there was a partnership between the Mayor, the Governor, and the General Assembly, that believed that the creation of the SRC with its staggered terms, with the -- appointed by -- the use of the appointed powers of the Mayor and the Governor to have five individuals who were independent is, in fact, something that allows -- and a being a smaller body, as well, allowed us to be in a position to be a little bit more managerially nimble than the larger School Board. But I would defer to Sandra Glenn, who has served on both bodies. 00247 03/24/03 - Committee of the Whole I mean, the other thing is --
All right. I just wanted to make clear that in my judgment -- and the case is now before the Pennsylvania Supreme Court -- I regard as absolutely essential to a Democracy the right of the local community to make the final decisions with respect to the kind of education their children should have and who should have the responsibility. And for that reason, I will be continuing my efforts to displace you, unless you're named by the Mayor as a member. I would have no objection to that. But I do have objection to the State claiming to be better able to run the Philadelphia School System than Philadelphians. So I understand your position. I know it's difficult. And I do commend you, as I did before, on the selection of Mr. Vallas. That's the one action I know that you did that was very good. But I thought Mark Shed was very good, but somehow he didn't seem to have the ability that Mr. Vallas has to put everything 00248 03/24/03 - Committee of the Whole together. And I thought we've had a good line of Superintendents since the days of Richardson Dillworth, when he took it on, and we all thought he was crazy after he was Mayor, to take on that job. And he did it very effectively, but still was not able to put the pieces together in the same fashion as Mr. Vallas has. But I appreciate your position. Mr. Vallas, tell me, in all the debates recently about public education, I believe we're living kind of in a surreal world. We no 14 longer talk about the importance of income to a family. We no longer talk about the supportive family structure. We don't talk about the fact that low income people, where the kids may not be able to get a breakfast in the morning -- We expect everybody to perform at the same level and to respond equally to the fine efforts of the teachers and school systems, even though they begin at such different points of view. Tell me in your judgment, is it that 00249 03/24/03 - Committee of the Whole the winds of repression and conservatism have so enveloped the situation that nobody in recent years has ever discussed, well, you know, we ask the schools to do impossible things. We ask the schools to educate --
-- just as well the child of an impoverished single mother, who maybe lives on welfare, and who may not even have enough money for food and often can't send the kid to school, because you know in Philadelphia you have to pay transportation costs. And SEPTA, even though it's a public agency, doesn't care at all about the fact that families often have to decide that this week Johnny goes to school, next week Mary will go to school because we can't afford to buy two tokens, you know, to send them both to school at the same time. Nobody even mentions that. Nobody mentions the fact of the huge unemployment that exists in the minority community, and how difficult it is for parents to give supportive services to their children, with respect to the school activities, when they're 00250 03/24/03 - Committee of the Whole worried about managing to put enough food on the table. And sometimes they don't get enough food to put on the table. Tell me: What has happened in the world? Do we really think we can develop a school system that through its own services can equalize those conditions? I'm wondering about that. Or am I wondering, am I the only what I call Roosevelt Democrat left in the world? Nobody -- You Know, so few people talk about these economic conditions. And yet it seems to me we expect from the school system something that cannot be achieved; that, in addition to the fine things you're talking about doing -- and I think they all deserve support -- I think we've got to talk in terms of how do we get more employment. And along that line, I think we have a very practical approach. We've had testimony in other hearings here about the building trades. Seems to me the construction industry offers the potential for many jobs to the minority community. We talk about vocational schools and their importance. We talk about 00251 03/24/03 - Committee of the Whole training them for real jobs. We have all that in the construction industry. We spent years in the construction boom, and the number of minority members in the union that get work are about the same level when I fought in support of the Philadelphia Plan 35 years ago, and nothing much has happened. The same terribly low rate of minority employment exists today as existed then. So why doesn't the school system say, the real people who ought to operate these apprentice schools, that the... building trades unions, various kinds: Cement masons, sheet metal workers, builders, carpenters, electricians, at least those four. There may be many more apprentice schools, all supported by government funds. Why shouldn't that be run by the school system? Because then you would have real training. And then there would be a democratic way of movement from training education, into an apprenticeship program, into membership in the union. And then we would begin dealing with 00252 03/24/03 - Committee of the Whole the problems that will make the whole school system work. What would your thought be about that? And how can we begin provoking discussion saying: Look, we're limited in the school system until we correct the housing, until we correct the economic situation. We're limited in what we can do. Because seems to me otherwise we're just kind of smoking pot. Maybe we're doing it legally. But aren't we living in a world of imagination if we say it doesn't matter whether you're poor, whether you eat or don't eat, or whether your parents can afford to send you to school. The schools are going to perform miracles. What's your thought about that, sir?
