COUNCIL OF THE CITY OF PHILADELPHIA PUBLIC HEARING BEFORE THE COMMITTEE OF THE WHOLE - - - Tuesday, 3/19/02 a.m. 6 Room 400, City Hall Philadelphia, PA 7 - - - 8 9 10 PHILADELPHIA SCHOOL DISTRICT FY '03 BUDGET HEARINGS PRESENT: COUNCIL PRESIDENT ANNA C. VERNA, Chair COUNCILWOMAN JANNIE L. BLACKWELL COUNCILWOMAN BLONDELL REYNOLDS BROWN COUNCILMAN DARRELL L. CLARKE COUNCILMAN DAVID COHEN COUNCILMAN FRANK J. DICICCO COUNCILMAN W. WILSON GOODE, JR. COUNCILMAN JAMES F. KENNEY COUNCILWOMAN JOAN L. KRAJEWSKI COUNCILWOMAN DONNA REED MILLER COUNCILMAN MICHAEL A. NUTTER COUNCILMAN ANGEL L. ORTIZ COUNCILMAN FRANK RIZZO COUNCILWOMAN MARIAN B. TASCO - - - VINCENT VARALLO ASSOCIATES, INC. Registered Professional Reporters Eleven Penn Center, Suite 600 Philadelphia, PA 19103 (215) 561-2220 3/19/02 COMMITTEE OF THE WHOLE INDEX FY '03 SCHOOL DISTRICT BUDGET HEARINGS WITNESS James Nevels, School Reform Committee Chairman... Sandra Dungee-Glenn, SRC Member.................. 11 Dr. Deidre Farmbry, Superintendent............... 17 James Doosey, CFO................................ 52 Michael Masch, SRC Member........................ 167 Dr. James Gallagher, State Board of Education.... 267 Tom McGlinchey, COO, Facilities and Construction 279 * * * 3 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS
Good morning, everyone. This is the public hearing of the Committee of the Whole regarding Bill Nos. 020031, 020032, 020033, 020034 and 020040. I would ask Mr. McPherson to please read the title of the bills. MR. McPHERSON: Bill No. 020031, an Ordinance amending Section 19-1301 of the Philadelphia Code, entitled "Real Estate Taxes," to decrease the rate of tax on real estate with the City of Philadelphia, under certain terms and conditions. Bill No. 020032, an Ordinance amending Section Chapter 19-1800 of the Philadelphia Code, entitled "School Tax Authorization," by amending Section 19-1806 to further authorize the Board of Education of the School District of Philadelphia to impose a tax on the use or occupancy of real estate within the School District of Philadelphia. Bill No. 020033, an Ordinance amending Section 19-1801 of the Philadelphia Code to further authorize the Board of Education of the School District of Philadelphia to impose a tax on real estate within the City of Philadelphia and to 4 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS change the tax rate under certain terms and conditions. Bill No. 020034, an Ordinance amending Section 19-1800 of the Philadelphia Code entitled, "School Tax Authorization," by amending Section 7 19-1804 entitled, "Authorization of Net Income Tax," to further authorize the Board of Education of the School District of Philadelphia to impose a tax on net income from new property and tangible and intangible personal property of residents of the School District of Philadelphia and by making technical amendments all under certain terms and conditions. Bill No. 020040, an Ordinance 16 authorizing transfers and appropriations for Fiscal Year 2002 from the Grants Revenue Fund, the Director of Finance-Provision for other grants to the general fund, the Director of Finance Contributions to the School District.
Thank you. Mr. Nevels, I invite to the witness table, and I would also suggest anyone else that will be testifying join you at the witness table. Thank you. 5 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS
I believe my colleagues all have a copy of Mr. Nevels' testimony.
I believe so. Good morning. Good morning, Council President Verna.
Councilwoman Miller and Council members. I want to thank you for the opportunity to review with you the current state of the School District of Philadelphia. I, like my fellow School Reform Commission members, like Sandra Dungee Glenn, to my left, Jim Gallagher, who is behind her and to her left, Mike Masch, who is also here, and Dan Whelan, who has a funereal responsibility this morning, accepted the volunteer position with the knowledge that reforming the 7th largest School District in the nation would be a difficult and challenging task. All of us are volunteers. We all have other 6 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS jobs, but providing hope for Philadelphia District school students, your students, our students, their parents, their teachers and community leaders is our passion. And, like you, we are extremely troubled that our schools are not better. For years the District has faced tremendous challenges on all fronts, academically, financially, operationally, in safety, in leadership and in our facilities. As you know all too well, most students in this District are not reading at grade level. More than half scored in the bottom quartile in math and reading on the Pennsylvania Systems of Schools Assessment Test, or commonly known as the PSSA, and 40 percent of our students are dropping out before graduation. I also might add, as I had a conversation with the majority leader in talking about the fact, that approximately 40 percent of our fourth graders also cannot read. And if this School District is ailing academically, it is in cardiac arrest financially. 7 billion dollars. It is faced with an additional billion dollars in debt. We are dealing with poor 7 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS financial and operational controls and little comparison of actual to budgeted expenditures. We face an enormous preexisting structural deficit. This is why one of the first acts of the commission was to order a $300 million bond issue to deal with this year's operating deficit. Frankly, none of us are happy about this because it is tantamount, in effect, to being forced to put your groceries on your Mastercard. Much of what the School Reform Commission has discovered in the past 80 days has not been pretty. But I can tell you, and I'm pleased to report, and we are pleased to report, that there is much worth salvaging. During the course of my term and also as interim, I have enjoyed the pleasant practice of being able to visit our children and their educators in public schools on a weekly basis, albeit recently I haven't had that opportunity during this budgetary session. I visited Strawberry Mansion High School not long ago. You're all familiar with the neighborhood. It is a tough place for kids. But there were a number of things I saw there that impressed me. One of them was a girl coming to 8 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS school through metal detectors and security checkpoints with her baby. I was startled at first to see that. Then I was proud, proud that this young woman's education meant enough to her that she was coming to school, baby in tow. It is for this young woman, her baby and the 214,000 students in the School District of Philadelphia that the commission, me and my colleagues, need to do a better job. The District needs change. The needs are urgent and cannot wait. Nobody can be satisfied with the status quo. Philadelphia has suffered from poor performance in too many schools, failing too many kids for too long. Many have described the reform in the School District of Philadelphia as an experiment. The commission views it as an imperative. We are not here to conduct research. We are here because we have been asked by Mayor Street and Governor Schweiker to solve this problem. The issues that plague the School District of Philadelphia today did not begin overnight and will not be fixed overnight, but it is the mission of the School Reform Commission to resolve them.
We have devised a plan to right the 9 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS course for this District. It is a complicated plan because the problems are inherently complex. In solving these problems the School Reform Commission has control and influence over a great many things in the District, but we face many constraints. We have devised and are recommending a school District spending plan for which we seek city, state and federal funding. As responsible stewards, the commission must approve and monitor the utilization of those funds as well as hire and supervise the staff that lead the District, but the city, federal and state governments decide how much funding we receive and what statutory and regulatory directives, mandates and constraints we must follow in carrying out our work. We face a particular challenge of working in a system in which no single government funds and regulates the School District. There is no consensus between the governmental entities as to how the responsibilities for funding and regulating the School District should be apportioned. We know that the Mayor, the Governor, the City Council and members of the General Assembly all want to see 10 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS positive change in the School District of Philadelphia. Over the past 80 or so days it has become clear that there is not unanimity among elected officials as to what changes are needed and how they should be implemented. The only point on which there seems to be a significant consensus is that the status quo is not acceptable. The SRC recognizes that elected officials are urging us to do many things, some of which are contradictory to one another, some of them are not possible within the confines of the existing School District budget. How do we intend to respond to this complicated reality? All we go do is proceed with open minds, be willing to listen and to learn for all who care about our children and who want to make our schools safer and more effective. We are committed to positive change. We are determined to spend public dollars wisely. We are insistent on accountability, that is, our own need to be accountable to the public and its representatives, including this body, as well as our employees and our contractors' needs to be accountable to us and to the public. We are ready to try new thoughtful 11 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS and deliberative approaches that promise to improve educational outcomes, and we are prepared to change course if evidence suggests that some of our strategies are not working. Our bottom line is this: We are bound and determined to act boldly and relentlessly to make things better for our children. The School Reform Commission is off to a good start. We have already achieved capital and operational savings. While it is never easy to lay off employees, we have set a plan in motion to achieve $25 million in savings by eliminating redundancies and identifying operational efficiencies in the District's headquarters. In addition, for the first time in recent history, we have had cost cutting and a plan in which schools will be painted and renovated for opening in the fall. We plan in the coming weeks to announce the details of our Educational Reform Advisory Committee which will provide local accountability in each of the academic areas. This is part of our commitment to provide suitable opportunity for parent and community input, realizing this patient 12 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS is in critical condition and requires immediate treatment. This is a matter that is so important that I have asked my colleague, Miss Glenn, to talk with us a little bit about how the Educational Reform Advisory Committees will operate and also the general planning to involve public involvement in this very important matter. Sandy, please.
Good morning. We want to assure that you the issue of providing a meaningful way for the commission to receive parental and community input has been given very, very serious consideration, and we are looking in very short order, hopefully, in the next week or so, to unveil the mechanism and the structures that we intend to put in place to have a permanent and a way for the commission to interact with community and parents. And let me try to give you an outline of what the mechanism would be and what the committees would look like. To begin with, we want to create an opportunity in each of our academic areas for the development of what we are calling Education Reform Committees. These committees would be, as I said, 13 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS established in each academic area and would consist of parents, community members, students, probably members of our administration and teachers who would meet on a regular basis. We are at this point proposing that they meet monthly to receive input from the schools and parents in that academic area on issues that are of concern to them. We have academic areas. Each 10 academic area would then select a representative to be part of a City-wide Education Reform Council that would meet regularly with the SRC. The area representatives would be joined by at large members. We are at this point considering 10 to at large 15 members to join with our area representatives to make up what would be a City-wide Education Reform Council. That council would meet on a regular basis with the SRC to consult with us, to advise us on the variety of issues that will be coming before us. That is the permanent structure that the SRC is looking to put in place to engage community input and to have a regular means for parents and other members of the community to interact with us. We also are very aware of the very significant concerns that have been raised as we 14 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS move forward on the consideration of educational providers or managers to participate with some number of our schools. In order to give parents and other community members who may want information or may have concerns as that program is rolled out, we also are planning to, after we have identified the potential schools that may be impacted, to create opportunities through town meetings with each of the schools in areas in which schools may be affected, so that, again, parents and community members can come and hear what the plan of action is intended to be and also to give us their concerns and their suggestions of what reform would look like at their particular schools. That, again, is in direct response to this issue of having educational providers work with some number of our schools. So those are two components of community involvement and input that we do intend to implement in very short order. As you know, we work on a very aggressive time line, and we know that this is -- there will be a lot of details that need to be worked out on this, but that is the framework that we are proceeding on. Thank you, Mr. Nevels. 15 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS
Thank you. When schools open in the fall, we will see a very new School District with the application of best educational, operational and financial practices that we will have gleaned from some of the best consultants in the United States. Also, parents and students will have a greater choice in terms of educational options in the form of community partnership schools, charter schools and traditional, but vastly improved, public schools as well. We have laid the foundation for serious financial and academic reform in Philadelphia. We are gaining momentum. But we need your help, all of your help, in implementing the four cornerstones of a return to fiscal sanity. Completion of deficit financing immediately to repair the structural deficit that preceded us, additional city revenue, additional Commonwealth revenue and greater efficiency and accountability and stewardship of funds by the District. Partner with us to help our students, to help your students, to be successful. Jim Doosey, the District's Chief Financial Officer, will describe our financial 16 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS strategy in greater detail. But without each piece of the financing being in place, including the $300 million in deficit financing, $45 million from the city and $75 million from the Commonwealth, the School District will not be able to operate. We well understand that deficit financing is not a panacea but will provide us the time, the very precious time we need, to develop more long-term solutions to the District's financial stability. Deficit financing makes sense if all who share the responsibility for the future of the School District, the SRC itself, the Governor, the Mayor, this body and the General Assembly, use that time to reach consensus on a longer term plan to achieve financial stability. Additionally, we must work relentlessly to improve academic achievement for Philadelphia's school children. This bridge is what the city achieved when it issued its deficit financing bond in 1992. Deficit financing played an important role in enabling the city to restore fiscal stability, and deficit financing can help the School District to achieve the same goal. 17 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS While fiscal health is the key to long-term stability in the School District, education, education is the product and the mission of the Philadelphia School District. We want you to understand where we stand financially, but first, first and foremost, we want to tell you where we stand educationally. There's been much conversation about the finances, but let us underline this: The children's education is what the primary mission of this institution is about. And we want to tell you about the plan to move forward in terms of educational goals and strategy. Then we will show you the financial implications of that educational strategy. I would like to introduce the District's Chief Academic Officer and Acting Superintendent Dr. Deirdre Farmbry. Deirdre.
Thank you, Mr. Nevels. Good morning, President Verna, Councilwoman Miller and Council members. Thank you for the opportunity to update you on the educational progress being made in the School District of Philadelphia and how we are 18 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS working harder to build on the success we have already seen. As was the case last year when I spoke before City Council, we are now in the midst of a major transformation in the management and organization of the District. As it was last year, my role as Chief Academic Officer and now Acting Superintendent is to evaluate and promote sound educational policies and programs that support the key clients in this School District, our students. And just as it was last year, the District's mission is to provide all students with the educational skills and tools needed to be productive and engage citizens ready to compete in the 21st century. Let me state up front, in a succinct way, what our organization is all about. In a nutshell, our goal is to provide all children with the skills and knowledge they need to live a satisfying and self-sufficient life. How are we doing? I would be the first to say getting better, but far from good enough. Tests remain the most clearly understood measure of student progress, so let us begin by looking at our test scores. The standardized tests we use to assess student progress are the state's 19 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS instrument known as the Pennsylvania System of School Achievement, or PSSA, and the Stanford Achievement Test, Ninth Edition, commonly referred to as the SAT-9. The PSSA tests students in grades 5, and in reading and mathematics. 7 PSSA results from 1996 to 2001 have been 8 rising across all grades and subjects. In fact, the 9 Commonwealth of Pennsylvania has recognized the 10 District for both improved scores and student 11 attendance on the PSSA. 9 million of the state's awards for improved performance on the PSSA's, schools received 15 $761,869 of the awards for improved attendance, and 16 four of our schools received awards in both 17 categories. A total of 95 different schools earned 18 awards, and two, M. H. Stanton and Wistar, earned a 19 new award, the Governor's achievement school awards 20 for continued achievement in test scores over three 21 consecutive years. 22 However, we know that we have more progress to make at an accelerated rate. Yes, 176 of our schools were identified on the state's empowerment list as low performing schools. Yes, 20 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS although from 2000 to 2001 PSSA scores increased in both reading and mathematics in grades and and 4 in mathematics at grade 5, we are concerned that the 5 grade 5 reading scores declined, although they are 6 higher than they were in the baseline year of 1996. 7 We take this data very seriously and are working 8 hard to lift all of our schools and to work to 9 prevent slippage. 10 The SAT-9, the other standardized test 11 we presently use, measures student progress in reading, math and science, with graduated scores from Below Basic I to Advanced. Although it is the PSSA that is the State's measure of progress, we use the SAT-9 to give us a national perspective, that is, to see how students in our District perform relative to students in other urban districts across the country that also use the test. By contrast, the PSSA results can be used to make a comparison only with other Pennsylvania districts. In the world of standardized tests, the SAT-9 has a reputation as being more rigorous than many other tests. Based on SAT-9 results from 1996 to 2001, scores went up and then hit a plateau, remaining stable in reading at grades 3, 4 and 7. 21 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS We are concerned that the reading scores decreased in grade 10. In mathematics, scores at grades and remain stable, but declined at grades and 10. Science scores have declined at every grade except 11.
Admittedly, there is a great deal of hard work ahead of us to bring every student to high levels of achievement. On a more positive note, scores of our English language learners and students with disabilities were stable over the past year and have improved from the 1996 baseline year. In summary, participation rates have increased on both the PSSA and the SAT-9 since the baseline year. Both tests show growth in reading and math in the elementary grades. Secondary scores are mixed, with more growth indicated both in the past year and over time on the PSSA than on the SAT-9. I do feel compelled to point out that years of rising test scores in the early grades on one of the hardest standardized tests available suggests that the District's investment in full-day kindergarten, in reduced class size early Balanced Literacy and in intensive teacher training is an 22 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS investment yielding positive outcomes. I thank the members of City Council for your investment in these intervention strategies that we know have made a difference, particularly at the early grades. We are making progress, but we need to accelerate that progress. And we have to continue to key in and work on vulnerable areas, as identified by the year-by-year analysis of these two tests. Our middle grades in high schools pose unique challenges and ripe opportunities for improvement as students at the elementary level who have been making positive gains are now progressing into middle school and high school as we have been aggressively working on resources and gathering support to improve the instruction they will encounter. A middle years Balanced Literacy Framework is completed, complementing the techniques highlighted in the K through 3 early Balanced Literacy Framework. Both frameworks serve as the content of professional development sessions to help all teachers hone their skills as literacy instructors. Work is ongoing to place similar literacy supports in the hands of high school teachers. 23 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS Through a grant received from the National Science Foundation, 100 teachers are in training to be science and math Fellows equipped with the skills to help their colleagues gain a higher degree of comfort in teaching science and math in more engaging ways to stimulate and maintain student interest. Before we leave the subject of standardized tests, I think it is important to update you on one particular facet of our assessment operations. In the spirit of sound management of scarce resource and in recognition of the high state-wide test we administer each year, I have ordered a total rethinking of the continued broad use of the SAT-9. Already we have reduced our use of the SAT-9. " Now, how are we moving forward? What is the foundation on which we, the educators, in the Philadelphia Public Schools are grounding our 24 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS efforts? The guide for our work is a document called The Curriculum Renewal Plan, a document not only satisfying teachers' requests for more guidance about what to teach at each grade level, but also satisfying a requirement of the District's longstanding desegregation case. Approved in the fall of 2001 by both the Commonwealth Court of Pennsylvania and the Pennsylvania Human Relations Commission, the plan serves as the basis for all instructional planning in the District at this time. In the fall, I sent each member of council a copy of the plan with the expectation that it would enable you to be conversant with your constituency regarding the educational priorities of the District. Permit me to reiterate the four goals of the plan.
They are, number one, to implement a core curriculum built on the District's academic standards; two, to match our curriculum with how we measure and report student performance; three, to meet the needs of special populations of students by providing opportunities and resources for staff to increase their ability to effectively teach the District's multicultural, multilingual and racially 25 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS diverse students, and, four, to connect professional education to our core curriculum and assessment strategies. These four goals have guided the work of staff in administrative offices. They have reframed the content of administrative meetings, whether they be cabinet meetings, instructional council meetings, senior leadership development meetings, staff meetings between area academic officers and their principals or meetings between principals and their staffs. The Curriculum Renewal Plan has defined the content of professional development sessions with a full day professional development session on Monday, April 1st dedicated across the city to teacher input to the course guides and units of study that will constitute 50 percent of a teacher's instructional repertoire as we strive for greater uniformity in terms of students educational experiences across the city. I am pleased to say that we are on target, according to the time line in the Curriculum Renewal Plan and even ahead of schedule in some areas. That is an indication of how seriously we have taken the charge to be more aggressive in 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS bringing about an equitable educational program provided by teachers having at their fingertips more detailed road maps for getting students from where they are to where they need to be. Another more detailed road map that we completed and distributed this year is the new more descriptive report card for students in kindergarten through third grade. As parents need to know more than an A, B or C indicates, we now have a reporting system using terminology reflective of the progress a student is making towards learning, advanced, proficient, basic and below basic, and showing what a child will need to learn next. In essence, what is shown is a developmental continuum of reading and writing skills, highlighting a point in time on an instructional road to be traveled. Long-range plans as outlined in the curriculum renewal plan call for changes to the report card for students above the third grade as well. In addition to the District's empowerment plan, which I spoke about in detail at last year's council hearings, the Curriculum Renewal Plan is the educational plan for the school district of Philadelphia. The plan builds on the previous 27 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS efforts of people who contributed to the various editions of the curriculum frameworks, yet responds to the need for a more detailed guide. Monitored adherence to the Curriculum Renewal Plan guarantees that the work students receive is matched to state and District standards. Monitored adherence guarantees a limit to the free range of activities and broad range of instructional materials this District has been accused of promoting to the detriment of children. What we need now is an assurance that the resources will be forthcoming to support the heightened expectations for instructional rigor and an assurance that whoever comes to act as a consultant or to actually take over the critical work of curriculum instruction for the District will follow the time line of the work already put in place in the Curriculum Renewal Plan. Since we do have a plan for teaching and learning, I'd like to report on an area we know is critical for any element of a plan to come to fruition. That area is staffing. I am pleased to be able to state that we started the 2001-2002 school year with far fewer teacher vacancies than in 28 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS the past.
