Ralph Preston Blakney, Executive Director of the Mayor's Office of 1682 2/21/01 - FY '02 OPERATING BUDGET HEARINGS Community Services. President Verna and members of City Council, I am Ralph revenue, Executive Director of the Mayor's Office of Community Services, and I am here to testify on behalf of the agency. John D. McDaniel, Deputy Executive Director, accompanies me. The Mayor's Office of Community Services, hereafter referred to as "MOCS," requests a Fiscal Year 2002 appropriation of $41,858,057: $41,502,736 from the Grants Revenue Fund and $335,320 from the General Fund. This represents an increase of $2,446,815 from Fiscal Year 2001 estimated obligations of $39,411,247, which was $39,288,589 from the Grants Revenue Fund and $122,658 from the General Fund. This variance is primarily reflected in Grants Revenue Fund Class 100 and 200 increases in support of the Empowerment Zone. This appropriation --
I'm sorry, in support of? I'm sorry, what did you say? In support of what? BLAKNEY: In support of the Empowerment Zone. 1683 2/21/01 - FY '02 OPERATING BUDGET HEARINGS
Okay, thank you. BLAKNEY: This appropriation level will accommodate anticipated Grants Revenue from the federal and State governments as well as local agencies and enable MOCS to provide advocacy, planning, and programs which empower low-income Philadelphians to achieve self-sufficiency. In Fiscal Year 2000, MOCS programs provided a comprehensive array of services to 13,015 unduplicated individuals. The Mayor's Office of Community Services was created in 1965 as the Philadelphia Anti-Poverty Action Committee, which was formed to establish policies necessary to guide the City's anti-poverty program. These programs were intended to achieve the maximum participation of the poor, with the aim of reaching those who thought least about participating and who could benefit most. The organization has experienced many transitions over the years, including two name changes from its founding name to the Philadelphia Ally Action Commission to the name it carries today, which enabled it to be a formal, 1684 2/21/01 - FY '02 OPERATING BUDGET HEARINGS not-for-profit department of City government. All programs administered by MOCS target and serve those who have incomes at or below 125 percent of the federal poverty level. In addition, MOCS is deliberate in its effort to nurture a close alignment with the poor to ensure that they have a stake in the services provided to them. Within each of our programs' respective portfolios, a component can be found that promotes dignity, leadership, self-confidence, and independence. This agency has been successful in connecting its work to its mission: empowering individuals, families, and neighborhoods to reach self-sufficiency; providing programs service and coordinating resources. Poverty persists in American communities. The problems created by poverty at large are complex. In order to combat poverty, it is necessary that the community, as a whole, work together. Community action agencies were created to foster a comprehensive approach in communitywide collaboration in attacking the causes and conditions of poverty. 1685 2/21/01 - FY '02 OPERATING BUDGET HEARINGS MOCS has a vision of community resurgence; hence, the agency's vision statement evolves from the energy and motivation generated be this idea. MOCS is committed to providing state-of-the-art human services which open opportunities and promote accessibility to resources, building a stronger Philadelphia. Madam President, I conclude in saying, some people succeed because they are destined to, but most people succeed because they are determined to. We at the Mayor's Office of Community Services provide opportunities which inspire others to believe they too can succeed if they are determined.
Thank you very much. The Chair recognizes Councilman Goode.
Thank you, Madam President. Two brief questions. The first, you may be anticipating. The status of the Freedom School Program and the Frankford Family Development Center? ^: The status? 1686 2/21/01 - FY '02 OPERATING BUDGET HEARINGS
Yes. ^: We, you know, at MOCS are wholeheartedly in favor of the Freedom School Program. We have been working diligently to make sure that that program is up and running, along with the other Freedom School programs in Philadelphia. We did at one point, you know, take a step back in order to see exactly if we could resolve the issues that we had last year. Those issues have been resolved. And at this time, we actually have a colleague who's on a plane to Tennessee to participate in the onset of that program. And so that program will, in fact, take place at the Frankford Family Development Center. And I'd just like to say that from what I've heard, your participation in that program last year was welcomed, and the young people really got a lot of out of, you know, the fact that you were there and encouraging them to, you know, to do good things in school.
