It was 10 to 147 percent was the number that I was told,8 but I can't claim the accuracy of that.9
We can't10 claim the accuracy of that number. I11 think it is vital, vital in the12 determination of what cause and effect13 this will have. And as serious14 legislators that have to contemplate that15 and as an economist, this isn't a16 guesstimate. This is an exact science of17 math, and we need to know what cause and18 effect per unit, per can pre and post and19 the decision that led them to close.20
Clearly, there are24 other factors that go into closings of25 235 6/10/11 - WHOLE - 110135, ETC.1 any stores, but as economists and as the2 Councilman knows, if you hold the other3 factors constant and you have everything4 else the same, the difference -- and5 that's the only way you can start with an6 analysis -- the difference in the costs7 would be significant between the8 City-based store and the suburban-based9 store, and that's really ultimately the10 issue. And whether it's a Larry's or11 it's a store in the supermarket chain,12 supermarket chains will price the13 profitability of an individual store14 according to the cost of that store, and15 as we know, supermarket chains do shut16 down individual stores and individual17 locations, and the cost factor is a key18 element of it. It's not the only element19 of it, but if you have a marginal store,20 you have --21
I'm not22 minimizing -- let me say this to you. I23 don't want to give the impression that24 I'm not sensitive to the plight of25 236 6/10/11 - WHOLE - 110135, ETC.1 business or sensitive to the edge effect2 or insensitive to the plight of smaller3 inner City stores, but when you make4 assertions, we need the exact numbers and5 when -- because what we are talking about6 is the difference between whether we make7 a decision or not.8
Just to identify17 myself, my name is Bob Brockway and I'm18 President of the Honickman operations,19 Canada Dry operations and Pepsi operation20 in South Jersey. Part of my21 responsibility is the Canada Dry22 operation in the City of Baltimore, the23 State of Maryland, so I can testify based24 on a firsthand knowledge of the Canada25 237 6/10/11 - WHOLE - 110135, ETC.1 Dry sales gross receipts over the period2 of time that the two-cent container tax3 has been imposed in the City of4 Baltimore.5 Very specifically, our sales6 volume in the city has gone down 19.37 percent, and outside of the city limits8 of Baltimore our sales volume has gone9 down 2.3 percent.10
That's correct.17 Where we sell the exact same products to18 very similar stores, our sales have gone19 down 2 percent. Inside the City of20 Baltimore, that 19.3 percent represents21 over $500,000 in gross receipts reduction22 over a ten-month period.23
If I24 understand you correctly, both in your25 238 6/10/11 - WHOLE - 110135, ETC.1 urban stores and in your suburban stores,2 both of your sales went down in both?3
They did. They4 did. The industry in total is down about5 5 percent in the Baltimore/Washington6 major market.7
Is it simply8 to say and would I be incorrect in saying9 that the disposable income in your10 suburban areas is greater than the11 disposable income in your urban areas?12
I don't have13 exact numbers, but I would say14 intuitively, yes.15
So16 intuitively the suburban areas have a17 little more money than the urban areas,18 correct?19
Thank you,22 Madam President.23 COUNCIL PRESIDENT VERNA:24 You're welcome.25 239 6/10/11 - WHOLE - 110135, ETC.1 Any further questions?2 (No response.)3
Thank4 you very much. We appreciate your -- I'm5 sorry. Councilman Green.6
I'm sorry.7 For Mr. Naroff, if the impact8 of a two cents a can or I guess it would9 be 48 cents a case in Baltimore was a 1910 percent drop in sales, what could be11 anticipated -- would your guess that it12 would be in excess of 19 percent?13
I would have to14 guess that was the case. I haven't seen15 the city's estimates of a 20 percent16 decline. Most of the elasticity17 estimates, the estimates of price18 sensitivity, on the previous studies were19 done on small price increases similar to20 what you saw in Baltimore and they came21 out with a percentage decline such as 2022 percent. My guess is that since we're23 doing a number that's something like 1224 times that amount, you'll probably have a25 240 6/10/11 - WHOLE - 110135, ETC.1 lot more than 20 percent. Again, as an2 economist, I hate to give you a number3 when I don't have the estimates, but I4 would be surprised if it's less than 305 percent.6
At least 3011 percent? So we wouldn't collect 6012 million; we'd collect 40 --13
I would be14 surprised if you collected that full15 amount, if the pricing as it looks like16 it would likely appear would be the case,17 in combination with avoidance and18 everything else that would be involved.19
Thank22 you.23 Again I will ask, any further24 questions from members of the Committee?25 241 6/10/11 - WHOLE - 110135, ETC.1 (No response.)2 COUNCIL PRESIDENT VERNA:3 Seeing none, thank you again.4 MR. McPHERSON: Next witness,5 Christine Carlson.6 (Witness approached witness7 table.)8
Good afternoon,11 Councilwoman Verna.12 COUNCIL PRESIDENT VERNA:13 Please identify yourself for the record14 and proceed with your testimony.15
My name is16 Christine Carlson. I'm a parent of17 Philadelphia public school children.18 Congratulations on your19 retirement. I've been a longtime20 constituent of yours, and we're sorry to21 see you go.22
But we wish you25 242 6/10/11 - WHOLE - 110135, ETC.1 luck.2
I feel a little5 bit out of order here because I'm not6 going to talk anything about the soda7 industry or the soda tax or make any8 recommendation as to what taxes or City9 Council should pass or not pass. 18 I know that there are a lot of19 people who are saying that the School20 District of Philadelphia does not deserve21 another dime. 1 understand why some would voice that2 opinion. 6 It's the City's children that need the7 funding, and they deserve it. 13 I am here as a representative14 of the parent leadership of Center City's15 four elementary schools - Bache-Martin,16 Greenfield, McCall and Meredith. We17 earnestly support strong public schools18 throughout Philadelphia, but as parents19 who have chosen to stay in the City as20 our children reach school age, we21 particularly value the four Center City22 public schools. 7 We are committed to8 Philadelphia and we're committed to9 public education. Our families are one10 of the major reasons why the population11 of Philadelphia has finally begun to12 grow. 18 At last week's School Reform19 Commission meeting, I argued that we must20 close the budget gap by focusing on21 quality and we must enforce22 accountability. 1 that's terrific. As parents, we are2 behind you 100 percent on this. 7 Earlier this morning you8 heard -- you got a list of suggestions9 from the School District. You heard10 suggestions from other members of11 Council. So that's already been12 discussed. But there is another way as13 well. Mr. 15 The way to do this -- part of16 the way to do this, to make sure that the17 money goes to the schools, is to make the18 District restore the 29 percent cuts made19 to the school discretionary funds. 1 operating budget of each school. 14 These funds are even more15 crucial for principals who have been in16 even greater need to supplement17 curriculum now that the District has18 eliminated art and music. 14
Just18 a moment, please.19 The Chair recognizes Councilman20 Green.21
Thank you22 very much for your testimony. Do you23 have any idea how much that funding is24 for the --25 248 6/10/11 - WHOLE - 110135, ETC.1
