COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON FINANCE - - - Room 400, City Hall Philadelphia, Pennsylvania Monday, November 14, 2005 2:20 p.m. - - - PRESENT: COUNCILWOMAN JANNIE BLACKWELL, CHAIRWOMAN COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN JAMES F. KENNEY COUNCILMAN JUAN RAMOS COUNCILWOMAN MARIAN B. TASCO BILL 050740 - An ordinance amending Chapter 19-1300 of The Philadelphia Code, entitled "Real Estate Taxes," by providing for a tax credit against real estate taxes for a member of the National Guard... BILL 050741- An ordinance amending Chapter 19-1500 of The Philadelphia Code, entitled "Wage and Net Profits Tax," by excluding from tax any compensation paid to active duty military personnel... - - - V A R A L L O Incorporated Litigation Support Services Eleven Penn Center 1835 Market Street, Suite 600 Philadelphia, Pennsylvania 19103 215.561.2220 215.567.2670 2
We would like to call our hearing into order. For the purposes of a quorum, we would like to include Councilman Clarke, who is in the Chambers, and Councilman Kenney, whose bills we are hearing today. To my left is Councilman Goode. To his left is Councilwoman Tasco. To her left, Councilwoman Blondell Reynolds Brown, Vice-Chair. To my right, Councilman Juan Ramos. So a quorum has been established. We will now ask the Clerk to read the title of the bills being heard today before the Committee on Finance.
Bill 050740, an ordinance amending Chapter 19-1300 of The Philadelphia Code, entitled "Real Estate Taxes," by providing for a tax credit against real estate taxes for a member of the National Guard or a Reserve component of the Armed Forces of the United States who is called to active duty outside the 3 11/14/05 - FINANCE - BILLS 050740 AND 050741 Commonwealth of Pennsylvania, all under certain terms and conditions; and Bill No. 050741, an ordinance 5 amending Chapter 19-1500 of The Philadelphia Code, entitled "Wage and Net Profits Tax," by excluding from tax any compensation paid to active duty military personnel, or to members of the National Guard who are called to active duty, all under certain terms and conditions.
Thank you very much. We would like to ask the sponsor of the bill to make comments. Councilman Kenney.
Thank you, Madam Chairperson. I appreciate the opportunity. In the aftermath of September 11, 2001, the roles of National Guardsmen and Reservists have significantly changed. Duties that included serving one weekend a month or two weeks a year assisting with natural disaster recovery and other part-time soldier 4 11/14/05 - FINANCE - BILLS 050740 AND 050741 responsibilities have grown to include six months to two years of active-duty service, often in combat situations. Abroad Reservists and National Guardsmen are being used heavily to fill key military support jobs, particularly in specialty areas. These men and women serve their country and represent their home towns with pride and honor. As civilians, they work as police, fire fighters, sheriffs, prison guards, state troopers, lawyers and many other important professions that make up our community and City. When called up for active duty, many of these men and women take drastic pay cuts, resulting in financial stress and hardship for themselves and their families. However, they do not complain or criticize. Rather, they serve their country with honor and make the best of their situation. These two bills are but small tokens of appreciation and profound 5 11/14/05 - FINANCE - BILLS 050740 AND 050741 respect. Their aim is towards easing the financial burdens that many National Guardsmen and Reservists face when called up for active duty. I thank everyone present for their support and their attendance. I'd also like to say that we have in the past, either with support of Councilmembers or sometimes opposition, given tax breaks to people who have purchased homes in the City, who have built new homes in the City, and while I recognize that this sometimes could be argued that this is more a national type of effort that should be given, I wouldn't hold our breath in a national effort for this. So I think that if we show our people that we are willing to give them some help in this time of need, I think they'll be more loyal citizens, more loyal Philadelphians, come back here hopefully safe and come back with a renewed sense of pride in the City of 6 11/14/05 - FINANCE - BILLS 050740 AND 050741 Philadelphia. Also, you don't have to be a supporter of this war in Iraq to be a supporter of this issue. No matter how you come down on the war, for it or against it, I think that we all will want to do our best to support the men and women who are serving our country there. Hopefully, if these bills are successful, this can end quickly and have our people home and we won't have to be giving this tax credit. So I thank you for your consideration and listening, and I appreciate all the people who have come here today to testify on behalf.
Thank you, Councilman. Is there anyone here from the Administration who would like to testify? Our information is, my office tried to get some -- Commissioner, please come forward.
Madam 7 11/14/05 - FINANCE - BILLS 050740 AND 050741 Chair, if I may just add one thing.
I did receive a letter from the City Solicitor's office expressing some concern over the uniformity provisions of the Pennsylvania State Constitution. We have since been in contact with members of the legislature in Harrisburg, and I honestly believe, from their assessment, that this is something that can be done quickly to give us that exemption, added to the other list of exemptions on real estate taxes, like ten-year tax abatements. So I think that that legislative action could come quite quickly.