I actually had a great time there. It was up to 100 or more children there, very enthusiastic. 1687 2/21/01 - FY '02 OPERATING BUDGET HEARINGS The second question is regarding the Empowerment Zone Program. Can you tell me exactly how much money is left?
Yes. I would have to refer that question to Eva Gladstein, who is the Executive Director of the Empowerment Zone. (Witness comes forward.)
Good afternoon. My name is Eva Gladstein, Executive Director of the Philadelphia Empowerment Zone. As you know, the Empowerment Zone was a $79 million grant. A hundred percent of the funds have been allocated to projects. We have actually drawn down from the State and spent approximately 32 million of those $79 million.
That is not committed. I'm not using the term "allocated," but is not actually committed.
All of the funds are committed. Within the committed funds, there is 1688 2/21/01 - FY '02 OPERATING BUDGET HEARINGS approximately 35 million that reside in three community lending institutions, which are available for loans to support business development in the neighborhoods of the Empowerment Zone. Of that 35 million, which will continue to revolve, but the funds that are available right now of the 35 million -- this will have to be an approximate figure -- is about -- approximately 10 million of the 35 million is not committed to loans at this point in time. So it's available for business loans.
In addition to those dollars in those community lending institutions, what is the other money earmarked for?
It's earmarked for approximately 100 projects. I can give you a sense of the range of the projects, if that would be helpful. They range from housing development support, housing counseling, health outreach, after-school programs for young people, community schools in some of our neighborhoods. We're also spending a fair amount of money on supporting the cleanup of business corridors, helping to organize the business corridors, and helping to clean and 1689 2/21/01 - FY '02 OPERATING BUDGET HEARINGS improve vacant land. We have some funds allocated to support -- to reduce the dropout rate in some of the schools in our neighborhoods and to increase the ability of children to flourish in the communities. We're also supporting projects that will help people who are underemployed or unemployed in the neighborhoods to develop skills and match them with jobs. That's a very brief summary of 100 projects.
You know, if you have further questions, I'd be happy to respond.
Per the federal legislation, the money had to be allocated within the first couple of years. Can that money be reallocated? And what is that process in terms of reallocating the dollars?
That has actually changed. The Empowerment Zone, obviously, was a very new program, and it's been evolving, and we're subject to two different federal 1690 2/21/01 - FY '02 OPERATING BUDGET HEARINGS institutions, both the Department of Housing and Urban Development and HHS. In order to change the allocation of funds, we would have to go back to our community trust boards. There's one in each neighborhood which have actually allocated the funds per project. They would have to change the allocation. That would have to be supported and signed off at the local level by the Mayor, at the State, and then at the federal government.
How much money is available if the community trust board wanted to go back and reallocate funds? I would have to do an analysis as to the amount of funds that are committed under current contracts, and I would rather go back and do that research and give you that information later than be inaccurate now.
If you will forward that to the Chair, that would be appreciated.
Thank you, Madam 1691 2/21/01 - FY '02 OPERATING BUDGET HEARINGS Chair.
You're welcome. The Chair recognizes Councilwoman Brown.
Thank you, Madam Chair. My questions are also actually related to the youth opportunity centers in the Empowerment Zone. Brief us, if you will, on where those students are recruited from. And it mentioned services that you're -- talk about the services that you're providing, please.
Okay. That is a program that operates in the Empowerment Zone but is not funded by the Empowerment Zone. The City of Philadelphia received a received a grant from the Department of Labor through the Board of Education. There's a center in each of the Empowerment Zone neighborhoods, and each center is committed to serving -- primarily, the focus is out-of-school youth, although in-school youth are also eligible for the services. The centers -- two of the centers 1692 2/21/01 - FY '02 OPERATING BUDGET HEARINGS opened in October, and the third opened in the last month. They are providing a wide variety of services at the centers right now, ranging from computer classes, to Karate and self-defense, to career exploration. The next stage of the program will be actually helping the youth who have been through an assessment process, either linking them to jobs if they're job-ready, or linking them into training or linking them back into the school system either through a twilight school or a GED program or whatever's appropriate to them. But because they just opened, they're just beginning that process now.
Sure. So what kind of measures are in place to determine success? And the reason why I ask that question is, it's stated in the testimony that the grant is a $5 million grant renewable for 4 additional years. Is that automatic or is that based on performance?
