That's great. And you made reference -- and you and I have talked about this in the past -- the agreement with Temple University. Could you go into a little more detail as to how that works?
For any students who seek to transfer within the region, for years we have attempted to facilitate that transfer by providing written articulation agreements with the receiving institution, receiving four-year institution. For a long time those agreements were based around the specific program. Let's say you wanted to be a teacher. You could take two years of an education program with us, and then transfer to a teacher-preparation program at a four-year institution, and the written agreement would guarantee the transfer 161 FY '07 OPERATING BUDGET HEARING - 3/22/06 of credits and the like. Beginning with Temple, around 1999, we still do all those individual agreements, but we have also moved to something we call a dual admissions agreement. Temple University and Drexel University were the first two to work out such an agreement with us, but we now have a dual admissions agreement with eight area four-year institutions.
You are testing me. Temple, Drexel, La Salle, Peirce, Eastern, Chestnut Hill, Cheyney, and Cabrini.
The nature of the agreement there is that it covers more than one program. It may not cover every program, but it covers many programs. It guarantees junior status upon 162 FY '07 OPERATING BUDGET HEARING - 3/22/06 graduation from the college, our college. It provides, in most cases, academic advising by both our college and the receiving college along the way. It provides automatic scholarships, if you attain a certain GPA, typically a 3.2, again without regard for the specific discipline area. It guarantees that your general education is accepted, and so on. There is a whole series of guarantees that are spelled out. Well, the dual admission agreements have started to change the nature of the transfer phenomenon for us. We are finding that more students are staying longer now. I have tried to use the Temple example, because we have the most data from Temple. We ask our receiving institutions to give us data. We want to know how successful our students are in transferring. And we know that, in analyzing the Temple data now, that of all the transfer 163 FY '07 OPERATING BUDGET HEARING - 3/22/06 groups -- from across the river, from our neighboring county community colleges -- our CCP transfer group, at the moment, at least, have the highest GPA once they are at Temple, have the best persistence rate. And, as I said to you, the latest data we have seen, say, out of the class that was evaluated, the graduating Temple class, 10 percent of that class had started at CCP. 11 So that's the nature of -- I think 12 the dual admission program has started to move forward even more significantly the articulation that already existed.
And, of course, you are aware -- and we chatted a little bit about this -- there is a movement, maybe it is not big enough to be considered a movement, but certainly a move in the right direction, a number of what are considered, at least by the newspapers, let's just call them, bigger named colleges and universities across the country have started to take a second look for any number of reasons, diversity being one, at community colleges. 164 FY '07 OPERATING BUDGET HEARING - 3/22/06 You and I talked about a news story involving University of Michigan and California, North Carolina, and some others, who are paying a lot more attention to community colleges to bolster their own ranks. Some of the other big-name schools in Philadelphia, how are we making out with them on dual admission policies and these kinds of agreements?
Again, we have something like 90 total agreements of all different kinds with many institutions. The dual admissions agreements that we have been able to achieve so far are with the eight institutions that I have already cited.
Well, certainly there are a few other schools around that we might want to try to engage --
Very good. Let's talk a little bit about funding. The President alluded to it earlier. 165 FY '07 OPERATING BUDGET HEARING - 3/22/06 There is a chart that I have seen that seems to tell the bulk of the story when you talk about the city support versus the state support, and then, of course, the balance being taken up by the university. I am looking at a chart that has the city's operating revenue and percent expense over what is almost a -- close to a 30-year time period. And what it indicates is that, in the 1977, '78 time frame, that time the city was supporting the institution at a 34.7 percent level, which actually rose over the next couple of years to its high point at 39.2 percent in 1980. years later, the city's support 18 is now down at 19.2 percent; is that correct? 19
The Commonwealth 21 of Pennsylvania, taking the same example, in 22 1977 was at 36.4 percent, and they have had 23 some higher years, and last year was at 30.4 24 percent. 25
This year is 30 166 FY '07 OPERATING BUDGET HEARING - 3/22/06 percent. I think last year was slightly less than that.
Right, at 28. But the impact on the university, or the college, rather, has been directly proportional, or I guess inversely, to the city. Whereas, in '77 you were at 29.7 percent, you now find yourselves at 47.4 percent?
And, so, while the state has remained relatively stable, somewhere in the 30s, lows and highs, but at least in the 30s over that or close to 18 30-year period of time, the city has 19 significantly dropped by almost close to half. 20 And the university has had to pick 21 up the lion's share, the college, rather, 22 which is really the students? 23
It is true. It is not 24 the college, it is strictly the students. 25
Is that, in your 167 FY '07 OPERATING BUDGET HEARING - 3/22/06 estimation, a potential barrier to young people accessing college education?