Thank you. Thank you for being here. Would you please identify yourself for the record, Commissioner. COMMISSIONER KAMMERDEINER: 8 11/14/05 - FINANCE - BILLS 050740 AND 050741 Good afternoon, Councilwoman Blackwell and members of the Committee on Finance. I'm Nancy Kammerdeiner, Revenue Commissioner. I have some copies of testimony here for you. I'm pleased to be with you today to present testimony regarding Bill 9 Nos. 050740 and 050741. I'm going to address them in reverse order. 050741 will amend Section 12 19-1500 of The Philadelphia Code and it will exclude members of the National Guard who are on active federal duty from wage tax for that compensation. This amendment would clarify the existing requirements for the wage tax and make it perfectly clear that all salaries earned while on active-duty status, including those earned by individuals called from a National Guard unit, are not subject to the wage tax. The Department of Revenue currently would interpret the definition that's in the regulations at this time as 9 11/14/05 - FINANCE - BILLS 050740 AND 050741 already providing this exemption for the pay of those inactive-duty status coming from National Guard units, but this amendment will ensure that this interpretation is understood by all and is uniformly adhered to. With regard to the other bill, 050470, this would amend Section 19-1300 of the Code concerning real estate taxes and provide for a credit against these taxes for members of the National Guard or a Reserve unit of the Armed Forces of the United States who are called to active duty outside the Commonwealth of Pennsylvania. The proposed credit would apply to the property that's the principal residence of the person called to active duty. The tax credit, which is to be effective for Tax Year 2006 and thereafter, is to be based on the number of days the individual is on active duty outside the Commonwealth of Pennsylvania in the prior calendar year. 10 11/14/05 - FINANCE - BILLS 050740 AND 050741 The Department of Revenue is to develop an application form and regulations that are required to implement the program. Although the intent of this proposal is laudable, I have several questions and concerns about the proposal as drafted, and one of them, and the very first one, is the one that Councilman Kenney just alluded to, and, that is, that this credit may violate the Class Uniformity requirement of the Constitution of the Commonwealth of Pennsylvania. And I cite two reasons for this, and they may be possible to correct within this legislation or may need the state legislation that the Councilman referenced. Because this would provide a credit for those who are on active duty coming from the National Guard or the Reserves and not for regular full-time active-duty members of the Armed Forces, there could be a disparity in terms of 11 11/14/05 - FINANCE - BILLS 050740 AND 050741 the application of the credit. And in addition, it provides only for credit if they're on active duty outside the Commonwealth and doesn't contemplate a similar credit for those who might be called to active duty or provide disaster relief or homeland security in other areas of Pennsylvania. When we looked at this, we felt that the courts might not look kindly at a provision that would provide a tax credit for someone who is called to active duty from a Reserve unit, but deny a similar credit to a regular member of the Armed Forces who comes from Philadelphia and who still has family living here. And also would have some concerns if someone is called to active duty, let's say, in Camden, New Jersey just across the river where they might be able to stay in their Philadelphia home, and yet deny a similar credit to someone who is called to active duty in Pittsburgh, Pennsylvania 300 miles away 12 11/14/05 - FINANCE - BILLS 050740 AND 050741 and, therefore, not able to be in their own home and be separated from their family.
So those are the kinds of disparity issues that would make or potentially make this credit in the bill 8 as currently drafted outside the Uniformity clause. 264 percent. As you know, the balance of the real estate tax is collected for the School District of Philadelphia and is authorized by Section 19 19-1800 of the Code and by certain provisions of state law. Is this intentional or is there something that needs to be done in order to have the credit go against the entire tax? One section of the bill 25 indicates that the credit will apply to 13 11/14/05 - FINANCE - BILLS 050740 AND 050741 the property that's the principal residence of the person called to active duty, without regard to whether or not they have ownership of that property. Yet, the very next provision outlines a procedure for fractional share of ownership when the property is owned as a tenant-in-common and not a fractional situation when it's a joint ownership. And so there is the question of whether ownership is to be required or intended as a requirement for receiving the credit, and needs to be made clear so that we know what it is we would be implementing if we would go forward. The Department of Revenue has attempted to obtain some detailed information about the number of Philadelphia residents who might be eligible for this credit so that we could give some appropriate cost estimates to you for your consideration as you look at this bill. We've contacted the Department 14 11/14/05 - FINANCE - BILLS 050740 AND 050741 of Defense for assistance in obtaining some illustrative statistics in terms of how many people from 191 zip codes are on active duty having been called from either our National Guard or a Reserve unit, and, unfortunately, we haven't received this information yet. We thought we would have it earlier today, and it has not yet been made available to us. We'd like to be able to provide those calculations to you so that you can have a full picture of what it is you're looking at as you consider this legislation. This concludes my testimony at this point, and I'd be happy to answer any questions.