For example, at the start of the current school year, we had 95 teacher vacancies out of the approximately 13,000 teachers in the Philadelphia public schools. Compare that to the 281 vacancies at the outset of the 1999-2000 school year and you will see that we achieved a 66 percent reduction in vacancies. While the number of teacher vacancies is a moving target and fluctuates from day to day, data throughout that year continue to show us in a much better position than at a comparable point last year. Admittedly, teacher recruitment nationally continues to be an endless and challenging task, particularly for urban districts, and we speculate that this recruiting season uncertainties about the future of the District and, indeed, of individual schools may once again deter some teacher candidates who otherwise might be interested in teaching in the Philadelphia public schools and heighten the challenge of filling our classrooms with certified professionals. Our students and schools continue to benefit from our innovative literacy intern teacher 29 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS program. Through that program men and women with Bachelor's degrees are paired with appointed teachers. Together these teams of teachers, one intern to one appointed teacher, work intensively with students in kindergarten, first and second grades with the effect of reducing the student/teacher ratio by 50 percent. While teaching, the interns take courses to enable them to receive permanent teacher certification. To date, this program has brought 989 literacy intern teachers to 197 schools. This year interns have taken their 14 enthusiasm and skills to our middle schools. In 15 addition, 31 interns are scheduled to be fully 16 certified teachers by September. They have made a 17 commitment to stay in our District. That is a plus 18 for them, for our schools and for our students. 19 Next, I'd like to update you on the 20 results of the academic reorganization begun last 21 spring since I last tested before Council. 22 Shortly after my last appearance here, 23 the former interim CEO, Philip R. Goldsmith, and I 24 agreed to overhaul the District's academic administrative structure, starting at the top. And 30 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS the top in the School District means from central administration at 21st Street and Kennedy Center outward to the field. The primary objective of the plan was first to make schools center stage by reallocating as many resources, especially educators, into classrooms. The second objective was to provide better, faster and more consistent service to parents and children. 5 million. As part of this reorganization, we eliminated the former system of neighborhood 14 offices called clusters and established 10 area 15 academic offices which also respect the neighborhood 16 school feeder concept. 17 However, the Area Academic Officers, or 18 AAO's, focus more strategically on instruction, 19 assisted by a core of 66 coaches across the city 20 assigned to work with teachers in schools to 21 demonstrate practices to improve student 22 achievement. In addition to scaling back the number of personnel assigned to central office and to the area academic offices, we established new offices, 31 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS such as the office of family and student support services, the office of instructional and behavioral intervention and the office of principal and teacher development, to plan strategically for improvements in the quality of services to support students and staff. Phil Goldsmith, however, kept a very careful eye on the size of staff for each office established and held fast to his pledge of having a greatly reduced number of people in central offices and more personnel directly in schools. How has the field reacted to the changes and to the rationale for making them?
In the fall, one of our first training days for teachers and other staff a principal e-mailed me to let me know of her satisfaction by saying, and I quote, "For the first time in my 34 years in the District, we spent all of our time at our staff meeting on instruction. Thank you, thank you, thank you," end of quote. Members of Council are more intimately aware than most about the difficulties inherent in making such a seismic shift in the culture of an institution and the barriers to such changes that leaders must confront. Yet, even in the midst of last year's budget crisis, I am proud to say that 32 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS over last summer and throughout last fall we completed the transition from cluster to AAO and scaled back central offices as expeditiously as possible. Services to pupils and parents were supplied throughout the summer by staff who simultaneously picked up offices and shifted documents, yet still put students' needs first. I expect the same will happen this summer. And more than one hundred experienced and highly skilled educators moved back to schools and classrooms. One challenge facing all districts, including the School District of Philadelphia is the challenge of raising the bar of expectations given the increasingly competitive and technical job markets its graduates will enter while being able to support students in meeting heightened expectations. We struggle with that dilemma as we realize that if students are to meet the promotion and graduation requirements adopted by the former School Board on June 11th, 2001, then resources must be made available to assist students. Our graduation and promotion requirements have put an end to social promotion, meaning that students previously passed on, even if 33 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS they had not demonstrated mastery, are retained. For these students to succeed, they must have intensive instructional interventions and extended time opportunities if they are to meet our measure of what constitutes promotion. We increase the number of subjects students must pass at grades 4 and 8 in order to move on to the next grade. At grade 4 we added a score requirement which must be met on the SAT-9 assessment. 5, in order to graduate with the additional subjects being one more year of math, one more year of science and two years of a world language. These increased promotion and graduation requirements make for an ambitious agenda which demands that we a require additional world language, math and science teachers through non-traditional recruitment efforts. These increased promotion and graduation requirements demand the conceptualization and implementation of a different type of summer program, such as an algebra institute for students who need extra time to master this gatekeeping subject, a world language institute 34 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS to provide access for students caught in the reality of a nationwide shortage of world language teachers, remedial opportunities for students to whom we are saying as a system through a deliberate policy change that mediocrity has no merit in today's marketplace. Although we have raised the bar, each year the reality of financial retrenchment butts heads with what we consider to be a responsible and responsive instructional platform erected on high expectations. We face the dilemma of desiring to be rigorous, yet pulling back when we realize that our expectations exceed our internal capacity to support students in meeting them. For the past few years, we have reviewed finances each spring to determine the scope and magnitude of the summer program, aware that without ample offerings some students will be unable to remain on time in what we want desperately to be only a 12-ear journey through school. Determining the range of support for this year's summer program based on what we can afford is one of the tasks awaiting me this week.
In the name of being responsible and 35 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS responsive, we in the District are proud to the extent to which we have in the name of all children instituted programs and practices to assist in the reentry of students on the verge of dropping out of school and into a future of limited options. I am referring specifically to Twilight and TOPS at the comprehensive high schools from o'clock until o'clock daily. Twilight schools meet the needs of over-aged, under-credentialed students still committed to earning a high school diploma. To participate in twilight school, a student must be between the ages of and 24, have at least 10 high 14 school credits and be receptive to an accelerated 15 rate of credit accumulation. 16 Twilight schools have become a beacon of 17 hope for students facing many adult responsibilities 18 that have interrupted their adolescence, such as the young lady with baby in tow that Mr. Nevels just referred to, placing demands on them that make a 3 o'clock day a viable option. Twilight schools are also a beacon of hope for students who find the size of the student population during the school day and all of the temptations therein not conducive to a focus on instruction. 36 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS And are they successful? In June of 2001, 87 percent of the twilight students who had made it to the senior year graduated. These are students who could conceivably be in society without a credential society deems important. TOPS is an acronym for Transitional Opportunities Promoting Success. TOPS is a partnership between the School District of Philadelphia and Communities and Schools, Inc. The purpose of TOPS is to provide an alternative educational environment and curriculum for middle and high school students who either are returning to school from non-traditional situations, such as incarcerations, are experiencing severe family stressors, are disciplinary transfers or having difficulty in attending or achieving in their traditional school settings. The program operates in classrooms spread across 10 comprehensive high schools and two middle schools. Ninety percent of the students in TOPS graduated in June 2000. More familiar to many is CEP, Community Educational Partners, a temporary placement for students in grades 6 through 12 whose behaviors have necessitated removal from the regular school 37 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS setting. At its new site, CEP currently instructs 1,020 students. Our summer reorganization of the District, leading to the newly created Office of Instructional and Behavioral Intervention, has resulted in a streamlining of the process for a student to be admitted to CEP and a more coordinated approach to the return of students to their regular school. The state's compulsory education law compels the District to work on multiple fronts and with multiple partners to insure a successful route to graduation for students acceptable to dropping out. Under the auspices of the Office of Instructional and Behavioral Intervention, programs have been put in place and are being fine tuned to address issues such as truancy, discipline and the transition needs of the more than 1,700 students annually returning to the School District from court ordered placements. Yesterday's story in the Daily News was real. For three years, I was the principal of the school featured in the article. For me, reading the story was deja vu. I am pleased to say that I was the principal who lobbied hard and won to get a 38 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS probation officer for the school. I see that nine years later the same probation officer is still there and he and the principal are facing the same challenges.
A guiding document for the work of the Office of Instructional and Behavioral Invervention is the school District's comprehensive safety plan, also approved in the fall by the Commonwealth Court and the Pennsylvania Human Relations Commission. As we continue along the path of the improvement, there are other vehicles and ideas working in support of our efforts. The current contract between the School District and the Philadelphia Federation of Teachers provides the District with more flexibility to manage generally. Specifically, a longer school day provides for increased instructional time. Teacher transfers now occur much sooner, allowing for earlier placement of new teachers, a known factor in teacher retention and helping to curb the negative impact of disruptive teacher transfers throughout the fall. In addition, by utilizing a contract waiver provision, staff now have a real choice in deciding the composition of their school teams by 39 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS exercising an option known as site-based selection. With site selection, a school committee of the principal and some teachers select staff on site to fill vacancies. Fifteen schools participated successfully in site selection last year and 29 will be participating this year. To address the multiple factors of competitive salaries, teacher quality and student achievement, the contract with the Federation also provides for the development of an enhanced compensation system whereby a teacher progresses along a higher salary scale through demonstrated excellence in classroom practice and content knowledge. The enhanced compensation system also provides bonuses for certified teachers in specified areas of critical need, currently, math, chemistry, physics, Spanish, special education and bilingual education and in certain schools with a history of difficulty in filling their vacancies. Yes, the current contract makes a start for the massive change we know is needed to accelerate student achievement. We must employ the provisions of the contract aggressively to bring about the necessary reforms. 40 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS In addition to the contract as a support moving forward, we have the great ideas of teachers and principals who know what they need to improve the instructional climate and educational outcomes. Listen to some representative items from high school principals who over the course of the year have engaged in serious sessions defining from their own experience base the critical elements of high school reform: Funding for a full-time reading diagnostician for high school students who are grades behind in their reading levels; funding for a math, science and English department head for every high school; funding for an assistant principal at each high school to focus solely on instructional improvements; funding for adequate staff to fully support block scheduling; funding for more eighth to ninth grade transitional programs; funding for science lab upgrades; funding for specialized program for repeating ninth graders; funding to upgrade all shops and labs to industry standards, funding for an in-house coordinator to monitor and implement a more meaningful job shadowing and internship program for students; and, finally, funding for more alternative settings for disruptive 41 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS youth. As this list demonstrates, we have the voice of experts right here in our midst. Our principals and teachers know what they need and are very candid in stating it. With each need, however, there is a price tag attached. Years ago, the late Ronald Edmonds, Professor of Education at Michigan State University and father of the effective schools movement, issue four basic tenets for school improvement.
His work has been recast by many other educational scholars and now it's being repackaged in Madison Avenue glitter and glitz by entrepreneurs trying to capitalize on the common sense nature of these basic educational truths, that effective schools need the principal's leadership and attention focused on the quality of instruction, they need a pervasive and broadly understood instructional focus, they need an orderly safe climate conducive to teaching and learning, they need teacher behaviors that convey the expectation that all students are expected to obtain at least minimal mastery, and, finally, they require the use of pupil -- of measurements of pupil achievement as the basis of program evaluation. 42 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS Since I spoke before you last year, I can earnestly say that we have adhered to these principles and have established programs designed to support each of the guiding premises. As always, adequate resources remain the key to our capacity to build upon work already begun. And, now, let us close with some aspects of that work we're celebrating. Just last week President Bush acknowledged our efforts in promoting service learning and volunteerism at his March 12th round table at the Kimmel Center. Stephanie Oliver of University City High School spoke movingly of her success in helping younger children become better readers in a literacy service learning program. Five students from the Girard Academic Music Program, better known as GAMP, will be participating with the Philadelphia Orchestra on April 15th at the Kimmel Center in a concert called Celebrating Bernstein. These students are Elizabeth Sestito, Erica Gagliardi, Leihzel Baybayon, Justin Gonzalez and Donald Manigly. In case you missed the recent article in the Philadelphia Inquirer, Overbrook High School's Mock trial team was a finalist in the Philadelphia 43 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS mock trial competition. Its second place finish qualifies the team for the state contest. D. quality work" by a judge at this year's Siemens Westinghouse Science and Technology Competition. Sasha, as she is known by classmates and teachers, won a second place in the national level of this contest. " Ladies and gentlemen, I realize I'm being lengthy, but with many of my other staff members, we may not be here again to tell the story...
I believe Councilman Nutter would like to be recognized.
Thank you, Madam President. 44 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS Madam President the first time that I may actually be going crazy. There is a sound coming out of our speaker system apparently related -- I don't know whether it's electronic or there's a beeper or a phone near an open mic. I am apparently the only person hearing it. Never mind that. I will seek assistance from the community behavioral health system and I will leave right now.
We will have it checked out. It is really affecting my...
Thank you, President Verna. As I said, I'm almost finished. I may not be here next year to tell this story, so I would really like to highlight our students' success. And how about Gratz High student-athlete Malcolm Wells? He has been chosen by the People to People Sports Ambassadors Program to play summer basketball in Australia this year and to attend the Australian Institute of Sports in that nation's capital city, Camberra. He is one of only four young people selected from a field of 5,000 student 45 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS athletes. Simon Gratz High school can also boast of having the first student in the city to earn a CCNA certificate, boosting her earning capacity as she now armed with a document commanding a high starting salary in the highly technical field of web design, computer technology and networking infrastructure. Again, I repeat, that student is from Simon Gratz High school. There will be seven teams of students representing West Philadelphia High School, Mastbaum, Frankford, Edison High, Washington, Bok and Central competing at Drexel next weekend in the FIRST Robotics Regional Competition, hoping to make it to the nationals in Orlando in April. I thank the Daily News, Ronnie Polinasky, in particular, for an article alerting the public of funding needs of deserving students trying to get to Orlando. Students from five high schools, Mastbaum, Edison, Swenson, Dobbins and Northeast, present culinary demonstrations every third Friday of the month at Reading Terminal Market. An electric car, made by students at 46 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS West Philadelphia High School, will compete in the Tour de Sol in April; Saul students took cattle to Mexico as part of the Export for Scholars program; Saul and Lincoln had exhibits at the Philadelphia Flower Show, with the Lincoln exhibit winning an award. Eighteen Mastbaum and Kensington students are participating in a Lockheed Martin apprenticeship program, and across the city, over 1,600 students are enrolled in Cisco classes in 12 high schools with an addition 544 students enrolled 13 in Web Design and Unix classes. 14 On my mantle at home sits a ceramic bust 15 I purchased last year from a CAPA student who 16 exhibited at the District's annual Young Artists 17 Exhibit, soon to adorn the hallways at the 18 District's administration building. Guests to my 19 home have marveled at the work, equating the 20 attention to detail with that of the works of 21 prominent scholars displayed in renowned museums. 22 A few people, including the student 23 sculptor himself, were surprised upon learning that 24 I was willing to pay a four-figure amount for a 25 piece of amateur artwork. But in reality, who is 47 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS more deserving than our students of tangible evidence of a reward of a job well done. We are all proud of these outstanding Philadelphia public school students and commend them for their dedication to what we call hope is the number one priority in a student's life, their focus on school. In addition to the accomplishments of outstanding students, I tip my hat to the exemplary practices of dedicated staff who, in times of uncertainty, could flee to the many suburban communities that seek our professionals and rave about the quality of their preparation. Yet, they have chosen to stay and go the extra mile to promote success for Philadelphia's students. Let's spotlight the efforts of the Ferguson School staff around an important initiative, attendance. Ferguson celebrated its 100 students who had 100 days of perfect attendance this year. The students recently formed the figure "100" in the schoolyard and were filmed from above by a crew from Channel 3. We appreciate Ferguson's successful emphasis on student attendance. Our teachers continue to make us proud.
48 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS For example, I am pleased to report that two candidates for this year's Pennsylvania Teacher of the Year hail from the School District of Philadelphia. They are Donald Snyder, a science teacher at South Philadelphia High School, and Patricia Matthews, who teaches at Woodrow Wilson Middle School. Either would be a worthy Pennsylvania Teacher of the Year! In addition, Regina Goldstein, a mathematics teacher at Washington High School, and Barry Ratmansky, a science teacher at Wilson Middle School, recently were recognized as top Delaware Valley math and science teachers, respectively, by the Delaware Valley Engineers' Week Council. I think that it is great to have our educators recognized for quality math and science teaching by professional engineers who use math and science in their daily work. Finally, did you know that 14 School District teachers have completed course work to be credentialed as Cisco Certified Networking Associates? Such an accomplishment is an industry-recognized standard that indicates knowledge of computer networking. These educators 49 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS teach in the Cisco Networking Academies that are now in operation in more than of our neighborhood 4 high schools. We have been told by industry leader, 5 Cisco Systems, that the School District of 6 Philadelphia has more CCNA's than any other business 7 or organization in the country. 8 In essence, what we have done since last 9 year when I addressed you is re-organize, 10 re-strategize and re-energize. Yet, two critical 11 r's, resources and recognition, remain elusive. 12 Before school opened last fall, I 13 charged principals, assistant principals and other 14 leaders of our District to become agents of change; 15 to foster a spirit of "school pride," to bolster the 16 reality of belonging to a school "family" and a 17 sense of community. I believe it is that strong 18 school pride and a strong sense of community that 19 has sustained the District family through the 20 extraordinary changes and unprecedented challenges 21 of the last year and reinforced our commitment to 22 remain focused on our children. 23 In conclusion, let me say that 24 overseeing the School District of Philadelphia 25 today, the state's largest and the nation's seventh 50 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS largest, requires an understanding of the context of our work and the accompanying challenges, educational, financial and political, that confront all urban school district's, with differences from site to site being more of scale than of type. But oh how scale matters when judging the capacity of any external agency or body claiming to have the answer. Much good, solid instruction and learning goes on each day in the District. Strengthening our performance across the city remains my top priority, my biggest goal, my singular focus. However, as members of this body know better than most, resources are required to make that happen across our entire District, in every one of our 9,000 classrooms. As a public institution, we have a particular obligation to manage our scarce resources in the most effective manner possible, and to maximize those resources for creating and sustaining our students' academic progress. I have repeated stressed "focus, focus, focus" as the mantra for the students and staff this year. While focusing has been a real challenge, 51 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS given the change in governance that came about on December 21st and the tension that preceded it, our students and staff have made us proud in many ways. My hope right now is that in the current chaotic environment, staff and students will continue to be able to focus, particularly, through the period of April, the testing period, which puts us year after year on somebody's list.
Overseeing this District requires a profound faith in the power of education to transform lives, build futures and connect communities. During these difficult days, I have when comforted by the fact that I can relay on your sharing these core values and your shared commitment to the 200,000 students who rely on you as well as on us. Thank you for your attention and for your past and future support. The next presentation is by the District's new Chief Financial Officer, James Doosey.
Pull your chair up to the witness table. Thank you. 52 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS Good morning.