I think there is no 5 question that it can be a barrier. In my oral testimony a few moments ago, I indicated that, in the last several years -- last year, this year, and now next year -- we will have seen in pure dollar terms, as well as in percentages, by far the highest increases in tuition and fees that our college has ever implemented for students. I tried to suggest in very brief -- in a very brief way that half of our students receive federal financial aid, Pell. That will cover the cost of increasing tuition fees for a full-time student. But Pell is also meant to cover other costs related to going to college. And, so, students, after the tuition and fee charges have been accomplished, have what is called a balance check to buy their books and to do other things. That balance check is steadily diminishing. So students feel the pinch, even if 168 FY '07 OPERATING BUDGET HEARING - 3/22/06 they are on financial aid. About half of our student body does not receive financial aid. And these are students that are still near that cutoff for financial aid, but are paying -- don't quite qualify, so they pay out of their own pockets. We know that enrollments at the college vary. There are periods where, depending on the economy, they rise or fall. This year they have fallen a little bit. And we believe one of the reasons -- not the primary reason, not the only reason, but one -- is the increasing costs of tuition and fees. Students will go part time instead of full time or will take one course instead of two courses. There are lots of ways it may manifest itself. But we do believe it does have an impact on student access to the programs and services that we offer.
Lastly, you are aware that an amendment, or a proposed amendment, has been offered and introduced in this City Council, I offered that a couple of 169 FY '07 OPERATING BUDGET HEARING - 3/22/06 weeks back, which would seek to restore Community College to the -- and the city's funding for Community College to about 33 percent of the total cost over a five-year period of time. The initial impact of that would be an amendment to the FY '07 Operating Budget of approximately $3.9 million. Now, I understand from your testimony that you are asking for a $2 million increase from the city. So probably it would be the easiest question of the day. Would you rather have the $2 million in your testimony or would you rather have the $3.9 million in the proposed amendment?
You might want to confer with some advisors, talk with Ms. Cohen.
I think I have made clear in my testimony today, I believe that the city needs to get back to a moment where, 170 FY '07 OPERATING BUDGET HEARING - 3/22/06 on a regular basis, it can increase the amount that is allocated. Would I love the ideal of a 33 percent, which was the original concept 40 years ago? Of course. We try to be realistic at the college. And I don't know that we would expect that that's something that's easily achieved. But the notion of on a regular basis contributing to the increased costs associated with being educated at Community College of Philadelphia, to me, is a must on the part of the city. It is an investment on the city's part. But the whole premise of us as the only public institution of higher education in the City of Philadelphia is that the city participates in that investment, the state participates in the investment, and the student, rightfully, invests, also. As you have indicated, over the years it has been difficult for the city, as our local sponsor, to keep at the original 171 FY '07 OPERATING BUDGET HEARING - 3/22/06 level of its earlier efforts. And that's something, I should say, that's true of some other local sponsors across the state, too, it is not just the City of Philadelphia. What I am advocating for today is a specific amount of money for next year. I am responding to the budget that's on the table in front of City Council. But, in a broader way, I support the notion of what the resolution you described represents; and that is that there should be a regular achievable level of increase that makes it more predictable for the college in terms of managing its financial resources, but, at the end of the day, takes some of that significant burden off the student. I think it will make a huge difference to the ability of our residents to take advantage of the opportunities that we provide.
Well, I appreciate your testimony. I am hopeful that over the next few weeks, as we continue these budget hearings, that there will be further 172 FY '07 OPERATING BUDGET HEARING - 3/22/06 discussion about this and advocacy, at a minimum, within the Council and certainly with the city Administration. I look at this clearly as an investment. And, from that perspective, the return not only for the young person or the not so young person, in increasing their educational attainment, the income that often derives from it, but also having a more skilled, highly educated work force, says something about Philadelphia, makes us that much more attractive to current employers and then potential employers. So I look forward to working with you on this initiative.
Madam President, I am sure there may be others, but at some point I would like to have the Budget Director on this particular issue. But if there are other members that have questions, I can wait.
I think we can call the Budget Director up now. 173 FY '07 OPERATING BUDGET HEARING - 3/22/06
Ms. Reed, have you had an opportunity to take a look at the proposed amendment with regard to Community College of Philadelphia?
And do you have a view at the moment of what we should be doing with regard to increasing our investment in people here in the city to get an education?
This is an issue that needs to be looked at. I think that one aspect of the state law that discusses the local share that really hasn't been discussed much is that the city can provide not only funding, but also in-kind services of various kinds to make up whatever share is determined under the various iterations of this law. 174 FY '07 OPERATING BUDGET HEARING - 3/22/06 So I think that there should be some exploration of that.
I am not really in a position to suggest anything at this time. But we do note that, of the core scholarships that we have been given over the last few years, 275 to 300 thousand of that has gone to Community College students. So that's one thing that could be looked at.
So you are suggesting that the scholarship program, which is, you know, certainly very good for the students, is the answer to this situation?
That would be one answer. The problem is, there is no good answer, given the city's budget. A $4 million increase this year, for '07, that is, and for '08 would put the '08 budget in a deficit situation. We did hold the college harmless when other entities took a 5 percent cut, or we zeroed them out last year. So, you know, 175 FY '07 OPERATING BUDGET HEARING - 3/22/06 it's been very difficult.
I am sorry. You mentioned in the context of the city's budget.
We have the wage increases kicking in and very big increases in health benefits costs and some of our other fixed costs. They are growing at a far faster rate than our revenues as a whole, or other parts of the budget. The 3 percent kicks in next year, 176 FY '07 OPERATING BUDGET HEARING - 3/22/06 and then the percent in '08. 3
And how do the FY '07 spending priorities fit into that equation? Do we have any new spending priorities, new programs, new initiatives?
Well, they include the Operation Safe Streets, the borrowing for economic stimulus, some economic stimulus spending. Those are some of the key ones.
