COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING BEFORE THE COUNCIL COMMITTEE ON APPROPRIATIONS - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, February 10, 1999 9:30 a.m. - - - BILL No. 990032 - Authorizing transfers in appropriations for Fiscal Year 1999 within the Grants Revenue Fund from the Director of Finance - Provision for other Grants to the First Judicial District. Bill No. 990033 - Authorizing transfers in appropriations for Fiscal Year 1999 within the Grants Revenue Fund from the Director of Finance - Provision for Other Grants to the Board of Trustees of the Free Library of Philadelphia Bill No. 990034 - Authorizing transfers in appropriations for Fiscal Year 1999 within the General Fund from certain or all City offices, departments, boards, and commissions to certain or all City offices, departments, boards, and commissions. PRESENT: COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILMAN MICHAEL A. NUTTER COUNCILWOMAN DONNA REED-MILLER COUNCILMAN ANGEL L. ORTIZ COUNCILMAN W. THACHER LONGSTRETH - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 2 2/10/99 APPROPRIATIONS COMMITTEE I N D E X Bill 990034 Dean Kaplan, Budget Director. . . . . . . . . 4 City of Philadelphia Bill 990032 Dean Kaplan, Budget Director. . . . . . . . . 12 City of Philadelphia 13 Bill 990033 Dean Kaplan, Budget Director. . . . . . . . . City of Philadelphia 17 3 2/10/99 APPROPRIATIONS COMMITTEE P R O C E E D I N G S
Good morning. The committee on Appropriations is now in session. Will the clerk please read the title of the bills.
Bill No. 990032, an ordinance authorizing transfers in appropriations for Fiscal Year 1999 within the Grants Revenue Fund from the Director of Finance - Provision for other Grants to the First Judicial District Bill No. 990033, an ordinance 13 authorizing transfers in appropriations for Fiscal Year 1999 within the Grants Revenue Fund from the Director of Finance - Provision for Other Grants to the Board of Trustees of the Free Library of Philadelphia. Bill No. 990034, an ordinance 19 authorizing transfers in appropriations for Fiscal Year 1999 within the General Fund from certain or all City offices, departments, boards, and commissions to certain or all City offices, departments, boards, and commissions.
I believe we have three bills -- two fiscal year '99 Grants 4 2/10/99 APPROPRIATIONS - BILL 990034 Revenue bills and an FY '99 General Fund Transfer. We'll take testimony on the first bill, Bill No. 4 990034.
Thank you very much. Good morning, Councilwoman Krajewski and members of the Appropriations Committee. I'm Dean Kaplan, the City's Budget Director, and I appear before you today to offer testimony on Bill No. 990034, which, as you've noted, makes Fiscal Year '99 budget appropriation transfers between and among classes in the General Fund. The transfers include 11 involving a change in total appropriations for a particular department or a cost center. The largest -- single largest one and the largest increase is a $15 million transfer to the Director of Finance Contribution to the School District Appropriation Line, and that's requested to reduce the District's projected budget deficit and support continued improved operation of the public schools system. This transfer will support the continuation of several important initiatives that have already led to increases in student 5 2/10/99 APPROPRIATIONS - BILL 990034 achievement at many levels. The specifics of this, as you know, are detailed both in my testimony and in the Mayor's recent speech and in other presentations before the Council. The critical factor in our request is the need for adequate resources to allow the School District to continue to achieve the results that we expect. As you know from discussions over the last two days, we've been working aggressively to have the Commonwealth meet its obligation to provide its fair share of funding for the School District. And, predictably, at the five-year plan hearing two days ago, members of the Council were, I think, very specific in making clear to us how much they -- how strongly they expect us to continue those efforts and to increase the level of those efforts. In addition to that effort, through the tax lien sale in FY '97, the imposition of the liquor-by-the-drink tax and improved collection of the use-and-occupancy tax, as well as a number of other initiatives, both this Council and the Administration have provided the School District with more resources. This $15 million proposed 6 2/10/99 APPROPRIATIONS - BILL 990034 transfer continues these efforts to do our fair share for the School District on an interim basis until the Commonwealth meets its constitutional obligation to properly fund the schools. 4 million for the Prison System, which is requested to cover the cost associated with the higher-than-projected inmate population. And by way of information, I note that the average population was 5,753 during FY '98, but during the first six months of FY '99, it was just a hair under 6,200. 2 million for the Sheriff's Office and $131,000 for the Register of Wills. Both of those are to fund the labor agreement with the Fraternal Order of Police Unit, which represents the deputy sheriffs and the Register of Wills employees. As you'll recall, last year, we did not fully fund that agreement in the budget because the arbitrator's ruling was under appeal. Subsequently, that issue was resolved. We provided funding for the retroactive portion of 7 2/10/99 APPROPRIATIONS - BILL 990034 that, and this will now fully fund both of those offices to cover the cost of that award for FY '99. And obviously going forward in future years, the cost of that award is built into our FY 2000 budget request. There's $275,000 in additional funding requested for the First Judicial District to cover additional expenses for court interpreters and electronic voice recognition monitoring as well as an internal transfer of approximately the same amount. There's $172,000 for the Records Department, which will cover a variety of the staffing they need to continue to provide a zero backlog in document recording. And $137,000 for the Police Department for Year 2000 corrections in some of their critical communications links. 8 million for the Sinking Fund Appropriation.