Thank you, Commissioner. I will let the sponsor of the bill deal with the residency issue. There are those of us in terms of the other folks, I'd be happy to have everybody get a tax credit, all men and 15 11/14/05 - FINANCE - BILLS 050740 AND 050741 women who serve. So for me, that's not an issue. However, I will defer to the sponsor of this legislation and then to other members of the Committee who may have questions.
Thank you, Madam Chairperson. Let me walk our way backwards through the questions. We do have some information relative to the number of people who are potentially eligible for this. First of all, in the property tax, the average property tax for all residences in the City is $1,372.24. COMMISSIONER KAMMERDEINER: We had the property information. We didn't have the numbers --
I want to make sure the record is clear. COMMISSIONER KAMMERDEINER: Fine. Yes. Thank you.
The median for all residents is $946.55. 16 11/14/05 - FINANCE - BILLS 050740 AND 050741 National Guardspersons and Reservists spend between six months and two years on active duty. Active duty time is not always served consecutively. So the issue relative to being assigned to Pittsburgh or Camden is probably operationally not going to happen, because people wouldn't be sent to Pittsburgh or Camden for six months to two years. They would have their own units in the area that would deal with their natural disaster issues. COMMISSIONER KAMMERDEINER: Perhaps not in reality. The point I was trying to raise was that if you're looking at a uniform class and the definition, should someone challenge it, those are the kinds of issues that we think might be viewed by someone in trying to determine whether or not this met the qualifications.
The issue relative to fully active duty, people who have joined the military, we're trying to 17 11/14/05 - FINANCE - BILLS 050740 AND 050741 differentiate between those who are serving in a Reserve or Guard capacity who are doing their duty two weeks a year, one weekend every month, and then the world changed after 9/11. People who have joined the military to make a career of the military knew what they were getting into, are normally younger, moving through a career path, will stay in the military for a career or they will leave and come out and do something different. These are people who were driving a fire truck or a police car and then because of world circumstances were removed from their jobs and their families. So I think there's a difference -- and I understand the potential of it being challenged, but the reason we didn't put the regular Army people in there was because that's their career that they've chosen. COMMISSIONER KAMMERDEINER: I understand the difference you're making, 18 11/14/05 - FINANCE - BILLS 050740 AND 050741 and I personally can say I sympathize with the nuances of difference, but once you have someone who is on active-duty status, when you look at it from a uniformity perspective, one person in active status has a credit, one person in active status does not, and it becomes an issue of being able to justify that under the law.
Okay. And our estimates -- and the reason I say "estimates" is because with the National Guard, they were much more forthcoming with their numbers as opposed to the Reservists. The Reservists would give us whole numbers, but not active numbers. So in the National Guard from Philadelphia units, there's 1,138 people. If every National Guardsperson from a Philadelphia County unit was active duty for one year, the property tax credit, based on the average annual property tax for all residents, would be 1.5 million. If the property tax credit was 19 11/14/05 - FINANCE - BILLS 050740 AND 050741 based on the median annual property tax for 1,138 persons, it would be a million point 07. The National Guard currently has 412 active-duty Philadelphia members, the most recent number that we've received. So the property tax credit, based on the average annual property tax for 412 of those active-duty persons, would be $565,000, and the median annual property tax based on the 412 number would be 389,000. There are 1,683 Reservists total in Philadelphia County. We're approximating 800 currently active duty. From our discussions with them, they wouldn't put it in writing, they wouldn't give us a definitive answer, but from what we were able to kind of glean from them and pull teeth from them, it was about 800 currently active duty, which would, based on the annual average property tax, be a million 09. Based on the median annual property, it would be 20 11/14/05 - FINANCE - BILLS 050740 AND 050741 756,000. The wage tax rate, the median household income for Philadelphia at a 4.4625 percentage, the median household income in Philadelphia is $30,746 based on the 2000 census, approximately $1,372 per Guardsperson. If every National Guardsperson from a Philadelphia County unit, 1,138 were active duty for one year, this would amount to a million five. 412 currently active that we know, which is our most recent number, would be 565,000. So the most probably real numbers are the 412 and the 800 for National Guard and Reservists. The other numbers are certainly a potential, but with people coming on and off as they rotate through their tour or for their active status, that number kind of stays consistent. COMMISSIONER KAMMERDEINER: Our experience in trying to get information is similar to yours. We've gotten 21 11/14/05 - FINANCE - BILLS 050740 AND 050741 National Guard, but the one I was waiting for from someone at the Pentagon was the Reserve and --
The Reserve is very, very tight with their numbers, and I assume that's issues of national security and other things. The issue of Uniformity clause, again, the information that I'm getting from Harrisburg is that they would be interested in allowing us to do this and it is not something that's legislatively difficult to move through rather quickly, and I'm sure that a number, if not all of our delegation in Philadelphia, would be supportive of the measure. COMMISSIONER KAMMERDEINER: I simply wanted to call it to attention, because we'd like to be able to administer something that was straight-forward and wouldn't be subject to challenge if we're administering it.