Do you think investing in people and their education is not an economic stimulus?
But it is not my choice to make that decision. 177 FY '07 OPERATING BUDGET HEARING - 3/22/06
Well, what exactly is your role in this process? What do you do?
What we do is, we make sure that all of the proposals in the budget are balanced, that we have enough revenue to accommodate. And many other ideas that are put forward do not make it into the budget because there just isn't enough money there. For example, we mentioned that departments asked for about $55 million more in spending, and we could only accommodate about $11 million more in spending.
Well, have you ever done a cost/benefit analysis of the difference between the cost of educating someone versus the cost of them not having an education?
I'm sure that that kind of study has been done. I have not done it.
Do you as the budget director advocate for certain spending priorities as the budget director? 178 FY '07 OPERATING BUDGET HEARING - 3/22/06
Not really, no. Not as to the policy decisions about what will be spent on.
So you just kind of make sure that the revenues and expenses kind of balance?
And we have to constantly be thinking about what PICA's concerns for the budget are, as well.
Right. We talked about that the other day. I asked you about their concerns about the budget, but you haven't figured that out yet. Right?
I think your response was, you are still looking at it. 179 FY '07 OPERATING BUDGET HEARING - 3/22/06
No; actually, I responded to each point. But I am going to be writing that up.
All right. Very good. So on this particular matter, whether it is the college's $2 million increase or the proposed amendment, what's the current position? What's the official position at the moment?
That we are holding the funding flat again, as we have budgeted.
So at the moment you are not anticipating any increase in their budget, notwithstanding the city's continued significant lack of support for the college?
Well, there may be opportunities on the in-kind side, which should be explored. But as to funding, as of now, the budget is flat.
Okay. Well, I mean, you understand that it is a little difficult to spend in-kind. 180 FY '07 OPERATING BUDGET HEARING - 3/22/06 I mean, if somebody does a nice thing for you, you don't get to go to the book store and say, well, you should give me the book because the city did something off to the side.
Well, I mean, it is a voided cost for the book store if we have made a contribution.
I'm sure we will have more discussion about this. I think we really need to rethink our investment strategy, especially on education. I mean, does it disturb you at all that less than percent of Philadelphians 17 have a Bachelor's Degree, in an education-rich 18 region? 19
It is not really my role to decide that, so I don't have opinions on that.
Thank you. 181 FY '07 OPERATING BUDGET HEARING - 3/22/06 Thank you, Madam Chair. MR. McPHERSON: Councilwoman Brown.
Thank you very much. Good afternoon. Thank you for your testimony. I have a few questions. The first is around the issue of your distance-learning program. And you indicate in your testimony that the enrollment has risen, period. So tell us what is the, for lack of a better word, disparity now between young people, students, who are on campus, versus the students involved in the distance education program?
Over the last four or five years, in a very regular and planned way, the number of students taking internet-based courses has increased, I would say, fairly dramatically. But there are almost never students who are only doing that, most of the students are --
Combination? 182 FY '07 OPERATING BUDGET HEARING - 3/22/06
Absolutely. It is a way of adding an extra course or two to a load. It might be able to move them from part time to full time, but they don't have to come and spend more time on the campus. Or it still could be part time, but they will take two courses instead of one. We have just received approval from our accrediting agency to begin to offer some of our programs fully via distance learning. But I think, realistically, the main use for the moment is going to be for the student who is taking something at a campus-based location, but is adding to the program. And that's clearly been the trend at the moment.
On , you give discussion and mention of the Bill and Melinda Gates Foundation Award. Congratulations. That's huge, particularly in light of the fact that Community College is one of a handful of schools across the nation. So elaborate on that opportunity. How many years is it for? Any opportunities 183 FY '07 OPERATING BUDGET HEARING - 3/22/06 for additional funding going forward? Just provide some additional details, if you would.
Yes, ma'am. This is an effort that looks at out-of-school youth, I think it is age to 7 20. 8 The program began at Portland 9 Community College in Oregon, and was deemed to 10 be such a successful model that it has 11 attracted the interest of the Gates Foundation 12 and other funders, it is not just the Gates 13 Foundation, who are seeking to replicate this 14 in various parts of the country. 15 So this year we are one of four 16 community colleges nationally that have been selected to replicate this program. The funding at the moment, in answer to your question, is for four years. We are working with a variety of city organizations, Philadelphia Youth Network and others, so that we can approach this as a kind of city initiative. So the immediate funding is for four years. I am assuming, if this is successful, 184 FY '07 OPERATING BUDGET HEARING - 3/22/06 that we will find other ways to continue this particular program going forward. The goal is to bring these out-of-school youth into a very supportive environment. They will be taking both high school and college courses. The first goal is to get them that high school diploma, but at the same time they will be accelerating their progress towards a college degree.
Noting that our city still faces something like a 40 percent drop-out rate for people that enter at 9th grade, but don't see 12th grade 48 months later, is there any connection with the school district or DHS, which comes in contact with young people who for any number of reasons, you know, lead to truancy and then to dropping out?
With the school district, the answer is yes. I don't know 185 FY '07 OPERATING BUDGET HEARING - 3/22/06 beyond that.
All right. You give discussion to the, I think it is, X percent increase from the state. What was that number?