The cut was $612 million. That's my understanding from3 Parents United.4
No, no. The7 discretionary funds, the 29 percent cut8 equals $61 million.9
Wow. Okay.10 And so I just find it interesting. Your11 testimony is that you'd rather see us12 restore that than the other things under13 discussion?14
Not necessarily15 the other things under discussion, but I16 agree with the points that you brought17 up, that the priorities that the District18 has put forth are not necessarily my19 priorities, but as far as keeping20 teachers and class size and a21 well-rounded curriculum, the22 discretionary funds are very important.23 It sounds deceiving, the word24 "discretionary," you think you might25 249 6/10/11 - WHOLE - 110135, ETC.1 throw a party with the money, but the2 teachers are using -- the principals are3 using these funds to buy teachers.4
Okay. So5 part of the problem that we're solving --6 and there may just be a difference in the7 way in what everybody is calling8 everything, but we are told by the9 District that it costs $21 million for10 them to keep class sizes the same size11 they are in K through, I think, 9th12 grade. And so that's that, and I assume13 that's your highest priority item for the14 discretionary funds?15
So if we are17 able to provide them with some resources,18 which I certainly want to do but not by19 raising taxes, and I think the money is20 there to do, we -- I'm sorry; I got in21 trouble for this earlier. I as a22 Councilperson believe that I would insist23 upon that smaller class size be a part of24 that equation.25 250 6/10/11 - WHOLE - 110135, ETC.1 So I hope that we are able to2 get the District to agree to that if we3 provide additional funds, and I want4 thank you for your testimony.5
Thank you. I6 agree. The reason I'm bringing up the7 discretionary funds is, I was feeling8 that there was starting to be resistance9 against the School District's management10 of the money, and if there's a concern11 about any money that Council will give to12 the School District, one way to consider13 doing this is if you gave it through the14 these funds, then you would be allowing15 the principals to make the choices that16 they need for their schools.17
Thank18 you, Christine. We appreciate your19 coming in to testify.20 MR. McPHERSON: Our next21 witness is Al Taubenberger.22 (Witness approached witness23 table.)24
Thank you,4 Madam Chair, Madam President, members of5 the Committee, City Council people. I'm6 the President of the Northeast7 Philadelphia Chamber of Commerce. 11 I'm opposed to the tax on12 sugar-sweetened beverages because13 Philadelphia can't afford it. It would14 result in the elimination of thousands of15 family-sustaining jobs. 17 I am opposed to the sugar tax18 because it will cost this City at least19 1,000 jobs in the beverage industry alone20 and countless others in the food service21 industry. 23 This tax is a bad idea based24 purely on emotion. 1 logic. It's bad public policy. Is it2 our goal to make it easier for businesses3 to open in neighboring New Jersey and4 Delaware? 11 Adding another tax to City businesses in12 a city and a state that already has some13 of the highest taxes in the nation14 achieve neither goal. 17 The question becomes, where do18 we draw the line? Do we levy an added19 tax on doughnuts because they are also20 sugar-sweetened? We've seen this idea21 before, and it was defeated. The first22 time we saw it, it was distinguished as a23 health initiative. How do we afford this? The answer is, we3 can't. The City of Philadelphia, it's very close6 to 12 percent. 15 Moreover, even if this is16 adopted as law, it is certain to be17 challenged in court. If it is struck18 down, then what do we do? Where do we19 come up with the money we committed to be20 spending? 1 It doesn't take a rocket scientist to2 know that higher taxes on soda will mean3 less soda sold, and less soda sold means4 less jobs. 8 Most of the members of the Greater9 Northeast Philadelphia Chamber of10 Commerce are small businesses. The ones11 in the beverage industry and the food12 service industry have told me firsthand13 that this tax will cost jobs. 14 Because higher taxes will drive customers15 away from local businesses into16 surrounding suburbs to do their shopping,17 negatively impacting grocery and18 convenience store owners and their19 employees. 1 school system, as are my children. My2 wife is a public school teacher who has3 taken leave to care for her ailing4 parents. I have great respect for the5 mission, and as Chamber of Commerce6 President, I have always supported their7 needs. My opposition today is not to the8 public schools. 13
Thank14 you.15 The Chair recognizes Councilman16 Goode.17
Thank you,18 Madam President.19 Mr. Taubenberger, have you20 lobbied your republican colleagues in21 Harrisburg to restore education cuts?22
And what was25 256 6/10/11 - WHOLE - 110135, ETC.1 their response?2
Well, unless3 you've seen anything different in the4 papers, I guess they don't want to5 listen.6
Any14 other questions from members of the15 Committee?16 (No response.)17
Thank18 you again.19 MR. McPHERSON: Our next20 witness --21 COUNCIL PRESIDENT VERNA:22 Before we call upon our next witness, we23 just received a letter from the Greater24 Philadelphia Chamber of Commerce. A copy25 257 6/10/11 - WHOLE - 110135, ETC.1 has been distributed to everyone. They2 indicate that they are -- they cannot3 support an increase in real estate taxes4 again this year. So I thought everybody5 would be interested in that. But they6 are silent on the soda tax.7 All right. Our next witness.8 MR. McPHERSON: Yarelis9 Feliciano.10 (Witness approached witness11 table.)12
Good14 afternoon. Welcome. Please identify15 yourself for the record.16
My name is Ryan17 Rivers speaking on behalf of Yarelis18 Feliciano.19
My name is Yarelis22 Feliciano. I am a senior at El Centro23 High School. I used to go to Frankford24 High School. At Frankford I used to get25 258 6/10/11 - WHOLE - 110135, ETC.1 into a lot of fights. I was always known2 as a troublemaker.3 What brought me to El Centro4 was a friend. She told me about the5 school, and it sounded too good to be6 true. I went for an interview, and it7 was just what I was looking for at El8 Centro.9 At El Centro, I have the10 opportunity to be who I am. I had the11 opportunity to prepare for my future.12 Being at El Centro opened my eyes to the13 real world and I had to start taking14 things seriously. I feel at home when I15 come to El Centro.16 I never thought that I would17 have the chance to get my high school18 diploma being a teen mom, and not having19 the right parent support that I needed20 made my dreams go downhill. But my21 teachers did not let that happen. My22 advisor was there for me all the way, and23 I was -- and I always had someone to talk24 to about my problems.25 259 6/10/11 - WHOLE - 110135, ETC.1 Seeing my daughter grow made me2 realize that I had to get my act3 together, so I did. I am so proud of the4 person who I have become. If you would5 see me about three years ago, you would6 not want to be around me. I was cocky7 and I thought I knew it all. I thought I8 was better than everybody else.9 Coming to El Centro, I got the10 benefit to go to Community College in the11 summer and I took it up -- I took it12 up -- I took up intro to law, in which I13 received three college credits from them.14 During the summer they helped me get a15 summer job, which I am currently16 employed. I got the