My understanding -- again, we're not directly administering it. My understanding is that it's based on performance. 1693 2/21/01 - FY '02 OPERATING BUDGET HEARINGS However, the ultimate measurement of the program is that within the five years that the youth are linked back either into a career or into an educational path.
Exactly, so they're tracking the movement of the youth through the program, but there are not specific year-by-year measures for that.
Okay. It says additionally that it aims to serve 1,000 youth in its first year. So what can one draw from that? Is it 5,000 youth over 5 years? What I'm leading to is, we get -- so often we're known to get money, and that's good, but at the end of that dollar, we don't have adequate demonstration of success. And what I hear you saying is that measures are in place to ensure that young people end up in work and there's a way to track that. Is that what I'm hearing?
Tell me about the 1694 2/21/01 - FY '02 OPERATING BUDGET HEARINGS Youth Web, please.
Councilwoman Brown, in addition to what's in the written testimony, this is a program that's geared toward middle and high school students, and we work in collaboration with the various schools in making that information available to them. It also involves students who are connected to community-based organizations so that we can get the word out to not only in the communities but through the schools to make sure that everybody has an opportunity. We are always looking for other avenues and other ways of getting the word out regarding this program. There tends to be at times space available. And so, you know, we're not actually at capacity right now; there's room for some referrals if in fact, in your office or the offices of the Councilpeople know of students who can take advantage of this particular program.
Okay. So they have been at the MOCS Office at Eighth and Spring Garden or at designated sites around the city?
No, this particular program is located in the North Broad Street area, 1695 2/21/01 - FY '02 OPERATING BUDGET HEARINGS actually the Olney area.
Okay. Is there a some relationship with the cluster leader in that area so as to help ensure full-time capacity for the program and any linkage with the area schools?
Right. There is ongoing information being provided to the schools in the area as well as the schools citywide. The cluster leader is familiar with the program, and we try to work with the cluster leaders of various areas within Philadelphia to make sure that they are definitely aware of those programs operated by MOCS in their particular areas.
Okay. Let me commend you too on your short-term there, but your willingness to partner and link up with others who are in the same business or at least are philosophically where you are with regards to providing to children and youth, and specifically I speak to the (indiscernible) project. I 1696 2/21/01 - FY '02 OPERATING BUDGET HEARINGS appreciate that partnership. Could you briefly speak on the proposed collaborations with the Prince Hall Masons?
The Prince Hall Masonic organization is a fraternal organization, which is a statewide organization. Here in Philadelphia County, there are approximately 5,000 members of that fraternal organization, and they are actively volunteering their services in different capacities. They are very well known for their participation in various middle schools in that many of the Masonic lodges in Philadelphia have adopted schools.
And so they provide different services in that they go into schools, monitor hallways. Several of the schools actually have a program similar to a rights of passage program, but most of them are geared toward working with adolescents who have been troubled in the school.
So what many of these lodges have done is been able to alleviate 1697 2/21/01 - FY '02 OPERATING BUDGET HEARINGS principals as well as disciplinarians at various school from having to spend enormous amounts of time in working with youths who are most trouble.
At MOCS, we're in the process of trying to determine exactly how all of this manpower can be used to help us provide service to people who are moving towards self-sufficiency. We will probably be looking at this particular organization in our work, in assisting us with our work with youth, and to some extent with adults.
I thank you for that. I do have another question regarding the Youth Opportunity Center. Could your team member come back up to answer these additional questions? (Witness comes forward.)
Who will be doing the monitoring? Who will be conducting the homework that's needed to determine the success on how the money is spent?
The Department of 1698 2/21/01 - FY '02 OPERATING BUDGET HEARINGS Labor, which is a funder, is very engaged in this process, and they've assigned a mentor or a coach to work specifically with the Philadelphia office in terms of implementing the project, and they are there every step of the way in terms of the development of the program, the monitoring, and the measuring.
There are three sites. One site is at 1215 Germantown Avenue, that's in the American Street community, the Empowerment Zone. The second site is in North Central, at 1231 North Broad Street, where OIC is housed. The third site in West Philadelphia is at 5070 Parkside Avenue in the business technology center there.
And how do you I.D. the young people, particularly those who are out of school? How do you reach them?
