COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING AND PUBLIC MEETING BEFORE COUNCIL COMMITTEE ON RULES - - - Room 400, City Hall Philadelphia, Pennsylvania Monday, December 11, 2000 10:35 a.m. - - - BILL 000543 - an ordinance amending Section 17-104 of the Philadelphia Code entitled prerequisites to the execution of City contracts to add a new subsection requiring businesses receiving financial assistance from the City and City-related agencies to contribute to a fund for Philadelphia's Children, the proceeds from which shall be made available to pay for new and expanded program initiatives for Philadelphia children, all under certain terms and conditions. PRESENT: COUNCILMAN JAMES F. KENNEY, Vice Chair COUNCILMAN DARRELL L. CLARKE COUNCILMAN DAVID COHEN COUNCILMAN FRANK DICICCO COUNCILMAN MICHAEL A. NUTTER COUNCILMAN BRIAN J. O'NEILL COUNCILWOMAN MARIAN B. TASCO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 I N D E X BILL 000543 PAGE SHELLY YANOFF, PCCY ........................ 3, JANICE DAVIS, Finance Director ............. 8 CHERYL OAKMAN, Youth Development ........... 18 3 12/11/00 - RULES - BILL 000543 P R O C E E D I N G S
Good morning, ladies and gentlemen. This is a continued hearing of the Council Committee on Rules accepting testimony on Bill 000543. Councilmember Tasco, do you have a copy of the bill?
I'm sorry. Bill 11 No. 000543 is an ordinance amending Section 12 17-104 of the Philadelphia Code entitled prerequisites to the execution of City contracts to add a new subsection requiring businesses receiving financial assistance from the City and City-related agencies to contribute to a fund for Philadelphia's Children, the proceeds from which shall be made available to pay for new and expanded program initiatives for Philadelphia children, all under certain terms and conditions. Miss Yanoff, you're first on the witness list. (Witness comes forward.)
Good morning. At the 4 12/11/00 - RULES - BILL 000543 last hearing, we had begun to testify and so I will cut my testimony short. I just want to -- I'm Shelly Yanoff, Executive Director of PCCY, the regions child's advocacy organization. Thank you again for holding the hearing and for providing the testimony to -- the occasion to testify about the need for our children and families to have more support and the need for all of us to seek creative ways to assuring that support since the City faces always a lot of demands on its dollars. When we last spoke, we talked about the experience of Little Rock where they raised the sales tax to strengthen their families, raised their children's achievement, and significantly lowered youth crime rates. We talked about Pinellas County in Florida and now six other counties in Florida that have created special taxing districts which generate more than $63 million in county dollars for youth annually. In Seattle a family and education levy similar to San Francisco's initiative was pass in 1990 and again renewed in 1997 to support programs which support children and families. 5 12/11/00 - RULES - BILL 000543 Again, the programs that these funds support are over and above the normal City budget allocation. They support early child development, school-based student and family services, student health services, and out-of-time programs for youth. 5 percent of unrestricted revenue to a children's fund for direct support. Washington, DC is looking at doing this. There are many cities all over the country that are recognizing that they have got to get more money for kids before crisis to avoid crisis and to keep families and children in their cities, which brings us to this bill and the Philadelphia story. The bill before you is modest in scope. It does not urge a tax, as do some of the others. It does not require a levy on property, as does some of the others. It does not require a sales tax. It doesn't even levy a charge or a fee on traditional businesses that deal with the City. It does not anticipate tens of millions of dollars in a set-aside funds from the City 6 12/11/00 - RULES - BILL 000543 budget. It does not require any major change in the business procedures of the company or corporation. " You think of it, take a gift and you take the gift and give the kids and families some of wrapping. The bill requires that those businesses that collective receive millions of dollars in benefits give 1 percent of the value of the benefit to a fund which would directly support Philadelphia's children. 5 million annually to improve the quality of life for all of families in this City. We urge you to consider connecting youth development and economic development as we together work toward making this city a better places for businesses to choose and for families 7 12/11/00 - RULES - BILL 000543 to choose to move to and to stay here. Study after study tells us that improved schools and community programs that support youth in non-school time are strongly desired by families. Here's a way without a tax to help families come and stay here. The bill envisions a separate fund, which is in other places builds in a local budget but is not an integral part of it. The funds are additional. They supplement the regular City, State, and Federal appropriations; they do not supplant them. About 50 years ago the Art Development Linkage Fund was begun here. Then, as now, many argued that it would in fact discourage development. Your predecessors took the step that greatly enriched the quality of life in this City. Contrary to some predictions, most would agree it's been good for business, good for tourism, and good for residents. It's now time to take another linkage step. Investing in children and youth has been good for the children, families, and businesses of other cities; it will be good for us, too.