The only other amendment that we would be offering 22 11/14/05 - FINANCE - BILLS 050740 AND 050741 is to change the calendar year, because we had a budget year of 2006. We cannot go backwards. We can't go retroactively. So this would be, based on our deliberations, in the 2007 budget cycle. So we will be changing that through amendment in the bill, because our current bill says 2006. We've already done it. COMMISSIONER KAMMERDEINER: Okay.
Are there questions or remarks from other members of the Committee? Yes. Councilman Ramos.
Madam Chair, can I ask my colleague, Councilman Kenney, a question? Councilman Kenney, with the wage tax provision, does that add up to the -- I think 1.5 seems to have been the highest number. Is that additional to the 1.5? 23 11/14/05 - FINANCE - BILLS 050740 AND 050741
No. The 1.5 number was if all 1,138 active Guardspersons were involved in the program. At the 412 number, which we currently think is accurate, it's 565,000.
If this was to move forward, the difference in the budget and allocation would be $1.5 million at max?
I would probably -- I'll have to go to the Revenue Department. Would you think we'd be basing the number on the median or the average annual real estate tax? COMMISSIONER KAMMERDEINER: Are you talking about real estate tax? Probably closer to the median, but I'm not sure.
Well, if the median were used for the real numbers that we have, it would be 389 National Guard, 756 Reserve. That's on the real 24 11/14/05 - FINANCE - BILLS 050740 AND 050741 estate tax. It would be 565 on the wage tax National Guard, and we didn't do the calculation on the 800, but we could do that quickly. COMMISSIONER KAMMERDEINER: Are your calculations on wage tax based on their Armed Forces pay or the lost pay back here?
The Armed Forces pay. It would only be the 565 for the Guard, because the Reservists are already covered in the wage tax waiver. So what we would be doing is adding the Guard. COMMISSIONER KAMMERDEINER: And we actually expect that since someone would be receiving Armed Forces pay, that they're probably already being exempted, and if someone found that they were not and they came to us under current definitions, we would agree to a refund. We don't think this is really an appreciable change and shouldn't cost 25 11/14/05 - FINANCE - BILLS 050740 AND 050741 much, if any, more than what we're currently experiencing under the current law.
So we're simply trying to clarify that the National Guard active are now included as the Reservists were. COMMISSIONER KAMMERDEINER: So that there's no question that a person who receives Armed Forces pay after being called to active duty from the National Guard is entitled to the same thing that others in that circumstance have.
Are there further statements or questions from members of the Committee?
Madam 11/14/05 - FINANCE - BILLS 050740 AND 050741 Commissioner, you seem to concur with Councilman Kenney generally. Then you will not have any opposition to this bill? COMMISSIONER KAMMERDEINER: I would like to take a closer look at it before making a definitive statement on that. We were still in the process of looking at numbers, and I've not had a chance to confirm with my staff that we would concur completely, but we did think that it was likely to be in a low dollar range, because there aren't going to be that many people all at one time who would be so affected. And you have to realize, too, not everyone is going to be out of Philadelphia on active duty for a full year, and so some of these numbers could actually come down lower than that. If as we look at it closer that does seem to prove out, it would not be that expensive to the City.
For 27 11/14/05 - FINANCE - BILLS 050740 AND 050741 clarity reasons, define "low dollar." Is that less than million? Is that less 4 than a million? What does that mean? 5 COMMISSIONER KAMMERDEINER: Probably in the million dollar or less range.
Thank you very much. Are there other questions from members of the Committee? (No response.)
We will now ask some of our friends who have come to testify to come forward. Ed Lowry, CEO, Philadelphia Veterans Multi-Service and Education Center. We thank you all. We see so many of our good friends who are here, and we welcome you to testify. Thank you. Please identify yourself and begin your testimony.
Good afternoon, 28 11/14/05 - FINANCE - BILLS 050740 AND 050741 Chairwoman Blackwell.
