COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC MEETING BEFORE COMMITTEE ON APPROPRIATIONS - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, June 10, 1998 4:00 p.m. - - - Bill 980526 - An Ordinance authorizing transfers in appropriations for Fiscal Year 1999 from the General Fund, the director of Finance - Contribution to School District/Tax Cuts and the City Representative and the Director of Commerce - Economic Stimulus and from the Grants Revenue Fund the Director of Finance - Provision for Other Grants to the General Fund, the First Judicial District of Pennsylvania. Bill 980527 - An Ordinance authorizing transfers in appropriations for Fiscal Year 1999 within the Grants Revenue Fund from the Director of Finance - Provision for Other Grants to the First Judicial District of Pennsylvania. PRESENT: HONORABLE JOAN L. KRAJEWSKI, CHAIRLADY COUNCILMAN MICHAEL A. NUTTER COUNCILMAN ANGEL L. ORTIZ COUNCILWOMAN ANNA C. VERNA - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 (215) 561-2220 I N D E X BILL 980526 and 980527 PAGE Dean Kaplan, Director of Finance ------- - - - 3 COMMITTEE ON APPROPRIATIONS-980526,980527 THE CHAIRLADY: Good afternoon. The Committee of Appropriations is now in session. Will the clerk please read the bills? And I do believe that Bill No. 980448 has been withdrawn.
Bill No. 980526, an Ordinance authorizing transfers in appropriations for Fiscal Year 1999 from the General Fund, the Director of finance - Contribution to School District/Tax Cuts and City Representative and the Director of Commerce - Economic Stimulus and from the Grants Revenue Fund the Director of Finance - Provision for Other Grants to the General Fund, the First Judicial District of Pennsylvania. Bill No. 980527, An Ordinance 17 authorizing transfers in appropriations for Fiscal Year 1999 within the Grants Revenue Fund from the Director of Finance - Provision for Other Grants to the First Judicial District of Pennsylvania. THE CHAIRLADY: Mr. Kaplan, state your name for the record.
Thank you, Chairlady Krajewski and Members of the Committee. I'm Dean Kaplan, the City's Budget Director. I appear before 4 COMMITTEE ON APPROPRIATIONS-980526,980527 you today to offer testimony on Bill No. 980526, which would transfer 53.2 million dollars to the First Judicial District of Pennsylvania for FY '99 in the General Fund, and Bill No. 980527 which would transfer 14.5 million to the FJDP for FY '99 in the Grants Revenue Fund. This Ordinance is necessary because the adopted FY '99 budget did not appropriate funding for the courts in anticipation of state action to comply with the Supreme Court's ruling requiring the General Assembly to appropriate funding for the courts' next year. As Members of this Committee know, the state budget passed in late April did not include any new funding for county courts. And even the minimal appropriation for Senior Court Administrator proposed by the Governor in his budget was included as an appropriation, but included with additional funding which requires passage of additional legislation before it can be spent. On May 11, 1988, as a result, the Courts filed a lawsuit against the City seeking a Writ of Mandamus directing the City to provide funds to operation the Court's next year. And immediately thereafter, the City filed a petition asking the 5 COMMITTEE ON APPROPRIATIONS-980526,980527 Supreme Court to take jurisdiction over the matter and compelled the State to fund the FJDP next year based on its Writ of Mandamus against the State in 1996, the Pennsylvania State Association of County Commissions versus Commonwealth of Pennsylvania case. We believe that our continuing policy of funding the courts in part and in an incremental basis has had a positive effect, first, in getting the Governor finally to see the proposed funding for the courts for along the line of the Montemuro recommendation including for the first time 14 million dollars for the Senior Court Administrators. 15 In addition, this Friday, the Commonwealth Court has scheduled a conference in the case that I just mentioned, the case that the First Judicial District has filed against us with our Motion for the Supreme Court to intervene. So we are at this point beginning to see some motion in this area. Nonetheless, if we do not provide funding in the new fiscal year, the courts will not have appropriations in place to pay their employees and operate the courts on July 1st. And while the Commonwealth appears to be willing to not fund the 6 COMMITTEE ON APPROPRIATIONS-980526,980527 courts and allow them to shut down on July 4th, obviously, the Administration is not. And therefore, we have once again reluctantly proposed six months of funding for the First Judicial District. In doing so, we don't abandon nor prejudice our legal efforts to compel state funding in the courts, which as I mentioned are continuing and in fact quite active right now, and we don't prejudice our attempts to re-claim this funding that we're appropriating from the State once the final rulings are made. On behalf of the Administration, therefore, I respectfully request your favorable considerable of both bills, and I also request suspension of the rules so that they can both receive first reading at Council's next session. THE CHAIRLADY: What is happening with the suit? Can you give us an idea what's going on?