But certainly not enough, when your fees have gone up 26 or 27 percent; correct?
So with that, that helps me understand why -- potentially why the impact on adult literacy programming. That's what I would like to turn our discussion to. Could you please indicate what percentage of the budget is allocated currently for noncredit-bearing classes; such as, GED, English as a second language, and/or adult basic education?
For those kinds of programs, we probably spend more than a half million dollars in year in direct instructional cost, for the programs that you 186 FY '07 OPERATING BUDGET HEARING - 3/22/06 mentioned, and approaching a million dollars a year total. For instance, we lease space around communities and so on, that's a cost. We have, you know, professional staff that oversee it, so on. So there are other costs associated with it. That's a little less than a million. And, in a percentage, that's probably more than a half a percent for direct instruction, about point 6 percent for direct instructional, and heading towards 1 percent of the overall budget for the overall cost.
And, so, at the top of , where you talk about the new state funding formula, and how the new state funding formula no longer provides incentives to these types of programs, I want to answer the question by asking it. Has that been one of the reasons that has led to where you are moving towards in terms of funding adult basic education and English as a second language?
I would say the largest 187 FY '07 OPERATING BUDGET HEARING - 3/22/06 reason has to do with the overall level of funding that we get from city and state combined. And I have tried to be, you know, pretty straight-forward today in terms of where I think the city could really help us by assuming additional responsibility. There simply isn't enough money coming in overall from our public sources. It has affected every part of our operation, including the adult literacy programs. The state funding formula comes into it. The state has, for this year, changed its approach. And while it didn't affect the amount of money, per se, for this year, under the 40-year-old formula that we used to have from the state, the city has always given us a lump-sum allocation. It says, here is an amount of money, and now
You do what you can and offer what you can. 188 FY '07 OPERATING BUDGET HEARING - 3/22/06 The state has always reimbursed us in realtime for the actual number of students in a given year. So for any program, including literacy, if we thought we could afford to teach 100 students, but we were very successful and got 200, we knew that there would be a supplemental amount of money coming from the state that would help fund that. That's no longer the case. There is no more supplement. The money is allocated up front. So that's what we mean by "incentive." It doesn't offer any incentive any longer, A, to subsidize programs. Because many programs -- not just literacy, but high school programs and others -- we have charged little or nothing for. But we knew that we had the option of getting additional supplemental monies based on enrollment. We don't have that option anymore. It is going to limit our ability, I think, to offer as many sections of lots of 189 FY '07 OPERATING BUDGET HEARING - 3/22/06 different kinds of courses -- but specifically literacy, that's the question -- outside of the parameters of the actual budget for the year. There didn't used to be the limit that we had before. We could always get extra money, if the student enrollment warranted it. We can't do that in a given year now.
So going forward, how do you see reconciling the fact that Community College is oftentimes a natural next step for X percentage of our high school students, 40 percent of them are dropping out, more jobs -- most jobs require high school diploma or equivalent, yet Community College is squeezed to make judgment about what it can and cannot offer because of what you just described?
The first part of my answer is, the central focus of my testimony today, we need more resources to do that. The second part of my answer would be, we have to begin to make choices. In the earlier part of my oral 190 FY '07 OPERATING BUDGET HEARING - 3/22/06 testimony today, I said -- and I think I meant to be pretty, you know, straight-forward about it -- we are reducing the offerings of different kinds that we provide. We don't have --
When you say, "offerings," allow me to ask you to pause there. That means noncredit-bearing offerings or a mix?
And credit-bearing, everything. Sure. We don't have the capacity to offer as much as we did before.
I see. It is my understanding that there has been a substantial decrease in the enrollment of Latino members of our city over the past eight years. How do you believe the cuts, as you have just described, in adult education and literacy classes will, essentially, further affect the Latino community with regards to the enrollment at CCP?
There has been no 191 FY '07 OPERATING BUDGET HEARING - 3/22/06 significant decrease in Latino enrollment at my college. Out of all the students that we have, approximately percent of our 6 population, student population, in all 7 courses -- credit, noncredit -- are Latino. 8 For the last five or six years it 9 has been consistently in that 15 to 16 percent 10 range. Before that, it was less. So we have 11 grown. 12 We are probably the largest 13 Latino-serving college or university, I would 14 expect, in the region. So I think we have 15 been pretty consistent in that 15 to 16 percent range. And that, of course, is a percentage that exceeds the actual percent of Latino population in the city as a whole.
So with that fact as you just described, do you believe, then, that, given that the difficult decision the institution now has to make with regards to English as a second language, what do you think that holds for the future, knowing now 192 FY '07 OPERATING BUDGET HEARING - 3/22/06 that there is the strong possibility that you can no longer offer English as a second language?
I didn't say we weren't offering English as a second language. We are not offering as many sections as we used to. We fully intend to continue to offer English as a second language. We are also trying to work, both in our campus situations and with community-based organizations, to begin the gradual building of the number of sections that we offer over time. I mean, that's got to be part of our overall planning.
But what we are talking about affects every group, just so I said that. When we are reducing programs or eliminating programs or reducing services, it is affecting every group within our community. We try to be sensitive to the needs of various communities.
All 193 FY '07 OPERATING BUDGET HEARING - 3/22/06 communities.