These funds are available for a number of reasons -- most significantly because our new General Obligation Bond Issue, which took place after the approval of this Council in November did not assume a first debt-service until the beginning of FY 2000. And also because we 8 2/10/99 APPROPRIATIONS - BILL 990034 were able to refund a significant portion of our older bonds in December -- again, with your approval, providing savings that we could use for this purpose. 5 million from the space rental appropriation to cover these increases. A variety of increases inside departments. $850,000 in the Health Department budget in order to fund equipment repairs and other improvements at the health centers. A bit under $300,000 within the MOIS budget to provide funding for certain costs in the year 2000 corrections. And $267,000 for the Anti-Graffiti Network to provide additional supplies and equipment, take funds from that area to the personnel area. That concludes my testimony on the first piece of legislation. I'd be happy to continue the others or answer questions on that.
Thank you, Mr. Kaplan. I see we're requesting 15 million for 9 2/10/99 APPROPRIATIONS - BILL 990034 the School District. How many years have we been giving the one-time grant?
This is the fourth year that we've made the $15 million appropriation, so now this would be a total of $60 million that the City has provided to the School District above and beyond.
What's the Administration's strategy for adequately funding the School District?
Well, as the Mayor noted in his speech, there's a multi-pronged attack on that. The predominant effort is to -- is one that we have followed for several years both legislatively and judicially to seek the proper application of the school funding formula. As you know, that has been an approach which has been fraught with some difficulty in the courts. A second approach we have taken is to agree to pledge a significant portion of any 10 2/10/99 APPROPRIATIONS - BILL 990034 revenues -- any appropriation authority that we have from the court funding process should the courts be moved to State jurisdiction to the schools. And probably most importantly, the thing we have the most control over has been increasing efficiencies within the School District. And, as you know, the School District has saved about $29 million a year on an ongoing basis as a result of their own internal procedures and are working to do even more with that.
Another question. What's the current population with the Prison System now?
About 6,250. It obviously fluctuates during the week, at different times 11 2/10/99 APPROPRIATIONS - BILL 990034 during the week and during the day. But in the last six months and seven months actually, it has been, obviously, a bit higher than it had been on the average for last year.
Just one quick one, Madame Chair. Mr. Kaplan, now, about the 21st Ward Ice Skating Rink and the Wynnefield Recreation -- no. 13 (Laughter.).
Regarding the courts, the First Judicial District, we're providing them through June 30, 1999. What is the City's strategy in regard to the State's 12 2/10/99 APPROPRIATIONS - BILL 990034 obligation to fund the court system.
The City, as you know, for the past several years, has in the case of FY '98 partially funded it, and in FY '99, it did not fund at all the court system at the beginning of the year. Subsequent to the adoption of the FY '99 budget, the First Judicial District sued the City in a case which went to the State Supreme Court, and the Supreme Court asked for the Commonwealth Court to review the case and provide a recommendation, which they did last June. The Commonwealth Court recommended that the City continues its funding through the end of FY '99 and that the State then begin funding the court system. As a result, we have previously asked this Council and you have approved funding in the General Fund for the courts for the remainder of this year. The bill before you today, 990032, provides the Grant Revenue Fund portion of the courts funding. So this would complete -- provide them with complete funding through the end of '99, in compliance with the advice of the President 13 2/10/99 - APPROPRIATIONS - BILL 990032 Judge of the Commonwealth Court to the Supreme Court. In FY 2000, it would -- we have once again not provided for funding in the courts line. As we discussed at some length on Monday at the PICA hearing, while this is not the position we would hope to be in, clearly, our level of ability to force the hand of the judiciary in the State legislature is somewhat limited. We think that a number of things that have happened over the last several years -- most notably, the Governor's agreement to begin including the court funding in his budget -- are at least partially a result of this strategy. And we're hopeful that continually raising this issue and putting it on the line will help bring it to its successful conclusion.