They have staff who are going out into the community to the community-based organizations, to the religious institutions, and literally looking for young 1699 2/21/01 - FY '02 OPERATING BUDGET HEARINGS people on the corner. And, obviously, they're using a lot of word of mouth from young person to young person.
Okay, thank you very much. Thank you, Madam President.
You're welcome. Can you elaborate on your foster grandparent program, please?
The foster grandparent program is one that involves senior adults, older adults who actually go into schools, day care centers, and other facilities, and establish relationships with young people. They are -- they provide nurturing, they give a lot of young people an opportunity to have relationships with seniors 1700 2/21/01 - FY '02 OPERATING BUDGET HEARINGS in a sense that they would not have otherwise.
All right, but it's not a foster grandparent program.
Okay, thank you. The Chair recognizes Councilman Nutter.
Thank you, Madam Chair. Miss Gladstein, I just wanted to know, and you don't have to go through a long explanation. If you could provide some additional information about the activities at the 52nd and Parkside site that you just mentioned, I'd be interested in that.
Are there any other questions from members of the committee? (No further questions.)
Thank you, Madam 1701 2/21/01 - FY '02 OPERATING BUDGET HEARINGS President.
The Clerk of Quarter Sessions is next. (Witnesses come forward.)
It's nice seeing you. Would you please identify yourself for the record and proceed with your testimony, please.
For the record, my name is Vivian Miller. I am the Clerk of Quarter Sessions, and I have with me -- to my left is my Budget Director, Tom Christmann. To my right is my First Deputy, Charles Williams; and my Second Deputy, Lopez Jones. Good afternoon, Council President Verna and members of City Council. Madam Chair, due to the time, may I make a brief statement rather than read my budget address?
I'm sorry, Vivian. I think you deserve a little more respect than you're getting. I would like to ask the people in the back of the room that are having a conversation to 1702 2/21/01 - FY '02 OPERATING BUDGET HEARINGS please do so in the corridor. We can't hear the witness.
That would be fine. And we have your testimony, Vivian, and it will be given to the stenographer and will be transcribed in full, so you can summarize what you have given us.
Thank you much. Hopefully you had time to review my budget request for Fiscal 2002. Now, I would appreciate it if you would approve it. My budget is a mere $4,317,463 and does not entail all of our needs, but (indiscernible) it's doable. Please give it all consideration, and I thank you.
Apparently, you feel that you need or would like more money in your budget.
Did you, in fact, talk to the Administration about this?
Yes. I have Tom to speak to -- Tom can you speak to that? 1703 2/21/01 - FY '02 OPERATING BUDGET HEARINGS
My name is Tom Christmann, Budget Officer for the Clerk of Quarter Sessions. We never had a formal meeting with the Finance Department in such a regard, but we had submitted justification schedules beyond the amounts approved in the budget for the purpose of technology improvement and several additional people that we feel are necessary to improve our potential at producing more revenue for the City of Philadelphia, but it hasn't happened. It's been entertained for --
Or do you have vacancies that you would like to fill? What is it that you're asking for?
It was additional personnel. I believe it was for -- 1704 2/21/01 - FY '02 OPERATING BUDGET HEARINGS
I believe it was five -- five people. Am I right, Charles?
We were asking for funds related to technology improvements, to try to get a system computer-wise that would address many of our needs as it relates to our fines and cost operation. I'll -- let me give you the figures in a second here. We were asking for $100,000 to set up a system to control the receipt, deposit, and recording associated with our bail and fines and costs operation.
I'm sorry. I have difficulty hearing you. 1705 2/21/01 - FY '02 OPERATING BUDGET HEARINGS
I'm sorry. We had asked for $100,000 regarding an integrated system to control the receipt, deposit, and reporting associated with our bail and fines and cost operation. In addition to that, we had asked for 5 additional people, totaling $111,948. Again, we didn't have a formal meeting with the Budget Director in this regard, but we had submitted it as a part of a justification schedule, and it just hasn't materialized that those monies are forthcoming.
Mr. Dubow is sitting directly behind you. I would like to ask him to come up to the witness table, and I want him to tell us how we can help you.
Good afternoon. I think we generally agree that the Clerk needs help with its information system, and we'll commit to working with them to make sure that that happens.