opportunity to work17 for my CDA, Childhood Development18 Associate certificate, and get CPR19 certified, so in the future, I can open20 my own daycare or work with kids.21 I got so many opportunities22 being here at El Centro that if I name23 them all, I would be here for days. If24 El Centro closes, it will be a25 260 6/10/11 - WHOLE - 110135, ETC.1 devastating moment.2 I graduate this year, class of3 2011. You are probably thinking, well,4 if she's graduating, why does she care?5 Why is she here? I care because I want6 others to succeed the same way I did. I7 want others to get the high school8 diploma, because tomorrow is not9 promised.10 I am here at this very moment11 because I'm please asking that you do not12 close El Centro. If you have to close13 some schools down because of the budget,14 I understand, but can you please keep El15 Centro open, because in our school, we16 are family and that's our second home.17 We don't often find places like that. So18 if you can please give more money to the19 School District to help save alternative20 schools and accelerated schools, we will21 appreciate it.22 Please don't take away our23 education. Is it okay to raise the tax24 on soda? Because I want my education25 261 6/10/11 - WHOLE - 110135, ETC.1 more, because a mind is a terrible thing2 to waste. So if you're waiting for3 someone permission, you have mine and all4 my fellow classmates at El Centro.5 Thank you for your time.6
Thank7 you.8 (Applause.)9 COUNCIL PRESIDENT VERNA:10 Excuse me, sir. Would you come back.11 The Chair recognizes Councilman12 Jones.13
I just want14 to thank you for coming down and letting15 us know, reminding us, if you will, of16 what this debate is all about. And my17 colleague is reluctant to use "we," but18 I'm going to take some latitude and say I19 know we all in this Chamber care about20 your future education. The only thing21 we're debating is not you. The debate is22 about how we help you, and I think I can23 say "we" in that regard, all 17 members.24 I want you to know we take25 262 6/10/11 - WHOLE - 110135, ETC.1 these deliberations seriously. We take2 these discussions seriously, because we3 know at some point you're going to take4 care of us, God willing, and so we want5 you to be prepared to do that.6
I just want11 to commend you for coming here and12 testifying. I've seen you speak. I13 think you spoke at a Youth United for14 Change press conference the other15 morning. You're very eloquent and16 passionate about your school. And I went17 to the SRC meeting where many students18 from El Centro were there. It is clear19 that they're doing a great job based on20 the students and the effort and21 everything that's going on.22 So I just want to thank you for23 coming in and testifying and let you know24 that Councilwoman Quinones-Sanchez had a25 263 6/10/11 - WHOLE - 110135, ETC.1 very detailed conversation with the2 School District this morning on the issue3 of accelerated schools, and we certainly4 are fighting on City Council -- or I am5 fighting on City Council. I'll say we6 also. We're fighting on City Council to7 make sure that your and all the other8 accelerated schools maintain their9 funding.10 So thank you for coming in.11 It's important that you shared your voice12 with us. It's very helpful to get -- it13 helps us make the case for your funding,14 so thank you.15
Thank20 you.21 MR. McPHERSON: Our next22 witness --23
We24 agree. Thank you again.25 264 6/10/11 - WHOLE - 110135, ETC.1 MR. McPHERSON: -- Isabel2 Rodriguez.3 (No response.)4
Is5 Isabel Rodriguez here?6 (No response.)7 MR. McPHERSON: Shelly Yanoff.8 (Witness approached witness9 table.)10
Good11 afternoon. You too have been very12 patient.13
I do, and here17 they are.18 Before I launch into it, I want19 to just say I think it is 28 to 30 years20 that I have been coming here and arguing21 for more support for kids, and much of22 the time you've responded, and I wanted23 to note that a lot of this conversation24 and some of the very questions -- and,25 265 6/10/11 - WHOLE - 110135, ETC.1 Council President Verna, you will2 remember when you all passed the3 across-the-bar liquor tax, some4 colleagues who were always, always for5 the people were convinced that it would6 be bad and that taverns would close and7 that it wouldn't yield more than $4 to $58 million. Well, it's up to 46 and the9 taverns didn't close.10 So I think we have to learn11 lots of different things. There are lots12 of disparate facts around, and I just13 wanted to remind us all that we've been14 through some of these before.15 But I wanted to then bring, if16 I could, my testimony.17 I am Shelly Yanoff --18
Excuse19 me, Ms. Yanoff. A lot of small clubs did20 close, and they closed because it was21 when Atlantic City opened and casino22 gambling took place. But it is not true23 that a lot of neighborhood bars and clubs24 did not close, because they did.25 266 6/10/11 - WHOLE - 110135, ETC.1
10 At any rate, I am the Director11 of the region's major child advocacy12 organization. 21 We're not talking about a22 little impact here. We're thinking about23 laying off -- and those 1,500 teachers24 did get layoff notices this week. 1 impact at least 45,000 kids, 45,000 kids'2 lives. 7 We're talking about the loss of8 work, of opportunity, of hope for growth9 and change, the City becoming not the10 City of Brotherly Love and Sisterly11 Affection but of loss. 1 worried about taxes and how to keep up,2 but we have to. To people who still want3 to believe in the City and to not shatter4 the dreams of the five, ten-year-old or5 15-year-old who began to believe at last,6 who did not want to see any more scenes7 of kids weeping because a teacher had to8 tell the kids she won't be back in the9 fall. This happened a lot in this last10 week. 16 Unless you act and the state17 follows, we will be the city that looked18 at evidence and nonetheless threw success19 out, because 32 cents a day was too much20 in property tax to help kids succeed over21 the years. 13 Would people who feel they have14 no skin in the game because their kids15 are not in our schools really consider16 what happens when education closes down17 in a city still think they have no skin18 in the game? 20 To those who feel they don't21 want to do something because they fear a22 lawsuit, think of the history of doing23 the right thing being challenged by the24 threat of a lawsuit. 9 This isn't an easy decision,10 but you need to take it. 13 We agree that money needs to be14 spent on what works. 17 Rehire those yellow buses. Save lives18 and lawsuits. Keep the programs and19 class sizes and counselors and arts and20 music. They work. 2 Insist that our schools get better, and3 stand ready to work for them and support4 them. You, Council, have the power to do5 it. 6
Thank7 you.8 The Chair recognizes Councilman9 Green.10 (Applause.)11
Thank you12 for your 28 to 30 years of advocacy on13 behalf of Philadelphia's children.14
Many of the16 children you have helped have grown up17 and gone to college and had kids of their18 own and here you are working for them.19 I appreciate your testimony. I20 just -- and we agree on the premise that21 we need to do something to help the22 schools, and so I want to make that23 clear, but from your perspective, it24 doesn't matter where the money comes from25 272 6/10/11 - WHOLE - 110135, ETC.1 as long as the City provides the2 resources to the schools; is that3 correct?4
Thank9 you.10 The Chair recognizes11 Councilwoman Brown.12