Committees members, Councilmembers. My name is Edward J. Lowry. I am the Chief Executive Officer and Founding Director of the Philadelphia Veterans Multi-Service and Education Center. I have served in the Philadelphia veteran community for 12 years. I also serve as a National 13 Advisory Committee member to the U.S. 14 Department of Labor Secretary Elaine Chao 15 on national and local issues that pertain 16 to veterans' employment and training. 17 I would like to thank 18 Councilman Kenney for submitting this 19 bill and the opportunity to testify in 20 support of these two extremely important 21 and critical bills. Certainly the 22 passage of these two bills will have an 23 enormous financial impact on the National 24 Guard and Reserve members that have been 25 called to active duty. The impact will 29 11/14/05 - FINANCE - BILLS 050740 AND 050741 also provide an immediate benefit to improve the quality of life of the activated members' families. Your endorsement of these bills will also send a positive message of support to our National Guard and Reserve members who may be called upon in the future to answer our country's call. For the first time in over a half a century, our nation is calling upon our National Guard and Reserves to place their futures, their careers and their family lives on hold while they carry out their commitment to our country. They have pledged to carry out their duty to combat the war on terrorism, to protect the quality of life, the safety of our homeland and the democracy that we all cherish. It is common knowledge that when our citizen soldiers are called to active duty, many are ill-prepared for these call-ups. Many experience trauma related to separation from family and 30 11/14/05 - FINANCE - BILLS 050740 AND 050741 loved ones, and in many cases, these activations are for unknown periods of time, and in certain cases, these service members have been activated on multiple occasions. Approximately 30 to 40 percent of the activated members suffer some form of financial hardship. A significant number of these Reservists when activated have their incomes critically slashed, some as much as 50 percent less than what their civilian incomes were. These drastic salary cuts have serious financial impact on the families left behind. Although the Uniform Services Employment and Reemployment Rights Act, USERRA, of 1994 assist active-service members in securing reinstatement of their jobs, benefits and perks upon their return from activation, the immediate financial concerns and needs of the veteran's family are, in many cases, unmet during their period of activation. 31 11/14/05 - FINANCE - BILLS 050740 AND 050741 Research has proven that when a deployed person's family life is safe and stable, they have higher morale, more motivation and are better prepared to meet the challenges that face them during the duration of activation. By supporting the passage of these two extremely important bills, Bill 10 No. 050740 and Bill No. 050741, our City Councilmembers, the representatives of the citizens of our City of Brotherly Love, will be recognizing the patriotism, loyalty and service of our National Guard and Reserve members. Equally as important, you will be recognizing the commitment and sacrifices, financial and otherwise, of the Guard and Reserve members' families, those that carry out the extremely important role of keeping the family whole while their loved ones are serving our nation and our country. In closing, I would like to say that veterans and the military are not honored by what they receive. They are 32 11/14/05 - FINANCE - BILLS 050740 AND 050741 honored by what they have given. Thank you.
Thank you, Madam Chairperson. I would like to thank Mr. Lowry for his testimony, but also I would like to recommit to him an effort that we will undertake in Council through our Legislative Oversight Committee to reconstitute the Veterans Advisory Commission, to reinvigorate it, perhaps try to provide it with some needed funding, both from inside the government and outside the government, and to really kind of reenergize that group again. It's been a little bit inactive. Tommy does a great job and he's working hard, but staff is short and they're not 33 11/14/05 - FINANCE - BILLS 050740 AND 050741 meeting regularly, or if they're meeting at all, I don't think, the Commission. And considering the number of people that have come back from Desert Storm, coming back from Iraq and Afghanistan, I think it's an appropriate effort to try to reinvigorate this again to get current input from the veterans community to see how our government could be more of assistance to these people when they're coming back home. We don't have a date for the hearing yet, but it will be coming up something soon.
I would like to, on that point, thank the Councilman and ask Council that when that opportunity comes about, that it be given serious consideration. Councilmembers, the Mayor, City government has a right to know what issues, problems and concerns are facing our military, active members, National Guard, Reserves, as well as those veterans that have served in every 34 11/14/05 - FINANCE - BILLS 050740 AND 050741 other conflict that we've been involved with, because it's only through their efforts that we'll be able to be here today and have a democratic meeting and talk about the types of issues and concerns that we have. And I'd like to thank Council. I know that in the past you have been very supportive of activities regarding veterans, but we can always do a little more, especially in light of the circumstances of our current war on terrorism. So I'd like to thank you.
Thank you. We absolutely agree, and we thank you for your life of service and for all vets who have served us and who are serving us well.
Thank you. 35 11/14/05 - FINANCE - BILLS 050740 AND 050741 Glen Johnson, Veterans Affairs for Local 22. And certainly you all are welcome. I see my friend Les Yost coming forward. It's always a good day when we see you. Thank you. Welcome, and please identify yourself for the record. Thank you.
Les Yost, First Vice-President of the Philadelphia Fire Fighters.
Glen Johnson. Good afternoon, Chairman Blackwell and members of the Finance Committee.