Thank you very much. Again, I'm Dean Kaplan, the City's Budget Director. 14 2/10/99 - APPROPRIATIONS - BILL 990032 Bill No. 990032 is a transfer of $14.5 million in the Grants Revenue Fund appropriations to the First Judicial District of Pennsylvania. And as I just noted, it is requested because the adopted FY '99 budget did not provide funding for the courts, consistent with the Supreme Court's directive of July 26, 1996, requiring the General Assembly to enact a constitutional funding scheme on or before January 1, 1998. Because the General Assembly had not acted and because of the ruling that I just mentioned, we are now asking for second-half funding in the Grants Revenue Funds for the courts.
Mr. Kaplan, in your earlier testimony, you said that the case went up to the Supreme Court, who then essentially remanded it back to Commonwealth Court. I've lost track of what happened at Commonwealth Court. Was an order issued? Or what did the Commonwealth Court say? 15 2/10/99 - APPROPRIATIONS - BILL 990032
It was kind of unusual process. The Supreme Court asked the President Judge of the Commonwealth Court to hear the case and provide them essentially with advice, with a recommendation.
And Judge Collins did hear the case in June rather in a very expeditious manner. A number of parties were involved, including the City and the court, obviously, but also the State legislature was represented, the Governor's Office -- meaning the executive branch of the State government. And the result, as I mentioned, was a recommendation, which I'll be happy to get the text of that to you, which essentially says what I had mentioned before, that because of the numerous issues around this and the late date at that point, I believe the day that the judge ruled was the same day of Council's last meeting of the 16 2/10/99 - APPROPRIATIONS - BILL 990032 summer, the State legislature either had adjourned or was about to adjourn for the summer. The fiscal year was about to start in two weeks. He recommended that the City fund the courts for the remainder of the fiscal year, the one that we're about to start, but then added his voice to the chorus of those suggesting that the State begin funding this coming July 1st.
As you can imagine, I'm sure you understand that your frustration is shared by us.
Yeah. I got to say, I'm not too bowled over by that. Well, if you can get us whatever the Commonwealth judge advised of the Supreme Court.
Whatever the text is or the order or the advice, that would be helpful. And I guess we'll take it from there.
Are there any 17 2/10/99 - APPROPRIATIONS - BILL 990033 other questions? (No further questions at this time.)
Thank you very much, Madame Chairwoman. Again, I'm Dean Kaplan, Budget Director of the City. Bill No. 990033 requests a transfer of $950,060 in the Grants Revenue Fund for appropriations to the Free Library of Philadelphia. And there are two reasons for this request: First, the timing of the reopening of the newly renovated libraries last year resulted in unspent grant funds; in other words, those libraries were not open quite as early as we had expected, and some of the grant funds were not needed to fund those libraries. These funds remain available, and the Library wishes to use them to purchase additional library materials this year. Second, this transfer would build into their base Grants Revenue Fund budget a series of smaller increases in Commonwealth library funding 18 2/10/99 - APPROPRIATIONS - BILL 990033 over the last several years. So the total amount of $950,000 would fundamentally allow the Library to purchase additional materials.
Thank you. Are there any questions? (No questions.)
If not, then the Committee on Appropriates will recess until Tuesday, March 9, 1999, at 9:00 a.m. Thank you all very much. (Adjourned at 9:39 a.m.) - - - 19 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 Wednesday, February 10, 1999, were reported fully and accurately by me, and that this is a correct transcript of same. RE: COUNCIL COMMITTEE ON APPROPRIATIONS BILL NO.'S 990032, 990033, 990034 __________________________________, JOSEPHINE CARDILLO, Registered Professional Reporter