8 12/11/00 - RULES - BILL 000543 We urge you to enact this bill and to continue to fight for the funds to support children and families. As we said last time, there are always reasons people can find for government not to do something, but we urge you to understand and act on the imperative to do something today. Thank you.
Thank you for your testimony. Are there any questions for this witness? (No questions.)
Thank you very much. The Finance Director, please. (Witness comes forward.)
Good morning. Please identify yourself for the record.
My name is Janice Davis, I'm the Director of Finance for the City of Philadelphia. I'm here today to testify regarding Bill No. 000543. 9 12/11/00 - RULES - BILL 000543 On November 13, 2000, I appeared before you regarding the same bill to emphasize that while the Administration supports the spirit and intent of this bill, the Administration could not support the bill because it is too broad in scope and it's too vague in how it could potentially be applied, especially with regard to the 1 percent formula and some of the items that would be considered financial assistance. I would like to note that this remains the Administration's position. The Administration does not support the idea of linking economic development with the funding of social programs. At the previous hearing the committee asked that the Administration develop creative funding alternatives for the children's program. It is important for me to stress to the members of the committee that the Street Administration is unconditionally committed to increasing funding towards programs that benefit the children and families of Philadelphia. Later this week, the Mayor will be unveiling the first annual children's budget, a comprehensive 10 12/11/00 - RULES - BILL 000543 examination of how the public sector invests in the City's children. The children's budget together with the children's report card released earlier this year by the Administration will allow the Administration to begin to better evaluate how public dollars are being spent and determine how effective those dollars are at improving the lives of children. The children's budget is the first step towards one of the Administration's primary goals, evaluating the City's budget across the board to ensure that every potential source of funding is put towards Philadelphia's most precious resource, its children. In addition to examining the City's budget for every potential funding opportunity, the Administration is also exploring other creative and unconventional avenues for increasing the amount of funding available for children's programs. While any additional funding is welcome, the goal for any new strategy would be to ensure that it is or would become a steady stream of revenue. One of the more promising idea that has been suggested for a 11 12/11/00 - RULES - BILL 000543 potential avenue for funding of the children's program is the development of an affinity card. The members of the committee may be familiar with the concept of an affinity card. It is a credit card wherein a percentage of the profit goes towards a designated program. Typically, there are two different kinds of affinity cards: Those where a percentage goes towards a charitable function, and those where the user gains something of value, such as airline miles or bonus points with a specific retailer. Certain charities have used the concept of an affinity card to great success. The World Wild Life Foundation has raised significant funding for its organization through such a card. The idea of using an affinity card to raise funding for children's programs holds great potential. Another idea developed as a result of discussions after the last hearing on this bill 22 is the idea of adding a check box to income tax forms filed in Philadelphia similar to the check box found on Federal Income Tax Forms the individual filing the form would have the 12 12/11/00 - RULES - BILL 000543 voluntarily option of having an additional sum go towards a fund to benefit children's programs. Notably, this idea does not reach the goal of creating a steady stream of income. The funds generated by this potential program would rely upon the generosity of individuals; however, I do not think that this idea should be abandoned simply because it does not achieve that goal. Any potential source of revenue for children's programs should be per sued.
In addition to new ideas such as affinity cards and tax form check boxes, the Administration is pursuing more traditional avenues for generating funding for children's programs. For example, in the past year the Administration has been able to dedicate approximately $500,000 to after-school programming by using already-available TANF funds. TANF funds are dollars that are apportioned by the federal government and then matched by the Commonwealth. After-school and other children's programming was given an additional boost by a new commitment of General Fund resources. The Administration is working to 13 12/11/00 - RULES - BILL 000543 develop similar techniques for gaining funding for additional children's programs. Further, as members of this committee are aware, following the initiative launch by Councilwoman Blondell Reynolds-Brown, the Administration recently obtained commitments from both the Phillies and the Eagles to establish a Children's Fund in relation to the construction of the new stadiums. This commitment will result in an additional $60 million being directed towards Philadelphia's children. " The Mayor and his administration have worked tirelessly to evaluate where Philadelphia currently stands in providing for its children so that we can move forward in leveraging every possible opportunity to fund children's program. I commend City Council for joining in the battle to help Philadelphia's children. I hope the suggestions I have presented to this committee today have been helpful in your 14 12/11/00 - RULES - BILL 000543 consideration of creative alternative funding for children's programs. Thank you for the opportunity to appear before this committee today.