Good morning. Good morning President Verna, Councilwoman Miller, Council members. Thank you for this opportunity to share with you the financial picture of the School District of Philadelphia. While it is the District's mission to educate children, public education in the city cannot continue in the current financial situation. If things do not change now, before the end of the current school year, the District will face a choice between canceling more than $150 million in educational programs or declaring bankruptcy. None of us wants to see that happen, not the School Reform Commission, not this City Council, nor the Mayor, the Governor, nor the state legislators, and certainly not the parents who have trusted all of us to provide an education for their children. The current financial picture is grim. Commitments must be made and upheld by all stakeholders in order for this house of cards to stabilize, but there is reason for hope that financial health can be restored in the District. But, first, please allow me to take you 53 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS back a year ago since the current financial crisis precedes the School Reform Commission's arrival. At that time the District presented a 2001 budget with a unfunded $197 million revenue gap and a structural deficit of $242 million proposed for the current fiscal year. Working together with counsel's help, $20 million in savings were realized by eliminating clusters, establishing AAO's with the hope that additional revenue streams or expense reductions would subsequently be identified to close this $197 million gap. The SRC has continued that rationalization process and can now report a projected 2001 operating deficit for the current year of $107 million, a deficit which is further reduced to $62 million should council approve the Mayor's request for an additional $45 million grant this year. But so much more needs to be done, and done now. To obtain budget balance, the District's revenue and spending growth must match. If the District's spending growth could be kept to a to percent per year rate, the city and state could provide funding increases at the same levels 54 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS currently and the budget would be balanced. Unfortunately, that is not the reality with which we are dealing. The School District has a number of structural problems which preceded the SRC and will continue regardless of any action the SRC takes this year. First, expenses exceed revenues. Primarily due to uncontrollable items such as special education costs, charter schools, ESL, medical insurance premiums and the increased costs to the state teacher retirement program. In all these instances, our contributions are dictated to us by the State, the federal government or the District's various collective bargaining agreements already in place. We have had a productive 80 days; overtime has been curtailed, spending reduced redundant positions identified, all without negatively impacting the educational environment for our children. Still, we have a accumulative deficit of $174 million. We're counting on the $45 million that the Mayor has committed to the District as a contribution to last year's teachers' contract and is the part of the bill that is before you. We're 55 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS counting on the city and the Commonwealth to honor their commitments for additional funding next year, and, last, we are counting on ourselves to make the District as efficient as possible. But we need your help in implementing two of the four cornerstones of this return to fiscal sanity. We need counsel to support the District immediately in obtaining $300 million in deficit financing, and we need your help in supporting the Mayor's request for an additional $45 million this year and in future years.
With this 45 million, our June deficit would end with a current operating loss of $62 million, and the cumulative structural deficit would be reduced to $129 million, a cumulative deficit that would be eliminated by the receipt of bond proceeds. Do we think this is great news? Of course not. But it moves us closer to where we need to be. However, in the proposed 2003 budget, expenses continue to increase faster than revenues. 9 56 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS percent increase in local taxes. 9 percent. Excluding the staffing plan announced last Friday, the District's expenses will increase by 8 percent. Again, the big drivers are special education up 8 percent, charters schools 36 percent, medical insurance premiums percent, and our state 13 retirement contribution up 417 percent. 14 Additionally, salaries for the Philadelphia Federation Teachers contract and CASA agreements will increase 4 percent this year. 5 percent versus an 8 percent increase in expenses. It is for this reason that the School Reform Commission turned a critical eye towards headquarters staffing and announced the plan to save $25 million for 2003 and each succeeding year. 9 percent. Even with all these changes, we anticipate ending 2003 with an operating deficit of $56 million, not enough to balance the budget, but a material and necessary step in the right direction. For 2004, of the $300 million the District plans to borrow, only $115 million will remain. What are the District's options going forward? Should expenses continue to exceed revenue in 2004 and subsequent years, the School Reform Commission has two choices; reduce non-educational expenses or implement material programmatic changes to reduce school-based expenses. The choices are not easy. We will continue to focus our efforts on obtaining additional efficiencies from the District's business operations before considering any material reduction in the delivery of school services. The SRC in a little more than 80 days has implemented actions to reduce the cumulative operating deficit from $174 to $129 million. You have all read in the papers the issue of partnership schools. While the SRC is finalizing the structure and nature of these 58 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS schools, we are committed that this initiative not detract financially from the District's own schools. We welcome the help of the various entities interested in managing these schools, but to be fair, cannot justify allocating more money to these schools than to the schools operated by District personnel over the term of any contract. This District is in financial crisis and has been for some time. The numbers cannot be massaged. The SRC is accelerating responsible strategies initially proposed under interim Chief Executive Officer Phil Goldsmith, but our efforts will not be enough to change the picture on our own. All three partners need to do their part; the city the state, and the District. We respectfully ask that the city honor the terms of the Mayor's agreement with Governor Schweiker. And there are numerous policy issues to be discussed in the classroom, we ask that you support our efforts to improve operational efficiencies in our headquarters and back office functions. We also respectfully ask the state to honor the terms of the Governor's agreement with the 59 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS Mayor by providing an additional $75 million in addition to the basic educational subsidy on an ongoing basis to support our request for legislative -- I'm sorry, and to support our request for legislative changes necessary to immediately issue $300 million in deficit financing, and we ask them to support our efforts to improve efficiencies in both business and classroom as well. For ourselves, the District has to do its part to be more effective in how we spend the resources provided to us.
We have and must continue to embrace financial stewardship and academic accountability. As equal partners, we must begin to craft a better future for the children of Philadelphia. If any of the three partners do not do their part, the hope and promise of reform in Philadelphia unravels. If the state does not amend the Public Debt Act this spring to enable the District to sell $300 million in 30-year bonds, the District will not have sufficient cash to operate at the end of the school year. I invite you to think back to 1992 when the city issued its own deficit financing bonds. 60 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS Deficit financing played a critical role in enabling the city to restore fiscal stability. Where would the city be today if it weren't for that bold and courageous decision by this body. The deficit financing bought the city the time to get its house in order and that's exactly what the School District needs. Deficit financing only makes sense if all who are responsible for the future of the School District use the time of the deficit financing buys to reach consensus on longer term plans to achieve financial and academic stability. If the deficit financing is put in place, but the city fails to honor the terms of the Mayor's agreement to provide $45 million in additional revenue, then the state may decline to provide its $75 million share and the District will be in exactly the same position and run out of money a year from now. The additional funding from the city and state is critical to the ongoing financial viability of the School District of Philadelphia regardless of the outcome of partnership schools or any other academic changes. On behalf of the School Reform 61 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS Commission, I ask for your continued support as the SRC continues its work in transforming this District and giving our students the promise of a better School District of Philadelphia. Thank you.
Thank you very much. I do notice that just about every Council member has his or her light on. We will have a first go around. Each council person will may have five minutes, and then, of course, the second go around will be another five minutes. Mr. Nevels, is the state's $75 million a permanent commitment.
The appropriation, as I understand it, is an ongoing appropriation.
I do notice in the Governor's budget it only shows the payment or appropriation through '05-'06 and stops the appropriation or payment in '06-'07.
Council President, we have a letter from the office of budget that provides that correction and looks to an ongoing appropriation. 62 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS
Thank you. Mr. Nevels, would you say the SRC would like to see City Council approve the FY '02 request for the $45 million,thus the SRC take the same position as the administration of the appropriation of the $45 million does not obligate the city to pay under Act 46.
I'm sorry. I didn't hear you. As point of information, are you saying it doesn't obligate us or it does obligate us?
As point of information, as part of the proposal that will be presented to the Pennsylvania House and Pennsylvania Senate to enable the District to have a one-time window for deficit financing, as part of that provision, the City Solicitor's Office with the help of the School District legal counsel has crafted language specifically to state that local support -- I'm sorry, that the $45 million that would be received in fiscal year '02 is excluded from the local 63 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS support calculation and that the baseline for local support will be the fiscal year'03 calculation going forward at which point in time $45 million from the city and $75 million from the state would be assumed to be received as part of the Mayor and the Governor's proposal.
Assuming the legislature passes, yea, and assuming that this body passes it as well or approves as well.
Mr. Nevels, it's my understanding that you have financial background. Would you advise a client to borrow $300 million over 30 years to cover, at best, a few years of operating deficits, but at the end of the day there is not a solution to the District's structural deficit?
Council President, I would for the following reason and in certain circumstances in my role as a financial advisor with the Swarthmore Group have done that, but that deficit financing has to be part and parcel of a complete plan that provides time to put in place the 64 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS necessary ingredients of a systemic solution. But let me add something that is also very important to note. We have no other alternative in terms of delivering services and education to that precious resource of ours, the children. If it's not there, we close shop.
Okay. But can you tell us what are the estimated total payments over the life of the bonds?
Quite frankly, Madam President, the total payments would be...
Quite frankly, the total payments over the life of the bond would be $25 million per year times the 30-year term.
So we're talking about approximately $750 million --
-- for a $300 million that we're borrowing. 65 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS
When do we anticipate that our friends in Harrisburg will be addressing the 30-year bond issue? I know that we're only allowed to go out for a 10-year bond issue.
My understanding, on advice of legal counsel, is that we are permitted to go out 30 years with the change in the Public Debt Act, and my understanding of the current schedule is that this bill will be discussed next week when the house is in session.
Council President, what has occurred is that the Governor's office has signed off on the legislation. It is in the hopper, and is -- I'm advised by people in Harrisburg and in the legislature that it's one legislated day away from being brought to the floor.
Madam President, I'm glad to defer to someone else. I have all mine in writing and so I can defer. I can hold my questions to later. 66 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS
With that being said, Councilman Kenney. You were number two until you asked the question that went off the screen.
Thank you. Thank you very much for your testimony. Mr. Nevels, I had a chance and opportunity to meet with you and sit for an hour or so and find you to be very forthright and well-meaning individual, very honest person, and I think you have a very difficult job ahead of you, and I admire your taking on this non-paid position and all the grief that you've taken publicly and politically as a result of trying to do the right thing. So my comments, please don't take them in any way personally because they're not intended to be. Back in 1991, '92, when the city was facing bankruptcy, basically, there was an effort that was thwarted for the city to basically borrow $300 million to get itself through a temporary period of inability to pay bills and pay vendors and basically facing bankruptcy. 67 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS As a result of the thwarting of the borrowing, there was a lot of criticism towards the city controllers or some members of the legislature for doing that. But in the end, I think that's what really kind of saved the city because it focused and heightened the attention to the city's fiscal problems which and then in 1992 allowed the city, as Mr. Doosey testified but didn't totally include all the factors of that borrowing, included PICA, included a firm revenue stream to pay the PICA debt and got us out of our structural problems. And the only reason, in my opinion because I was there at the time that that happened, is because the city was bankrupt. My concern about the request, not the $45 million, I think the city should probably be giving more than $45 million to the schools, I think it's been shortchanging it for a long time, my concern relative to $300 million deficit financing is that we basically mortgaged 30 years of our future to get us two years of breathing room with no 23 plan. We don't even know yet and from -- maybe your discussions with members of the house indicate differently, but my discussions with many members of 68 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS the house indicate a real severe concern and almost inability to vote for that $75 million when 1 percent additional revenue is coming back to their own district. So that's a political problem that we face. It may be difficult to accept, but in the end, the way this gets solved is that we hit the wall. And we're right near the wall. And a few years ago, there was a major press conference with then Mayor Rendell and Council President Street that said we're going to put this train on the track and we're going to head it towards the wall. We're not going to cut educational programs. We're not going to cut classroom resources. We're going to let this train keep on going until the responsible people in Harrisburg and in the city fix this problem for long term. This $300 million in my opinion is a very expensive way to buy us two years. Unless it hits the wall, unless politicians like ourselves and in Harrisburg are forced to make tough decisions to fix this thing permanently, this two years is going to be a very expensive two years to pay for. There is no plan that I can see. There 69 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS is no -- it's been alluded to that, you know, the terms of the agreement with the Governor and the Mayor. What terms? None of us have ever seen the terms. Are the terms even written down. So, I don't want the schools to close in September. I would like to see them open. But I'll tell you what, two years from now we're going to be sitting in the same room, having the same discussion without a plan and without a solution, with a $750 million load on the backs of the taxpayers of the city, and in the end it doesn't get solved in this form. And, you know, time will tell, but I think this is a political solution to this problem and not a structural financial solution to this problem. And I cannot abide by borrowing $300 million on the taxpayer to get us two years of breathing room 18 without a plan.
And it's just my opinion, and I can't vote for any -- I will vote for the money 45 or more. You want to put more on the table? I'll be happy to put more on the table. But I'm not going to vote to mortgage the city's future because we don't have a plan to fix this problem long term. And it may get some people through political issues 70 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS in the next two years, but it's not going to solve the problem with the School District. So, I just would like your comments on that particular phase of the $300 million deficit financing borrowed.
Thank you, Councilman, and I appreciate and share your concerns. What I can say to you, and I think I can say it on behalf of the Commissioners, my fellow Commissioners, that is we're optimists because you don't take this non-paying job and put up with great grief without being an optimist. Specifically what we believe is that there will be a long-term solution. The differentiating factor this time around when comparisons are made to the fiscal 1992 crisis confronting the city is a very important one, and I will bring it back to the subject again and again and again, and that is we are dealing with children in need, we are dealing with children who we know are not testing where they should, we are dealing with children in shelters. And I cannot countenance or abide by a situation where we run the train with those children on board into the wall, whereas in 71 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS terms of the fiscal crisis, there were actions that could be taken to curtail city services but have those essential services continue to be provided. We're talking about children's education. I will not be responsible for impacting that and running that into the wall.
And no one's suggesting that you do. You didn't put this train on the track. This train was put on the track a number of years ago by then Mayor Rendell and then Council President Street. My concern, however, is the $700 million or more that we're going to pay to borrow this money simply extends the track or puts it on a different route till it gets to the wall in 2004. And the difference between the PICA situation in '92 and the situation here now is there is no program, there is no legislation, there is no dedicated revenue source, there is no plan, other than to borrow the money and let's be optimistic. And I admire your optimism. But we have fiduciary responsibility not only to the school system but to the city as a whole. And the concern is is that when we did 72 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS the deficit finance borrowing in '92, we knew what the rules were. We knew that PICA was going to be in place to protect the city's interest, we knew that the 1 percent sales tax was going to be -- we knew all these things. We don't know any of these things today, and what I do know is that elected officials on any level, whether it's local, state or federal, faced with a crisis, faced with a bankruptcy, faced with the school potentially not opening in September may be more inclined to fix it then than they will be to wait for two years and see how it goes. That's just been my experience with government politics. I remember in '92 none of us in this room ever wanted to do anything wrong because we were afraid we were going to be the ones responsible for sending the city over the brink. Harrisburg was cooperative because nobody wanted to send the city over the brink. And I think until you get to that point, this is just putting off the inevitable, giving elected officials and politicians breathing room to delay. And the delay will continue for the next two years, and I'm telling you we'll be back in this room again in 2004 having the same discussion 73 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS with a $700 million or more price tag on top of it, And that's my opinion. I respect your views and I respect you being here, I respect you personally. I just think it's a major mistake for us to do this to allow that breathing room, as you say, because politicians use the breathing room to delay. Thank you.
Good morning. I'd just like to say as Chair of the Education Committee and on behalf of my fellow Council members, I want to welcome you and to recognize the commitment of time and passion and expertise you bring to your membership on the School Reform Commission and that statement is for all the SRC members because we really do appreciate it. And I know you keep emphasizing that you're a volunteer. We know you're volunteers. I think you're great volunteers, and I just want to say thank you for volunteering to help Philadelphia's children.
I want to 74 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS additionally thank and recognize the skill and dedication of Dr. Farmbry and in her mission to transform the lives, build the futures and convey, connect the communities to our city with a sound education policy. I do have a lot of questions regarding a lot of what you wrote, Dr. Farmbry, and I have some additional questions to Sandra about the public accountability issue. And I will get to those, but I just wanted to say that and give other Council members an opportunity to ask questions. One thing that I must ask now, some Council members do not remember receiving The Curriculum Renewal Plan. I know you said you sent it out in June. We know you have it, Councilwoman Blackwell has hers, but there are other Council members that cannot remember receiving it.
So we need to get other copies. Thank you, Madam President.
You're welcome. 75 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS The Chair recognizes Councilman Goode.
Thank you, Madam President. I have some separate questions. First I wanted to, believe it or not, completely concur with what Councilman Kenney said. I'm in full agreement. I just wanted to add some things to the record on that matter, though. The truth of the matter is that PICA legislation was sought...
Councilman, I'm sorry. There's entirely too much noise at this end of the room, and we can't hear you. Thank you.
I want to say I'm in complete concurrence with -- what Councilman Kenney said, I completely concur that this is a very hefty borrowing with a lot of things not put in order before we make this decision. And I wanted to clear the record and add to the record in terms of what happened back in 1991 and 1992 and people talk about as a fuzzy period as spanning two administrations. It was actually the Goode administration that sought the PICA legislation, it was the Goode administration that sought the percent increase, 76 1 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS it was the Goode administration that was ready to release a five-year financial plan that the Rendell administration coming in had to hold off on. This was not a plan done by the Goode administration or the Rendell administration but done by financial consultants outside. A lot of those things were put in order before the council of '92 and the Mayor of '92 came, and a lot was put in order before they made the heavy decisions that have to be made in terms of that type of borrowing. But I want to turn my attention to not the past but to the future and what really framework for reform exists or doesn't exist. Mr. Nevels, it is my belief that in terms of the framework for reform, it would have to be contained within a teacher's contract. I'm going to ask you for your personal opinion and philosophy where applicable, and if the Reform Commission has already made any decisions on these matters, you're feeling or their feelings toward that. What role do you think the teacher's contract plays in school reform? Is the current contract helpful or harmful in reform efforts and what necessary changes have you already identified 77 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS for the next contract?
Thank you for that question, Councilman. The linchpin of any reform effort, whether it is improved public schools, charter schools or partnership schools, requires that we look closely at the Collective Bargaining Agreement. There are, as Dr. Farmbry alluded to, at least two provisions of that contract that provide some great support for reforms. Those items are the site-based selection which reference the opportunity to create teaching communities without regard to seniority rules, and then the second is a merit pay provision. That is the very good news. The bad news, however, is that these provisions have not been widely practiced in the School District for any number of reasons, not the least of which is the grievance process, and have been tied up in grievance litigation. It would be our hope that when the commission sits down with our partners at the PFD, that we can evaluate and see the ways in which we can effectuate those two provisions. In addition, there are provisions under 78 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS the act that relate to the administration of reconstituted schools or other independent schools.
I'm actually more interested in finding out whether you think the current contract is helpful or harmful to your school reform efforts.
It is helpful in respect of those two matters. We have asked legal counsel to put together a list of other things that we would like to see changed and obviously...
Would you be seeking massive changes in the next school contract with teachers?
Site-based selection is what used to be called school-based management.
Well, let's talk about school-based management. What role do you think school-based management plays in school reform.
School-based management is very important and one of the things that we're 79 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS looking at in terms of the RFQ's that are currently outstanding, Request for Qualifications, is a manner in which we can have our Chief Executive Officers in the buildings, namely, those principals, have their skills enhanced in terms of budgeting. One of the things that was somewhat disappointing to me upon arrival on December 21st was that there have not been building audits at any time, financial audits. And I think that in terms of a bottom up preparation of budgets and so on, we certainly are moving toward that and Mr. Doosey and I and staff are looking to isolate the buildings in order to work with principals in terms of employing best practices.
Thank you. We'll be back to you, Councilman. The Chair recognizes Councilman Clarke.
Thank you, Madam President. Good morning. Councilman Goode, believe it or not, I actually agree with a substantial amount of what Councilman Kenney said also. I don't know what's going on in here today. 80 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS Actually, I do agree to a large degree, but the reality is is that the things that need to happen to reform our schools will not happen this year. We have a certain Governor's race coming up. The individuals who are in the race will not talk about that issue because the reality is is that we need state-wide tax reform. This is a band-aid approach, a large band-aid, a much needed band-aid, and we ultimately will get to that discussion. This is not the only municipality in the state of Pennsylvania that has a deficit, a substantial deficit, and at some point we will have that discussion, and I hope we have it immediately after the November election. I just actually wanted to ask a couple of questions with respect to some of the earlier testimony. One, Miss Glenn, you had referenced the city-wide advisory group. I know that that was a part of some of the discussion earlier at Council and I think Councilman Nutter had actually introduced legislation that referenced some levels of participation and we all were very concerned about what we perceived as the inability to have the appropriate level of participation on the parental 81 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS level and you referenced these areas and you talked about certain members being on these groups in the 10 area. Can you kind of clarify that for me. There will be 10 individuals selected per area, they will elect one individual, and my question with respect to that one individual, because I believe in your testimony you said that parents, students and staff will actually be a part of those groups, will the one individual be limited to parents, students or staff, could it be any of them?