But it is true, we have pulled back some. I mean, that's a fact. And I return to the core of my original testimony. If the city can help by investing more -- we believe there is a return on the investment. I tried to give you two examples today. I can give you 2,000, if you want to stay for the afternoon. But there are specific and tangible results that are benefitting not only individuals, but the city as a whole. And we can document those, I think. So I don't expect that we are going to be doing any more reduction at the moment in noncredit literacy. My goal would be to begin to build it back up again. But, it does take some resources to do that.
Given the harsh budget realities you just described, what would you then count as successes, then, over the past fiscal year?
I mentioned earlier the success that we are having with our transfer 194 FY '07 OPERATING BUDGET HEARING - 3/22/06 programs. We can document more and more the number and percentage of students not just graduating from us, but getting a Bachelor's Degree. We can document the success of all of our allied health programs. As a student leaves, whether it is in nursing or dental hygiene or radiology, whatever the program might be, it is not just getting a degree at community college, it is getting licensed, passing the licensing examination. We have some of the highest pass rates in the state of two- or four-year schools in those areas, so we know our students are being successful there. I cited earlier the average wage for graduates in all of our programs. That's a measure to me that says that there has been a value returned to the student and to the city based on completion of an Associate's Degree program at the college. I will give you one other example I haven't mentioned previously today, though I think I may have mentioned it last year, and 195 FY '07 OPERATING BUDGET HEARING - 3/22/06 it may have been to you at the time. A year ago this past fall we began a new initiative with the school district. We brought to our campus 30 high school students from some of the lower-performing high schools in the city. They are finishing their junior and senior year on our campus. This past fall we brought another group of 30. So from now on we are going to have a junior and senior on campus. Now, not all of them will graduate with us. But that first group will have its graduation this coming June. They will graduate with a high school diploma from their home high school and, on the average, at least college credits already accomplished. 18 To me, that's the kind of 19 achievement you are asking for in the context 20 of this fiscal environment. 21
That's 22 fantastic. 23 In a case like that, who picks up 24 the tab for --
It is a shared cost. 196 FY '07 OPERATING BUDGET HEARING - 3/22/06 There is some funding from the United States Department of Education. The school district is paying for its teachers and so on. We are paying for our teachers. Think of it as a shared-cost project.
And how do those 30 students become the lucky 30? How does that happen?
That's handled by the school district. It is a kind of magnet school approach. There are requirements. You have to have a minimum attendance record, a terrific attendance record, and so on. This is also a program that is geared to move students into computer technology. More specifically, if they continue with us, they will go into our computer information systems degree program. So you have to have an interest and aptitude in computers, and so on.
I clearly remember that. 197 FY '07 OPERATING BUDGET HEARING - 3/22/06 Councilman Nutter posed a question with regard to the articulation of agreements that you have with state schools. Unless I missed it, is Penn State one of those schools?
We don't have a dual admission. We don't have an articulation agreement, no. 9 I mean, I would say that the majority of our students don't go to Penn State. The majority of our students stay in Philadelphia.
Stay close to home. I think that concludes my questioning. Thank you very much.
Thank you, Madam President. President Curtis, a different set of questions, but no less important. Some information that has come to me, and I need you to make sure that anything 198 FY '07 OPERATING BUDGET HEARING - 3/22/06 I ask about, that the record is clear on it. This issue revolves around adult literacy classes. And there seems to be some concern that somewhere between to possibly 6 25 adult literacy classes, serving upwards of 7 three to five hundred city residents each 8 semester in eastern North Philadelphia. 9 Do you have any information about 10 that, or any impact of budgetary issues around 11 either funding or curtailment of classes or 12 increase in costs per class that may have a 13 negative impact? 14
Well, I think I was 15 responding earlier to the Councilwoman along 16 the similar lines. 17 We have reduced overall, on the 18 credit and the noncredit side, the number of sections that we offer at every site; whether it is our main campus sites, in community-based locations, and the like. So the answer is, yes, in the specific community that you have referenced, we have, in the last few semesters, reduced the number of offerings. 199 FY '07 OPERATING BUDGET HEARING - 3/22/06 We are at a point where we will no 3 longer --
Money. Sure. Again, I go back to the beginning of my oral presentation today. I said that the lack of consistent funding -- and I know we are focused on the city today -- but a couple of years ago the state was a difficult situation for us, too, though since they have started on a track that's moving for positively. But that has had an impact on us. And the two impacts I cited were the cost to students that you and I talked about a few moments ago, but the other has been a paring back in programs and services. So that is a real part of what we have been dealing with.
On the adult literacy side, again, just because I don't know, are there any federal funding sources for adult literacy programs that we might be 200 FY '07 OPERATING BUDGET HEARING - 3/22/06 able to access?
We continue to look at that. There have been a couple of occasions in the last year or two where we have gone after some grant money. We will continue to look -- and did not get it. I didn't finish that sentence. We will continue to look for areas where we can do that. But we are also going to try, even within our normal budget, to, over time, begin to build some of that capacity again.
Could you forward to the Chair, again for the moment, the proposed resolution not only as it relates to FY '07, but there is a Five-Year Plan proposed amendment, as well, that would lay out what the funding for Community College under this scenario would be, or at least could be, over that five-year period, getting, again, to the 33 percent level. Could you -- if that budget were in place, would you be able to tell us what you 201 FY '07 OPERATING BUDGET HEARING - 3/22/06 would restore or what new, if there were new, offerings that would be put forward based on those proposed yearly increases in your budget? Will you be able to show us, essentially show us, what you would do with the money?