Well, let me respond by saying that my job has been to come here and not make excuses. And in other words, to not come here before the City Council and to say: Woe is me; I can't do anything unless Harrisburg gives me more resources. I mean, I'm absolutely -- I'm genetically programmed not to do that. I can't help it. There's a genetic chip malfunction somewhere. But if there's a problem, we fix it. 00253 03/24/03 - Committee of the Whole Now, there's no one who's worked more aggressively, both at the local level and at the national stage, for school funding reform. Many of the reforms we instituted in Chicago changed the whole dynamic about inner city schools. If you remember in 1989, 1990 Bill 9 Bennett coming through Chicago and saying, it was the worst school in the nation. Let's voucher the entire school system, public school system nationally. And then in '96 he showed up saying that many things in Chicago, that we were doing in Chicago, could be a model for the rest of the nation. I mean, six, seven years ago they were debating whether or not a department of education at the federal level should even exist. Now in the last Presidential election, Gore and Bush were trying to outdo each other on who was more pro on education. Now, am disappointed that the education budget equals the cost of maybe two aircraft carrier groups? Yes, absolutely. I 00254 03/24/03 - Committee of the Whole mean, we don't invest as much in education. And it's the greatest civil rights violation that this country has experienced, the fact that it does not provide all children with equal opportunities to education. And we're going to be as aggressive as anyone, both lobbying both the State and Federal Government, to get them to do more. And when the Governor presents his ambitious program for it, and he moves forward with his initiatives, we're going to be as aggressive as anyone lobbying for those initiatives. But that said and done, there are two schools of thought. One school of thought is, you cry poor and you ask for more. But that's like crying wolf, because after a while everybody says: Well, you've done it before; you've done it before. What do you have to show for it. And then there's another school of thought that says you establish legitimacy, you establish credibility, you demonstrate that you can get the most of our your buck. Because then when you ask for more, 00255 03/24/03 - Committee of the Whole and then when you ask for more support, you're speaking from a position of strength. You're speaking from a position of credibility. I subscribe to the second strategy, which is to get this fiscal house in order; for us to move forward educationally, for us not to make excuses, for to us say: The schools are going to get safer, and we're going to improve the condition of the schools, and we're going to do early childhood and after-school and summer school and class size reduction, and retrain our work force, and we're going to coordinate and with City agencies and State agencies, to provide those wrap-around services that many of our children and their families need because they are economically disadvantaged. But I truly believe that by doing that, we set the stage. We can make an even stronger case when we go to Harrisburg. That when people are voting on the Governor's ambitious education agenda, as I'm sure it will be, people are just -- people are going to vote for it, knowing that when those education initiatives are passed, and the money comes to this District, it's 00256 03/24/03 - Committee of the Whole not going to go to pay patronage workers, it's not going to go to fund positions that are not impacting the classroom. It's going to go into the classroom. It's going to go for support services. It's going to go so that we can have every child at risk in early childhood programs. It's going to go in extended day and extended school year, which is critical to children who don't have the support at home.
It's critical that those children are engaged in constructive supervisory activities? You see what I mean? So our whole approach toward this has been to move our agenda forward, based on the most conservative budget assumptions possible. And the Governor, Governor Rendell's first budget has afforded us an opportunity to do that, but then to set the stage, to tell you: This is how much we're going to do just with the resources we have. But when the Governor's initiatives are successful or even partially successful, we're going to do so much more, because we're going to be able to tell people honestly and directly that 00257 03/24/03 - Committee of the Whole if you vote, if you vote for a school funding reform package in Harrisburg, that money is going to go to the kids, that money is going to go into the schools where there's the greatest need, that money is going to make a difference. That's what this exercise is about. That's what these tough decisions in this budget is about. It's to set the stage. I think that we make a clearer case for the Governor's package, and we make a stronger case for that package, and we become more of a potent force for lobbying for that package by being able to say: Our house is in order; we're moving forward; but if the Governor is successful, we're going to be able to move even that much faster. And I think that's the strategy that we're taking. And it's not going to solve everything, not until the Federal Government wakes up and realizes that -- you know, that education is indeed not only the great civil rights issue of the 21st Century, but the great national security issue of the 21st Century, because the competition that we really face internationally is economic. 00258 03/24/03 - Committee of the Whole And they're getting there, and they're getting there slow. But I truly believe that what we have done here, along with what the Governor hopefully will be able to do at the State level, will be able to take this school system to another level. Because we can talk about high property taxes and wage taxes. But the thing that drives parents out of this system quicker than anything else or out of the City quicker than anything else is poor quality schools. And ultimately, for those who think that this is just a strategy or program to make our schools more attractive for those who would leave, it's a rising tide lifts all boats. If we expand the number of opportunities so children and families don't have to look elsewhere for quality education, then at the same time we've improved the quality of educational opportunities for those families and those children who will never have an option to go anywhere else.
