Committee Hearing, April 1, 2009

COUNCIL OF THE CITY OF PHILADELPHIA COMMITTEE ON APPROPRIATIONS - - - Room 400, City Hall Philadelphia, Pennsylvania Wednesday, April 1, 2009 10:25 a.m. - - - PRESENT: COUNCILWOMAN JOAN L. KRAJEWSKI, CHAIR COUNCILMAN DARRELL L. CLARKE COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN CURTIS JONES, JR. COUNCILWOMAN DONNA REED MILLER COUNCILMAN FRANK RIZZO BILL 090211 - An ordinance authorizing transfers in appropriations for Fiscal Year 2009 within the General Fund from certain or all City offices, departments, boards and commissions to certain or all City offices, departments, boards and commissions. - - - 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

Good morning. The Committee on Appropriations is now in session. Will the Clerk please read the title of the bill.

Bill No. 090211, an ordinance authorizing transfers in appropriations for Fiscal Year 2009 within the General Fund from certain or all City offices, departments, boards and commissions to certain or all City offices, departments, boards and commissions.

Do we have someone from the Administration? I'd like to acknowledge, from my left, we have Councilman Rizzo, Councilman Clarke. To my right I have Councilwoman Miller and Councilman Goode. (Witness approached witness table.)

Good morning.

Good morning, 3 4/1/09 - APPROPRIATIONS - BILL 090211 Councilwoman Krajewski and members of the Appropriations Committee.

Before I begin, it's my understanding after reading the Department's testimony that most, if not all, of these transfers are to cover the cost of the bonuses awarded to City employees as a result of last one-year contract?

That's what most of the ordinance covers.

But that was a question -- go ahead.

I'm here to testify on Bill 090211, and it makes 2009 General Fund appropriation transfers between and among classes and departments. There are 12 transfers in the bill, including six that involve a net change in departmental appropriations and six that are transfers between classes within departments. The total of the transfers is about $5.7 million. Among the larger transfers, the 4 4/1/09 - APPROPRIATIONS - BILL 090211 Fire Department requests 3.1 million to fund compensation increases and supply and equipment purchases associated with the FY09 arbitration award. The Department of Human Services requests 612,000 to fund bonuses granted in the '09 contract, and the Commissioners request a little over $500,000, also for civilian bonuses from the contracts and additional costs associated with the November Presidential election. The Department of Revenue requests an increase of $365,000, which is partially funded by an internal transfer, to fund postage increases and the purchase of a payment processing machine. Several departments were able to fund the civilian bonus internally, including Streets and Sanitation, about $400,000, and the Office of Supportive Housing, about 100,000. There are also several other small internal transfers and transfers to cover civilian bonus 5 4/1/09 - APPROPRIATIONS - BILL 090211 payments detailed in departmental testimony, which is attached. Thank you for the opportunity to testify before the Committee, and I'd be happy to answer any questions you have.

Thank you. I have one quick question regarding the Class 100 transfer from Streets and L&I. Why did the departments have a surplus in Class 100 funding?

The departments have a surplus in part because of reductions that we imposed as part of the November rebalancing plan, which meant they've had more vacancies. In the case of L&I, lower overtime than had been budgeted.

Thank you. Are there any questions from members of the Committee? (No response.)

Thank 6 4/1/09 - APPROPRIATIONS - BILL 090211 you very much. Is there anyone else here to testify? (No response.)

Thank you.

Thank you.

That concludes our hearing on Appropriations. Now we will go into our public meeting. The Chair recognizes Councilman Clarke for the purpose of Bill 090211.

Thank you, Madam Chair. I move that Bill No. 090211 be reported out of Committee with a favorable recommendation and a request for rules suspension as to allow reading at the next session of Council. (Duly seconded.)

All those in favor? (Aye.)

Opposed? 7 4/1/09 - APPROPRIATIONS - BILL 090211 (No response.)

Therefore, Bill 090211 will be reported out of this Committee with a favorable recommendation, that the rules of Council be suspended so as to permit first reading at the next session of Council.

Madam Chair, there seems to be a sense of relief on the faces of our witnesses today.

It's very quiet.

Yeah.

I thought there would be quite a few myself.

Don't get used to it.

Thank you all. (Committee on Appropriations concluded at 10:30 a.m.) - - - 8 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 April 1, 2009, 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.)