Certainly in general terms we can do that, sure. I don't know that I can give you a specific count of everything.
I understand that. But, I mean, you would be able to layout, in essence -- for instance, if the $4 million were approved, you could show us some of the things that you would do as it relates to that $4 million?
And that's in FY '07. And then in FY '08, I think the number is $4.1 million. So you would be able to show us over that period of time what either restored or new services you could provide? 202 FY '07 OPERATING BUDGET HEARING - 3/22/06
Yes. And, as I have indicated earlier, a first step would be to suppress the increase in student tuition. That would be in that response, as well.
I understand. Just lastly, if you could shed any light on the idea that was put forward earlier about in-kind services. Or if a student receives a grant, isn't that -- I mean, that certainly enables the student to pay, and may have some impact on whether or not they have to borrow that amount of money or some amount less because they received a scholarship. What's the real impact, though -- student gets a $3,000 scholarship or grant from someone, they decide to come to Community College. What impact does that have on you?
That doesn't impact us; that impacts the student. But we support anything that creates less of the burden on the student.
But, in terms of 203 FY '07 OPERATING BUDGET HEARING - 3/22/06 revenue, the student provides us with revenue, whether it is scholarship funded, grant funded, out of pocket, whatever. That would be a source of additional help for the students. But, in each of those cases, it is the same.
That doesn't lower your tuition or fees or anything, does it?
No. That would provide the same amount of revenue coming to us as an institution. But we, obviously, support every one of those efforts.
And if it is student based on a, you know, as people apply kind of basis, and whatever is awarded, I mean, I would take it that that would not necessarily be the consistent or stable fund source that you could make year to year or Five-Year Plan provisions upon?
There are three sources of revenue for the college. The first is the city. The city 204 FY '07 OPERATING BUDGET HEARING - 3/22/06 provides a certain level of core funding. My testimony today has been to urge that we try to expand that core. The second is the state. It provides a certain amount of core funding. We always advocate with the state for it to expand its core. The third is the student. The student will always necessarily need to invest. I support that. I think we all have to contribute to the opportunity, in this case for higher education. I am advocating for anything that will reduce some of that burden on our student body. That would include the city contributing to it, to the scholarship program, or other kinds of private fundraising opportunities that we undertake through our foundation. That benefits the individual student. I don't think that any one of those, though, doesn't require additional support. I continue to look for core funding support from the city, core funding support from the state, 205 FY '07 OPERATING BUDGET HEARING - 3/22/06 and I do support anything that the city or anyone else would do to ease the burden on the student.
Thank you, Madam President. Thank you, Dr. Curtis. Thank you, Ms. Cohen.
Thank you, President Curtis. What are some of the expenses that the city contributes? Does the city pick up the utility bills?
Are there any expenses beyond the $2 million, or your existing budget, that the city picks up that is not shown in the city's contribution?
Tell us a little bit -- and I apologize, I had to leave the 206 FY '07 OPERATING BUDGET HEARING - 3/22/06 room, you might have covered this -- in a briefing that you provided, you had an interest in acquiring some additional space that down the road might be out of sight, if you don't do it promptly. Did you discuss that today?
I think we all realize that sometimes you have to take advantage, even if it is not in the cards, to do a deal when it is in front of you. Could you explain, for the record what the acquisitions are, what the opportunities are that may not be there in the future?
In the course of recent months, there have been two approaches made to the college that were unexpected. One is a privately owned building in West Philadelphia immediately adjacent, actually, almost sharing a wall, with our west regional center. It is a church that is looking to 207 FY '07 OPERATING BUDGET HEARING - 3/22/06 move to other facilities and is in the process of buying another sanctuary and is looking to sell. It is a ready-made facility that would take some renovation, but would allow us to expand our west regional center by about 10,000 square feet. The other is a piece of property owned by a utility on our -- or, I guess it is not on our campus, is it. It's adjacent to our Spring Garden campus. It is no longer used by that utility. And, again, we have been asked if we would have an interest in purchasing. We would. In that case, we have a long-range master plan that calls for constructing around that property. Because it is a piece that -- you know, the only thing we don't own in the block. So that's not something we would build on next year. But as part of our already approved long-range building plans, if we could acquire that property, that would 208 FY '07 OPERATING BUDGET HEARING - 3/22/06 allow us in a much more facile way to build as we continue to expand our Spring Garden campus.
When you are ready to negotiate that deal, I know that utility company very, very well. So make sure that you let me know, when you are ready to do that deal. I will make sure you are getting the best deal you can get there. But the opportunity, as I know, I worked for PECO -- and that's the property that you are talking about, right, the PECO substation?
That's going to be a hot piece of property. Somebody is going to want to buy that. And if you don't, I have a feeling that, once the word gets out that that property is going to be available, if you don't move quickly, you are going to lose it.
We believe that both represent a tremendous opportunity for the college. 209 FY '07 OPERATING BUDGET HEARING - 3/22/06 One would be used almost immediately, and the other would inevitably be used. So we, again, have approached the city, and are hoping that --
Who have you approached? I mean, really, who did you go to?