I too join13 the chorus of saying a huge thank you for14 your unwavering support on behalf of our15 city's children. In the 20, 25 years16 that you've been on this journey as a17 champion, can you think of any time in18 your experience where the City has faced19 or the School District has faced this20 type of picture with regards to funding?21
No. I think in my22 lifetime and in many of our lifetimes,23 there's not been the kind of economic24 tsunami that we're in. So the City25 273 6/10/11 - WHOLE - 110135, ETC.1 itself, when the School District faced2 problems, the City could find easier ways3 to make up for it. And so I don't think4 I've ever seen -- I know I have never5 seen that.6 I also think, though, that over7 the course of this time, there have8 always been incredible challenges, and9 what is so frightening about this10 particular time is, we have finally11 discovered how to do things for a lot of12 kids that we didn't know how to do, and13 we're finally seeing progress in lots of14 different places, and it's just all15 subject to being lost.16 I got some e-mails yesterday of17 people describing their schools and18 teachers just getting notices and19 counselors getting notices and lots of20 people getting notices that they won't be21 back, and it's really just very moving to22 think about that was once a safe and23 valued profession and there was security24 there, and kids would go there and25 274 6/10/11 - WHOLE - 110135, ETC.1 parents would go and drop their kids off2 at schools and know that they would be3 okay, and that's just -- we're entering4 into a very perilous time.5 So I don't. I begin by saying6 these are not easy times. These are not7 easy decisions. But the kids of this8 City and the City's future need you.9
And to10 your next-to-last paragraph on the second11 page, I believe the good news is that12 myself -- I don't want to step into where13 I went earlier today with my colleague --14 fully understand, get it, the notion and15 the urgency around figuring out how we16 preserve kindergarten and preschool17 programs, because all the data is too18 compelling. And the record should note19 that in the last Administration, it was20 actually David L. Cohen who led a study21 amongst business leaders, who also needed22 to know or discovered that when we make23 the investment during those early school24 years, we get a better, stronger yield of25 275 6/10/11 - WHOLE - 110135, ETC.1 a young person on the back end.2 So that needs to be noted for3 the record, that indeed there are members4 of the business community who fully5 understand the value of kindergarten and6 pre-K.7
Thank you. And I8 do know that, but I also -- earlier when9 we discussed the earlier City Council10 hearing on the School District budget, we11 urged that at this time it's not easy for12 either the business community or John and13 Jane Q public or you all to make a14 decision. So we urged, okay, the Chamber15 of Commerce, raise some dollars, you take16 both the summer jobs and the summer17 programs and take that off the School18 District's plate and take -- all of you,19 let's figure out a way that SEPTA takes20 responsibility for the transportation to21 schools. So we knock it down, so it22 becomes more possible to move, and that23 the Accountability Block Grant may come24 in and that could do full-day25 276 6/10/11 - WHOLE - 110135, ETC.1 kindergarten and then we could move and2 we make the nut smaller, and then we just3 have to act to do something about the4 nut.5
Yes. And6 to reaffirm the questions stated by7 Councilman Bill Green, at the end of the8 day -- let me not speak for you.9 What that ultimate formula10 looks like, what that blend of solutions11 looks like is less important than us12 simply figuring it out on how we fill the13 gap, correct?14
Right, as long as15 we don't step back on the progress that16 we've begun to make with kids.17
Thank you,25 277 6/10/11 - WHOLE - 110135, ETC.1 Madam President. I'll be brief.2 Ms. Yanoff, I actually have a3 follow-up to a response you just made to4 Councilwoman Reynolds Brown. Did you say5 that past fiscal crises were easier to6 manage because the School District was7 under the City's control?8
No. No. Because9 the City did have -- it never has a whole10 lot of extra dollars, but the City, it11 felt, wasn't as tight as it is now.12 Three years ago or four years ago when13 you did the switch, increased, that was14 very important and it saved a lot of15 programs, and we're very, very grateful.16 What I meant was the economic situation17 in the world, in the country, in the18 state, in the City is just worse than it19 was and it's been in our life.20
What I21 thought I heard you say -- I won't put22 words in your mouth -- is that there's23 never been an economic tsunami like this24 we've experienced and in the past the25 278 6/10/11 - WHOLE - 110135, ETC.1 School District was in the City's2 control, so there were some things that3 we could manage.4
No. No. That may5 be in the future, but it's not in the6 past.7
Well, it8 sparked me to ask you the same questions9 that I asked the School District, which10 is, one, do you support the concept of an11 elected School Board?12
I think that the13 management system that the Home Rule14 Charter developed in 1950 is no longer15 sensible for us. I definitely think that16 the City should have more control, and so17 I certainly am more than open to thinking18 seriously about an elected School Board.19 I don't think it makes a lot of sense for20 the taxing authority not to have real21 control over how it's spent.22
That's where23 I'm going, so I'll just ask a series of24 questions. Should control be given back25 279 6/10/11 - WHOLE - 110135, ETC.1 to the City? Should the School Board be2 elected? Who should be the taxing3 authority? And what should City4 Council's role be?5
I think I would6 love to join you on a commission that you7 establish to come up with the answers to8 those questions. I think that I am9 interested in those questions and in that10 governance question, but I don't think11 that I should give a flip answer to a12 very serious question.13
Thank18 you.19 MR. McPHERSON: Our next20 witness --21
Yes, Madam24 President. I have no additional25 280 6/10/11 - WHOLE - 110135, ETC.1 questions for Ms. Shelly Yanoff. I am2 curious to know, is the Chamber still in3 the room?4
Is the7 Chamber of Commerce still represented8 this afternoon?9
No.10 They just sent the letter. They sent the11 letter which was distributed to everyone.12
I was just13 reading it. Okay. All right, then.14 Thank you.15
Thank16 you.17 Our next witness.18 MR. McPHERSON: Angel Ocasio.19 (Witness approached witness20 table.)21