Thank you very much for your testimony. In your written statement in your testimony, you said the Administration does not support the idea of linking economic development with the funding of social programs. How would you characterize the $60 million Children's Fund as it relates to this large economic development project?
That is a program that is large enough to be able to support that kind of contribution without adding an additional burden to the project.
percent or half percent, whatever the percent is, it would be a percentage of the overall project so it would be, I guess, administered as fairly as the $60 15 12/11/00 - RULES - BILL 000543 million as it relates to the construction of the stadia. I guess my question is, why the linkage on the stadia, why that's a good thing to do for social programs, but any other linkage is not a good thing?
Because it was a definite amount and it was a large enough program, economic development program, to support it without any difficulty.
Thank you very much. I'd like to hear that again. Difficulty to who?
I understand if we had requested a 1 percent of the Zaritsky Garage at Broad and Spruce, that would have been about $65,000. Is that a burden on the project?
In many of the projects, the margins are so close that it would present a burden to the project, especially where there's funding of debt involved. 16 12/11/00 - RULES - BILL 000543
Could you tell me on this affinity card, how does that work and who would administer it and how would it work?
It's run by the credit card companies. Based on the fact that you had that card a certain percentage goes to the receiving charity whenever the card is used, a certain percentage of every purchase or every use of the card is dedicated to that charity, in this case, the Fund for Children Philadelphia's Children.
Have you all determined on how -- I know this is on the stadium -- how you're going to administer the money from the stadium?
That has to go to a 501(c.)(3) outside of the City, so there will be no involvement in the City in determining how the funds are utilized.
When you all listened to the testimony of San Francisco and they came up with really great ideas for funding a children's program, is there any reason why we couldn't emulate some of their programs? 17 12/11/00 - RULES - BILL 000543
I think the basic status of their economy vis-a-vis ours is the largest determinant. Philadelphia isn't -- doesn't enjoy an economy that is quite as robust as that of San Francisco.
And so the Administration doesn't have any interest in supporting the program if it's linked to economic development?
We have supported the million dollars per team per year through the stadium. We're committed to fining other means of supporting children's activities in the City. We just don't feel that this bill accomplishes that in a way that is most protective of what the City's attempting to do from an economic development standpoint.
Thank you very much. Are there any other questions for this witness? (No further questions.)
Thank you very 18 12/11/00 - RULES - BILL 000543 much.
There are three letters of support which will be given to the stenographer to be added to the record. First a letter of support for the bill from District Council 47, President, Mr. Thomas Cronin. From Philadelphia Federation of Teachers, Vice President Mr. Jerry Jordan, and there's also a letter from the President of the 1199C Hospital Workers and Health Care Employees, President Henry Nicholas. And those three letters will be added to the record. Are there any other witnesses to testify on this bill? Yes, ma'am, please come forward. (Witness comes forward.)