First of all, Councilman, let me say that this is still a work in progress to some degree, so not all of the details have been worked out. But the framework that we are operating on is that the city-wide advisory council would be an outgrowth of 10 area councils or committees. Those committees would be established in each academic area and would represent the parents, students and, to some extent, probably, staff and community members from the schools in those areas. We have not defined a number per se in terms of the membership of those area committees. 82 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS We want to make sure that it is an adequate and large enough number to accommodate interest from parents and students, community members from the participating schools. Some of our academic areas have as many as 30 to 40 schools that make up that academic area. So we want to make sure that folks have an opportunity to participate. So that final number has not been worked out. The councils, I suspect, would be in the range of, let's say, to 30, 35 members in those 13 area councils, something like that. Those area 14 councils would select or elect, depending on the 15 process, but would determine a representative from 16 their area that would sit on this city-wide council. 17 So that in the city-wide council we would have a 18 representative from each of our 10 areas, and in 19 addition to that, we are looking at also appointing 20 at large members from the community that may represent other constituencies that we would like to hear from to be part of that city-wide council. Does that help to clarify?
Yeah, somewhat. With respect to that in the formulation, because you 83 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS said this is a still a work in progress, and formulation of this whole advisory council structure, who's included? Are the parents groups or the friends of the school's groups involved in this, or is this simply the SRC putting this together?
At this point it is the recommendations from some of our consultants and staff to the SRC. I can just speak for myself. I've had some conversation with some of what I consider our stakeholders and folks who have been advocates who work with schools to have their input and they've helped to give me a framework and some ideas, and I think that is represented in what you are hearing today.
Madam President, do I have time for one more question?
I don't think I can get this question asked in eight seconds.
He who hesitates... 84 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS
I disagree with Jim Kenney totally. It seems like my colleagues at the table here, in essence, dealt with form instead of substance except for Miss Deirdre Farmbry, and it's sort of like discussing what shape the table is going to be. And, Mr. Nevels, you say that we are in the cardiac arrest financially and ailing academically. I don't think anyone in this room, in this city, can say that we haven't been through a process in which a school system ailed academically. Miss Farmbry actually describes a school system that, although still bedridden, from what I read in her statement, it was on the way to recovery. If the parents of that child that is in the process of recovery could move into a cleaner apartment with heat, with beds, could give it clothing and sustenance and really provide it with the -- that child with the resources so that it could recover, 85 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS it seems like Miss Deidre describes a system that really was applying the educational principals that we needed to. And I take it by one of her phrases dealing with Mr. Ronald Edmonds, Professor of Education at Michigan State University and Father Of the Effective School Movement, issued four basic tenets for school improvement, see, I mean, we're not dealing with rocket science here. We're dealing with proven principles of education that other people have tried and applied and suceeded, whether you are black, latino, poor or rich. His work has been recapped by many other educational scholars, and I like this phrase, "And now we package in Madison Avenue glitter and glitz by entrepreneurs trying to capitalize on the common sense nature of these basic educational truths." I think I put the Anderson (phonetic) project and those institutions in that category. But like I think Councilman Kenney said, neither the $75 nor the $45 million really impact on the long-term structural deficit and resolve our problem; the train with the kids in it, still on the tracks, still speeding towards a crash. We're not providing that ailing body with the medicine that 86 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS that ailing body needs to recover. Councilman Clarke says that this is a much needed band-aid. But, you see, we have spoken about much needed band-aid in this council since 1990, '91. In '93 Jannie Blackwell and I held hearings here. In '94-'95 Judge Doris Smith had the case and put forward a plan, an incredible plan, I think a plan put together by the best educational minds in the country. It was ignored, totally, totally ignored, these same basic truths that we say and Miss Farmbry describes a system. Councilman Cohen said to me, All we need is to apply what the superintendent is saying. All we need to do is give her the resources necessary to build new schools, hire more teachers, train better teachers, lower the classroom size. So all of this other stuff that we speak about, and these are forms, they're not substance, partnerships, community partnerships are all --
Councilman, I don't want to interrupt you but your five minutes are up.
Let me finish my statement. 87 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS (Continued) -- are all less form, not substance. And I have not heard except, for Miss Farmbry, a plan of what is going to happen. I have two kids in public school, so I have to make a decision between now and May as to whether those two kids, now in second and fifth grade, are going to go to public school in September. Actually, these hearings will make me decide that. You have to convince me that the plan you have, and I haven't heard it yet, is going to provide a stable learning environment. I haven't heard it yet. And I don't think $75 or $45 million is going to do that.
I don't know whether anyone at the table would like to answer some of the comments made by the Councilman.
I believe that there are a number of issues and questions embedded in the Councilman's question. One of the things that has been recurrent over the last day or two in our visit to Harrisburg and our visits to this chamber are the requests, the please, the very, very deep concern about addressing a dedicated revenue source. There 88 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS can be no question that that will be an important ingredient to realizing educational reform in the Commonwealth and in the city. However, as the Councilman said, there are political circumstances that exist right now that may prevent that from being addressed, so that places us in a situation where we need some time. I believe that it is very important to buy that time. The second issue I believe that is embedded in the Councilman's remarks is the use of current resources, of resources that we have and how we deploy those resources. I frankly believe that there is a need for ongoing continued and best practices to be practiced and applied in the School District of Philadelphia. On December 21st, when I arrived, there was not a reconciliation of actual to budget. That's tantamount to not having your checkbook balanced on a monthly basis. I don't believe that that is doing the best by the use and management of resources that ultimately are going to be applied to the teaching of children. There is much work to be done, and I think that as the Mayor has wisely said, this is a 89 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS School District that perhaps isn't as bad as its supporters may think -- as it's supporters may think or not as good as its supporters may think or as bad as its detractors may think. That may well be the reality. However, there is no question of the statistics. Yes, there has been improvement in scores. However, it's not good enough. And we have children that are seriously at risk, have ongoing problems, and that is why we propose to take very serious measures to address those children and their needs.
But I have not heard the word instruction in any of the facts coming from the Reform Commission. We have talked about cutting money and staff. We don't know who you're cutting, we don't know what offices, what hierarchy of the Parkway are being cut. Persons may be cut but offices and departments that may be redundant, it is not very clear whether they're being cut, and we have not heard how any of those monies that are saved are going to be redirected to instruction.
Councilman, that is going to be your question on your second go around. I just don't want you to take advantage of 90 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS my kindness, please.
We would all ask Councilman Ortiz to not anger the Chair. The rest of us have some things that we'd like to do and we'd like it not taken out on us. Good morning, Mr. Chairman and members of the SRC. Let me try to ask a couple of questions at the same time. Mr. Chairman, I read through your testimony. I appreciate your commitment, as well as all the members of the SRC, to this particular cause. I do have to tell you, though, that I was struck by the testimony in the context of we have, in fact, heard this story before at virtually every -- and it's actually a misnomer to call these budget hearings -- at every tax reauthorization hearing, because we don't approve the School District's budget, never had. And so my question of in the context of we have heard all this before is how and why will things be different is one; the second is what specific actions will the SRC take to insure fiscal stability, educational excellence, safety in 91 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS schools and operational improvement; and, third, you mentioned a response to a question from the Chair about a letter from the Budget Office, I'm assuming that's the Commonwealth Budget Office or the Governor's Budget Office, and I would ask if you could provide council through the Chair with a copy of that commitment letter regarding the $75 million.
Certainly. The widest topic, what's different, what's different is there an historic agreement between the Commonwealth and the Mayor, and I believe that that is unprecedented. What was considered to be an inevitable hostile takeover, if you will, described in the press is, indeed, a partnership. That together with the confluence of the interest of the business community and this body along with the General Assembly and the height and realization that this is a short term band-aid, Councilman, is what makes the difference. It is those confluence of events. Let's talk for a second about specific operational improvement and financial improvements, and what I'd like to do, Jim, is I'd like you to outline some of the best practices that we're 92 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS looking at and that we have included.
Mr. Chairman, if you will, if I can hear one of your responses and then hear from Mr. Doosey. Did I say that correctly, Doosey?
Could you describe for me -- I mean, it's kind of almost first and obvious, what is the agreement between the city and the Commonwealth? And, second, could you describe the difference from your perspective between the current agreement and what a hostile takeover would look like.
Let me respond to what the agreement is. It is my understanding as of December 21st that the Commonwealth and the city would enter into a funding agreement, and that's what we're here for, as well as a $300 million step deficit financing, that the text of that agreement has not been placed in writing, and it is my further understanding that the parties are negotiating or writing that down as we speak. You asked me what would be the 93 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS difference between a partnership and a hostile takeover. I think the evidence in that is the operation of the commission and the fact that there has been put in place upon its constitution and formation a deliberative fair open process for bringing about specific changes in terms of the central office operation and also the operation of the delivering of school education. There has not been acrimony in this commission. There has not been partisanship. There has, in fact, been a collaborative arrangement where we have all worked together. I think that's the hallmark that points out the difference.
I appreciate that response. Let me just ask this question, though, again in the same context. Friendly partnership versus hostile takeover. Would there be a difference in what I look at as four such elements, and I think other people have mentioned these in the past. Would there be a difference in anyone's notion of financial stability, educational excellence, safety in schools and operational management.
In a hostile takeover, I 94 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS would envision that it would be one party that is involved in those matters. In this case, if it had been a hostile takeover by the Commonwealth, you would have had the Commonwealth acting to achieve those goals. That's not the case.
Probably through an entity somewhat similar to the SRC?
I would imagine so. That would be entirely differently constituted and would not have the hallmarks of cooperation that this body has.
Okay. All right. I interrupted your direction to Mr. Doosey to respond to an earlier question.
Thank you, Councilman. You had raised the issue of specific examples of what the SRC has done. Since our arrival, we have reduced overtime to the point where a ranking senior executive has to sign off on it, we have identified $15 million in capital projects that were scheduled for completion that were identified not to be necessary, and we are currently in the 95 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS process on a function-by-function basis evaluating back office or central office administration functions in an attempt to see where additional deficiencies exist. It is through these actions which were initiated under Mr. Goldsmith initially, we've just accelerated the process, that we've been able to save, round numbers, $70 million and to reduce the projected operating deficit for this year from $177 million to $107 million.
I'm going to follow my own advice and not tempt the Chair.
May I have a word on that, because I have a question on that. Councilman NUTTER: I can wait until my turn comes back.
Can you identify for us exactly where the $70 million in savings are? I know you talk about overtime. How much in overtime? How much in the central office?
Madam chairman, if you would refer -- I believe you've received Exhibit A to my testimony, where the $70 million is the 96 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS differential between the $177 million adopted budget for and the $66 million -- 61,783,000 for , it's that difference excluding the $45 million that is requested from this body for an additional city grant. Some of the items are common issues. For example, we've had a warm winter, so we've saved utility costs. That would be a total of -- let me run down the list here. We have charter school enrollments lower than anticipated for $14 million...
The differential is when the budget was prepared by my predecessor, the assumption was made the charter school enrollments would track at the rate of 90 percent occupancy. For this current year it has been 83 percent occupancy. So, frankly, there have been less students in charter schools and, therefore, less of a cash drain on the District.
I don't know about my colleagues, but I will tell you that it's my understanding that at every charter school they have a very lengthy waiting list. 97 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS So I don't know how you can account for it.
I think part of the problem, with all due respect, is that there are a number of charter schools that have permitted enrollments of hundreds more than their current physical buildings can sustain and that that is the reason for the waiting lists. It is not -- to my understanding, it is not an issue where they do not have the ability under the current charter to enroll more students. They just simply cannot physically accommodate them.
We'll take a look at that. In the meantime, the Chair recognizes Councilwoman Brown.
Madam President, good afternoon, members of the School Reform Commission, in no way to diminish the important discussion and dialogue around the deficit and the finances of the School District, I would like to turn our discussion for the five minutes I have to the children most at risk and those children in the lower performing schools and recognizing that we are 98 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS dealing in what we know to be uncharted waters and unprecedented circumstances in two ways, one with the creation of the School Reform Commission but also with the new advent and phenomena known as our private contractors, please answer these questions. Will the schools run by the School District be funded at the same level or in an equitable fashion as those run by private contractors? And if you have not resolved the answer to the question, what kind of measures are you going to put in place to insure that all the students, irrespective of where they are academically, are receiving the same similar resources.
Councilwoman, thank you. In terms of the equity question, I'm going to ask Jim Doosey to address that as he addressed them in his remarks.
To the first question, Councilwoman Brown, there will be no added funds available to partnership schools, but they will be funded identical to the same level as the existing District schools because I inherently believe that it's, frankly, as I said in my remarks, unfair to subsidize partnership schools unless you're able to 99 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS give District schools the same amount of incremental funding. On the second question of what procedures are in place to insure, I'll call it, financial equity across the District, all teaching positions currently are allocated on a purely pro rata basis and that formula is identical at all schools across the District. Also, each school receives on a per child basis a discretionary fund that the principal can utilize as to whether or not to supplement that formula of staffing with an additional librarian, say, or additional educational supplies.
And what you just described will also apply to the new partnership schools as well. Correct?
Councilwoman, as well, I would tell you that the experience that I bring to this Commission comes from my time spent in the Chester-Upland School District, and I can tell you that one of the things that is also of critical 100 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS importance is the accountability in holding to a standard the charters that the public schools and also the universities and nonprofits and private vendors as well. And to that extent, we are certainly looking at School Works types of -- School Works is an individual company that did this in Chester-Upland, we would hope that there would be an opportunity to involve that type of accountability architect in this instance, and then, as well, in terms of the testing and measurement portion, utilizing resources that we have at the School District and any additional resources that we need to call on in terms of that additional accountability.
That is a segue to my second and final question on the notion of the application of the accountability measures. In the fall, members of this council unanimously passed a resolution speaking to what we viewed to be real school reform in core areas like, for example, classroom size, which you spoke to well in your testimony, a student-to-computer ratio similar to our suburban counterparts, access to a school up-to-date library staffed by a certified librarian. 101 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS And then in Dr. Farmbry's testimony you spoke to -- on of your testimony, you spoke to similar types of measure. So my question is are we going to, and it's somewhat redundant but now we're just speaking to real school reform, are we going to hold our private contractors up to the same standard in these tangible real school reform areas.
You're welcome. The Chair recognizes Councilwoman Tasco.
Good morning. Thank you for your testimony, Dr. Farmbry. That was very informative information, and I want to congratulate you on doing a fine job, and I do hope you're back here next year. We appreciate your leadership.
Here we go again. I just have to say that I, too, agree with Jim Kenney. I think we what need to do is to call our 102 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS situation in Philadelphia what it really is. We do not have money. And even with all of the reforms that are, I believe, necessary and have to take place, the bottom line will be that Philadelphia School District will not have the funds needed to run this system. What has happened has been the politics of shifting back and forth from the state to the city and the blaming. All are excuses just not to provide the resources that we need to run the School District. So I would have liked to see, while we appreciate your leadership in being there with the SRC, something like a PICA board which would have been commissioned to oversee the financing of the school as opposed to all this other stuff that's going on, which I do not agree with. But one question I have for Mr. Doosey --
-- in your testimony you stated that we need you help in supporting the Mayor's request for an additional 45 million this year and in future years. 103 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS Will you explain that to me, because you said earlier that the 45 million was just for one year.
Unfortunately, the amounts are identical, but the substance is different. The $45 million for this year is a one-time grant which the Mayor proposed the School District receive last year and which last year I guess as a contingency on the payment of those funds the city requested an exemption from the local debt relief provision in Act 46 so that the one-time payment could have occurred in the 2001 school year. The city did not receive that exemption. Consequently, the funds were not transfer to the School District. What the Mayor has proposed, and it is in the bill in front of you, is that that 45 million from prior years be paid this year for the simple reason that as part of the legislation necessary for the School District issue deficit financing bonds, all the City Solicitor's concerns regarding the impact of that $45 million one-time grant on the city's future and local debt obligations would be addressed. The Mayor looks upon that as clearing the books so to speak. This is the money that was 104 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS promised in prior years, it will be paid in this year. The 45 million for the fiscal year '03 and forward is contingent upon the state also honoring its obligation to provide $75 million additional, increasing to $82 million additional in the fiscal year '05. It's unfortunate that the amounts are both $45 million. So the additional grant that is proposed for fiscal year '02 is monies that were scheduled to be received in 2001 and is distinct and separate from whatever happens in 2003 forward.
And am I correct to believe that it would be a $45 million request, not necessarily tied to this $45 million request? I'm asking you is this $45 million request going to be required from the city of Philadelphia moving forward, even though it's not tied to Act 46.
No. The grant amount will not be required in future years. What will be required in future years would be the same amount of money, but only if the state steps up for their 75. 105 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS
Councilwoman, what I think we are saying is this: The combined initial money, 75 million from the state and 45 million from the city in some way, shape or form is going to be needed on an annual basis. And even that will not balance the School District budget, but it will help to reduce the size of the deficit until and unless there is from the city or the Commonwealth some other way to substitute for those funds. The only other alternative is for us to cut the spending to match the currently available funding, and the position of the School Reform Commission is that we don't see any way to do that that is not unacceptably injurious to the educational mission of the School District. So there is -- you know, for both the Commonwealth and the city, the appropriation decisions have to get made every year. Now, the specifics on part of this money, as Mr. Doosey notes, is a shift of millage that that's being proposed from -- so some of the real estate tax that now goes to the city would go over to the school District and direct grants from 106 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS the city general funds would be reduced by the same amount. But the decisions still have to be made year after year by the city government, the state government, what level of support is going to be provided to the School District. And, yes, we do need this increased level of support from the city and from the Commonwealth. And as a number of your colleagues have noted, even that doesn't balance the budget, but it is a -- not a trivial. It is a significant reduction in the gap that we now have between revenue and spending.
Thank you. So the request will be moving forward. Let me just ask one other question -- I want to make a statement. I think it's very important that we have a plan. We need to know what the plan is for keeping the School District solvent, to provide the necessary education for the children. And until we have a plan, we're going to act in a haphazard way. And I think as the Reform Commission you have a responsibility to do the right paper, to really put down and state what it is, what is needed and who is responsible for providing it, so that 107 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS everybody's operating from the same page. I think that is sorely need. If we don't have a plan to get ourselves out of this fiscal crisis, every year it's going to be band-aid after band-aid. And I agree with Councilman Kenney this is a band-aid, it's not the way to run a business.
Thank you for that comment. I would like to mention to you that a very important document was prepared in May of last year, a work out plan between the city and the School District. The commission is going to be reviewing that document that sets forth a financial road map plan in terms of addressing certain of these problems. It does not address the ongoing systematic provision of revenue that is needed, but it does provide a way of operation. That is a very good piece of work and on our agenda in terms of review and possible revision and adoption. So that is in the making.
But I think it's very important that you lay out how we're going to handle the fiscal crisis. I mean, that's got to be a part of it. Anything else is not worthwhile.
Thank you. I have 108 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS other questions. I'll come back.
Thank you. The Chair recognizes Councilman Rizzo.
Thank you, Madam Chair. Good morning to the School Reform Commission. This has been described as a partnership arrangement. It really confuses me that this partnership was created without the finances really locked down. If this were a hostile takeover, could you describe how the state of Pennsylvania was planning to run this School District? Could you describe what it was going to look like if there was a hostile takeover?
In the case of a hostile takeover, Councilman Rizzo, I believe that what would have happened is you would have had a host of PDE officials in the building in the Parkway and in the field administering this School District. That is not the case.
Where was the funding going to come from to do all this 300 million, the 45 million, the 75 million? Why was this done 109 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS before -- why did we even do this before the money was guaranteed from Harrisburg or the money guaranteed from here? It seems to me that there's a terrible amount of loose ends. We're talking about a need of a plan. It doesn't seem like there was a plan even before the School Reform Commission was started. I mean, you have announced $25 million in savings. Well, we didn't need a School Reform Commission to tell us that. You listen to the union, you read the letters to the editor, you knew how fat the Parkway was. So I'm just confused on how the state would plan to run our schools without our support here, without the additional finances. They planned to come and take it over and then that didn't occur and then we now call it something cute, a partnership. Where was all these commitments prior to your arrival here as chairman of the School Reform Commission?
Councilman, on November 21st, there was a handshake agreement between two CEO's. Optimally, I would love to have had in place, and I think we all would have, the financing mechanisms and everything required. 110 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS In fact, what had to happen was those two individuals had to go back to the deliberative legislative bodies involved and seek that permission. I think that that is precisely what we're doing now. Optimally, I cannot disagree with you. It would have been great to have everything locked down and in place. That is not the case, and I believe that it is appropriate to address that question to the executive branches, respectively.