Good afternoon.24 My name is Angel Ocasio and I attend El25 281 6/10/11 - WHOLE - 110135, ETC.1 Centro de Estudiante.2 I started at El Centro on3 January 31st, 2011. Before I came to El4 Centro, I was attending Mariana Bracetti5 Academy Charter School, but I got kicked6 out and eventually had nowhere else to7 go. I was out of school for about a8 month and a half, because I nor my family9 wanted me to go to Frankford High School.10 So while I was out of school, my mother11 and grandmother found this school for me12 and told me to sign up. I did, and I13 thought this school would be like a14 regular public high school, but as I was15 going through the semester in El Centro,16 I was surprised at the things I was17 doing. One reason why is because I was18 not being disrespectful. I was actually19 doing my work. I was growing into a20 student that I wanted to be in MBA.21 I love El Centro because I have22 freedom, like choosing projects I am23 interested in, but at the same time, I24 have responsibilities that I have to25 282 6/10/11 - WHOLE - 110135, ETC.1 handle by myself. Also I like El Centro2 because of the Real-World Learning and3 Learning-to-Internship programs they have4 for different categories that a student5 would like to get into.6 Since being in the school, the7 things I am most proud of is everything,8 as my music with the hip-hop rolo and my9 grades, all these things that I have10 become in this school that I had not done11 in MBA.12 I feel as though if you close13 El Centro, I will feel left out in the14 cold, feel like I have failed to try to15 help the school. Without this school, I16 don't know what will my future be. So I17 am asking the City Council to please not18 close El Centro and please give more19 fundings to El Centro and all the other20 13 alternative and accelerated schools21 that are open. So can you please help?22 Thank you.23
Thank24 you very much.25 283 6/10/11 - WHOLE - 110135, ETC.1 (Applause.)2
Thank3 you.4 Our next witness.5 MR. McPHERSON: Our next6 witness, David Sculick.7
I thank you for16 the time today to speak in support of the17 urgent need to help the School District18 and the soda tax and the need for19 sustainable District support urgently. 1 Chairman of the Judith B. Sculick2 Memorial Foundation for At-Risk Youth. 18 Unfortunately, the forces of19 this world - political, religious,20 financial and otherwise - constantly21 divide us. 5 Everyone in this room knows full well6 that a 50 percent dropout rate is7 unacceptable. 15 If time permitted, I would16 share my personal story about how my life17 was changed forever when my beloved18 mother, Judith Sculick, was killed in an19 auto accident caused by at-risk youth20 acting recklessly. These problems are21 real, and we as one great city must help22 the District, the students and our next23 generation. 8 Harrisburg's recent actions9 have the potential to destroy us or we10 can come together as a city and do what11 we have to do and now. 13 Ackerman, Benjamin Wright, the14 Philadelphia Youth Network, Shelly Yanoff15 and many other stakeholders develop a16 system of both transition schools for17 disciplinary issues and small, intimate,18 nurturing accelerated schools to provide19 thousands and thousands of students on20 our streets who have dropped out with an21 option to return, secure their diploma22 and move on to vocational or higher23 education. 4 As an example, DVHS Southwest, a dropout5 recovery school, maintained one of the6 highest attendance rates in the District,7 85 percent, all from students who8 previously dropped out. In one year,9 almost 500 young people who would10 otherwise be on the streets, hopeless,11 now have hope. 15 Without the soda tax or other16 sustainable revenue, these schools may17 have to close. 19 Do I like taxes? No. Does20 anyone like taxes? No. 22 The federal government provides23 tax incentives to encourage24 homeownership, creating a win-win. 2 Finally, what I have witnessed3 today is that we are represented by a4 Mayor and Council with insightful and5 progressive thinking. 12 We should discourage our citizens from13 their use, and I understand the arguments14 of our opponents, lose jobs, scare, no15 change. Let people make their own16 decisions. 1 easily overcome any other excuse. 7 I am here to plead with you to8 support the soda tax, since it is a9 choice to buy more expensive soda versus10 cheaper or healthier options. Help this11 city. Keep the alternative education12 options that are working so well open for13 future and current students. Without14 your help, DVHS Southwest and many other15 dropout recovery schools around the City16 will close. The students served therein17 will undoubtedly be back on the street,18 hopeless and left with no future. We can19 avoid this. We must avoid this. 4
I'm a great10 admirer of yours, and I'm pleased to hear11 your testimony today. In the end, what12 you care about is that the children have13 the resources they need to go to the14 accelerated schools, to have early15 childhood education, to have yellow bus16 service? That's your goal, right?17
So the19 means, as long as we meet that goal, you20 would be indifferent about?21
Thank24 you. Thank you very much, sir.25 291 6/10/11 - WHOLE - 110135, ETC.1 Our next witness.2 MR. McPHERSON: Dorcus Laney.3
And4 our next witness will be Joe Bright.5 Please approach the witness6 table.7 So if Mr. Bright is here, maybe8 he could just come closer to the witness9 table.10 (Witness approached witness11 table.)12
Good13 afternoon. Please identify yourself for14 the record.15
Good afternoon. I16 am Dorcus J. Laney. I'm the ombudsman at17 John Wister Elementary School in18 Germantown, and I thank you for the19 opportunity to bear witness today, Madam20 Chairperson, Madam President, and to all21 Councilmembers.22 The weather is playing havoc23 with my postnasal drip.24
We25 292 6/10/11 - WHOLE - 110135, ETC.1 all have that problem.2
First and foremost,7 I'd like to say that I and a parent with8 me represent what we're talking about9 today, what the cuts mean and will mean.10 I am the -- I will not have my job come11 June 30th as the ombudsman at John12 Wister. I want to share with you what13 being at John Wister for the past three14 years has meant.15 Although John Wister met AYP16 prior to my coming, it made successive17 AYP for two years. That is tremendous.18 My children -- because I greet most of19 them every morning, because I sit at the20 front desk, speak to parents, have the21 children come in, say, Good morning,22 Mrs. Laney, give me hugs, making sure23 that I'm okay. Those are good things for24 me. I'm a social worker by training. So25 293 6/10/11 - WHOLE - 110135, ETC.1 I know all about children, what it takes2 to make them happy, and it doesn't take a3 whole lot.4 We have been fortunate to be5 able to provide music, physical6 education, special reading advances for7 the children, and those things are going8 to be lost because of the draconian cuts9 that are being proposed. I'm happy to10 say that last Friday, I was with Dr.11 Ackerman when she made the announcement12 that the dollars from Title I could be13 used for our kindergarten for all day.14 That's tremendous, because at my school,15 we also have Bright Futures. We have16 from pre-K up to the 6th grade.17 I'm also proud to say that I am18 the mother of a graduate of your School19 District through Masterman. My daughter20 graduated from college and is well on her21 way maintaining herself as a wonderful22 adult, making sure that she's giving back23 to society.24 I want to say to you that since25 294 6/10/11 - WHOLE - 110135, ETC.1 the Governor made that decision to put2 forward his budget which cuts our3 education funds, my parents have been4 just beside themselves. However, they5 have supported all that we have attempted6 to do, by speaking with legislators in7 Harrisburg, going on bus trips, doing8 rallies here locally, writing letters,9 making phone calls. Those are wonderful10 things.11 But today I especially hope12 that this Chamber will indeed provide13 funds to the public school system,14 because it's a glorious system, a system15 that we can ill afford to have chopped up16 in little bits and pieces, and the17 children will not benefit from what the18 outcome of all of this will be.19 I want to thank you for this20 opportunity for hearing what I have to21 say. I want to thank my parent for22 coming with me, for supporting me. This23 has been an education for both of us, and24 I pray that all of this that has been25 295 6/10/11 - WHOLE - 110135, ETC.1 said here today -- and there has been a2 lot -- will be to the benefit of our3 children.4 I thank you.5