I think we agree that the 1706 2/21/01 - FY '02 OPERATING BUDGET HEARINGS Clerk needs help with its information system, and we'll commit to working with them to make sure that that happens.
That was one of the options we've talked about with them. We'll identify funding somewhere to make sure that they get the help that they need. And then it's our hope that if they do get that, they won't need the extra positions, that the improved information system will lead to efficiencies.
Vivian, do you have any question about that, or Charles?
My name is Charles Williams, and I'm the First Deputy Clerk of Quarter Sessions. My concern -- it's been my concern for several years, and this has been going -- an ongoing problem in acquiring technology so that we can try to accomplish our task. The problem is that we don't have any automation at all. We don't have an MIS unit. We have no one to do programming for us, to bring us 1707 2/21/01 - FY '02 OPERATING BUDGET HEARINGS into the 21st century. We asked MOIS, who graciously does things when they can for us. We are in a situation where we need to be able to enter a payment into the computer system, reduce our receivables, and print out a receipt. We cannot do that. Not any aspect of it at all. I've asked -- this is through Mrs. Miller's petition -- at least three years to address that issue. It has not been addressed.
I agree. We'll work with MIS to make sure it's a priority. We'll do that, you know, within the next day. I'll talk to the CIO.
I concur. If we get the automation, we may not need the personnel. I do believe that's worth the effort.
Well, I thought heard Mr. Dubow say that he will 1708 2/21/01 - FY '02 OPERATING BUDGET HEARINGS definitely start working on this immediately, immediately. And, hopefully, your problem will be addressed.
I'd have to talk to MOIS to see how long, but we'll get back to you.
Well, we had been working with the Budget Bureau in the past. What happened, they've gone through a lot of changes, from Dean Kaplan -- this is how far this goes back.
To Bob Dubow to Rob leaving and someone else took his place. He returned, and we had several people assigned to us, who concurred that we needed all of this, but nothing's been done.
Well, it's a 1709 2/21/01 - FY '02 OPERATING BUDGET HEARINGS new day. There's a commitment that's been made today. And I want, Charlie, you or Vivian to get in touch with me in a couple weeks and tell me it's either working or it's not working.
And then we'll have to have a little meeting with Mr. Dubow to make sure that this is accomplished.
You're welcome. Any questions or comments from members of the committee? (No questions.)
Mr. Saidel is not 1710 2/21/01 - FY '02 OPERATING BUDGET HEARINGS here. I am Tony Radwanski, Deputy City Controller, and I'm here to present testimony to you.
Good afternoon, Madam President and members of City Council.
Can you give us an excuse as to why the Controller is not here?
Mr. Saidel -- we were supposed to originally come here on Friday afternoon. Our time was changed and there was a scheduling conflict for Mr. Saidel. Hopefully, I'll be able to carry forth.
I'll definitely make sure you get answers to any questions you may have.
I am Tony Radwanski, 1711 2/21/01 - FY '02 OPERATING BUDGET HEARINGS I'm Deputy City Controller, and I'm here today to present the testimony for our department for the FY 2002 Operating Budget. I'm joined by Deputy City Controller Albert Scaperotto and Tony McNeil, and by our an Administrative Services Director, Gene Laumer. The Mayor's proposed FY 2002 Operating Budget includes a proposed General Fund appropriation of $7,099,236 for the Controller's Office. This appropriation level represents an increase of only 8/100's of 1 percent over our FY 2001 appropriation. The Controller's Office anticipates being able to generate a small surplus this year; however, the surplus does not come without costs. The biggest single problem we face is our continuing inability to attract and maintain good employees. We simply cannot match the private sector in the starting salaries we are able to pay our auditors. We currently have eight vacancies for auditors in our Post-Audit Division. We have been working diligently with the Personnel Department for the last year and have managed to maintain a one step increase in 1712 2/21/01 - FY '02 OPERATING BUDGET HEARINGS the starting salary for auditor trainee, bringing that starting salary from 28,909 to $30,837. Although this is still well below industry standard, we hope that these efforts, combined with our vigorous recruitment drive that we're now conducting with our local universities will result in our being able to fill many of these vacant and sorely needed positions before the end of FY 2002. The demand for audits placed on the Controller's Office by the Single Audit Act and by the myriad programs that weren't even in existence several years ago requires the expenditure of thousands of additional audit hours and stretches our resources to their absolute limit. Our Pre-Audit Division, headed