Well, I salute you for your stubbornness in believing that you 00259 03/24/03 - Committee of the Whole can do wonders, and you do do wonders. And I salute all the teachers who I think have really the toughest job in society, because they're asked to take the children --
-- as they exist real life circumstances and develop people who are going to be independent, who will be able to raise their own families at a much better level than current members of families can because of economic conditions. But I do think, in fairness to all people involved in education, that more of us outside of the education field ought to make clear the enormous burden we're asking you to assume. Now, I'd like to ask you one other question. You're going to have a great deal of construction work to do --
-- under the program that you have. We're convinced -- I think a majority of City Council is probably convinced that unless some drastic action is taken, there's 00260 03/24/03 - Committee of the Whole going to be no improvement on minority employment picture. I'm not talking about entrepreneurs. I'm talking about the working people that perform the work: The laborers, the electricians, the carpenters, the cement mixers, all of the actual work. Nothing will happen unless there's a changed policy. By changed policy we mean not permitting people just to hire a contractor and holding the contractor responsible. Because contractors call the union. And the union says, we have so many workers. How many do you need? They will often say, well, we don't have that many. We'll send you what we have. And we think there has to be a way for government, in this case the School District, to ensure there are representative minority employment. I think it ought to be much more than the current numbers, that indicate the diversity of Philadelphia --
-- because I think there's a big bill that's owed for past misconduct in limiting employment of minorities. But I don't know whether you want to use the word reparations or not. Some people get very concerned about that word, and they have very technical explanations. But I think we ought to have goals on many jobs of 50 to 75 percent, not just representing for today, because minorities have been denied so long. And by minorities, I mean the usual minorities: African Americans, Asians, Hispanic, women, all the groups that have been barred. But I would like to know: How are you going to learn from the mistakes of the past? Because the City is supposed to have had for a number of years very specific programs.
-- how they check it out. And their results are vastly different 00262 03/24/03 - Committee of the Whole than the results that seem to exist in real life. And we'd like to know how --
-- you're going to deal with real life application. Councilman Ortiz put a Bill in City Council --
-- some time ago. And we're struggling with that. And how do we get that kind of protection so that everybody in Philadelphia really feels that employment is open? And when we go to minority communities, there ought to be no more people hanging around unemployed than there are in other communities. But today that's not the case.
What mechanism will you put into place that will demand, say -- that demands adequate representation? Will you be able to use your vocational education people?
Or are you going to demand some action for participation in the apprenticeship programs?
Well, let me respond by saying, first of all, we will learn from the mistakes of the past by taking the best practices that we've used in the past with great success. And as Councilman Ortiz has pointed out -- and he certainly has checked me out with people that he knows in Chicago -- the MBE-WBE program in Chicago not only produced over 50 percent MBE-WBE contracts but over 50 percent of individuals who worked on the construction sites were minority workers. In fact, 47 percent of the -- of the skilled workers were hours -- This is based on hours -- audited hours performed by minority workers. And over half the residents, because we couldn't go beyond 50 percent because of Constitutional limitations, were City residents. So we've done this before. Karen Burke and Chris Harris managed these programs for me before in Chicago. And we 00264 03/24/03 - Committee of the Whole will work to hit numbers that have not been hit before. And you can take that to the bank. But I will make -- I will provide a copy of our -- a summary of our MBE-WBE strategy and approach that -- among four or five things that the Council has requested to all the members tomorrow, so you will see that we do have a strategy and a program in place. We've done this before. We know how to do this. You know, the biggest --
Do you know how do you deal with the numbers game when it's played by the other side? Which is to have certain selected groups that go from job to job so that the number of hours worked may seem halfway decent?
But actually, the employment is limited to a relatively small group of people.
Well, that works when you only have a few jobs going on. But when you have as many jobs as we have going on, believe me, there's going to be a need. 00265 03/24/03 - Committee of the Whole But we're going to audit. We're going to audit job sites. We're going to -- And all contracts will have provisions in them giving us the ability to go in and to take appropriate action. And we will be aggressive on this. That's my commitment to you.
Do you agree, Mr. Vallas, to permit a Council Committee to meet regularly with you to check on --
Yes. Absolutely. Alderman Ortiz is going to convene a meeting. We will use that as an opportunity to --
Councilman. I'm still saying the West Side, you know, or the South Side. I apologize for that.
All right. Sorry about that. I apologize. Almost. I almost got through the whole day without -- You know, I'm still 00266 03/24/03 - Committee of the Whole saying pop instead of soda. You know, I'm struggling.
Every time you refer to Chicago, I have mixed feelings.
Because I was in the Convention in 1968, and I was among --
I was in high school. I was in high school in 1968. So -- But I will tell you this --
I make reference to the MBE-WBE, because we really had a startling record of success there.
But we'll be -- We'll be meeting with the Councilman on his call. And we'll be more than happy to subordinate ourselves 00267 03/24/03 - Committee of the Whole to any Council oversight as you see fit.