Thank6 you very much.7 COUNCILWOMAN BLACKWELL:8 Ms. Laney, I wanted to remark that I9 visited Longstreth School in my district10 just last week in Southwest Philly, and11 Linda Miller is your counterpart there.12
And14 she too was doing a wonderful job.15 Obviously it wasn't our idea. We didn't16 pick cuts, and we understand how17 important the parent ombudsmen are or the18 school ombudsmen, and we thank you for19 your service, and we are sorry.20
Thank22 you again.23 Mr. Bright, I believe you're24 our next witness.25 296 6/10/11 - WHOLE - 110135, ETC.1
Madam President,2 I'm Joe Bright with the law firm Cozen3 O'Connor. I'm a tax lawyer. I was asked4 to look at this proposed bill and offer5 my view whether it is lawful. 14 It is true that nominally it is15 not imposed on the consumer as is the16 sales tax. It is imposed on the licensed17 distributor. written. So what's the effect here? The4 ordinance states that the licensed5 distributor is required to itemize the6 tax in a sale to a dealer. Why should7 that be? The licensed distributor does8 not have to certify that it paid its9 federal income tax, state income tax,10 city business privilege tax, use and11 occupancy, anything. 13 Why? The reason is obvious. 17 You've heard the testimony of18 Mr. 20 You've heard the economic testimony which21 confirmed that. Even Solicitor Shelley22 Smith said, Well, the market may mix it23 up a little bit. 1 The bottom line is, this tax is2 going to be imposed as a one-time charge3 down the distribution chain on the4 consumer, and that duplicates the sales5 tax. 15 Why? In Pennsylvania if the General16 Assembly occupies a particular field in17 legislation, it preempts other18 legislation in that field. 20 That's essentially what's happened in21 Pennsylvania. There's one sales tax, and22 Philadelphia is authorized to impose23 essentially the same sales tax with very24 minor differences. 1 General Assembly said you can do in sales2 tax. This is a sales tax. There's no3 question about it. 9 In addition, I think that10 Council President and Councilman Green11 hit the nail on the head as to12 uniformity. I do not see a legitimate13 distinction between taxing14 sugar-sweetened beverages as described in15 the ordinance and other things that have16 sugar in them or indeed any other17 products. 19 Several of the witnesses here,20 particularly the young people, gave21 moving testimony on the importance of22 education. 1 straight. Don't pass a bill that has got2 serious problems and is likely to be3 struck down by the courts of this4 Commonwealth. And no matter how lawyers5 do on that, the fact is, you don't have6 the money. 9 COUNCIL PRESIDENT VERNA:10 Mr. 12
I14 guess I'd like to ask you a question that15 I asked the City Solicitor. If the16 industry were to go to court and17 litigation lasted for a period of time,18 would they still be able to collect this19 tax?20
They would collect21 the tax unless a court prohibited it.22 Whatever lawyer might be hired/retained23 to attack it, should City Council pass24 the tax, they will ask for several25 301 6/10/11 - WHOLE - 110135, ETC.1 things, and one of them will be an2 injunction, and they will surely also ask3 for a refund of all taxes if they don't4 get the injunction. So one way or5 another, you're short the money if they6 win.7
Thank8 you.9 Any questions from members of10 the Committee?11 (No response.)12
Thank13 you again, Mr. Bright.14 MR. McPHERSON: Our next15 witness is Danny Grace.16 (Witness approached witness17 table.)18
Once again, we are23 here. Councilmembers, good afternoon.24 Madam President, I have25 302 6/10/11 - WHOLE - 110135, ETC.1 testimony on behalf of my members, and I2 also have testimony from my sister local3 in Baltimore to the effects of what4 happened to them in the City of5 Baltimore.6 Teamsters Local 830 is honored7 to stand with people from all walks of8 life in our firm opposition to the Nutter9 Administration's second wrong-headed10 attempt to slap a sugar-sweetened11 beverage tax on the overtaxed citizens of12 Philadelphia. One year ago, this13 coalition and a vast majority of14 Philadelphians made it clear to the Mayor15 and City Council that we had no taste16 whatsoever for this burdensome,17 regressive tax. One year later, nothing18 has changed and our resolve remains19 strong.20 If passed into law, the21 sugar-sweetened beverage tax will more22 than double the price of people's23 favorite sugar-sweetened beverage. Many24 retailers have already signaled that they25 303 6/10/11 - WHOLE - 110135, ETC.1 won't create a separate pricing category2 for all sugar-sweetened beverages, but3 will simply apply the tax to all4 beverages, including diet sodas and other5 beverages.6 With all due respect, the7 Nutter Administration has exhibited a8 lack of understanding of the economic9 consequences of this tax. If this10 ill-considered tax is passed, the cost of11 all sugar-sweetened drinks will double.12 People will stop buying the products or13 drive to the suburbs to purchase them.14 City stores will stop stocking them.15 Black markets will arise, and soda16 companies will move fewer products. And17 don't be surprised if City retailers18 apply the tax across the board on all19 beverages, sugar-sweetened or diet, to20 simplify their bookkeeping. Many people21 will lose their jobs.22 Beverage industry statistics23 prove that when soda prices rise 1024 percent, sales drop a corresponding 8 to25 304 6/10/11 - WHOLE - 110135, ETC.1 9 percent. Reduction in soda sales mean2 job losses. As many as 2,000 local jobs3 could be lost. There are thousands of4 family-sustaining middle-class5 Philadelphia jobs in the beverage6 production, supply, distribution, sales7 and retailing which depend on a healthy8 beverage industry.9 These job losses will also10 impact supermarket employees, convenience11 store workers and small businessowners12 who sell soda in their stores or13 restaurants. The loss of these jobs will14 only further erode the City's tax base,15 and how can that possibly help the City16 or the School District? It is yet17 another unfair tax burden that will18 disproportionately hurt hard-working19 middle-class families and the working20 poor of this City. Far too many21 Philadelphians are already struggling to22 make ends meet in this terrible economy.23 The so-called soda tax is also24 discriminatory. Taxing one product and25 305 6/10/11 - WHOLE - 110135, ETC.1 one industry to the exclusion of numerous2 items containing similar sugar-based3 ingredients is simply unfair.4 And what precedent would be set5 if this outrageous tax is imposed? What6 would stop the Mayor from taxing other7 foods that are perceived to be less than8 healthy, such as ice cream, candy,9 cookies, popsicles, doughnuts or other10 high sugar foods? This is a slippery11 slope towards a Big Brother society in12 which the government tells you what you13 should eat, drink, watch and think. No14 thank you.15 We Philadelphians are already16 burdened with among the highest taxation17 rates in the country. The soda tax would18 be an additional financial burden on19 families already struggling to make ends20 meet. It does not work for21 Philadelphia's residents or our workers.22 Thank you.23
Thank24 you.25 306 6/10/11 - WHOLE - 110135, ETC.1 (Applause.)2
For9 the record, rather than we wait for10 copies.11