I am Glen Johnson, Assistant Health Administrator of Local 22, Philadelphia Fire Fighters Union. My duties also include veterans affairs, assisting fire fighters and their families with anything that 36 11/14/05 - FINANCE - BILLS 050740 AND 050741 pertains to the military. I am here to testify in favor of Bill 050740 and Bill 050741. When a fire fighter is activated and must leave the City employment to serve our country, his or her salary is considerably reduced. There are many fire fighters serving in the National Guard and Reserve units. When they receive their orders activating them to overseas duty, their first concern is for their families. Military pay is considerably less than the fire fighter pay. We are grateful to the Mayor and City Council for the hundred dollar monthly stipend, but it would go a little bit further if it wasn't taxed. The burden to make ends meet is put upon the spouse that is left behind. Between everyday costs of food, clothing and utilities, there is also school tuition and fees, upkeep of the car and house and any emergency that may arise. Then there is the fire fighter who is 37 11/14/05 - FINANCE - BILLS 050740 AND 050741 overseas, wondering how their spouse is going to keep the family setting the same while struggling to make ends meet. The cost of living goes up as we speak. When a fire fighter is called to serve their country, it is a tough struggle to maintain the family level with less income. Anything this Committee can recommend to help our members of the National Guard and Reserve units of the Armed Forces will be greatly appreciated by the member, their spouse and family and the citizens of Philadelphia. Thank you for this opportunity to address the Committee.
Thank you very much. Les, will you have something to say?
Well, it's always a pleasure to have you. We appreciate all that you do, for those who 38 11/14/05 - FINANCE - BILLS 050740 AND 050741 have served, and there's never a time we don't see you that you're not trying to fight to help someone, and we thank you. Thank you very much. Ken Rocks. Thank you very much. And these are individuals who help us every year with the carnival, we say thank you, for homeless people around the City, and we also thank you for helping us at our yearly affair where we do up to 2,000 people at Christmastime to try to bring some joy into their life. You're always there, and we are eternally grateful.
That just shows not only the members that I represent who serve in the Armed Forces but also serve to protect the citizens of this great City. And now you, as the Council, can do something more to protect those protectors, not only that protect our City but to protect the freedom that we enjoy in our great country by passing this legislation and Bill 050740 and 39 11/14/05 - FINANCE - BILLS 050740 AND 050741 050741. I sit here as a representative and Vice-President of Fraternal Order of Police and as a veteran of the Vietnam conflict, who served with the 173 Airborne Brigade. We understand the losses that were suffered so that the people of Iraq could have the freedom that we enjoy in the United Stated and one of our own members, Officer Pellegrini, who sacrificed his life. I guess fortunate for everybody and unfortunate for some, that he did not give his life in vain, that the members of City Council have already recognized the loss that the City suffered by losing one of their own, one of their own employees, but the measures that you could take to ensure that that service continues with the citizens of this great City so that their elected representatives will see and recognize the service that men and women of this City give in support of our country and 40 11/14/05 - FINANCE - BILLS 050740 AND 050741 the freedoms that we enjoy here by taking on the responsibilities of joining the Guard and the Reserves rather than the active-duty military and giving their lives to service of our great country. There are many hardships encountered when these employees leave their families and the security of their professions to serve our country. There's a great loss of wages in terms of overtime, medical benefits and the things that are provided for their families, and this is just a small measure that this Council could do by passing this legislation to let the people know that the elected representatives not only recognize the service that they give to their country and their city, but also recognize that they do care and they will do anything within their power to make that quality of life for the family left behind that much better. So I would ask that Council approve this legislation on behalf of the 41 11/14/05 - FINANCE - BILLS 050740 AND 050741 membership of the Fraternal Order of Police and those who serve this great country and the citizens of this great City to make that quality of life for that family just that much better. Thank you.
Thank you very much. Any questions or comments? (No response.)
Thank you very much for all that you do and all that the FOP does. Jim Basile. Thank you very much. Welcome, and please identify yourself to our record.