Well, you accepted this volunteer job with those questions not answered.
I'm also insane. I'm certifiably insane. I'm dysfunctionally operating here.
Sure did. And I think we all did, and the answer to that was that it was going to be worked out. And I took that in good faith.
Because the train's heading -- you know, I hate to keep using this 111 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS analogy, but the train is heading to the wall and these guys are all going to do what we need them to do because the train is full of kids. Is that basically the philosophy of how we go forward here, that it's like a hostage situation?
I would not characterize it as a hostage situation. I would characterize it as a situation where two dedicated public servants met, came to an agreement and will now do everything they can to cajole, implore and get the assistance of the deliberative bodies that they report to in order to get the funding for these children.
Beside 325 jobs -- and I don't believe those jobs have yet been identified; is that correct?
They have been identified. Well, somebody over there is shaking their head no, so you better look over there.
Okay, in the process 112 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS of being identified. Beside people and salaries...
And let me back up on that in terms of that issue. Let me explain what the process was that was used to identify the cuts. Each department head was given a number and asked to come back with identified positions. Certain of those have come back and have identified positions, not all of them, and we are going to certainly assist those that haven't in doing so.
Beside that, could you point to, just give us a sampling of the three top big ticket items that we're going to be able to save some money. Let's look at the transportation operation. I don't even know how many buses we have, but I see in the morning six kids on a bus that holds 40 people. I hear about some of the frills that we have at the School District. Can you point to three things that are going to go to save substantial money?
I think I can handle that. I think rather than three specific items, it's easier to discuss functional areas. 113 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS
I'd like you to be real specific. I'd like you to tell me about three things that are going to go to save million, 5 million, 15 million, 16 million, whatever the -- 6 three specific things. I would like to hear that. 7
We have eliminated vacant 8 positions equal to $5 million already. We will 9 continue to do that where positions are now being 10 filled on an exception basis only. We have cancelled $15 million worth of capital projects because they are unnecessary and will continue to look at capital projects on a case-by-case basis which is a change to procedure in the District. We also have transferred to the city of Philadelphia fleet management and risk management services, which, while the savings have not yet been identified, it is our belief that the city, quite frankly, handles these functions more efficiently than the School District. And we will continue to look at each of these functions one at a time to try and squeeze out as much as we can without harming the educational delivery to the schools.
Councilman, sorry -- 114 3/19/02 - FY '03 PHILADELPHIA BUDGET HEARINGS
-- your time has been up. I want you to get a response to your question, so you'll have to wait till the next go around.
I think he partly responded, so you'll have to ask again. Thank you. I think we're already for the second go around. - - - 115 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS (Proceedings now being stenographically recorded by Josephine Cardillo, Registered Professional Reporter.)
Councilman Clarke is next, and then after Councilman Clarke -- oh, I'm sorry, Councilman Goode?
Your light did not go on until after many of the other Councilmembers. Councilman Goode, would you --
Councilman Goode, just a moment. Would you mind if Councilman Cohen went before you?
Thank you, Madam President. I think it ought to be checked, 'cause the light was on here, the green light.
It's on here, sir, but there other people before you. 116 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
Oh, no, I'm not complaining about that; I was complaining about the beginning of a second round before the first round was completed.
Thank you, Madam President. First, in the many years that I've heard superintendents' statements, I do want to agree completely with Councilwoman Tasco and Councilman Ortiz. I thought the Superintendent's statement was probably the finest, clearest statement I've heard delivered by a superintendent of schools, and I want to thank you for that. It probably reinforced my believe that there is no need for the --
First let me ask you a question, Superintendent. I noticed in your 117 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS statement that you said we're the second largest public school district; what two cities come in? If we're the fifth largest city, why aren't we the fifth largest public school district?
Actually, I'll have to get that information for you. It's information I have back in the office. In the past year and a half, there are two other cities that have now passed us in terms of their enrollment in districts.
All right, thank you. I'll appreciate that information. Chairman Nevels, I would have to take issue with your view as to whether or not it is a friendly or a hostile takeover. Once the legislature passed the bill in Harrisburg, it became, no matter what occurred thereafter, a hostile takeover. The State bared its fangs, said, We're ready to take you over unless you come to an agreement. At various times, when there wasn't all of this sweet talk and honey between the Governor and the Mayor, the Governor made clear at all times that the State is going to take over by a certain specific date, no matter whether the City agreed or not. 118 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS And I think it was the Mayor's feeling that under all the circumstances, since there was to be a hostile takeover, there was going to be a takeover without identifying whether it's hostile or friendly. In his judgment, I think, he decided to accept what seemed inevitable and maybe what he asked for originally, though I'm not sure he maintained that original posture, and he decided to see what he could work out of it, as he saw it, for the benefit of the City. Others may have a different interpretation of the conclusion, but I think the Mayor tried to get as much as he could get for the City of Philadelphia since he knew it was going to be inevitable, but that's a legal question. And I think I can understand your feeling of wanting it to be a partnership, even though all of the votes are on the State's side, and whenever the State wants to, it can enforce a conclusion. I think you were quoted early on that you had not heard of any arrangement about a super- majority. There was talk for a while that on certain actions, there would be a super-majority required that was to guarantee some form of City 119 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS ability to control the situation. I think you were quoted, and I think it was quite accurate, that there was no such thing as a super-majority required for any actions. But in any event, I think the record clear is clear as to who did what in that circumstance. There is this fundamental disagreement. Secondly, I wanted to state that it seems to me that all of the financial problems of the School District, which are being blamed on so-called fiscal mismanagement or lack of acceptance of responsibility, that that is basically not the fact, but the fact is that the reason that the School District has any financial difficulties is because of State action. The State adopted a formula early in the 1990s to pay a certain amount of money per pupil, and then the State arbitrarily had a cap put on that after 190,000 students, that from that point on, every other student that would be added would be at the total expense of the City of Philadelphia, and the State would not share. Had that formula been kept up to date, 120 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS the funds would have been more than adequate to meet this deficit. Secondly, with respect to the charter schools, the State has a funding situation in which the money is taken from the local school district in order to finance what the charter schools claim, and I think, quite properly, it is an inadequate amount of funding, but whatever that funding is, it comes out of the appropriation to the City schools and the School District. I think when Mr. Goldsmith was the financial director, I don't know to what extent the Superintendent would get involved in that phase. The calculation was that the City School District never saved the same amount of money as was being taken out of its budget for the charter schools, and the charter schools, at the same time, were unhappy 'cause they believed they were getting less than the other public schools.
But had those two features not occurred -- the cap arbitrarily being put on the funding of the number of pupils in the Philadelphia public schools and were the charter schools accepted as a responsibility of the State Government -- then 121 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS we would not be in this financial crisis. I raise these issues because I think that Philadelphia is being given a bad name in this situation mand that the responsibility lies wholly -- not partly, but wholly -- on the State; the State that created this fiscal crisis. And now what you're doing in the face of all of the evidence which shows that what is needed is more money for the Philadelphia schools, you're finding techniques of carrying out the Harrisburg plan of cutting the funding for Philadelphia schools because you're cutting services. I have to believe that some of these people that are supposed to be to be laid off were having some impact on the schools. I want to hear, like others who have raised the question as to who they are. It's hard for me to believe that Superintendent Farmbry would have been a participant in a plot to maintain 325 jobs that were of no use in the school system and that were a waste of money. With respect to the Finance Director's statement about finding savings in capital funding, we all know that what the school system needs is a huge infusion of capital funding, that schools are 122 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS much more older than Veterans Stadium, twice as old, three times as old as Veterans Stadium and in total disrepair.
Councilman, I don't mean to interrupt you, but your time was up some time ago, so if you can conclude so that we can get a response.
Well, I'm concluding that I have a very deep concern, and the last general statement of concern is, I think the financing arrangement makes absolutely no sense whatever, to cause Philadelphians to carry this debt burden for 30 years to take care of a deficit that we're told just accumulated relatively recently, that was the information that was given to us at that Friday meeting Friday afternoon. So I'm very concerned. And if there were a need for financing, and I say I see no need, it would seem to me that, you know, the backers and the lawyers that have enjoyed so much business from the City on bond issues over these years, it would seem to me that they not ought to be profiting; they ought to come in and say that the situation is such a crisis that our law firms are going to contribute 123 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS free of charge the bond services. And the banks ought to say, We are very happy to make this loan, we're good corporate citizens, and we're going to demonstrate it. If Philadelphia is in crisis, politically, this is just not the time to settle an important problem. It's nobody's fault; it's just the calendar's fault. Therefore, we're going to share with everybody else in the pain and, we're going to make a contribution to Philadelphia. So if there was there is a need, I think it ought to be one with no cost at all to the citizens of Philadelphia. Thank you.
Councilman Goode, can I just ask one question, 'cause it's really bothering me. Thank you. Mr. Doosey, I did check Exhibit A, and it clearly states that charter school enrollments are lower than anticipated afford and we're saving approximately $14.5 million. 124 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS Where were your anticipated enrollment levels, and why have you lowered those estimates? I'd like you to answer that question. And, at the same time I looked into the budget book that you gave us, and on Page C-2, it would appear that the enrollment is --
-- 4,250 students more for FY '03 than FY '02. I would just like you to clarify that for me, if you will, please.
Certainly, Madam Chairman. The $14 million reduction in the deficit for 2002 is the sole result of fewer students being enrolled in the charter schools than what we had budgeted. The reason for the increase between the Fiscal Year '02 projection, which is the 14 million, and what we are proposing in the budget for next year is a result of increasing student counts over the recent months, and also a prudent assumption that because of the moratorium that was placed on new charter schools recently by the School Reform Commission, that from a budget standpoint, I'm actually forced to make the assumption that charter 125 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS schools will move closer to their permitted enrollment. So the short answer is, actual enrollments this year were lower than budgeted, but in the future years, I have to assume a material step up, because new charters, at least under the current assumptions, would be not be granted the new schools. There are also five new schools coming on line for next year that, while they have received their charters in prior years, they were not in operation.
Thank you. I just had to be clear on that. I just couldn't understand how we were getting 4,000 more students and yet we're cutting the funding by 14.5 million. Councilman Goode, thank you for your patience.
Thank you, Madam President. Mr. Nevels, I want to get back to the discussion of governance and decision-making and your philosophy. Do you believe in the empowerment of principals to manage schools; I mean, hiring, 126 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS firing, setting curriculum, and setting their own budgets? And, furthermore, what is the role of parents and community beyond the Educational Reform Advisory Committee; what powers do they have separate and distinct from principals.
Councilman, as to principals, I refer to them as the "CEOs in buildings," and I firmly believe that they are very, very important. And in my visits throughout the City -- in Eileen Spagnola, at the Kearny School, for example, on Fairmount, we have an excellent principal at Robert Morris School The thing that is common about the truly good schools and improving schools -- and I believe Dr. Farmbry will agree with me on this -- is that principals are hands-on executives. That seems to be common. The second question you had --
Should they have the authority to hire, fire, set their own curriculum, and establish their own budgets?
Ideally, yes. Ideally, yes. Practically, though, I believe that -- 127 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
Under your reform policy, should they have the ability to -- under your vision for reform, should they have the ability to hire, fire, set curriculum, and set budgets?
Thank you. Secondly, what level of vending opportunities will be available for disadvantaged businesses? What is the current DBE participation level, and what is your goal?
We have a DBE participation that has been crafted by our legal counsel, Carl Singley, at Blank Rome. I will get back to you in terms of those levels and the participants.
I'm specifically asking for your vision in terms of what you envision under reform. What level of participation do you envision? What is it now and what do you think it should be?
No, what it should be in the future. What is it now and what do you believe it should be in the future? 128 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
I believe that it should be as substantial as possible. You're talking to an individual who is the Chairman and CEO of the eighth largest investment advisory firm in America, a minority-owned firm. So believe me, I believe that it should be profound and it should be substantive. In terms of a number, I'm not prepared to give you a number because I --
What is your evaluation of the amount of minority participation, of women participation, of disabled participation in the School District now? Is it up to your standards?
When I look at it at the present time, I'm pleased with what I see. Have I looked at it in terms of the statistics? I have not.
If you looked at the statistics, I think you would be greatly disappointed -- I hope you'd be greatly 129 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS disappointed.
The School District itself is probably the worst next to the City itself. The private sector is outperforming the public sector, and among the public sector, within the public sector, the School District is absolutely the worst; it's in the single digits, as far as I know.
I will say this, however: During the course of the RFQ process, our legal counsel that I've referred to made sure that we had provision and involvement of women- and minority-owned firms. We have that being the case in terms of the consultants that were hired, and there can be no question as to my commitment in that respect. 130 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
I'm not questioning your commitment; I'm questioning, what is going to be the policy under reform? Part of the reason we have the issues we have in the School District now is 'cause people look at it as just as an opportunity to give away contracts, as opposed to it being about the education of our children. So I think it's something we definitely have to look at; not just in terms of Procurements costs, in terms of cutting costs, but in terms of what have we envision as opportunities for Philadelphia economically and some of its disadvantaged citizens.
Thank you, Madam Chair. I wanted to actually reference some of the statements that Councilman Cohen talked about 131 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS earlier with respects to the formula that was crafted by the State some time ago that put us at a disadvantaged; I think it was called the "ESBE formula" was the term used at the time. My question centers around hopefully a change in statewide educational financing form -- formats in the future, if, in fact, we are in a position to do that after the next Governor's race. Will we be in a position where we can restructure our debt with respects to the $300 million?
Councilman, I believe that will depend upon future interest rates and the ability to refund or restructure without looking at the entire debt structure and debt capacity of the School District. At this point, I can't answer that.
One of the things that we obviously hope is that there will be opportunities to refund and restructure indebtedness or craft covenantal changes that will allow us an opportunity to do some things that would be financially advantageous in the future.
Okay, so best-case 132 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS scenario, there's a possibility that we can get out of the this $300 million borrowing debt and (inaudible) --
One would hope, and it largely depends upon the trend of interest rates, and we never, ever could have imagined that interest rates would fall so low for so long, as we have recently seen. Jim, would you like to --
Yes. Councilman, quite honestly, the current structure that we're anticipating for the $300 million debt, like all general-obligation debt of the School District, would have various call provisions in it, that should additional funding be received at a future point in time, we would be able to call the bonds early and extinguish the debt at that time.
And whether those call provisions are five, ten, fifteen years out, that's part of the negotiation process where we're looking at what the market actually is looking for, but there will be call provisions in the (inaudible). 133 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
Okay, great. Dr. Farmbry, I just wanted to reference your testimony. On , you talked about the SAT-9 results, and although, you know, we've continually heard that generally, our test scores are improving, but in your actual testimony, it seemed somewhat inconsistent. You talk about, let's see, in Grades 5, 8, 11, we increased the math, but Grade 5 declined in reading. Let's see, in '96 to 2001, the scores went up in 3, 4, and 7, and then hit a plateau, and then it continues on with somewhat inconsistent results. First of all, when we do the analysis, what do we determine and how do we determine what we should do as a district to improve on those scores? Do we develop any sense of a pattern that gets us in -- 'cause it seems like there's no pattern in this particular result.
Yes. Actually, when I say that we've been improving, I may be basing it on the baseline of 1996, because there has been improvement if you look at that baseline.
Mm-hmm. 134 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
The pattern that we have been seeing is that in our middle schools and our high schools, those are the areas, or those are the grades, where there seems to be the most slippage or the most plateauing. And I guess it's the whole situation of, you know, you reap the results of what you have focused on. We have not, as a district, strategically focused on middle schools and high schools with the same level of depth that we have at the early grades over the past few years. You know, we intentionally front-loaded, and now we are putting into action plans and strategies to really focus on middle schools and senior high schools 'cause the reality is that those students who have really benefitted from a more rigorous K-through-4 experience are now entering middle schools with a higher level of skills, so we really do have to upgrade teacher professional development in terms of teachers' capacity to deal with a very different type of middle school and high school student, because they are getting a student who is much higher skilled. But for about six years, it was really 135 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS not a real focus on high schools. We have in the past year really beefed up that focus. High school principals have not met as a group by themselves for about two or three years. They are this and are developing strategies and really looking at similarities and differences across sites. So I think it's a strategic way of coming to grips with the reality that this segment of the population really has not been focused on for a while, so we have gotten the results where we have been focusing, but we have not at the middle and high school level.
Thank you. One last question -- I'm speaking before my minutes are up. You referenced the Ferguson School and its achievement in terms of its attendance.
In terms of test scores, is it reflected that the test scores have dramatically improved as the attendance has improved?
Yes, yes. At the Ferguson School, the test scores and the attendance have 136 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS improved. When several of us had made reference to principal leadership and principal commitment to not only maintaining a safe environment but also moving beyond safety, 'cause some people will say, you know, it's not safe enough in here for me to do anything. This is a principal who has last looked at her building not only in terms what has to be in place to really make it a safe environment, but then how are we also going to keep focusing on the instructional agenda that we have. So Ferguson has a dynamic principal who really does have a very strong community support base and parental involvement, so she is really making strides at that site.
Yeah, I'm familiar with it 'cause it's in my district and that's why I asked that question. She's a good principal.
I do need to talk to you about an issue around the periphery of the school at some point.
I was just handed a list of questions by my trusty staff, but I 137 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS understand that I have to wait for the next round.
Excuse me, Councilman, you have to wait for the next round.
Thank you. Dr. Farmbry, since we're on this topic, how can a high school -- if children are being better prepared to go into high school, middle and high -- and, in fact, there was a teacher at Parkway that recommended to me about four years ago that there should be just a whole section that just deals with high schools because she thought that was really being missed under the cluster system and some other reason -- I can't remember all of the details now, so I'm really glad to hear that the School District is focusing in on middle and high schools. But one of the things that a couple schools in my district has done is cut out magnet programs, cut out star classes -- I call 'em "star," you know, I know that they're the advanced and I don't know what they call 'em now. What do they call those?
We have lots of 138 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS designations and we are looking at what does a designation really mean? And if you're going to say that you're in a star class, what makes that class more rigorous than an already-rigorous academic agenda? So that if are star, you truly are getting something significantly different. We are trying to limit the number of designations that there are to perhaps just having AP and honors, as many of our suburban districts just have those two classifications above the regular academic program. The other issue around "star," "rapid," any other designation is one of consistency across the City, is the course content of a star class at one school as rigorous as a star class at another school, and that in some settings, students are getting point differentials on their cumulative averages, so we also want to look at what's happening in terms of grade point averages. If you're at a school where there is a different weight assigned to a class by virtue of its rigor. So we have -- that's our next area of exploration. With the high school principals we have been meeting, it's really looking at our range 139 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS of courses, trying to narrow the designations, and making sure that they are equally rigorous across the City.
Okay. Because I would think that lack of a star class or honors or AP program, some children don't want to go to the magnet school, they may just want to go to a comprehensive high school, but then if they get there and, you know, it's maybe -- well, if all of the courses, if all of the classes are rigorous, you know, that hopefully focuses their attention and it will keep 'em there, but if they want just a little bit more and it's not available in that school, I would think that that's a problem. And you know that I know that at Martin Luther King, you know, one of the teachers there has really, really, been upset that all of those star classes and whatnot have been taken out of Martin Luther King, and I just had never really understood the reason why.
Thank you. 140 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
Mr. Nevels, you speak about cutting 325 positions and without impacting on classroom instruction and classroom functioning. Could you give us a rundown of where these 325 positions come from. And instead of reduction, would you agree also that every school across the City in the classrooms, every teacher is in need of resources? And that we have, for instance, at my children's school, there hasn't been a steady music teacher, and we have an itinerant actually language professor. Would you agree that probably this -- that it is desirable to stabilize programatically classroom instruction and add monies for that -- for those type of functions at the local school level?
So instead of reduction, instead of getting rid of $25 million, because we do have a need in terms of it, why if these positions are totally not needed and they are redundant -- and I would like to know how many of those positions that are in the 325 are redundant 141 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS spelled out, which ones have some other function -- why then don't we direct the $25 million to the local schools in order to secure smaller classes and other of the reforms that we -- educational, instructional reforms that we actually need?