Thank you, Madam President. I have to be sure because my wife now is working in Harrisburg, and I have to go pick up the kids from the Afterschool Program.
It ends at 5:00. And I have to be there, because they each have their things to do. One goes horseback riding, one has to walk Nilsa's dogs. (Laughter.)
She is employed by one of your staff person, one of the elite persons in your organization. But I'm very glad that both Nilsa and Tomas are in the places where 00268 03/24/03 - Committee of the Whole they're at. But you know, the thing is that I believe you. Okay? I believe you. How fast -- Give me -- I don't know if they asked this.
But a time line, of the K to 3, and in terms of when do we expect to see the class sizes in K to 3 drop --
Yes, next year. In fact, in a couple weeks all the School Districts will receive budget templates, showing them how to consolidate resources and to do class size reduction. We've identified a number of schools that have done it, and they're the model schools. In fact, we're presenting all of our principals with three or four class size reduction models.
This will mean a 00269 03/24/03 - Committee of the Whole huge influx of brand new teachers.
And you know that we've had quite a problem, in terms of the recruitment aspect of teachers. And what is the process that is going to make -- Besides having somebody as energetic and bright and together as Tomas Hanna leading the charge, what are the things -- what are the tools that Tomas is going to have, that is going to make this recruitment effort as successful as you want it to be, and that we are not going to be here next March talking about, well, you know, we had it but we couldn't recruit the teachers; so therefore, 4 to 8 is not at the level we wanted in terms of class size, and high schools are not at the level we want in class size.
Well, fortunately for us, through the leadership of Sandra Dungee Glenn and through the leadership of Rosemary Grecco, who co-chaired the --
Oh, you got three. 00270 03/24/03 - Committee of the Whole
We came out with an unbelievable. Of course, Tomas is tasked with making sure that plan is implemented. But let me ask Tomas to take you through some of this.
This was all planned. I wanted him to get up here. That was my next.
H-a-n-n-a. First name T-o-m-a-s, accent on the a, if you're able. What we're expecting, and frankly, is the excitement that Mr. Vallas has brought to the District, to say: We're going to provide 00271 03/24/03 - Committee of the Whole reduced class size, is an instrument that will also attract other folks. Folks, there's also a sense of mission to come to the District to follow a reformer such as Paul Vallas, and what we're attempting to do. Those are two issues that don't cost a cent. Well, reduced class size costs a cent, but the notion, in terms of the outreach, doesn't cost a cent. What we're also expecting to do is support teachers as they subsidize -- as we subsidize their professional education. It's not just coming into the District and saying, here's a class, it's reduced class size, good luck. It's about superior curriculum materials that we rolled out last week. It's about strong teacher support. We're expecting to -- We will implement what we call new teacher coaches. At a 10 to ratio, new teachers are going to be 23 supported by an experienced coach. 24 One of the complaints that teachers 25 give us is, they walk out the door is, you didn't 00272 1 03/24/03 - Committee of the Whole support me. You didn't help me in my classroom when I needed that support. This is an area that we're looking to expand upon. And as we mention this, as our recruiters go out and are talking to potential teachers, what they're saying is, I've never heard this level of support before. Huh. Okay. I need to think about Philadelphia again as a district of choice, not as a district of last resort. Another issue that we're very excited about is mandatory pre-service. The other issue that comes to mind --
Mandatory pre-service is that if Angel Ortiz -- if Councilman Ortiz is --
If Angel is going to be a teacher at Shepherd Elementary School and he may be coming from, you know, business, and wants to become a teacher in the District, we have historically secured emergency permits for Angel 00273 03/24/03 - Committee of the Whole come in and teach, no background, no training whatsoever. Basically, it's pre-service training for teachers, so that you have an expectation of what to expect when you come into the classroom, how to deal with issues of classroom management, how to deal with the minutia of school operations which, while important, are issues that many times our teachers don't know how to negotiate this. And we propose to do this this summer, tie it to extend the day to summer school programs, where new teachers will come in and be paired up with a teacher in the summer. In the afternoon this teacher would go and work with these new teacher coaches, preparing them in a course, as it were, so that when September rolls around they're not overwhelmed and we don't have that look in deer in headlights when teachers come on board. And that's something we get all the time. So, in essence, summer training support when they're in their classroom so that they really get it, you know, in a wrap-around fashion. 00274 03/24/03 - Committee of the Whole
What's the cost? And is there going to be any financial incentive, in terms of the recruitment? Because I like Paul's enthusiasm and energy, too. But if I'm -- I'm at college in New Jersey or NYU School of Education, or even Temple, and I get an offer from Bryn Mawr. And Bryn Mawr says to me: You have training. You're going to have all of this: You're going to have a brand new school. It's going to be air conditioned. You're going to have a football field, baseball field, all of that, and you're going to have that support, plus you're going to have this money here.