Sure. My name is Dr. Cheryl Oakman, and the director for the Center of Youth Development, an initiative of the United 19 12/11/00 - RULES - BILL 000543 Way of Southeastern Pennsylvania. It gives me pleasure to come before you again today to discuss how important it is for the City of Philadelphia to link economic development with youth and family development in the creation of a dedicated fund for children. Businesses of all sizes that profit from City money exceeding $100,000 should be able to afford provide a mere 1 percent return to the community, and at the same time, impact the negative quality of life that affects us all. And we all have a responsibility to contribute to the change. Through my work of building the capacity of after-school and youth development programs, I can attest to a lot of gaps in services. A designated permanent revenue stream to ensure the availability of more and better after-school and summer programs for Philadelphia's children and youth is long past due. The use of discretionary time for youth, the non-school hours, after school, on weekends and over the summers is connected to do how children do in their lives. Youth development activities create positive outcomes for kids, 20 12/11/00 - RULES - BILL 000543 such as school success an decrease behaviors such as violence substance abuse and early sexual activity. As many as 60 to 80 percent of Philadelphia youth between the ages of and 7 are not using their free time constructively by 8 getting exposure to these highly beneficial 9 experiences. Most are unsupervised and just 10 hanging out with friends or watching television. 11 1300 youth and 300 parents surveyed in 22 12 low-income communities throughout Philadelphia 13 expressed that there were not enough affordable, 14 safe, high-quality programs in their neighborhoods. Unless all of the neighborhoods have programs for youth, we will not be able to reap real savings and benefits. While I applaud the City's efforts to contribute to young people, it's not enough money and we really need to ensure that there's a steady stream of funds coming in beyond just the Street Administration. Even in affluent communities where people can afford to support their own programs and a lot of programs exist, the level of youth participation is often not 21 12/11/00 - RULES - BILL 000543 maximized. We have learned in the youth development field that children and youth do no 5 grow up by themselves. They require a web of supportive adults and institutions that socialize and enculturate (sic). It is due to a lack of understanding about these issues that we have seen bizarre incidents of youth violence in rural and suburban affluent communities, such as Columbine. Not only are good after-school and youth development programs a sure means for preventing juvenile crime, but they also help to build the core competencies and assets young people need to succeed in life. Regardless of income, regardless of risk environment, and regardless of whether or not individual problem behaviors are being displayed, all young people benefit from youth development supports, opportunities, and services. About a month ago, you had an opportunity to hear about some creative ways in which other cities have added to a pool of services available to children and youth, such as 22 12/11/00 - RULES - BILL 000543 San Francisco and Baltimore as well as New York, Little Rock, Seattle, Oakland, Santa Crux, and several counties throughout Florida. I strongly urge you to support Bill 543 that could generate approximately $3 million a year in revenue to contribute to a Philadelphia fund for children. And I applaud all of you who support the bill. Thank you.
Are there any questions for this witness? (No questions.)
Thank you very much. Is there anyone else to testify on the bill? (No response.)
The Chair recognizes Councilwoman Tasco for the purpose of introducing amendments.
Yes, I have an amendment. There has been some concern raised by 23 12/11/00 - RULES - BILL 000543 the nonprofit community, particularly Office of Housing and Community Development and how this might impact on neighborhood development. So we have offered this amendment which states under 17-104 (.8) Financial Assistance. Any assistance provided for a profit business entity. That would be added.
Under that, triple i is a technical amendment which states, Guarantees of loan for purposes listed, take out the A, add subsection 17-104 (a)(.8)(i).
Thank you very much. A copy will be provided to the stenographer for the record. If there's no one else to testify -- I'm sorry, come on. (Witness comes forward.) 24 12/11/00 - RULES - BILL 000543
I'm Shelly Yanoff from PCCY. Thank you very much for the opportunity. We thought at the end of the last session that we would have an opportunity to hear the Administration's position and then respond so I particularly want to thank you for this opportunity. This bill is not about charity. It is about mandating support for kids and families in the same way that we do other issues when we pass laws. So as much as we all want more charity, and we do want charity, what this bill 17 is trying to do is to say is the City provides benefits by law, it should also provide something for kids. And I hope that we can together get to the point where the ordinance is passed that is clear that we're not -- that kids need and families need as much support as possible and we need to together work that through in an ordinance fashion rather than -- and we certainly support continued charity, but rather than just 25 12/11/00 - RULES - PUBLIC MEETING charity. Thank you.
Thank you very much. Can you give us a moment, please? (Break taken.) - - - (Proceedings resume.)
Thank you very much. That will conclude the business of the committee hearing. - - -
The Chair recognizes Councilmember Cohen for a motion to approve the amendments to Bill No. 000543.
It's been moved and seconded. All in favor, aye? Are there any opposed? 12/11/00 - RULES - PUBLIC MEETING The ayes have it. The amendment is adopted. Bill No. 000543 will be amended accordingly. The Chair recognizes Councilmember Cohen for a motion on the amended Bill 000543.
I move that the bill, as amended, be reported out favorably with a favorable recommendation.
It's been moved and seconded. All in favor? Any opposed?
Let the record reflect that Councilmember O'Neill votes no. 20 The motion passes. Bill No. 000543, as amended, will be reported out of this committee with a favorable recommendation. Thank you very much for your attendance today. (Adjourned at 11:00 a.m.) 27 C E R T I F I C A T E I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Monday, December 11, 2000, were reported fully and accurately by me, and that this is a correct transcript of same. RE: COUNCIL COMMITTEE ON RULES BILL NO. 000543 __________________________________, JOSEPHINE CARDILLO, Registered Professional Reporter