We have approached the specific Council people in whose districts these pieces of property lie, and we have approached the Administration.
You have some numbers associated with the church; right?
We do. We have asked for a specific amount of money in each case.
Good. I wish you luck. But I was aware of it through a briefing, which, you know, we are aware of it. But let us know if there is anything you think we can do. 210 FY '07 OPERATING BUDGET HEARING - 3/22/06 Thank you, Madam President.
Are there any other questions or comments from members of the committee? Seeing none, I thank you very much. Thank you. SEPTA will be next. (Councilwoman Blackwell assumes the Chair.)
Thank you very much. May we have a little order, if you don't mind. Thank you very much, Community College. We will now hear from SEPTA. We welcome you and ask that you give your testimony. Please identify yourself, for our record.
Good afternoon, Councilwoman Blackwell and members of City Council. I am Faye Moore. I am SEPTA's General Manager. I am joined today by Francis Jones to my left and Joe Casey, Chief Financial Officer. I am here today to speak 211 FY '07 OPERATING BUDGET HEARING - 3/22/06 about the $60.2 million for the Fiscal 2007 Operating Budget. The testimony submitted previously to Council details some of our major accomplishments and achievements, but I want to take the time I have to talk about our financial and funding situation. For the past two and a half years, SEPTA has been working on the issue of adequate dedicated funding; not just for us, but for the other 72 transit agencies throughout the state. We urgently and desperately need the dedicated funding to erase shortfalls, erase a growing deficit, enable us all to better build for the future. To date, we have realized short-term fixes, aided largely by Governor Rendell through the flexing of federal transportation dollars. The flex funds ensure that service and fares will remain intact until December 31, 2006. But when that flexing runs out, SEPTA will face a budget shortfall that must 212 FY '07 OPERATING BUDGET HEARING - 3/22/06 be closed by June 30, 2007. We are in the process of developing our Fiscal Year 2007 budget process. As part of that work, SEPTA staff will identify fiscal options and outline possible sources of action for Board consideration. There are many individuals and groups, including the members of the Governor's Transportation and Funding Reform Commission, working to identify the amount of funding that we need -- and this is collectively transit throughout the state -- as well as remedies for transit and transportation in general. However, the Commission's final report could be published as late as January 2007. That's about six months after the formulation and adoption of our Fiscal 2007 budget. The possibility of being forced to pay more to Amtrak for trackage and right-of-way access could be a monumental fiscal problem for SEPTA. President Bush's budget assumed that 213 FY '07 OPERATING BUDGET HEARING - 3/22/06 transit agencies along the Northeast corridor -- and that's stretching from D.C. all the way up to Boston, Maine, et cetera -- would pay an additional $59 million to Amtrak for using its tracks. But, while facing these challenges, we remain focused on serving the city and the region. Over the past year construction began at the North Philadelphia station on the Broad Street line, work continued on the 1,000 car garage at the Frankford Transportation Center, and last month El service resumed at Market Street Elevated 56th Street Station. Homeland security recommendations. Based on homeland security recommendations, SEPTA police implemented a radio interoperability system that will allow us to connect with other regional law enforcement officers in the event of an emergency. I do want to bring to Council's attention that, earlier this morning, we did have a major explosion at our Southern District, which is in South Philadelphia. We 214 FY '07 OPERATING BUDGET HEARING - 3/22/06 have three employees injured. So that might be some of the news that you see as you head home this afternoon. Two of the employees are hospitalized. And, as soon as I leave here, I will be going to see just how they are. But I did not want you taken by surprise, if you have not had the chance to be briefed on it. But that did happen this morning. And I do also want to take the opportunity to thank Oliver, who has been just absolutely -- from the Managing Director's Office, just monumentally helpful in helping us to relocate operations for that Southern District. I was about to say, I called him "Oliver" so long, Oliver Thornton. I do want to go on the record of thanking him. That concludes my comments. And I, again, want to thank you for the opportunity to be here. And I am available to answer any questions that you might have.
Thank you very much, Ms. Moore. 215 FY '07 OPERATING BUDGET HEARING - 3/22/06 Would you give us more information about the explosion, where it is and why it happened and what it entailed.
The investigation is ongoing. The lead was taken by the Philadelphia Fire Department. I have not gotten an update since 2 o'clock, because I sort of headed over this way. But a boiler exploded. The cause I don't know yet, because it is still under investigation.
No; it was at a district, a bus depot. So it is where we have our transportation people, where the buses are staged. So it is just SEPTA, SEPTA employees that were impacted. No impact on the riding public, as far as injuries. Obviously, it slowed service probably during the course of the day, because we did have a longer way to go for fueling, et cetera. But the injuries were SEPTA related, 216 FY '07 OPERATING BUDGET HEARING - 3/22/06 not the riding public.
Yes. What we call a district. Where our transportation people, our maintenance people actually fuel buses, repair buses, et cetera. So it is at, I guess, what we call back-room operations for transportation.
It is South Philadelphia. The streets, cross-streets, are 19th and Johnston.
So that the Council persons may know. And certainly we pray that those who are injured are all right, and that they will be blessed to be well.
And in terms of the station, did it destroy also 217 FY '07 OPERATING BUDGET HEARING - 3/22/06 equipment, and was it a big explosion?