by Mr. McNeil, is operating with approximately one-third less employees than it has historically had. Normally, with a complement of full-time 20 positions, our pre-audit staff is now down to 12 full-time employees. These employees struggle on a daily basis to meet the demands of processing over 150,000 payment vouchers a year. We hope the changes we wish to implement in recruitment and training for this 1713 2/21/01 - FY '02 OPERATING BUDGET HEARINGS division will result in our being able to fill these vacant positions. On a more positive note, the Controller's Office is pursuing many exciting and promising initiatives. For example, last year, we received 110 suggestions from City and School District employees as part of our Employee Incentive Program. The success of this program shows that the great majority of City government employees do care about their jobs and the taxpayers for whom we all work. This past year, the book we produced, Philadelphia, A New Urban Direction was voted to receive the prestigious Special Projects Award by the National Association of Local Government Auditors. Even auditors get audited, so we are very proud of the fact that in the past couple of weeks, the City Controller's Office has received a clean opinion on the triennial peer review audit performed on our office by the firm of Ernst & Young. In addition to our regular performance area reports, this year, the Controller's Office will also undertake a major effort to review the 1714 2/21/01 - FY '02 OPERATING BUDGET HEARINGS role of the City's tax structure and the role that it has played in the City's decline. We will analyze tax elasticity in Philadelphia, study theoretical and empirical perspectives on taxation and then determine the elements of a new tax structure for Philadelphia designed to attract and retain jobs and residents. Controller Saidel will also be pushing his -- forward his efforts as part of the Mayor's task force to think out of the box about ways that we can revitalize this magnificent building in which we sit, a world-class building that needs and deserves our needs attention.
As you know, this year, Controller Saidel began sending to City Councilmembers summaries of our significant departmental audit findings, with the hope that this information would aid you as you conduct these budget hearings. We hope that this has proven to be of help to you and your staffs, and we intend to continue the effort in future years. Thank you for this opportunity to present our FY 2002 Operating Budget. As you can see, we have taken a conservative approach in our 1715 2/21/01 - FY '02 OPERATING BUDGET HEARINGS request, in keeping with the Administration's and your efforts to streamline the City's finances. As the fiscal year progresses, we may be back to appear before you again. We'd be happy to entertain any questions you might have. We'll also be available to work on a continuing basis with you and your staffs, as we have in the past, and hope to do in the future.
How many auditors or auditors trainees do we have? I don't mean just in your office, but I mean throughout.
Well, all of the auditors and auditor trainees, except for contract auditors, would be in our office. And we currently have a staff, I believe, of -- we have a 72 audit positions filled at this point. We have 79 budgeted positions.
Are there auditors in the Finance Director's office? No?
They have accountants, 1716 2/21/01 - FY '02 OPERATING BUDGET HEARINGS but not auditors.
I think that this starting salary is so paultry, I just can't understand how we couldn't do something about that.
It's very difficult when the Big Six firms are paying 40 and we're paying 30. It's hard to attract. We have a recruitment drive going on tomorrow at Philadelphia University, and we're hoping that the changes that we've implemented will help us to attract some good people, but it's a difficult struggle.
It's a shame because by the time you train them, they're going to leave because they can go out and get a better job.
That's right. Well, traditionally, our office has been a training ground where people come to get the broad experience that you can get in our office and then go out and get their CPA, and then they leave us. We don't have any particular problem with that, as long as we can replace them with good people. Now 1717 2/21/01 - FY '02 OPERATING BUDGET HEARINGS this is our problem -- we can't replace them.
Okay, thank you. Any questions from members of the committee? (No questions.)
This committee will stand in recess until Friday, February 23rd, at 9 a.m. Thank you all very much. - - - (Adjourned 4:00 p.m.) 1718 C E R T I F I C A T E WE HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Wednesday, February 21, 2001, were reported fully and accurately by us, and that this is a correct transcript of same. RE: COUNCIL COMMITTEE OF THE WHOLE BILL NO. 010005 __________________________________, MAUREEN BRODERICK, Registered Professional Reporter __________________________________, JOSEPHINE CARDILLO, Registered Professional Reporter