Councilman, first thing: We will give you the details of where those reductions in staff will be made, and we'll get that you as soon as we possibly can.
Okay? Then the other part -- because you're eliminating, you see? And in a system that, you say, is ailing because of the lack of resources, we're cutting $25 million instead of redirecting $25 million to the classrooms, so I don't know how we can in one point say that we're ailing because we don't have enough money for instructional activity, but we're going to cut $25 million. I could see getting rid of positions that are not necessary, but that $25 million could be put to instructional use. 142 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
Councilman, I don't disagree with you in that respect, but with all due respect to you, I must tell you that if you have an ongoing deficit, you eventually, as a business -- and this business is no exception --
Well, I understand we have an ongoing deficit and we plan to borrow our way out of it, but you are talking to me about not impacting on instructional classroom activity, and it seems that if you don't redirect that money, because obviously, if you're getting rid of redundant positions at 21st and the Parkway -- and Goldsmith and I spoke at length about some of those positions at times in which principals and teachers were taken from the classroom and put in the Parkway. If we are getting rid of them because they are not needed, they're redundant, they're deadwood, they don't serve a purpose in terms of the educational process, fine. But we do need $25 million to then be redirected and taking those individuals that could go back to the classroom to inject them into those classrooms and those areas at the local school level, where they are needed. 143 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS Because I understand about this structural deficit, and we're not dealing with a structural deficit; that's the whole point. We are not dealing with a structural deficit because we're not look to go get out of it. The train of the structural deficit, like you said, we will borrow $300 million. I just want to know, what is the rationale, the instructional rationale, in the term "reform"? Because to me, reform means instructional reform. To me, if we're dealing with schools, reform means changing what happens inside the locked doors of a classroom, and I can't see why we cannot redirect that money towards that.
Councilman, first, those funds can be redirected, but you have to have an ongoing business, an ongoing district that is operational. Let me tell you what my vision of reform is. Reform, in my opinion, is a host of choices of great education in charter schools, in traditional improved public schools, and community partnerships. My vision is not what currently exists, in which individuals are not -- are testing below 144 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS basic. What we have now is totally unacceptable, particularly among our lower-performing students. And the consequence of that is, we are utilizing triage and going to those children first and putting into place as many opportunities to buoy them up as we possibly can. We are not serving those folks, and there is no denying that that's what this reform is all about.
Dr. Nevels, I don't think anyone is saying that the status quo --
You're asking what reform was, and that's what I'm saying, because the status quo among those children is not acceptable.
No one is saying that, no one is saying that the status quo is acceptable. I just don't see --
But, Councilman, with due respect, you asked me about reform, about what the educational reform meant --
But what I don't see is where the resources are going to come, because 145 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS everybody can talk about "my vision for public schools is great education"; that's a rhetorical statement. Unless I support my vision of public schools as great education with teachers who have been trained very specially and specifically, classrooms that don't have more than or kids, 9 computers and books, and so on down the line, then 10 that doesn't tell me, see? That's supporting that 11 great education statement. 12 But I'll -- I'm running out of time, and 13 I just want you to think about my next question. 14 What role, if any -- what role, if any -- 15 is Edison corporate structure going to play in the 16 management implementation of any plan, structural 17 plan, structural plan, that you come up with in 18 terms of how you're going to divide the public 19 school system? 20 And if not Edison, is there any other 21 company of the same sort of viewpoint, privatizing, 22 Beacon, whatever other company, is going to play in the management of the public school system of Philadelphia? And whether any of these positions that 146 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS have been labeled "redundant" by Mr. Doosey and yourself are going to be filled with personnel from any of these corporate structures. Is my time up, Madam Chair?
Thank you, Councilman Ortiz. I have a couple questions. First, I do want to say that I think the graduation rate for twilight school is great, 90 percent, that's really great, particularly since so many of the children that end up in twilight school are at-risk children. I guess the difference is, they just want to be there, they chose to go to twilight school rather than day school, and it's working for them.
Yes. These are students who have actively chosen to go to school from 3 to 6, either because it fits in better with their schedule by virtue of any other kinds of responsibilities they may have during the day, or 147 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS because by virtue of the twilight schools being smaller, there are, I guess, less distractions.
So some students who have gotten to the maturity of being able to say, "I could do this if only I weren't around my friends," or "if only I were in a smaller, more contained setting." These are the student who go to twilight school and who do well.
I was really surprised at the graduation statistics. I think that's great.
Mr. Nevels, I have a couple of questions regarding the reduction of overtime, and could you explain to me what SVP-supported overtime is? I'm looking for my paper here. Reduction of overtime versus pre-SRC. now SVP approval on exception basis only.
That is made reference to by my colleague Jim Doosey. Prior to this time, overtime could be approved by line managers. What has happened now is a request for overtime has to be 148 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS approved by a senior vice-presidential level.
Okay. How does that impact the everyday school day? Sports, does that mean coaches -- I mean, what does it mean exactly in terms of school-related activities?
I think in terms of school-related activities, for example, if there was a member of the clerical staff that is outside of the collective-bargaining agreement, that that individual would have to have approval of an overtime decision at a principal or a higher level.
Because maybe a couple years ago, I was talking to a principal regarding school councils, and they said that it was pretty difficult to find staff, teaching staff, or people that were interested in working with school councils because they couldn't get overtime in order to do some of the things that they had to do. I guess the reason I want to know the answer is because I don't want the lack of overtime, the lack of someone's ability to get overtime impact their ability to work on some of the extra things that we need. I mean, even if we get -- and that would be -- I don't know under your reform plan 149 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS whether you'll still have school councils, but --
But those are important parts, I think they're important parts of school management, so that's why I was wondering about this overtime.
And would that come out of the school's budget or just the overall budget?
It would come out of the overall budget. I mean, let's look at it that way.
Okay, all right. I'll come back to -- I had some questions about the reductions also, but Councilman Ortiz asked that, and I'll probably just wait until he does his follow-up. Also I'd like to know, when we talk about allowing children options with charter schools and whatever, has there been a report yet on charter 150 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS school performance here in Pennsylvania, and specifically Philadelphia? I don't think I've ever read anything that talks about the overall performance. I mean for years, people have said they haven't been around long enough. And do you know if there's been a report?
Whenever charter schools are up for renewal, we do an evaluation of their scores. We use the -- we look at their SAT-9 scores, we look at the District SAT-9 scores. The SRC did, at its last meeting, announce that there would be a process put in place to do a deeper analysis of the charter school progress. The issue that we had been facing, as senior staff in the District, is that we have 264 schools under the umbrella, you know, our traditional umbrella that we feel is really testing the capacity of everyone to keep up with in terms of analyzing progress and suggesting reforms. So we do need probably additional resources to take on the charter schools, 'cause it does then compound everyone's already-heavy load. So it's a need that's there to really do a rigorous 151 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS evaluation of scores of charter schools, of resources and so forth at charters schools, but right now, it's a process that no current staff has been able to do by virtue of looking out on 264 schools.
I actually thought the State did the review of the charter schools; that's not true? I thought the State evaluated the charter schools.
The State does an evaluation, but then we also, at the time of renewal, look at our data in-house as well.
Thank you, Madam Chair. Chairman Nevels, in response to an earlier question, you made mention of a document that had been developed last May. And you referred to it, I believe, in general terms as a "financial road map and a plan." Can you provide to us, through the Chair, a copy of that document? 152 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
Certainly, and that's referenced as the "School Workout Plan."
Okay. Mr. Doosey, I took down a comment that you made earlier that is a part of your testimony where you said that this was either actually -- or "an attempt to return to fiscal sanity." And I took that down and then I wrote in parentheses next to it. Based on what's in front of us, though, it would leave one with the impression that this, for the moment, is just a continuation of fiscal insanity. We have a plan that gets us through, I believe, two fiscal years; is that correct?
It's actually a little bit of the -- cash flows are being finalized; it's actually three and a half, but it's still a relatively short period, yes.
Well, let me ask this question: Do you have another, other than the numbers that are listed in your testimony, a Five-Year Plan at the moment?
I'm in the process, and they'll be completed tomorrow, five-year cash flows, 153 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS but as far as a formal Five-Year Plan, where I can say to you that at the end of five years, there is not a deficit? No, I do not.
Okay. And is that because in your testimony on -- the pages aren't numbered, but I think 3 or 4, you say that after listing a whole list of -- after listing a series of changes or anticipated funding, your testimony says, "With all of these changes, we anticipate ending 2003 with a deficit of $56 million, not enough to balance the budget but a material and necessary additional step. For 2004, of the $300 million the District borrowed, only 115 million will remain." What did I not see here was, what, if any, is the projected deficit for FY '04?
The projected deficits for FY '04 move upwards from $56 million, and that is part and parcel of the cash flows that are now being finalized and that we'll have available tomorrow.
I'm sorry? 154 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
Implicitly, with deficit positions at the end of each fiscal year in the near term, you will be using the $300 million proposed long-term debt --
Right. So what's number at the end of FY '04, including the use of the deficit financing $300 million?
Including the use of the deficit financing and the current numbers that I have, if you'll give me a moment, I'll pull them. It is.... For Fiscal Year '04, is your question? Let me restate -- make sure I understand. You're looking to understand how much of the 300 million 155 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS remains or how much is the annual operating deficit for Fiscal Year '04?
For Fiscal Year '04, the current annual operating deficit is projected to be 94 million, which would mean that of the 300 million that is borrowed, approximately $20 million would remain. However, they're very preliminary numbers.
I thought the operating deficit number was 96 million?
All right. And so 156 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS what's the FY '05?
See, you technically end -- based on your numbers now, you technically end FY '04 with a $21 million surplus.
In FY '05, the negative trend continues because of the acceleration of the uncontrollable costs, and due to preliminary numbers, the operating deficit would be 123 million.
110 in a deficit position for Fiscal Year '04, because the $300 million funds no longer exist, so you'll be back in a structural deficit position. 157 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
Hold on for a second. You had $115 million left over from the 300 in FY '04, and you had a $94 million operating deficit, correct?
All right. I thought that left us with a $21 million surplus.
Okay. For FY '05, there is a -- it's projected, on preliminary numbers, to have a $123 million deficit.
Which would leave you in a structural deficit position, round numbers, $100 million.
Okay, all right. I'm 158 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS just checking; I'm not saying that I'm any better at math than you are but...
Well, we will not get into a comparison of high school or collegiate records at this point. I have my job, I've been able to maintain it for sometime, and I'm going to rest on that record and not get into an examination of math skills from high school. The chairman said earlier that if asked to advise a client with regard to this proposal, that he would feel comfortable making the recommendation that there was a significant and, I think in this particular case, credible caveat, which is, there's been a lot of discussion about a comparison between the City's deficit financing from the early '90s and the road map that we took to get to both balanced budget and now surpluses. But we were able to demonstrate, both on paper and reality, that within about a four-year period of time, there actually would be a balanced budget, and there was a plan that would result in that. It was clear, it was known, it was 159 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS understood. Your testimony here today is, We do not have that particular component and that at the moment, there is no plan that shows that. Is that correct?
That is correct, and specifically because the School District does not have the ability to raise taxes on its own, whereas the City does.
Now, I understand that. I think we did not raise taxes at that time; there was an increase in the sales tax. So what is the plan?
The plan, quite frankly, is to -- since the SRC has been in place for less than 90 days, the plan will be developed over the next 12-month period.
Let me ask this question. The current payment schedule or the current proposal is -- this is my recollection. At the tail-end of the summer of 2000, to fund a $25 million gap in the contract that was negotiated with the teachers, the Mayor offered $25 million to help solve that particular problem. 160 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS I believe in the winter, early February, of 2001, the Mayor made commitment to the Governor at that time for $20 million to help with the School District's current financial situation. Council actually approved those dollars and, for a variety of reasons, the bill was vetoed. We're now back with a new $45 million, which is really the old $45 million for this current fiscal year -- we are now in 2002 -- plus $300 million deficit financing to be funded by a $25 million shift in millage from City real estate to School District real estate, and an ongoing commitment of $20 million direct to the District. That is the 45 million ongoing commitment; is that correct?
Tell me what has 161 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS happened, from your perspective, over the past two years, if not all of the previous years, when it was crystal-clear that the School District has been experiencing fiscal distress for many years. Tell me what you think is going to happen different in the next months that has not happened in the last 8 27. 9
With all due respect, I 10 cannot comment as far as a perspective previous to 11 the present period because I was not in my position 12 at that point in time and was not a part of the negotiation.
Well, I understand that, but you're in your present position now. So what I want to know is, what do you think is going do happen differently now that has not happened in the past that's going to resolve this particular situation?
I am hopeful that the difference is that there is a commitment now on the part of the Commonwealth to actively be a party to solving the problem long-term. And I frankly think, and I stated this in my comments, that it is only with the help of the Commonwealth and the City 162 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS acting together that the problem can be addressed at all.
Well, tell me this: What would the City and State have to do to eliminate the structural deficits and to fund the schools adequately?
The City and the State -- well, it's the -- what will be necessary at some point in time is additional revenue, will be a change to the funding process statewide, which would address the formulaic problem with the basic educational subsidy, as it is currently implemented by the Pennsylvania Department of Education, and may also require a review of charter school funding.
You said you need a change in the formula; I asked you, what would that change have to be?
It would obviously be a change to generate revenue that is sufficient to eliminate future deficits after -- 163 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
I'm asking you in a more specific and direct fashion: What, from your perspective would have to change in the elements of a funding formula to get to reform and adequate funding for this school district and for the other 500 school districts in the Commonwealth?
Let me -- if I could address that. Councilman, this has been a public- policy issue discussed in a host of jurisdictions, not the least of which, Wisconsin, New Jersey, and otherwise and in others. One of the things that one can do is to look at a particular dedicated revenue source; there have been those throughout the country. However, in terms of trying to determine, for example, where a tax will be levied, that becomes incredibly complex, as it has an effect on the different parties involved. Now, one thing that we do know for sure is that when the calculation, the formula 164 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS calculation, was revised by the Commonwealth, there was a direct measurable impact. I know I remember, for example, in Chester Upland, that created a real systemic problem. So in terms of when you ask the particular -- what the particulars are of a formula, we could certainly explore those with you, but at the current time right now, we don't have a specific notion. Now, there have been a number of different things placed out there that could be -- I mean, a corporate franchise tax, any number of things, but we can't endorse that without knowing the big picture from a macro-economic point of view of how it impacts businesses and how it impacts others. So we're prepared to work over the next three years to engage in that discussion, and Dan Whelan and I have engaged in that discussion as members of Greater Philadelphia First, who have made a proposal as well in terms of how that funding proposal and formula might be structured.
I guess the primary purpose of my question was to try to move along 165 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS those items from a discussion stage to -- if there's ever going to be a change, then someone's going to have to think about what that change should be, propose it, and start working on it, at least as a fundamental basis or vehicle, to having a change happen. So, I mean, I'm sure that the discussion is a good one and it's a necessary one, but at some point in time, something concrete and realistic has to be put forward, and I was trying to understand, from the District's perspective, or now the SRC's perspective, empowered by the State to do certain things, a partnership having been discussed, the individuals involved have put their names and reputations on the line, and it seems to me that at some point in time, someone should actually listen to what you have to say, at least take it as valid information, and put a plan or proposal out there that says, We think that this can work, not only for us, but for everyone else. And it will either get saluted, it will get shot, or somewhere in the middle, it will either get massaged and turned into something. Short of that, I don't see at the moment 166 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS how we get from where we are to any level of fiscal stability if we do not have even an idea of what gets us that final component that you, Mr. Chairman, pointed out so appropriately, that we can't show a five-year balance sheet with legitimate fiscal stability. We cannot do it. And if you just say, Well, and we hope that it will happen, I mean, people have been hoping for a whole long time. It has not happened. And I'm just trying to understand what's going to make it happen, especially in the context of, We're relieving the pressure to some extent by putting forth this particular plan.
Councilman, I believe we have to face the reality of what the Commission is currently confronted with, and specifically, we are looking at making some changes and organizational changes. And we are acting without a CEO, and we are acting, frankly, as five operators of a business, five managers of a business. I can assure you that with the likes of Sandra Glenn, the financial expertise of Michael Masch, a modest amount of financial acumen that I 167 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS have, along with Jim Doosey and Dan Whelan and Jim Gallagher, that once we have a CEO in place, we will reach a consensus on this. And we will take a show on the road and do this in a very systemic way, going to business constituencies and stating what we need to have happen over the next several years, going to the legislature, coming to this body. And in fact, I'm going to invite you to accompany me on the rounds that we make to galvanize the opinion that is necessary in the communities and elsewhere so that we can move this forward.
Mr. Chairman, that could only get you in more trouble, so --
Well, let me ask you this one last question, 'cause I'm sure my time has already expired. You mentioned earlier in response to one of my colleague's questions, and I took this down, but I may not have written it correctly. You mentioned that when you arrived, there was no 25 reconciliation -- did you say "statement" or 168 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS "document"?
And why was such a document not available? And do any of the people that were there at the time still work at the School District?
I guess your question becomes, why didn't it -- it was physically in a number of different places and not brought together. (Addressing Mr. Doosey.) Do you want to talk about that?
If I can clarify. The District's prior policy was to compare budgeted to actual expenditures on an annual basis at the point in time when the books were closed, each June 30th. That analysis was done on a 169 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS fund-by-fund basis; for example, operating funds, food-service fund --
As opposed to on a monthly or a quarterly basis, unless it was opposed to on a functional basis. An example would be, you, as a division executive, are indifferent as to whether or not your positions are funded from an operating budget or a categorical budget; you're looking for an understanding from a financial perspective of how you're doing at various points along in the year. That document was not available upon the SRC's arrive.
I just want to add a little bit to this to make it clear that -- I mean, this -- this is a problem that the last school board and last administration understood also. I want to remind the Councilmembers that in January 2000 and basically in the year and a half leading up to January 2000, the prior school district administration selected a new suite of financial applications and implemented them in late 170 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS 1999 because the old financial applications were not Y2K-compliant, and that -- and the implementation of those new systems --
This is -- public knowledge was not the most successful implementation ever. And so we're still recovering from that today in terms of being able to deal with the very flawed implementation in December '99. And over the past two years and now in this administration -- and in the new administration now, we are still not there. We do not have financial reports for managers that let them see year-to-date actuals to budget, the way you'd expect in an organization of this size and complexity.
All right, all right. Well, I would say at a minimum, by the time we're back here a year from now, absolutely. And I would hope before that, but I don't want to over-promise. 171 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
Councilman, quite frankly, we need to have that in place by the end of the current fiscal year.
Yeah, I mean, I was going to say, you know, between the yogurt and the water, I mean, I've really tried to take a little bit of an edge off of my little situation over hear once the noise stopped coming out of the speakers that nobody else heard. I mean, by this time next year, it would just generally be unacceptable. I mean, I can't even get exercised about screaming at you about that because it's so blatantly obvious that, I mean, it's not even worth the energy. So let me hear that date again?
Councilman, from my -- my current plan, frankly, is that that needs to be in place by the end of this fiscal year, this June 30th.
We can't wait a year to have that type of basic financial control in place at all levels of the organization.
I mean, I don't know 172 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS how you could have a legitimate conversation either with us, with Harrisburg, with anybody that might be thinking about buying a bond or anything else from the School District, the SRC, or whoever's going to float of piece of paper out there if you can't tell 'em how you run the operation. So it's June 30th is the goal?
Madam Chair, I have other questions. There may be other members who do too, so I'll --
is there any way we can indulge a brief recess, until the sound comes back?
could we just have five minutes? 173 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
Council will be in recess for ten minutes. (Break taken.) (Proceedings resume.) - - -
The committee is now back in session. Councilman Rizzo, I believe that you were about to ask a question.