Thank you, ma'am. My name is Jim Basile. I'm a resident of Philadelphia. In my civilian job, I am the Division President of the Stuart-Dean Company located in South Philadelphia. I'm a member of Naval Mobile Construction Battalion 21 where I serve as a 42 11/14/05 - FINANCE - BILLS 050740 AND 050741 commissioned officer. Madam Chairwoman, members of the Committee, Councilman Kenney, I appear before you today not only as a businessman in Philadelphia, not only as a citizen of our fine City and not only as an officer in the United States Navy Reserve, but I come to you as all three. I wear this uniform today, the uniform of a businessman, to illustrate that when walking down the streets of our fine City, creating jobs for Philadelphians, you would not be able to tell that I'm a member of our Armed Forces. However, when that call comes in, whether it is with two months' notice or two days' notice, I and all the other Guardsmen and Reservists answer that call. We seamlessly transition to wearing the uniform of our nation's Guard and Reserve. As an officer in the United States Navy Reserve, I applaud Councilman Kenney on his compassion and courage in 43 11/14/05 - FINANCE - BILLS 050740 AND 050741 support of this important legislation known as Bill 050740 and 050741. I applaud him because I know firsthand the financial sacrifice we make willingly. As a private citizen, I ask the members of this Committee to reach across the party lines and vote in favor of these bills. Support of these bills is not support of the war. It is not support of President Bush. It is supporting the troop on the ground and the families that we leave behind. It is really the one thing that this Council can do to help. These bills will have a far greater impact on the lives of local Guardsmen and Reservists than naming a street or a park after a fallen soldier. The members of our Guard and Reserve are unsung heroes, heroes among us, as called by Lieutenant Colonel Mernino in his book. Colonel Mernino is right, we are the backbone of this City. We are cops and firemen and doctors and 44 11/14/05 - FINANCE - BILLS 050740 AND 050741 lawyers and teachers and plumbers, electricians and stevedores. We're cab drivers and funeral directors, nurses and cooks and businessmen. We're mothers, fathers, brothers, sisters, sons and daughters. The days of the weekend warrior are over. The Reserve and Guard are being called upon for extended duty and deployments all around the world. Members of my own Reserve unit are deploying into harm's way, some for a second and third time since this war has begun. We are asked with very little notice to put our civilian lives on hold, to tell our families and employers good-bye, and go off wherever our orders dictate. We do this willingly. However, the one promise we cannot make is if we will come home, because we do not know if we will or not. We do this willingly. Councilman Kenney realizes this sacrifice. 45 11/14/05 - FINANCE - BILLS 050740 AND 050741 Most of the old volunteer Guard and Reserve do not serve for the money. We serve for the honor of keeping our families safe, we serve to honor those who have gone before us, and we serve because we believe that someone must take a stand. The members of today's Guard and Reserve are direct descendants of men like John Paul Jones, Nathan Hale and those who froze at Valley Forge over 200 years ago. " We need this legislation to pass immediately, as many of us are not fortunate enough to have an employer make up the difference in our pay. Most Guardsmen and Reservists serve on federal duty at an extreme disparity in pay between their civilian jobs and their 46 11/14/05 - FINANCE - BILLS 050740 AND 050741 military service. Those on active duty do not experience this disparity. In some cases, their pay goes up. It is good to know that our deployed members can have one less thing to worry about. There's so much to worry about when we deploy. Again, I implore this Committee to vote yes.
I urge the full Council to vote yes, and I require Mayor John Street to sign this bill into law. I thank you, Councilman Kenney, for sponsorship of this bill and the members of the Finance Committee for its consideration. Thank you.
Thank you. I would like to thank Mr. Basile actually for stopping me coming out of the dry cleaners at Broad and Tasker one morning and asking me what 47 11/14/05 - FINANCE - BILLS 050740 AND 050741 the City government was doing to try to help in this situation. And the more I thought about it, I recognized that we weren't really doing anything, which led us to try to investigate what we could do, and these are two of the products of hopefully what we can do. So I'd like to thank you for being a citizen and grabbing your elected official on the street and telling him what you think, because sometimes it does translate into something happening. He's also a member of the parish that I am from, St. Nick's in South Philly. So he could get me outside church and at the dry cleaners. But thank you for taking the time to stop me and inform me of what's going on. It does work sometimes. Thanks.
Thank you, sir. It's great to work in a city where you do have access to your elected officials, and I appreciate your help. 48 11/14/05 - FINANCE - BILLS 050740 AND 050741
Thank you very much. Mr. Joe Eastman. Thank you. Please identify yourself and welcome.