Yeah. You know, there are -- Let's face it: There are some districts that are not going to be able to compete salary wise, although I'll tell you, the budget that we've laid out does provide for a salary increase for our teachers that will at least exceed the rate of inflation. So we have factored in some 00275 03/24/03 - Committee of the Whole compensation increases. It also does not -- It also holds the line on health care costs to our teachers, because an incentive that we can offer or teachers is: We pay decent salaries but we still provide you with health care -- we still provide you with free health care. Okay? Although we certainly try to manage the utilization to make sure that there's responsible utilization. But there are going to be some districts that are going to pay more than us. There are also going to be some districts surrounding this City and in the State that pay a heck of a lot less. We feel that if the teachers come in, and we can subsidize their professional development, we can put them in with mentors, we can reduce their class size, and provide them with that support, we're going to do a heck of a better job retaining those teachers. But we also feel --
How do you deal with the residency requirement? 00276 03/24/03 - Committee of the Whole
But we're also going to be doing national recruitment. Right now we have the Teach America, contract with Teach America, the National Teachers Project. In addition, we've just embarked upon a program called The Ambassadors Program, where we turn every single teacher in the school system into a recruiter. We actually pay the teachers a stipend for every teacher that they recruit to this system. But I'll tell you: On top of all those things, the removal of the -- The changing of the window for senior teachers to transfer, the closing of that window June 30th, so that we can tell new teachers what school they're going to go and what class they're going to teach and what subject they're going to teach, after June 30th, and the elimination of leveling, which creates some certainty in the school system for any new teacher, because if you have -- If you don't have 00277 03/24/03 - Committee of the Whole enough kids and you're going to lose the position, guess who gets laid off first? Those two provisions are going to eliminate the second reason, the second most important reason why teachers say they don't come to our system. And that is, uncertainly as to what school they're going to go to. So, we think these things in combination will allow us to fill these vacancies. Because as I pointed out, we're going to need three hundred and... and what is it 74? 374 additional teachers next year on top of the 500 to 600 we normally have to hire to fill existing vacancies.
Excuse me. How many teachers presently do we have, and what type of a shortage exists?
You know, we always carry probably about a hundred vacancies during the year. Teachers leave every month. I mean, there's always an exodus in and an exodus out. So among the -- What's our total headcount? 00278 03/24/03 - Committee of the Whole Among... There's currently 11,891 teachers in the system. And so, we carry about a hundred vacancies. But the larger issue for us is, we also carry a much greater number of uncertified teachers or teachers who have not completed their certification. Now, every year we need to replace -- We have about five percent vacancies. So every year we have between 500 to 600 positions that we have to fill. Next year when we proceed with our class size reduction initiative, we will need 12,255 teachers. In other words, 364 additional teacher positions will be opening. So you can add that 364 to the 500 or 600 vacancies that we have. And we're going to have to hire close to 900 teachers next year. It's going to be a task. It's my challenge. It's a challenge that I'm going to have to meet, and you're going to be able to hold me accountable for. But we think we've got the mechanism in place to come close to hitting that number. 00279 03/24/03 - Committee of the Whole I'll also tell you one final thing.
One thing. Before I go, because I have to leave. How do we make sure that teachers move into schools like Shepherd, that we just don't get just the green teachers, and that we maintain a certain amount of competency, seniority, so that the poor school -- the school -- not the poor school -- the schools in those areas that are not economically as well off as others get a certain percentage of those teachers that really are the top of the line?
Well, two things. First of all, alternative certification does give us some flexibility to steer teachers to certain schools, number one. Number two, we're going to continue to modify the bonus program which provides financial incentives for teachers to locate in certain neighborhood schools. And then number three, the fact that after June 30th there's going to be stability, in terms of the identification of vacancies that teachers can fill. I think that's also going to help us recruit additional teachers. 00280 03/24/03 - Committee of the Whole I will tell you this: You know, clearly, the more experienced the teachers, the greater the likelihood that the school's going to be performing better. But you know, not all the teachers who elect to leave a neighborhood school and exercise seniority and to move to maybe a safer or more secure school are -- You know, they're not always the best teachers in the system. Most of the time they are quality teachers, but sometimes, you know -- You know, sometimes those teachers moving on is a positive feature, because you want individuals teaching in those tough neighborhood schools who are committed, who want to be there, not those who feel that they are stuck there.
I agree with that. Thank you. I've got to go. Thank you.
Mr. Vallas, is this the first year that the teachers are being offered free health care?
No. No. We just -- Most School Districts have increased the cost of their School District -- of their employee health 00281 03/24/03 - Committee of the Whole care, through expanded co-pays and through taking percentages out of their salary. Our strategy is not to do that. While we want to make sure that we're managing utilization costs well, because obviously we have to negotiate with health care providers to get respectable health care rates, we do not plan on going in and asking for a percentage of salary to be dedicated to pay for health insurance. So, we don't want to change -- Right now there is no contribution other than the co-pays. And right now our plan is not to require a contribution. We're going to continue to basically operate with no contribution required, save the co-pays.