Thank you. When the first round expired, you were talking about the fact that it has been announced that there's going to be a $25 million reduction based on 325 positions at the Central Administration? I'm assuming that it's all of the central headquarters. And I asked about -- well, let me backtrack for a second. We had an opportunity to have a private briefing this past week, Chairman Nevels, and I think I expressed myself as clearly as I could at that time, and I'm not going to go back 174 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS over those same issues again 'cause I've already done it once, and I don't want to do it just to do it again in public, 'cause we were in a private environment. But a few issues that people want to know and constantly talk about, they understand the importance of the cuts at the central headquarters, but they're also concerned about the way the business is run, the way the light bulbs are put in, and how often we do it, and how we buy these things, the central purchasing, and the way we fix our vehicles, and how much money we spend to do it, and do we have frills over there that we don't necessarily need. And I asked you to identify maybe the top three areas where we could say to the public that they're going to see some change. Are there going to be fewer school buses? are the routes going to be better? are we going to downsize the size of a vehicle that carries 15 students versus a bus that has the capacity to haul 40 people? Again, I'm just talking about some common-sense things that need to be done over there. And the reason you're experiencing the 175 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS frustration from me is that of all of the years that I've sat in this chair, at every budget hearing we talk about certain issues, and everybody shakes their head "yes" in concert when they agree that there's something that needs to be done. And then you sit back, one month, two months, three months later, and you start to check to see if anybody really listened, and you find out that the first year, nobody listened, but they shook their heads "Yes, we're going to take care of that." The second year, the third year, the fourth year, the fifth year, the sixth year, the heads were still shaking and the same heads are still the ones doing the shaking that say, "Councilman, you're right, we shouldn't have this, we should do this better." But the next year, it's still going the same way that it went. So you're a victim of an environment that's not a good one, because we had people that yessed us to death and did nothing. So I'm hoping that you're going to shake your head and do something, because we really need to see a significant change, and the people that pay the freight need to see a significant change. And 176 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS that's why we're -- at least I'm acting today, and it's not normally my demeanor, but I am really frustrated to the point where I don't believe the people that have been shaking their heads, and I hope that we can believe you and the School Reform Commission, that there is going to be a change. Thank you, sir.
You're welcome. The Chair recognizes Councilwoman Brown.
I have one comment and then a question. I just received from a colleague, not in these chambers, Keystone Research Center is a Harrisburg-based, non-partisan think tank and a leading source of analysis of Pennsylvania's economy and public policy, and they've most recently indicated that -- I do know that Councilman Angel Ortiz posed questions about Edison, so I do want to put this on the record as a follow-up, that Edison produced a report claiming, and I quote, that "maintenance and operation costs in the Philadelphia 177 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS School District are exceptionally high," and then it provides back up. On its face, that may be true, but the Philadelphia School District was compared to other rural school districts and not with other like-urban school districts around the State or the country. So I would only fiscal ask as you go forward in making the critical decisions about who the school partners will be, that you will factor in information like that, that is produced by non-partisan third-parties who give us additional insight on what the partners are doing or are not doing.
Earlier during the budget hearings process, we heard a lot about the Beacon Schools. We in the City are excited about this new model, which is new to Philadelphia, but not new to cities like New York City and San Francisco, where schools are the anchor, if you will, or the beacon for the after-school programs. You well know that there's still 100,000 young people not serviced in after-school programs, 178 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS and the City has been lucky to secure a grant that will provide $450,000 to each Beacon School. Their success is, in a large way, tied to the Philadelphia School District. So I would like for to you share with us at this time where you are or where you stand with the Beacon Schools. Is the School District committed to being the partner that it has to be for these to work? How will they be implemented, and when do you see Beacon Schools actually becoming real within the School District?
Thank you, Councilwoman. At the moment, Beacon Schools issued a public press release that they would be operational April 1st. There are a number of business issues that are outstanding, and the School District and the City, as conduit for the Beacon Schools, are negotiating the following issues. Number one is the issue of legal liability.
Legal liability. The beacons are third parties. Any third party that utilizes a School District premises is required to 179 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS post a certificate of insurance naming the School District as an additional insured.
That's something that the Beacons are working on with the City's help. The second issue would be a contract between PHMC, which is one of the agencies of the City and the School District, which would lay out permitted uses in the buildings, what each of the Beacons would be required to commit to financially. We have not yet received the first draft of that contract. It is my understanding that the City Solicitor has various concerns as far as the format of that contract, and it is a issue which may delay the implementation of the Beacons with an April 1st start date simply because School District Council hasn't even seen the first draft. The last item on the list is one of cost, where even where though the Beacons have received grants, the amount of funds that the Beacons have proposed to pay to the School District for the use of the facilities is short of what our internal cost estimates are for the cost it would be to open up schools that would normally be closed during the 180 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS summer and to keep open on the weekend schools that would normally be closed. And the parties are working their best efforts to try and close that gap to come up with a cost arrangement that everyone can live with.
You say that the first draft sits in the City Solicitor's Office?
What we have received the first draft of the proposed contract from the Beacons. What we have received is a memo -- a memorandum of understanding for what they propose the relationship to be, and our legal counsel has commented on that and returned comments back to them and the City Solicitor.
What I do know is that the Beacon Schools are prepared to put $6 million in the School District, and so the question becomes -- that is not true?
I'm not saying that's not true; I don't know the source of the $6 million number.
Okay, and 181 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS so not knowing the cost or the number that Beacon is prepared to put forward, of course, you cannot comment on how much the School District may or may not be charging.
The School District has committed to the Beacons to charge a fixed price per facility, simply because the scope of the Beacons, what they're going to provide is open, and also an acknowledgement that the entire Beacon concept is to the betterment and to the benefit of the children. What we do not know and what we've asked the Beacons to quantify for us is the hours of operation and the scope of operation: Is it a primarily summer program; is it a year-round program; will it be primarily just Monday through Friday after hours during the -- I'm sorry, during the remainder between now and the school year, which we would probably not charge for since the buildings would be open. We're trying to quantify what the true scope on a facility-by-facility basis that they're planning on providing. An easy example might be if there's an entity out there that is proposing that they will, I'll say for the summer, use the School District 182 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS fields and only require to have the facilities open for bathroom facilities, of course, we wouldn't charge them for that. By the same token, if they are proposing use of classrooms on a year-round basis, 7 including a period of time when the school would be 8 closed, we would need that information to be able to 9 calculate what our cost is and then work with them 10 on a discount from that cost so that we can work out 11 a pricing structure that's acceptable to both sides. 12
Okay. We fully recognize that you, as the financial wizard, has to watch the numbers. I'm concerned about the level of commitment from the School District to make the numbers work in such a way that we could take advantage of the substantial grant that has come to the City to benefit the lives of 100,000 young people. So I'm asking the leadership to speak to the level of commitment, knowing that this is a rare opportunity for our city and knowing research has already spoken to the success of this model in New York City and San Francisco.
The Commission is committed 183 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS to the concept. We just learned of it just a matter of months ago, early on in the year
However, as a financially distressed district, we've got to make sure -- you made reference to a $6 million grant, and obviously, we would welcome that, but we don't know that to be the case. So we're confronted with making a determination as to the cost of facilities and the period of time when normally expenditures would not be incurred. So absolutely, we're committed, we're endeavoring to -- we're waiting for the draft of the document, of the legal document and contract, and we'll move expeditiously, but we will not expend monies without the appropriate reimbursement.
Councilwoman, I'm sorry, I think the $6 million might be the gross grant.
But that amount would also have to account for all of the Beacon staff, all of the Beacon operations, the agency's own costs. 184 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
The amount that has been proposed to the School District by PHMC and by the City is significantly below that. I mean, it is less than $1 million.
Okay. We do have different information, so we'll have to wait to make sure we are all on the same page with regards to --
And to the extent that you may have some information that we don't have, and in tandem, take a look at this matter, because obviously, I think it has great merit.
I'm more than willing to do that. I am paying close attention and would be happy to serve as bridge or a facilitator to make sure that those who are responsible for the entire RFP process and the awarding process sit with you. And I think, too, we may need to have a 185 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS representative from the City Solicitor's Office at the table as well, 'cause I was actually under the impression that the holdup is in the School District, and you have informed me otherwise. Very well.
You're welcome. The Chair recognizes Councilwoman Tasco.
Thank you. I'm trying to find a part in your testimony that speaks to the issue that you would be working with partnership schools, charter schools and --
And traditional. Are the partnership schools these nonprofit schools that were listed -- tell me, I guess in the Daily News, there's a list of people who want to help broaden the schools. Are these some of the nonprofits that you were talking about 186 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS in the briefing you had on Friday, talking about creating some initiatives with nonprofits? Who are the nonprofits you're talking about?
I haven't seen the copy of that newspaper, but the process that we're utilizing in terms of the community-partnership schools is that we have an RFQ out, and there have been respondents that would include certain nonprofits and universities, as well as private entities. And I believe there's been a list of those published.
Okay. What would the nonprofits be responsible for? Would they have to, in their administration of the schools, deal with all aspects of education, particularly special- education students?
In the case of the community programs -- and I think that's what you're referring to -- there could be a number of services that could be provided, and that's one of the things right now that the Commission is working on in terms of -- with its -- its consultants and advisors to determine what that role would be. For example, it could involve community outreach in terms of the solicitation of parents and 187 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS children that come to schools that are operated by a nonprofit or private provider. The additional -- there are other additional factors that could be actively involved in participating in the educational program, but outreach, direct involvement in the educational program, and anything else that the partners, if you would, would agree to in terms of the functioning of those schools.
The -- wouldn't they be responsible -- if they contracted to manage a school, I guess that's what this would be doing, right?
Wouldn't they be responsible for the ongoing concern? As the school presently exists, they could not turn way special- education students, they would have to deal with students, as we looked at yesterday in the paper, who have delinquents returning to school. I mean, do they get the cream off, and send the special- education students and the problem students someplace else, or do they manage the school as it presently exists?
They would manage the school 188 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS as it presently exists, subject to all of the rules and regulations. For example, you can't turn away special-education students. They would have the same functioning. There would be an application process possibly. They would be located in a given vicinity. And parents would opt to have their children attend those schools.
What's the incentive for a partnership to operate within the system if we're not going to provide any additional funding? Where do they get their funding from to run the school? There has to be some benefit for them to want to manage the school, and I'd like to know, if we're not going to provide additional funding to them, what do -- what do they get? What does it cost us and what does it cost them?
The incentive for the involvement of anybody, whether it be a nonprofit or if it is a private company, the incentive would be to have certain things in place. And what I mean by that is, for example, if you have a charterized environment, that's one of the great things, Councilwoman Tasco, about the legislation, which is 189 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS that it allows for independent school, it allows for different types of schools that allow different staffing. So, for example, you might have fewer teachers that are covered by the collective bargaining agreement, and that would afford potential, possible opportunities for savings and would incent [sic] the involvement of a partnership group to, if you would, beat the pavement to try to get folks involved.
Well, I don't know if the partnership schools are going to be relieved of the relationship with the union.
Are you inferring that the one way the partnership grouping would have a profiting from their relationship would be to obviate the bargaining, the collective bargaining agreement?
That's not what I said. 190 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS What I said was the -- under the act, there are several categories of schools that are not in any other legislation, and they include reconstituted schools, independent schools as well. And that's what I'm referring to.
Let me just give an example. The Martin Luther King cluster, we know there's an interest by State Representative Dwight Evans to manage that Martin Luther King cluster. What does that mean in view of what you just said about collective bargaining? Wouldn't those schools still be a part of the collective bargaining agreement related to the schools? Those people, would they still not be employees of the School District?
So if they're employees of the School District, then they're still subjected to the collective bargaining, unlike the charter schools. The charter schools are like independent schools, and I don't believe they have a labor union relationship in some of them.
In some of them, they do; in some of them, they don't 191 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
But the partnership schools are the schools that these individuals are asking to manage. And what is the incentive of managing the schools if we are not going to give them additional funding? And what do we get?
What is the incentive for them to manage the schools?
The incentive for them to manage the schools are to be in a position to provide either through curriculum or other services in a better way --
All right, one of the better ways is smaller class sizes. If they have smaller class sizes, they need to have expanded facilities. Where do they get the money from to operate the schools if we're not going to provide them with additional resources?
In certain instances, you will have start-up costs at the very beginning that will be committed by the partnership schools between the community groups and the provider. There are always up-front costs that have to be confronted. 192 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
So who is going to monitor these partnership schools?
The School District will, and we will do that in much the same way that we would monitor the charters and our own schools.
So what are they promising? That's what I wanted to ask, what do we get? What is the promise by the managers of these partnership schools to the School District and to the City? What do we get? What is so different that they're going to provide that the School District can't provide?
They're going to provide an -- a means of direct intervention in a way that is clear that we're not providing currently, and what I mean by that is --
And what I mean by that is, there are certain providers -- for example, let's 193 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS say that there exists a university group that is located in a certain portion of the City, and by virtue of their educational -- their graduate school of education, they can do recruitment very effectively and get teachers to -- young teachers to stay in that area. In addition, they have the power of their endowment to --
Well, why can't we do that? What's wrong with us doing that? Why can't the School District do that?
I would that hope at some point, we would be able to do that.
What track record do these people have in doing all of that?
It is a young Industry, Councilperson,and I don't deny that, but there are certainly college and university groups that do have the experience, and there are privatized groups that have the experience as well. We're going to evaluate those and additionally hold them to accountability standards.
I don't understand how it works, and I don't understand why we have to give up our public schools to individuals who have 194 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS no track record in running schools, and I don't know what we get for that relationship.
And that is why we have an RFQ process in place, to evaluate their qualifications and made it -- we're not wedded to making any decisions as to a particular provider.
There are some areas in your briefing on Friday that you have put some RFPs out for supportive services such as teacher recruitment, procurement, principal training, food services, transportation, information technology. Now, the School District is presently -- they do these functions right? They perform these functions?
So you're going to contract this stuff out. 195 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
We didn't say that we're going to contract those out. What we asked is that individual firms come in and consult with us and tell us what the best practices are in respect to these functional areas. We will take those recommendations, and I believe I can say for the Commission that we will evaluate those recommendations and make a determination as to whether or not they should be adopted or not.
So, you're saying that the School District will still perform the recruitment task, but you will be looking at better ways of doing it based on some information provided by a consultant?
We may, depending upon the recommendation of the consultant and the cost benefit of it.
Are the people who I read in the paper, who are going to be laid off, do they fall into these categories?
They do not. 196 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
They do not fall into -- I guess the easiest way to say it is, it's not part and parcel of the RFQ process. There may be reductions, for example, in curriculum support for the headquarters as part of the announcement Friday, but we have not received any responses from any of the providers, so those reductions would not be the result of any of the providers' recommendations, nor any potential outsourcing in the future; they're distinct and separate operations.
So if you decide that you're going to take a -- respond to the RFP on teacher recruitment and contract that job, that function out to a private consultant, what happens to the people in the teacher recruitment department?
They would either be redeployed if they were unionized under the collective-bargaining agreement, or they would be released.
Has there been any cost analysis? I guess you will do that once you 197 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS get the RFPs back to compare whether the cost is more feasible for you to maintain that function or to contract it out?
My term is seven years, and I suspect that at least seven years, given that that's the longest of terms, but I believe that the SRC in this legislation has a life of its own until such time that the courts or the legislature decides that that life should end.
Well, who puts this back together after Humpty Dumpty has fallen off the wall? (Laughter.)
I said who puts Humpty Dumpty back together again after if falls off the wall in seven years? Where do we go? I mean, where are we going to be? 198 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS 'Cause this is just -- the bottom line, there is no real interest in funding the School District, and all of this stuff and all of these proposals, it's just a sham to negate the responsibility of the politicians to fund the School District. And like with Kenney, it's not personal with you or anyone on the Commission; it's just the way I feel because, 'cause I don't think all of this is necessary. In the end, I don't think we save any money; in the end, we're going to spend more money. And it's not going to be with children; it's going to be on contracts, it's going to be on all of these other things that get funded in the process, and children will not benefit in the end. (Applause.)
But it's not personal and you're doing your job; I don't want you to take it personally.
There's a press conference at a school dealing with all of these 199 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS issues up in the Barrio, and I have to go and attend that press conference, but I know that you're going to be here when I get back like in 45, 50 minutes. By the way, one of the things that got me is, I thought we had a very successful recruitment year. I thought our recruitment of teachers was really going in and working very well, that we didn't have to hire consultants for that, because if anything, we have brought down the fact that we're not starting every school year now with 300 teachers less than before, and that during the last two years, our recruitment of teachers has been quite successful, and the in-house people that are there probably are very good, and before you consult, you should look at them.
Okay. Dr. Farmbry, I would just like to ask a question, if I may. Are any academic programs being reduced in the proposed '02-'03 budget?
Well, I see that Latin is being phased out and apparently --
Yes. 200 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
There are two independent items. In relation to programs being reduced, yes, there is one: It is high school Latin as a foreign language, and the budget states the proposal that no 10 new students will be accepted in that program, that those currently in the Latin program will finish In reference to the bilingual --
Kindly speak closer to the mic; we're having difficulty hearing you up here.
I'm sorry. There is one program elimination in the budget that is proposed, and that is to eliminate Latin as a foreign language for high school. The proposal is that --
I don't know, but in my day anyway, if you were interested in going to medical school, you had to know Latin, and you wanted to go into other fields, you certainly had to know Latin. Has that changed? 201 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
I can't respond to either question as far as professional development. It's really a situation where the --
Well, why would we do away with Latin if we don't know what the repercussions would be to a student?
The number of students is small and has been declining; I can get the exact numbers to you by close of business today.
And why are we doing away with the 32 bilingual --
I'm sorry, we're not doing away with the 32 teachers; we are correcting an allocation error in prior years. I guess I should say the bilingual program is not a pull-out program. It is a program where teachers speak native languages other than English are in front of students for the entire day, just as if they're English-speaking teachers. The allocation methodology in the budget in prior years allocated teachers to schools excluding bilingual teachers and then added bilingual teachers in at the end. The impact in prior years was that those schools with bilingual 202 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS programs had a lower student-to-teacher ratio than other schools in the District. What the current plan is, frankly, is it adjusts the budget for that effect so that each school in the District, whether it be bilingual, whether it be English-based, uses the State formula for the allocation of teacher resources.
Would you repeat that. I couldn't understand the last part of it. (Inaudible)
That's okay. The reference to bilingual teachers was, it was inferred that it was an elimination of bilingual teachers, and my comment was that it is not eliminating a bilingual program nor bilingual teachers.
But you're reducing, are you not, 32 teachers, bilingual teachers?
I am reducing the number of teachers by 32 because student counts in the District are dropping as well. It is a pro rata change for students. And it's correcting a process where in 203 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS some schools with bilingual teachers, they had, I guess, what is called "a floater teacher" floating around or an additional teacher in those facilities that was not the same in other districts. For equity purposes, we felt it was important that the same formula be used District-wide.
If I may just respond that these are all proposed at this time because in the proposal stage, we will be looking carefully to see, as you said, the impact of the student's access to other careers or options should certain things be cut out, and also the extent to which any kind of shift would alter the integrity of a program.
How many bilingual teachers do we presently have?
Thank you. Are we going to get that information now or are you going to get it to us later?
I'll get that information to you now, and if you would be kind enough to give me ten minutes or so, I will have that information for you. 204 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
Certainly. And in the interim, the Chair recognizes Councilman Cohen.
Thank you, Madam President. During one of the responses Chairman Nevels had to a question raised by Councilwoman Tasco, he referred -- you referred to the legislation creating the School Reform Commission, you referred to it in a very positive way, saying one of the great advantages is that it offers certain opportunities. I'm not sure what they were, but I have to tell you, I think the conclusion is clear that what Councilwoman Tasco said in her closing comments seems totally accurate. It seems that this whole process is a sham for the purpose of enabling the State to avoid its financial responsibilities, and you are performing those functions, I believe, with respect to the question of the bilingual teachers, the effort was not to achieve equity, but to achieve a reduction of staff members to cut costs. I call to your attention the existence of Governor Schweiker's statement in the proposal he 205 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS presented to Mayor John Street on October 31, 2001. "This is after many months of discussion in which Philadelphians have made clear they feel that the City is being shortchanged in finances." This was the Governor's response on the last page of his official statement given to Mayor Street. It's entitled "The Bottom Line." And what is the bottom line? Are we going to get more money to the Philadelphia schools? The answer is that in Fiscal Year 2002, cost-saving initiatives are going to reduce the School District budget by $5 million; in Fiscal Year 2003, the reduction is going to be $159 million; in Fiscal Year '04, the cost-saving initiatives, meaning less money for the School District, is going to be $207 million; and in Fiscal Year '05, it's going to be $235 million; and in Fiscal Year 2006, it's going to be $227 million. For a total of $833 million. So that what the State is doing is saying, "Philadelphia, yes, maybe you think you need money, but what we think you need to do is to cut and cut and cut." To our plea for fairness with the suburban areas that we compete with to enable us to 206 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS give the excellent brand of education which we've shown we can give in certain areas, but to spread that throughout the whole system instead of giving us the approximately 2,000 to 3,000 more per student, your answer is to cut immediately. You don't care about the problem raised by the President with respect to the impact in admissions to medical schools and, I may add, admission to law school, because much of the law contains many Latin phrases. And what you do is to prepare Philadelphia for just certain kinds of jobs and not to professions. I think you're doing your job admirably but your job is to cut and cut and cut, and not to deal with sound academic initiatives. And my question that I raised with you in the form of a statement, I haven't heard any answers, and I would like to ask you, isn't it true that the State put a cap on the amount of money it would pay to Philadelphia after 190,000 students? Wasn't that cut made?