Thank you. My name is Joe Eastman. I was not a member of the Guard and Reserve. I was an active-duty military man for years, so 12 I kind of want to give the active duty 13 perspective of this. 14 This is a tough act to follow 15 with these guys here, but I'm going to 16 try and do my best. 17 Let's make no mistake about 18 something. There is no, in my mind as a 19 former active-duty member, distinction 20 between Guard and Reserve and active duty 21 as to the dangers that they face. A 22 bullet when it is shot at you doesn't 23 care if you're a Guard or Reserve. If 24 you step on a land mine, if you step on 25 an IED, it does not care whether you're a 49 11/14/05 - FINANCE - BILLS 050740 AND 050741 Guard or Reserve. It's going to do harm to you. And also make no mistake about this. This is not just men that are doing this every day over there. It's women. There's no more distinction. For some of us old-timers, there used to be. Now there isn't. Women are going every much in harm's way as the men are and doing just as good a job. I have to take exception to a couple of things that were said here about active duty may be objecting to some of this stuff. I was active duty for years. Any active-duty member 17 that objects to this and wants the same 18 thing because they think it's not fair, 19 please have them call me. I'll be glad 20 to hook them up with some Admirals and 21 Generals that will tell them that active 22 duty don't do that. We understand why we 23 join the military and made a career out 24 of it. We were not there for the money. 25 We were there to serve, and we serve 50 11/14/05 - FINANCE - BILLS 050740 AND 050741 proudly, and as far as I'm concerned, my retirement check is all the thanks we need. Councilman Kenney was right about something. This is an ever-changing world. What is going on in the Guard and Reserve right now is extraordinary. I tried to go back and find a time when Guard and Reserve members were called upon to do this type of work, between Katrina, the other hurricanes and what's going on right now. It's not happened. This is absolutely extraordinary. They have the toughest job in the military, I think, because they have to come on board, get integrated, get out there and do just as much as the active-duty members, without probably as much training, but they still have to get out there and fight. And I would just say one thing in closing, that sometimes the easiest thing is to forget that the toughest job in the military is not necessarily the 51 11/14/05 - FINANCE - BILLS 050740 AND 050741 military member, it's the spouse at home that has to deal with all the things when the active-duty military member deploys. And I will tell you this as somebody that did this, and I'm sure many men that are sitting behind me have experienced this also. If you've ever been in a mine field, if you've ever been in a mine field, it is a frightening, frightening experience. You don't need to be worrying about whether your spouse at home has enough money to pay the bills. You need to concentrate on what you need to do to get out of that mine field, get your people out of that mine field in one piece. So I want to thank each and every one of you for the leadership you've exhibited today. It shows that you respect our military and you understand the sacrifices that National Guard and active-duty military make every day. And I'd like to thank Councilman Kenney for doing this and for inviting me 52 11/14/05 - FINANCE - BILLS 050740 AND 050741 here to testify today. Thank you.
Thank you very much. Thank you. Is there anyone else here who would like to testify? (No response.)
Anyone else who would like to testify? (No response.)
Are there any other comments from members of the Committee? Councilman Kenney.
Thank you, Madam Chair. I have one proposed amendment to Bill No. 050740, which would appear on , Paragraph C. It's a simple change from the "effective for Tax Year 2006" to "effective for Tax Year 2007," because we'll be deliberating that process upcoming in January. And we've been told, and we know, it's very 53 11/14/05 - FINANCE - BILLS 050740 AND 050741 difficult to go retroactively backwards once the budgets have been finalized. So this would be intended to affect 2007 tax year.
So you will be introducing that amendment as soon as we --
Yes. I just wanted to make sure it was on the record. I'd be happy to move the amendment at the appropriate time.
Thank you. Are there any other comments? (No response.)
This will end our hearing part of this meeting. We will now enter into the stated meeting. That amendment is for which bill, Councilman?
The amendment that was talked about was 050740. 54 11/14/05 - FINANCE - BILLS 050740 AND 050741
Thank you. All right. The Chair then will recognize Councilman Kenney with regard to an amendment to Bill 050740.
Thank you, Madam Chair. I would like to move the amendment as previously described, 2, Paragraph C, changing the effective Tax Year 2006 to 2007. (Duly seconded.)
It has been moved and seconded that the amendment to Bill No. 050740 be adopted. All in favor will say aye. (Aye.)
The ayes have it and so it is carried. The Chair will recognize Councilman Goode with regard to a motion on the amended Bill 050740. 55 11/14/05 - FINANCE - BILLS 050740 AND 050741
Thank you, Madam Chair. I move that Bill 050740 as amended be reported out of Committee with a favorable recommendation and that the rules of Council be suspended so as to permit first reading at our next Council session. (Duly seconded.)
The ayes have it and so Bill 050740 as amended is adopted. The Chair recognizes Councilwoman Blondell Reynolds Brown with regard to a motion for 050741.
Thank you, Madam Chair. I move that Bill No. 050741 be reported out of Committee with a favorable recommendation and further move 56 11/14/05 - FINANCE - BILLS 050740 AND 050741 that the rules of Council be suspended so as to permit first reading at the next scheduled session of City Council. (Duly seconded.)
The ayes have it and, therefore, Bill No. 14 050741 has been passed with a recommendation for a suspension of the rules, and both bills will be heard at our next session of Council. We thank all the Committee members for coming. We thank Councilman Kenney for his work with regard to these two bills. This will end our hearing, and thank you all. (Committee on Finance adjourned at 3:10 p.m.) 57 CERTIFICATE I HEREBY CERTIFY that the proceedings, evidence and objections are contained fully and accurately in the stenographic notes taken by me upon the foregoing matter on November 14, 2005, and that this is a true and correct transcript of same. ______________________________ MICHELE L. MURPHY RPR-Notary Public (The foregoing certification of this transcript does not apply to any reproduction of the same by any means, unless under the direct control and/or supervision of the certifying reporter.)