Yes. Yes. Yeah. And that allows us to provide a bigger -- You know, I mean, it's -- In this day and age of rising health care costs, it becomes -- It's an attraction for recruiting.
It's very expensive. 00282 03/24/03 - Committee of the Whole
Councilman Cohen, I believe Councilman Nutter has his light on before you. We start at 10:00 tomorrow morning. We will call a break at 12:00, come back at 1:30, and then from 4:30 to 7:00 p.m. we have the public testimony.
All right. Because I have some questions referring to various stories I've heard about privatization, whether it increased or decreased.
I have some 00283 03/24/03 - Committee of the Whole questions about ROTC.
What the plans are. We see some items in the newspaper, but I think we better start tomorrow, rather than getting involved in any of those subjects tonight.
We will also have the background material, Madam President, that individuals requested, the MBE-WBE, number one; the information about the Zero Tolerance Policy, number two. We were asked for a more detailed breakdown of the Capital Plan. That will be provided, number three. We have an organizational chart which we can -- Is it in -- We have an organizational chart which we will distribute, number four. I think you, Madam President, or one of the other Councilmen or Women, asked for a breakdown on how we're complying with No Child Left Behind. We also have that. So we will distribute that material. And the fifth thing is, the one thing that 00284 03/24/03 - Committee of the Whole Councilman Nutter suggested or recommended, was that was the breakdown of the expenditure reductions by category. And we'll either -- We'll have all that material in a folder for the Council first thing tomorrow morning.
Would you be able, sir, to tell us how easy or how difficult it is for a retired teacher who is willing to respond to the call for more teachers in return of service? Yesterday I had occasion to meet with a fond retired person living in my community for many years, who retired about three years ago, when she pressed me so much, I was meeting with her to fill a Committeeman's post politically. She pressed me so much, I said: How come you're not teaching again? She said: Oh, so much red tape. Now, I don't know whether that's true or not or whether it used to be that way and it's changed. But I'd like tomorrow if somebody could explain what it would take. Because in the community where most of us are active, we may be 00285 03/24/03 - Committee of the Whole able to help them recruiting teachers if we knew what circumstances --
-- we would have to face. Tomas and his team are coming up with brochures for retired teachers. And the goal here is this: As you know, Majority Leader Purcell is pushing legislation to eliminate the penalty, the retirement penalty for teachers who retire and then want to continue to teach. We are going to move even faster than the legislation, to contract out with retired teachers. So, next year, any teacher that is at retirement age and contemplating retirement, we are going to offer an opportunity to continue to teach in the system. And they can take the retirement and we will bring them on contract, and so allowing them to continue to teach in the system. So that's going to help us a long way. But we'll get you the information that you need and the number that you can call so 00286 03/24/03 - Committee of the Whole any retired teacher out there that obviously meets our standards and qualifications, because we're just not going to -- You know, there's going to be certainly a screening process for those retired teachers who we allow to remain in the system. But the bottom line is, there's going to be a process. And that's going to help us meet our goal of 900 new teachers. Hopefully, the need will be less, because the top retired teachers will elect to remain another year or two.
Mr. Vallas, when does the School Reform Commission going to be meeting regarding the proposal of closing some schools?
April 19th. And we have -- Just to give you update obviously we've -- We'll probably be finalizing our recommendations within the next week. And while we've already made a decision to close Walton, and we've made a decision to close Ellison, although we're going to phase out that middle school -- Alverson, even though we're going to phase out that school, as 00287 03/24/03 - Committee of the Whole opposed to just close it all at once, because that is a middle school. And we just don't want to transfer middle school kids to another middle school. We're still finalizing our decision on Durham and Stanton. And as you may be well aware of, we met with the Stanton community last Saturday at the Marian Anderson Fieldhouse, to basically look at some other options. But within the next week, I'll be making my recommendations. I will communicate those recommendations to you, Madam Chair -- Madam President, before we put anything out publicly. April 9th? April 16th. But April 16th is when the issue has to go before the Reform Commission.