This letter is from12 Teamsters Local Union No. 570.13 Dear Mayor Nutter, you're14 kidding yourself if you think passing a15 tax on beverages in Philadelphia won't16 impact jobs. Last year in Baltimore, a17 two-cent tax on beverage containers was18 imposed and shortly thereafter 7719 good-paying jobs in the beverage industry20 were gone. The tax in Philadelphia is a21 much steeper proposal at two cents per22 ounce on sugar-sweetened beverages. If23 77 jobs were lost in Baltimore partially24 because of a smaller tax, what do you25 307 6/10/11 - WHOLE - 110135, ETC.1 think will happen in Philadelphia? And2 why are lawmakers signaling out the3 beverage industry?4 Taxing beverages is a very bad5 idea that will fail workers and their6 families, just like it failed us in7 Baltimore. We are very concerned for our8 colleagues who work for beverage9 distributors in Philadelphia. They are10 already seeing a shortage of work for11 their members. During these challenging12 economic times, the last thing we should13 be doing is causing jobs to be cut.14 The tax will make Philadelphia15 beverage companies and retailers less16 competitive and will hurt sales,17 ultimately costing jobs. Customers will18 drive away from the City's local19 businesses into the surrounding suburbs20 to do their grocery shopping just like21 they did in Baltimore. Less demand for a22 product means less production, shipping23 and stocking. In other words, it means24 less jobs. We will stand hand in hand on25 308 6/10/11 - WHOLE - 110135, ETC.1 the issue with our fellow Teamsters in2 Philadelphia and the companies that we3 represent.4 Drive 100 miles down the road5 and visit us in Baltimore. We'll take6 you on a tour of the shut-down7 manufacturing and distribution8 facilities, and we will show you where9 the jobs used to be.10 Best wishes, Sean Cedenio,11 Teamsters Local Union 570.12
Thank13 you. Thank you very much.14 Are there questions from15 members of the Committee of Mr. Grace?16 (No response.)17
Thank18 you again, sir. We appreciate --19 Councilman Green.20 Mr. Grace, I'm sorry.21
Thank you.22 I just wanted to thank you for23 coming in. I don't have any questions24 for you. Your testimony was clear and25 309 6/10/11 - WHOLE - 110135, ETC.1 compelling, and I hope we can save your2 jobs.3
Thank5 you.6 MR. McPHERSON: Our next7 witness is Judy Grillo.8 (Witness approached witness9 table.)10
Good11 afternoon. Welcome. Please identify12 yourself for the record.13
My name is Judy14 Grillo. I am an owner/operator of two15 Auntie Anne's in the City of16 Philadelphia, and I think maybe I'm the17 only small businessowner today that18 you've heard from. So I look forward to19 having the opportunity to speak to you20 today.21 As I said, I own two Auntie22 Anne's in the City of Philadelphia, and I23 have to tell you, I love doing business24 here. Thank you for that privilege. I25 310 6/10/11 - WHOLE - 110135, ETC.1 really enjoy the City of Philadelphia.2 And I've really come to appreciate the3 team members that work for me as well.4 Because of that, I strongly oppose the5 tax, because I do believe it's going to6 affect my ability to give them hours and7 pay increases in the future.8 Just as an example, you've9 heard a lot of financial figures, but10 I'll just make it a little bit more real.11 A glass of lemonade will go up 72 cents12 for a glass. That's how much this tax is13 going to affect the price. A glass of14 soda will go up almost 50 cents. That is15 a significant amount of money that I'll16 have to pass on to the consumer. I do17 believe that the result of that will be18 that the consumer will no longer purchase19 as many of those products and my revenue20 will decrease.21 Right now the products that22 you're talking about taxing are about 2323 percent of my total revenue. The impact24 of losing a portion of 23 percent are25 311 6/10/11 - WHOLE - 110135, ETC.1 going to affect my ability to provide2 jobs to employees.3 Let me tell you about some of4 the employees that I do have. I have a5 lot of single moms. They enjoy the6 flexible schedule that I can provide7 them. They're part time, and they love8 the clean environment that we provide,9 the fun environment that we provide.10 They would be affected. I would have to11 reduce hours if my revenue decreased.12 I also hire disabled folks,13 and, again, if I don't have the revenue,14 I can't provide the hours. It would be15 very difficult to provide the flexibility16 for these team members that I do have.17 So, again, I do oppose this18 tax, and I hope that you will vote19 against it.20
I21 really enjoyed your testimony. I think22 it gave us a true light as to what a23 small business can be affected by this,24 and we certainly appreciate your25 312 6/10/11 - WHOLE - 110135, ETC.1 patience. You've been sitting here2 practically all day. I personally want3 to thank you.4
Our6 next witness.7 MR. McPHERSON: Danilo Burgos,8 and it will be followed by Frank Maimone.9 (Witness approached witness10 table.)11
Good afternoon,12 Madam Chair and members of the Committee.13 My name is Danilo Burgos. I am President14 of Philadelphia Dominican Grocers15 Association. The Philadelphia Dominican16 Grocers Association provides17 representation, education, leadership,18 community outreach, buying power and19 support to our members in order to20 improve their quality of life and21 facilitate prosperity in their22 neighborhoods that they serve.23 The Philadelphia Dominican24 Grocers Association serves all25 313 6/10/11 - WHOLE - 110135, ETC.1 independent Latino retailers.2 Philadelphia Dominican Grocers3 Association strongly believes that4 independent retailers are the cornerstone5 of the entrepreneurial spirit. This6 innovative spirit and drive comes from7 many family-operated independent8 businesses we proudly represent.9 Philadelphia Dominican Grocer Association10 does everything it can to help11 family-owned independent retailers.12 Taxing soft drinks, juice13 drinks and other non-alcoholic beverages14 will do little to make a dent in the15 City's budget deficit, let alone serve as16 a funding mechanism for the City school17 system.18 We are small business19 operators, and any tax which impact us20 not only impacts our customers, but it21 makes it more difficult for us to do22 business as well.23 This tax means we will have to24 pay more for the products we sell to our25 314 6/10/11 - WHOLE - 110135, ETC.1 consumers. The choices that leaves me to2 buy my products from another cheaper3 supplier outside of Philadelphia or to4 pass those costs along to my customers5 are both bad for the City.6 Many consumers rely heavily on7 stores like ours to provide them with8 their basic food staples and refreshment9 beverages that they enjoy. A beverage10 tax will increase cost to retailers and11 consumers. Independent retailers across12 the City will endure severe economic13 hardship from a discriminatory tax on14 soft drinks and other beverages.15 Consumers can't afford yet another tax,16 particularly a discriminatory one.17 The majority of people don't18 want a tax on their juice drinks, soda19 and teas. Philadelphians don't want20 government in their grocery cart or21 kitchen. Families are already struggling22 in this difficult economy. There could23 not be a worse time to ask them to pay24 more for the price they consume by25 315 6/10/11 - WHOLE - 110135, ETC.1 raising grocery prices. If we as2 Philadelphians really want to have a3 significant effect on School District's4 financial problems, then we need to look5 at comprehensive solutions that will have6 a meaningful and lasting impact, not7 simplistic approaches targeting one8 portion of the items in our grocery cart9 for additional taxation.10 On behalf of our Philadelphia11 independent retailers, thank you for the12 opportunity to express our concerns about13 causing unnecessary harm to our industry14 and not truly fixing the School15 District's underlying financial problem.16