It was -- again, I don't know the extent. Because the investigators assumed -- the Fire Department, as well as Licenses and Inspections, et cetera, took control of it and pretty much told my folks to stay put. So we don't have firsthand knowledge. But Mr. Thornton and I both have been told that, as soon as they know something, he will be told and I will be told. So whoever gets information first, we will know. But buses were not destroyed. It was already after rush hour, so most of the buses had already been out into service. The last thing I was told, there is the potential that there is a wall that was severely damaged, so we might have to go in and sort of tighten that up and do some items. I am hoping that it is not severely damaged, so that we can resume operations. But we are working on some contingency plans, just in case we can't. 218 FY '07 OPERATING BUDGET HEARING - 3/22/06
Okay. Thank you very much. With regard to the -- maybe I will ask my other questions first. I had a meeting yesterday with the Mayor's Commission on People With Disabilities. And they are really concerned with Paratransit and with people being evaluated who can't use it, with testing, with people -- in fact, I have had one gentleman who comes to me all the time, who I have known -- oh, my gosh I met him when I met Lu, so I have known him for about 32 years, who says he is having a hard time, people being reevaluated for Paratransit and not being able to use it. And that the -- how it has changed, the criteria is changing, it is creating a big problem. Can you comment on that?
The criteria hasn't changed. The criteria was always there. Part of the dilemma was, SEPTA did not have ADA-accessible buses. In June of 2002, our fleet, bus fleet, became fully ADA 219 FY '07 OPERATING BUDGET HEARING - 3/22/06 accessible. Which meant that all the individuals that had been riding Paratransit vehicles had to then be reevaluated to see if they could ride the fixed-route system versus being on Paratransit. So the processes were always there, but we didn't have buses that could accommodate them. Once the buses became available to accommodate them, we had to review to see who could ride the big buses versus the Paratransit buses. It is called "recertification." It is required under federal guidelines. So we do have to do recertifications periodically.
Well, they complained that people who before could get Paratransit, now have to go to bus stops, which makes it very, very difficult for many handicapped people to do.
The assessment, actually, looks at their mobility. Part of the testing is done by a third party, an 220 FY '07 OPERATING BUDGET HEARING - 3/22/06 outside agency. And it is to determine just how easily people with disabilities can, indeed, maneuver the fixed-route systems. Some were given conditional eligibility. Which means that, if it is a snow storm, if sidewalks are broken up, et cetera, if there is an impairment to them getting to the bus stop, they can still use Paratransit. But if everything else is okay, they are indeed pushed on the fixed-route system.
Yes. We got buses that are more user friendly, then folks knocked off. Instead of it becoming easier, people who have Paratransit services now don't have them. I mean, people can't go to church now. They could reserve Paratransit even for church. And they are told now in the test, if they -- if you can get up and down -- they give them a test with some lift. And if you can get up and down on that lift in that test, 221 FY '07 OPERATING BUDGET HEARING - 3/22/06 then you are no longer allowed to get it and you have to ride regular SEPTA. And we all know that that's not as easy as it would seem, given the length of time it takes. You know, the bus has to stop, they lower the lift, they lift folks up, and all of those other issues that deal with regular transportation. It is really an issue.
We have gotten some concerns. What we indicate to them, there is a formal appeal process. If they think that they have been misdiagnosed, I guess, is as good a word as any, they can actually go through an appeal process. They are then evaluated by a panel. The panel includes members from the disabled community. And, so, if they really think that they cannot maneuver the system -- not just the nicety of being on a small bus, but if they think they cannot maneuver the system -- they really should, then, exercise the appeal 222 FY '07 OPERATING BUDGET HEARING - 3/22/06 process.
It has become more of a hardship. Would you be in touch with Bruce McElrath, People's Rights Disability. And he has been around a real, real, very long time, a real advocate for folks who are wheelchairbound and who are handicapped. His name is Bruce McElrath, and we will make that number available to you. Let me ask another issue with regard to, in West Philadelphia, the Market Street Elevated project. In terms of 56th Street, I see in your testimony, you have it that it opened on February 27. It is a beautiful station, in spite of the time it has been taking. It is a beautiful station The level of completeness, where are we on that? We were waiting for railings, a lot of things were not done or finished.
The biggest thing was the elevator on the westbound side, and that is scheduled for completion May 1. That 223 FY '07 OPERATING BUDGET HEARING - 3/22/06 should be installed, inspected, et cetera. So we are anticipating full completion May 1.
And the other materials that are coming in, railings and such?
Total completion on May 1. All right. Let me go on to bus stops on 52nd Street, Route 52, farside stops, and all of the stations replaced. I knew the four stops had been replaced. Or returned, is the proper word. I want to know where we are on the farside stops? I would like to check that out. You know, check that in terms of the farside stops being returned, and the issue of the bus shelters. For those who don't know, we lost four stops on the 52. It was to add for efficiency and less time, where SEPTA didn't think the stops were really needed, but it created problems. 224 FY '07 OPERATING BUDGET HEARING - 3/22/06 In losing four stops and then with the bus shelters, it was a real nightmare. Because you had shelters in one place and buses stopping across the street in another place. And, albeit, there was supposedly advertising, at one of our meetings they talked about a blind man who waited and waited and waited for hours because he didn't know his stop was no longer there. Can you give us an update on that?