A question, Mr. Nevels. A complaint I get about the School Reform Commission is it's meeting is scheduled in the afternoon instead of the evening. A number of constituents have called said they would like to get to know you, they would like to get to feel as if they know other 00288 03/24/03 - Committee of the Whole members of the School Reform Commission, they would like to see you in action. They might want to present issues, but they can't do it because they're working. And 1 o'clock is very inconvenient. And I think in Philadelphia our history and practice has been to hold meetings at the time when the Philadelphia School Board operated mostly in the evenings, to make it possible. So is there anything that can be done to have meetings in the evening? I've never understood and never had a good answer as to why you meet in the afternoon. And I've tried very hard not to say, well, I guess they don't want the public to come. I was trying to preserve a sense of objectivity. So I've always said I'm going to find out. And this is the time. Could we have a change? Could we have some meetings in the evening, maybe every other one? I don't know -- I assume you're doing it because of the convenience for the members of the School Reform Collision. 00289 03/24/03 - Committee of the Whole
No, not at all. In fact, the tradition of the Philadelphia School District and the old School Board, existing School Board, was to have meetings at the appointed time at 1 o'clock. However, I do -- I am pleased to tell you that there will be a series of meetings, at least once a quarter, in which we will have meetings in the field and in the evenings. So... And, in fact, we -- at schools. So we will be in the field. We'll be accessible. And we'll have those meetings for the public to attend. One thing I want to say to you is that there is a great deal of debate among members of the community that we found last year when we were visiting the 70 schools. Many people said they did not want to have evening meetings, especially parents who had the responsibility of child care in the evening and preparing children for school the next day. So we are going to have a number of meetings in the evening in schools. And the first of those, I believe, will be in May. 00290 03/24/03 - Committee of the Whole
All right. I think my feeling would be there ought to be at least once a month in the evening. I think it's very important. I'm now talking in your support and not in opposition. If the School Reform Commission wants to be regarded as a legitimate Philadelphia institution as well as a State institution, I think it's got to make itself much more available. We're used to school members who are not presidents of universities, not presidents of major companies, but ordinary folk who come from the community, and therefore we feel better express the feeling of the community. One way of achieving that with the current membership, because you do have one or two members that fit that regard, perhaps --
Well, I don't know. I think you're responsible for Wall Street thinking so highly of the school bonds. I got a call from a stockbroker the other day, commenting about a statement I had made about business. Business frequently may not like statements I make. And he said something about the school bonds, why don't I buy a school bond? I said, we'll I'll buy a hundred dollars worth of school bonds. He said, you can't. He said, you got to buy at least 5,000; and I'll tell you, you've got to pay a heavy premium. I said, what's the premium? He said, well, it's $113 for every hundred dollars of face value. I said, well, that's a refreshing change. There was a time when the school bonds were almost worthless in the mind of the public. He said, well, they're very much in demand. So, again, I think that's a tribute 00292 03/24/03 - Committee of the Whole probably to you, because they know you're in the finance business, and they feel very comfortable with the way in which the finances are being handled, apparently.
So I want to compliment you on that, too. But I really think to get the -- I think it's important, because I don't know how long our law cases are going to last. I don't know what the ultimate outcome would be. But I'd like to prepare for defeat, as well as victory. And if we lose the law case -- If we win the law case and your School Reform Commission goes out of business, then we'll have a Philadelphia Board. But if we lose the case, you're going to be in for quite a long time, and we ought to get to know you better, and the people of Philadelphia ought to feel more comfortable with you. And that's the reason for my suggestion. I think you've got to find a way to 00293 03/24/03 - Committee of the Whole be more available to people and to be more customer friendly, in business terms, because your customers of the people of Philadelphia. And while you're here, and for as long as you're here, we'd like you to do well. And again, I want to salute you for your wisdom in selecting Mr. Vallas. Thank you.
Thank you. The chair recognizes Councilman Nutter.
Thank you, Madam Chair. Mr. Vallas, I have four items I would like to ask if you would overnight into tomorrow be prepared to talk about. I do not need responses to these issues at the moment. First, I want to follow up on an 00294 03/24/03 - Committee of the Whole item that you and I discussed not too long ago. You made reference to it in your opening comments this morning, but among a number of things. But it certainly deserves more attention than we were able to give it this morning. You talked about summer jobs or jobs in general. I'd like to explore with you the prospect of offering some kind of youth job tax credit to businesses in Philadelphia, to encourage the employment of our young people. We can talk about the age ranges. We can talk about how much might be available, especially in a pilot program for this year, but creating some additional incentive to hire young people in Philadelphia, as an additional alternative to either being out on the streets or just kind of hanging out in general. Secondly, Councilman Cohen mentioned it -- and I'm not sure, although I may have a sense, but I don't want to prejudge where he might be coming from on the issue of ROTC. I saw a story in the paper last week, which I assume was also tied into, to some extent the current war effort. I have my own 00295 03/24/03 - Committee of the Whole perspectives on the advantages and opportunities of young people learning about discipline, responsibility, and public service, having nothing to do with war and conflict and battles, and the like. I think that all of those lessons are important for young people to learn, regardless of what they might do in their post-secondary education. Third, there was a bill and a resolution and a ballot question, ultimately approved by the voters of Philadelphia in 1999. This is in the context of when we did have a Board of Education in place. It did a number of things, the most prominent of which was allowing the Mayor to, within a few months of being sworn in, to appoint all the members of the Board of Education, which had never been the case before. One of the not so prominent features of that legislation required two meetings annually, to talk about education issues between the Mayor, the then Board of Education, and the City Council. 00296 03/24/03 - Committee of the Whole That opportunity for an education discussion, unlike this discussion which is primarily budget based, not a tremendous amount of education or operation discussion in budget hearings. We have not had the opportunity, actually, to have that meeting or that requirement fulfilled. And so since that time -- And then naturally we had to switch from the Board of Education to the School Reform Commission. I'd like to ask -- This is actually probably more of Mr. Nevels' question -- if the SRC would consider taking up that, quote unquote, requirement. It is not a requirement of the SRC. We cannot require the SRC to do anything. But I think in the spirit of partnership and cooperation, if you would take a look at that and think about how we might take advantage of what I think is a great opportunity for us to work together and not officially see each other once a year at budget time. Lastly --
We would welcome that opportunity, Councilman, to sit down with the 00297 03/24/03 - Committee of the Whole Council President and you, to discuss how we might go about structuring that.