Thank17 you very much.18 Are there any questions from19 members of the Committee?20 (No response.)21
Our25 316 6/10/11 - WHOLE - 110135, ETC.1 next witness.2 MR. McPHERSON: Our next three3 witnesses are Frank Maimone, Wan Woo and4 Jonathan Kirch.5 (Witnesses approached witness6 table.)7 COUNCIL PRESIDENT VERNA:8 Gentlemen, good afternoon. Please9 identify yourself for the record.10
My name is Wan D.11 Woo. I'm representing of the Korean12 Grocery Association, about 500 members in13 the Philadelphia city small business14 place.15
My name is Cheung16 Ling (ph). I'm the Chairman of Korean17 American Grocers Association.18 On behalf of Korean Grocers19 Association, we are against the20 Mr. Mayor's soda taxes, because it's21 going to hurt the small business, which22 is eventually a lot of small business is23 going to get hurt. For example, two24 cents an ounce, which means, let's say,25 317 6/10/11 - WHOLE - 110135, ETC.1 20 ounce soda, which is most people2 grabbing from the small business, that3 means 40 cents more than right now. In4 Center City, the average is $1.50, $1.755 bottle of soda, which means it's going up6 to more than $2. Would you pay more than7 $2 for grabbing one 20-ounce sodas? Not8 like it used to be. It's going to hurt9 our businesses.10 Most of the small11 businessowners in Philadelphia is part of12 your revenue to increase the taxes. If13 they gone, how you going to raise the14 taxes?15 You may get taxes for the sodas16 from the Mayor's soda taxes, it's going17 to increase the revenue, but apparently18 it's going to reduce the sales volume,19 which means you go down again. So this20 is not the proper way to raise the money.21 That would be temporary.22 So I have to ask you, Mr. Mayor23 and City Council members, you have to24 think again, which is the better way.25 318 6/10/11 - WHOLE - 110135, ETC.1 I don't think anybody against2 to raise the money to give the School3 District. There's no question about it.4 But how? How, is the question. This is5 not a proper way to do it for long term.6 This is my opinion.7
I'm going to say -- I10 do have couple of words for the Mayor.11
This taxes really14 going to be hurt for our -- I mean, our15 Korean Grocery Association. Also it's16 going to be hurt on the consumers and17 it's going to be manufacturers, because18 this will be all chain reactions, because19 the Mayor is going to raise the taxes to20 one of the manufacturer, but it end up to21 be coming to the consumer to pay every22 dimes, pennies. But right now it's23 all -- taxes is so high from everything,24 high for the property taxes, high for the25 319 6/10/11 - WHOLE - 110135, ETC.1 gas. Right now gases are so high. And2 there is -- even like for the3 Philadelphia sales tax is 8 percent, it's4 higher than the surrounding area. Now5 you going to be adding to the two more6 cents at the bottom of taxes. It's going7 to be really hurting to the community and8 the small business like ours, and that9 makes the manufacturers going to be10 struggling, and then somehow the11 manufacturers who were delivering to the12 City, maybe they losing jobs from cutting13 down the hours or so. It really going to14 be hurt.15 Also, they are -- I mean, this16 City is really lot of history area. We17 have business in Center City and we saw a18 lot of tourists coming in. These people19 going to remember a whole bunch of stuff20 in this (unintelligible) in Philadelphia,21 but also they going to be remember as the22 highest taxes, beverage tax.23 So I don't think it's not24 really going to be a good idea for right25 320 6/10/11 - WHOLE - 110135, ETC.1 now to be raising two cents per ounce for2 tax. So rethink about this, to your3 Mayor and the Councilmembers, about this4 situation until, I don't know, economics5 may be better. Then we might really be6 able to pay a little bit more, but right7 now everybody is really struggling. So8 really think about this again for that.9 Thank you.10
Thank11 you very much for coming in to testify.12 Thank you.13 I would ask Mr. McPherson to14 please read the names that were called15 earlier and that did not respond.16 MR. McPHERSON: Helen Gym.17 (No response.)18 MR. McPHERSON: Mary Louis19 Butler and Jack Barry.20 (No response.)21 MR. McPHERSON: Isabel22 Rodriguez.23 (No response.)24 MR. McPHERSON: Frank Maimone.25 321 6/10/11 - WHOLE - 110135, ETC.1 (No response.)2 MR. McPHERSON: And Jonathan3 Kirch.4 (No response.)5
Karen6 Brown.7 MR. McPHERSON: Oh, Karen8 Brown. I'm sorry.9 (No response.)10
Okay.11 The Chair recognizes Councilman Green.12
Thank you,13 Madam Chair. I want to offer an14 amendment to Bill No. 110137, which will15 result in savings from the City budget of16 about $15 million compared to what has17 been presented to us by the18 Administration. It includes the concept19 of an Accountability Grant fund in City20 Council's budget to provide resources for21 the School District.22 We have heard from the School23 District itself, parents, Ms. Yanoff,24 Mr. Sculick and a number of other people25 322 6/10/11 - WHOLE - 110135, ETC.1 who testified that where the resources2 come from for schools and for children3 are not as important as getting the4 resources. This, combined with a $305 million increase or -- combined with $306 million from the year-end fund balance7 that Mr. Dubow testified would be 518 million roughly this year, that would9 allow the City to provide a $45 million10 grant roughly to the School District, in11 addition to the parking tax, which is $612 million.13 And we heard testimony today14 from the School District about a number15 of items where we don't all agree on16 priorities, but that could potentially17 result in $40 million of shifted18 priorities within the School District,19 for a total of $90 million being made20 available, without increasing taxes, for21 the priorities that are on the list the22 School District presented to us today,23 which totaled $102 million.24 So I offer this amendment. I'm25 323 6/10/11 - WHOLE - 110135, ETC.1 not asking for any action on it today.2 Thank you, Madam President.3
Thank4 you. We accept your amendments, which5 will be considered at a later date.6 Is there anyone else to testify7 on the bills before us?8 (No response.)9 COUNCIL PRESIDENT VERNA:10 Seeing no one, this hearing will be11 recessed until Thursday, June the 16th at12 10:00 a.m. -- oh, I'm sorry. I forgot we13 have Council sessions on Thursday. So we14 will recess this until 9 o'clock Thursday15 morning.16 Thank you all very much.17 You've all been extremely patient.18 (Committee of the Whole19 recessed at 4:15 p.m.)20 - - -21 22 23 24 25 324 1 CERTIFICATE2 I HEREBY CERTIFY that the3 proceedings, evidence and objections are4 contained fully and accurately in the5 stenographic notes taken by me upon the6 foregoing matter on June 10, 2011, and that7 this is a true and correct transcript of same.8 9 --------------------13 MICHELE L. MURPHY14 RPR-Notary Public15 (The foregoing certification of this19 transcript does not apply to any reproduction20 of the same by any means, unless under the21 direct control and/or supervision of the22 certifying reporter.)23