Well, as you know, the original suit dates back to 1986. The various parties have intervened finally resulting in a suit in the summer of 1996 two years ago, Writ of Mandamus which essentially orders the State legislature to fund the courts beginning January 1, 7 COMMITTEE ON APPROPRIATIONS-980526,980527 1998, this year. And you will recall some of our machinations around that date. Subsequent to that, when that date passed and no action was taken, our discussions with the State Legislature, the Governor's office, and others, led to us believe there would be some active discussion about this this spring, and as a result of that, we funded the courts for the final six months of this fiscal year, the six months that ends at the end of this month, and did not fund them beginning July 1 for 1999. The fact that we did not fund them and the State in the end opted not to fund the courts forced the FJDP to bring a suit against the City and in turn the City to bring a suit against the Commonwealth asking the Supreme Court to intervene and require and essentially enforce their writ from 1996. The point we are now is there is a pending action in Commonwealth Court, which is the one I mentioned. There will be a conference with the judge on Friday. In addition, our motion to the Supreme Court to intervene in the case is also pending at this point, and that obviously was filed only a few weeks ago. We're waiting for action as well. THE CHAIRLADY: Does that mean that 8 COMMITTEE ON APPROPRIATIONS-980526,980527 you're going to have to come back here again in six months?
I certainly hope not. I believe in the fall that -- I'm hopeful that these actions will result in some concrete action on the part of the State. THE CHAIRLADY: It hasn't happened in ten years.
Certainly what we've seen in the six months is much more activity than we've seen in the last ten. THE CHAIRLADY: You're pretty well confident?
Well, I certainly am as pessimistic as you are, but also -- THE CHAIRLADY: Until it's in your hand?
Right. I think we're much closer than we have been in the past. THE CHAIRLADY: Thank you. Councilwoman Verna.
Mr. Kaplan, has the State contributed any money to the First Judicial District for FY '99?
Didn't they actually take over the administrative phase of the court?
Yes. The Governor's budget proposed an expenditure of approximately about 7 million dollars for a number of things but including 8 moving the senior court administrators in each 9 judicial district in the state into state employ 10 beginning July 1st. That funding was proposed in 11 the Governor's budget, and in fact is in the budget 12 passed by the State Legislature. However, at the 13 last minute the legislature also added language to 14 the budget that said that those appropriations could 15 not be spent until the legislature had also enacted a state court funding scheme. Which they have neither done nor introduced at this point. The appropriations are there, but can't be used.
As of this date, has any decision been made as to whether the State would reimburse the City or whether the employees would simply come under the state payroll?
No. Obviously, that's a very significant issue for us, and you have raised it several points during this debate over how to 10 COMMITTEE ON APPROPRIATIONS-980526,980527 fund the state court employees.
Well, when will that decision be made? Will that be part of the court case? Who's going to make that decision?
Well, we assume that when the State Legislature passes the funding scheme that many of these issues, and there are several others which we've discussed previously also will hopefully -- not only hopefully, will have to be included in that plan.
Thank you. THE CHAIRLADY: One more question. You're also requesting 14.3 million dollars transferred from the Grants Revenue Fund to the General Fund. What guarantees do we have to have that revenue come to us?
Well, the grant revenue fund money include things like the drug treatment court money, which we've come to you before to request, and other grants which the courts received with our approval and administer with our approval. So we are relatively confidant that that money will be administered properly. THE CHAIRLADY: Do you have a copy of 11 COMMITTEE ON APPROPRIATIONS-980526,980527 those grants?
I don't have it with me. THE CHAIRLADY: Can you see that we get them?
Certainly. THE CHAIRLADY: Any other questions? Now we'll go into Bill No. 980527.
My prior testimony also addresses this legislation which would provide a grants revenue appropriation for the courts, and those are the matters I was just discussing. This provides them, again, with six months of grants revenue appropriations so that those programs administered by the courts which are funded by state and federal grant sources can continue through the end of the calendar year. THE CHAIRLADY: Fine. Thank you. That ends our public meeting. Now we'll vote on the bills. Councilman Nutter, I believe you're asking for suspension of rules?
Yes. Madam Chair, I move that Bill No. 980526 be reported out of this committee with a favorable recommendation and 12 COMMITTEE ON APPROPRIATIONS-980526,980527 further recommendation that rules of Council be suspended so as to permit first reading at our next session. (Duly seconded.) THE CHAIRLADY: Those in favor? Any nays? No. Therefore the Bill No. 980526 will be voted out of this Committee with a favorable recommendation with a suspension of rules so as to permit first reading at the next session of Council. Councilman Nutter.
Madam Chair, I move that Bill No. 980527 be reported out of Committee with the favorable recommendation on a further recommendation that the rules of Council be suspended so as permit first reading at our next session. (Duly seconded.) THE CHAIRLADY: All those in favor? Any nays? No. Therefore Bill No. 980527 will be voted out of Committee with a favorable recommendation with the suspension of rules so as to permit first reading at the next session of Council. 13 COMMITTEE ON APPROPRIATIONS-980526,980527 Thank you, Mr. Kaplan. And thank you Councilmembers. (Adjourned at 4:10 p.m.) 14 C E R T I F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of June 10, 1998, were reported fully and accurately by me, and that this is a correct transcript of same. RE: COMMITTEE ON APPROPRIATIONS _____________________________, Lisa C. Bradley, RPR