Thank you. Lastly, Councilman Cohen raised a question about daytime, nighttime meetings. And there has been that history and tradition in Philadelphia, with -- I believe my recollection is, actually, daytime board meetings, as well as some nighttime board meetings. And whatever the community's response is to either is certainly fine with me. And there will be no one time that is convenient for anyone. What I would like to encourage -- and I know that both Mr. Nevels and Mr. Vallas and many of us talk to business people on a regular basis. And whatever time the meetings are, and specifically the daytime meetings of the Board or Home and School Association meetings, parent-teacher conferences, pick up the report card and the like, I think that the business community and our parents would probably benefit from a bit of a push or an encouragement by you, Mr. Nevels, and Mr. Vallas, with encouraging our 00298 03/24/03 - Committee of the Whole business community to emphasize and support our parents in their need and interests, to participate in their child's education. And whether that is within reason, the opportunity to either leave work early, to go to various meetings in support of their child -- I'm not saying leave work early to go hang out somewhere or, you know, go have a cup of coffee. But if you needed to go to a School District meeting or a board meeting or something else, involving your child, that the businesses actually encourage their workers to go to those meetings, and that it's not a tremendous hassle, that it's not a pain, or you're -- you know, like you're asking to, you know, take a week of unscheduled vacation off. It's usually only for an hour or so to go to these kinds of meetings. And I think if the business community -- And I'm not saying people are onerous about it. But I think if the business community heard from the school community that you want to encourage them to be cooperative with our parents and encourage the parents to participate in these kinds of functions, daytime 00299 03/24/03 - Committee of the Whole or nighttime, that this becomes an important business issue, so that we don't have situations where you have 500 kids in the school and, you know, 100 parents show up to get report cards. I mean, I just kind of made those numbers up. But you know what the numbers are. And sometimes they're just not that tremendous. That, you know, it's important to this community that people pay attention to what's going on with their child, and that the business wants to support and encourage it. Not to get into their day-to-day details of their lives. But that as a business community, that they're sending out a different message, that if you need to go to a parent-teacher conference or if there's some burning issue over the School Board, go to the meeting. And, you know, we're not going to, you know, put a bad mark on your personnel record or dock you or all those kinds of things. Because that's what people worry about. Thank you. Thank you, Madam President.
Well, let me respond 00300 03/24/03 - Committee of the Whole just one... The whole issue of parent report card pick up. Obviously, one of the things that we're going to be looking at doing in this next contract negotiation, if we -- assuming we can't reach an agreement currently, is to try to get a parent report card pick-up date, where, you know, parents can come after work to pick up the report cards. When, you know, you can only come up till 3:00, 3:30 to pick up your child's report card, that places them at a disadvantage. One of the things that we did in our previous life is, our parent report card pick-up dates were always 12:00 to 7:00. So it would be in effect like a open day, but parents could come upwards to 5:30, 6:00, 7:00 to pick up their child's report card and to talk to the teachers. So it's also not only getting the businesses to provide a break or to accommodate parents, but the school is to open the doors so parents can have an opportunity to come. But your points are right on target.
The 3:00 thing is a bit of a challenge for many of us.
But you're right on 00301 03/24/03 - Committee of the Whole target.
You can always tell when report card day is around here because there are a few of us are running out the door out of hearings. But I look forward to talking with you more tomorrow about these issues. And thank you for the information for today. Thank you. Thank you, Madam chair.
Thank you all so very much. The Committee will stand in recess until tomorrow morning at 10:00. Thank you. (Hearing concluded at 5:00 p.m.) 00302 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the City Council Hearing taken on March 24, 2003, and that this is a true and correct transcript of same. _____________________________ DAVID A. DEIK, RPR and Commissioner of Deeds (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)