I ask that of you, Chairman Nevels, because you're coming here and 207 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS indicating you believe, and it's very difficult for me to understand that you could say that, that you believe that your purpose is to improve education, when your purpose clearly here is to save the State from putting in money. Isn't it true for example that you talk about the State being ready to put up 75 million? Well this year alone, you've taken $130 million out of the City's budget for schools for charter schools. Hasn't the amount of money that the City of Philadelphia School District was supposed to get been reduced by $130 million for the payment to charter schools?
I mean, let's be honest in the discussion. These are difficult questions, but the first thing we've got to do is to deal honestly with the facts, and the facts are that the State is cutting money from the school system in Philadelphia, not spending more money, and that your job here, when you talk about fiscal control and fiscal responsibility, is to reduce the budget. When, in fact, what we need are more 208 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS things, you're going to cut Latin. We need much more in the way of language. We need many more bilingual teachers, not fewer bilingual teachers 'cause I think the sole thing that guides you is the fiscal results, and your job is to cut the amount of money that the State is contributing to the City, or at least in the alternative, to limit the amount of additional funding that we get from the State. You ask us to give 45 million for the current year and 45 million for the next year, $90 million, while the State in that period of time only contributes $75 million. Is that true, Chairman Nevels?
That is correct in terms of the agreement between the City and the State.
Well, what is your comment about Governor Schweiker's bottom line? That's the bottom line, that means what we're looking for. That's why the whole program exists, is to achieve the bottom line.
Councilman Cohen, with all due respect, this is not a document that's generated by the School District, and my testimony yesterday in a specific question in the House Appropriations 209 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS was, for the second line item, cost savings initiatives, where are those monies coming from? And I had to answer quite honestly, I did not know, because in my own experience with the School District, what's labeled in here for Fiscal Year '03 is $159 million in savings, and frankly, I can't find it, I don't know where they are.
Where did you find the $25 million savings? Whose great idea was that, that you're going to find $25 million from the present headquarters staff? You don't even know what people you're talking about, you don't even know where making the cuts, yet you're coming in here and saying you've identified $25 million in cost savings. Tell me, what's the cost going to be to the pupils? Have you made this great new discovery yourself and no superintendent before, no financial officer before understood that these people were just living off the public monies? Is that what you're telling us, that they did not contribute to the education of the pupils?
I am unwilling to say to you, Councilman, that there are no instances in 210 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS which there can't be cost efficiencies. I will tell you that an organization that does not have first-rate financial practices is a tipoff to me that there may be other things wrong as well, given my business experience, and I'm relying on that.
Well, I don't know what you mean by "cost efficiencies," Chairman. I mean, it's a very nice phrase to use, but I see it as reducing the programs offered to the children in Philadelphia.
Absolutely not, I disagree you with you, and we will continue to disagree.
Well, when you take away Latin and you take away bilingual teachers --
Those areas, they are the hearts of a modern -- (Unintelligible, parties talking over each other.)
With all due respect, Councilman, there have been remarks about the importance of Latin, the importance in terms of foreign languages. We're blessed on the Commission 211 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS to have an educator who tells us that in terms of Latin and Greek anymore, that it's not required for graduate school. In my day, it certainly was for purposes of going to law school, it came in handy. But what we're talking about are circumstances where there are fewer and fewer young people taking those -- taking that language.
So then you ought to be encouraging more of them to take it instead of helping along to eliminate the study of Latin or the use of bilingual teachers.
Mr. Nevels, before you and the Reform Commission came here, we would have people who had children in the Philadelphia public schools that would come here, we had people to whom we could appeal both as Councilmembers and the community could go to meetings. I heard the young woman, a member of the Commission, talking about you're going to set up advisory commissions. What's the role of the people -- when do all of the people get a chance to meet you? 212 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS You tell us you're going to give consideration, you're telling us we have nothing to say about any of these decision-makings. You're ready to listen here and there to a committee, but you're not ready to permit the people to participate. Before that, we used to vote on issues in Philadelphia affecting the School Board. Are you going to accept -- I raised that question with you privately. Are you going to honor this Council's decision that those schools should be privatized unless there is first a vote by parents?
What we have done is, we have discussed and outlined today the method of public participation, and we have established that.
You've taken away the right to vote from people in Philadelphia, and yet you're coming here, telling us you're doing it in the interest of school reform. That's not school reform to take away rights from people, it's not school reform to take away the right of the public to confront the members of the Board of Education as they've done for many years. 213 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS You're saying you're going to set up certain kinds of committees that will meet once a month. That's not the kind of democratic participation we've had in the history of public education.
We're contemplating three times a month, I believe, Councilman.
Well, tell me, is your proposal aimed at saving the State money? Isn't that going to be the bottom line for you, that you can achieve what Governor Schweiker said he wants to achieve?
Absolutely not. On December 21st, we articulated four goals. We are going to hold to those goals. It is not just about money and it is unfair for you to characterize it that way.
" The proposal before the State legislature, you're very unfair to the rural districts. The State has set up a system which makes it almost impossible for the legislature to vote for the $75 million. " That's the scenario that's been artificially created to make it impossible to get successful legislation through. Obviously, these rural areas are hungering also for assistance, and the State has a Rainy Day Fund, the State gave away lots of money in all kinds of tax deductions. The State has money, but yet you come to us and say to let the citizens of Philadelphia for the next 30 years have this big bond responsibility of spending $750 million to take care of a newly-created deficit of a much smaller amount, maybe even less than one-third of the amount. According To Mr. Osgoode, you're going to be reducing the deficit even more than what exists now. 215 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS I mean, what sense does it make to spend all of this money and burden our residents of Philadelphia and our businesses in Philadelphia with this tax obligation over the next 30 years over a figure of what will be 150, $200 million? Does the State have that money? The State's got a budget of billion. Is this a proposal so that financial 9 companies like your own can get involved in bonds, 10 in the sale of Philadelphia bonds and make a profit? 11 That's the reason I raise it. Let's do 12 it for free, and as soon as the proposal for free 13 comes about, you'll find that nobody needs to have a bond issue, 'cause it makes no sense financially. Why doesn't the State advance the funding as it did last year? This is a temporary period, everybody agrees. It's difficult we have a lame-duck governor who's never been elected by the people who has a gross inability to develop the political strength to get legislation through, or doesn't understand the process, I don't know which it is, but during the short-term period, why didn't the State advance the money? And then let's get to an answer. I think Councilman Kenney was right. 216 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS Politicians like myself, like others, tend to respond to emergencies much more quickly than we respond to long-term problems, and I think he's absolutely right that if we go ahead with the bond issue, two years from now, we'll be back talking about the same thing all over again, except then we'll have the further problem of heavy-bonded indebtedness. So I would like your response to these things. I'm charging that what's being done is not for the benefit of the children, but for the benefit of I don't know who. The lawyers want more fees? They get plenty of fees from the City of Philadelphia. The bankers get plenty of business all the time from the City of Philadelphia. But it makes no sense from a financial point of view, it seems to me, to burden the citizens of Philadelphia for 30 years to remove a deficit that was created over the last two or three years, when we had present quite clearly the likelihood of the deficit immediately being recreated. Because you have no plan. You know, I would mind it difficult, Mr. Nevels to believe that in your business 217 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS arrangements, that you would have a situation like this one that you would have approved of financial, that a business man would come to you or a corporation with the proposal, and you'd say, Well what's your plan? If we loan you this money and clear up your debt, what's your plan for getting out of debt? And he said to you, Mr. Nevels, I can tell you, it's going to give us time to think about a plan, it's going to give us time to try to figure out how to avoid a new deficit. I think you would have shown the corporation or the individual the door because you would realize, how can you make a loan on that basis, if you're asking Philadelphia to do that? I would appreciate your response to that.
Excuse the depth of my feelings, but it is a deep feeling because you've interfered with the historic role in Philadelphia where the community plays a very active role, the whole community, not a committee, but anybody in the City at any time can go to a Board of Education meeting and express their views, and you've taken that away, and you think we ought to sit back quietly and say, Let's forget about education. 218 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
Councilman Cohen, Councilman Cohen, why don't you give Mr. Nevels an opportunity to respond.
I would like to. And forgive me for being somewhat uncontrolled, but I feel this issue very, very deeply, because your commission is taking in my view control of public education from the people of the City of Philadelphia, and it's wrong that you're doing that. Thank you.
The only comment that I would make, Madam President, is that this is not a newly-created problem; this is one that's been in the making since I arrived here to go to the University of Pennsylvania back in 1974. It is also clear that this commission is not about exclusively cost-cutting. I don't think that anybody in the room would agree that we can maintain the status quo, that nothing can be changed 219 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS here. I believe, and have talked with members of this body who believe, that changes are necessary in the way that business gets done at the School District. This commission is about that. We are also about the issues of certified teachers -- that is near and dear to Sandy Glenn's heart. Dr. Gallagher is well experienced in -- and given his background in respective test measurements and is a distinguished educator. Mike Masch and Dan Whelan, we are all committed to education and educating children first and foremost. If we don't get this ship righted financially, though, everything else falls to the wayside. We are first and foremost about children.
Thank you. The Chair recognizes Councilwoman Miller.
Thank you, Madam President. Before I ask my questions, I'd like to introduce a special guest that we have here today in City Council. You want to stand or do you want to come forward? We have Bethany Watson, who is a graduate 220 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS of our Philadelphia public school system, graduate from Central High School. (Applause.)
Congratulations. Bethany is presently Miss Philadelphia. I saw you on TV Saturday night. (Applause.)
And she's a graduate of Pennsylvania State, works at Prudential Securities. And her major was finance, and she's a stock broker.
I would just like to say that I'm honored to meet everyone here today. I'm a native Philadelphian; I was born and raised just some blocks from here. And, of course, I graduated out of the Philadelphia public school system, and I hope that everything turns out. I just also want to offer my services from the Miss Philadelphia organization to all of Councilmembers here today. If there's anything I that can do for our community -- my platform is, 221 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS actually, overcoming intolerance and promoting cultural diversity within our schools, so what I really wanted to do during my reign is go to as many schools as possible and talk to the children accepting other cultures and promoting diversity, overcoming intolerance, hate, and bigotry. And if we can get to the kids now, September 11th will never happen again. And that's my platform. But if there's any other issue that I could speak about, please let me know. I'll make sure that the Miss Philadelphia organization business cards get passed out so that all of you will have my contact information. And, again, it's just been a great honor today. Thank you very much. (Applause.)
Mr. Nevels, I just wanted to ask you questions regarding the EMO and that whole structure. Now, help me out a little bit here. The EMO will then hire -- the EMO will be contracted to do management, and then they will hire the community 222 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS partnerships group?
what will happen is, EMOs, the educational management organizations, will be identified, and they can include nonprofits, including universities or colleges and also private vendors. Then let's think of this in the middle, and there will be identified schools. Then there will be community groups that will be identified. There will be certain partnership schools that will operate in tandem with community groups. Once those community groups and EMOs are combined together to work together, they will function in terms of that school's governance in addition to their having input from the advisory group, what we called the "Educational Reform Advisory Committee" in that geographical academic area.
Okay. So we could potentially have five to ten EMOs, correct?
Yes. At the present time, I believe that there were -- (Addressing colleagues.) How many were there? 223 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS Yes, six made the cut. There will be as many as six.
There is a list, and I'd be delighted to provide that to you. I don't have it handy with me.
Okay. All right, now -- and basically their job is going to be to manage, to manage the schools?
Okay. And they may hire -- and they may hire another group to actually do the implementation or --
No, no, no. The educational management organization, think of that, if you would, as someone coming in to run a school with a curriculum, with teachers, and the full educational 224 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS complement that you would have in a school building providing education.
Okay. So one of the highlights of the curriculum renewal plan is to have a core curriculum; is that not correct? Well, how does this fit in with the EMOs? I mean, are they going to be required to use this community -- I mean, curriculum renewal plan? 'Cause what I see is if they're not, then it sounds like we're going to be right in the same situation we're in today if somebody transfers from one school to another school that's being run by a different EMO and so on and so forth. I just need to understand how this is all going to work and how it's going to help our children.
Councilwoman Miller, that is a very valid concern. As I stated in my formal remarks this morning, it is our hope and expectation that whoever comes in either as a consultant or to run portions of schools understands that this is a curriculum renewal plan that current staff worked on, and it was endorsed by and accepted by the Commonwealth Court of Pennsylvania. 225 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS The curriculum renewal plan was made available to people who responded to the RFPs.
But they're not exactly required to do it; is this the point here?
One of the things that the Commission has been discussing, and will have to determine, is making that a requirement along with some other requirements that would be appropriate to any outside vendor that comes in to serve the School District.
Okay. Because, you know, that leads me to wonder, you know, what is the reading program that we're going to use here? I mean, part of this whole process has been research and the collection of data and looking at best practices.
And if we now let people come in and start to do exactly what they want to do, we have wasted a lot of money and a lot of time, and I don't think we'll be doing our children any kind of justice just having anybody come right on in. So I just want to keep on -- I want to be 226 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS kept very aware of what people are going to be using, and I'm hoping that they will, if this is going to be adopted and people think that it's good, then that's what they should be using, unless something else better comes along.
Okay. And student achievement has been improving since 1996, as was indicated earlier. So how will the Commission make sure that in evaluating EMOs, that you're not using the data, or that they're not using the data, that's already been developed and gathered in terms of improvement? They will actually start to be assessed, I would think, if they're going to come in and September and begin to run schools in September, so you'll be looking at their achievement from September forward, or what? Who will monitor them, who will evaluate them, the EMOs; will the SRC?
The SRC will evaluate the EMOs, and specifically, as part of the EMOs contracts, there will be accountability standards that will be prepared by professional organizations 227 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS that do that sort of thing. In addition, system-wide, we are going to look to having a measurement expert look at how we are operating system-wide and, of course, our very able internal staff that does that sort of work as well.
Are the EMOs addressing the special-needs students in their proposals? I keep hearing that special ed. is not being included. I heard Councilwoman Tasco ask the question earlier, when I was downstairs, about creaming, and that would be a concern of mine too. What are we going to do with our special ed.?
I understand the sensitivity of that. The RFQs do address that, and we have every expectation that all of our children will be educated, including those having special needs.
Okay. I have one other question at this time, Madam President. According to policy, all administrators must have a letter of eligibility to be able to rate 228 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS principals, and principals must have an administrative certification to aid teachers. Who will ensure that the administrators and that the EMOs will have people in place that are certified to rate principals, to rate teachers? Is that a requirement? Is that something that had to be addressed in the RFQ?
That is addressed in the RFQ. And as I mentioned, we will provide you with copies of the RFQs or the form of RFQ, but that is a provision that is required and will be -- as part of the contract documentation, will be a necessary ingredient as well.
Okay. And I'll come back to this question later, but have we decided yet on how many distressed schools from the 176 that's in the empowerment list? How many is it; is it 100, is it 80, is it 60?
60, okay. All right. Thank you. Thank you, Madam President.
Thank you The Chair now recognizes Councilman 229 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS Kenney.
Thank you, Madam President. Just to go back a moment for a quick moment on the Latin issue. In 1972 -- and I don't want to debate the decision you guys have made, or may make, as a result of this, but in 1972, when Mr. Doosey and I entered St. Joe's Prep the same year, I doubt that either of us would have ever chosen to take Latin. I think part of one of the concerns that I have is that we seem to -- not necessarily you guys right now because you just got into this, but educationally, over the last 10, 15 years, we've allowed people to make choices that they're not capable of making. So when we're getting rid of Latin teachers because we're downsizing the Latin department because children have decided that they're not taking it, it kind of speaks to the problems we have in the first place. I didn't have a choice. I took it, I had to take it for three years, and it wasn't my choice, and I don't know anybody who speaks Latin. I can't 230 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS have a conversation in Latin with anyone, 'cause they're all dead. But the point is that it made your mind work in a way that made you critically think about other things -- algebra, Latin, basic mind-opening subjects. I think part of the problems is that we have allowed children to make those decisions about what they will and not take and, therefore, wind up in the kind of curriculum and academic environment that we have today, because we're trying to play to an audience who's still immature enough to make a decision for themselves. So that's my comment on that, and I don't know, Jim, if you agree or not, but I don't think you would have taken Latin either, entering as a freshman.
Veni, vidi, vici. 231 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
Amo, amas, amat, amare -- but you got my point. My point is that we should be telling and explaining to these children what they need to take to expand their minds and to develop, not allow them to make those decisions, 'cause I think because they have chosen not to take it, we get rid of the program, which is really disheartening.
If I could address that issue, not speaking about Latin, but about world language in general. As I said in my remarks, last year, we did increase the graduation expectations, and we did add a component that every student must now take two years of a world language. That was not the case before. So we're not saying it has to be Latin, but it does have to be two years of a world language, and now our challenge, our ongoing challenge, is finding a supply of world-language teachers so that we can adhere to that level of rigor.
Well, perhaps if we reduce the wage tax, we'll be able to attract a few 232 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS more of those teachers to come and work in Philadelphia. The Latin requirement is just something that I think -- we need to get back to try to define a curriculum for children that does expand their minds and make them think critically and structures their brain in a way that makes them successful. I think we've, in many ways, succumbed to what's popular and allowing children to make decisions for themselves about what they wear, about the way they act, about what they study, about what they don't study. I mean, every successful prep school in this region requires Latin; that should tell you something. And I think that that's what we're competing against -- the La Salles and the Malverns and the St. Joe's Preps and the Mary of Mercies, and if that's what we're competing against for productive students -- not that we can't compete, 'cause we can. With schools like Central and Masterman and Greenfield and schools like that, we can compete, but I think unless we have it all through the curriculum, those expectations are never -- we'll never create expectations for these 233 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS kids to meet The question I want to go to may be in reverse of this Latin issue. I've been here ten years and I've asked this question every single year for the ten years I've been here. I believe that there are all types of students in the system. Some students are academically motivated towards a college curriculum, and everyone who wants to go to college should have an opportunity to go to regardless of income, regardless of personal status. But there are a group of children, my brother being one of them, who went to St. Joe's Prep also, but decided to become a (indiscernible) instead of going and studying history at LaSalle or political science, where I went. What do we do about voc. ed.? In my opinion, and you may disagree with me, vocational education in the past ten years has taken a back seat to everything else, and what upsets me about that is that there are children in our system that are bored, that don't -- aren't challenged by the academic curriculum, but would flourish and prosper and afford and be able to feed themselves and their family if they could fix the electronic condition of 234 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS a car, if they build a cabinet, if they could go and do electronic work go, if they could go and work with their hands. I think we would be producing both academically-challenged kids, kids who want to meet an academic challenge, but also kids who want to work with their hands and become a tradesperson. Why has voc. ed. seemingly, at least in my view, taken a major back seat when the graduates of the voc. ed. program more often than not will have a way to feed themselves and their families as opposed to those who graduate college with a history degree?
I think that philosophically and, unfortunately, this has been the case of very often voc. ed. has been perceived as the dumping ground for students; where, if you really have a rigorous vocational education program, with shops that have industry-standard equipment, that students who go into vocational education have to be among your brightest students. In fact, I had almost an hour-long debate on Saturday at Edison High School with some automotive when I attended a program we had their 235 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS four our technical-education teachers, and this auto motive instructor was saying that he needs students who read, he needs students to be able to read not on grade level, but above grade level, because the technical documents that auto mechanic students have to read now are very complex, that the kinds of equipment that they have to work is so technical until it's not just -- as we all know, it's not just turning screws; you have to be able to work very complex computers in order to do very basic automotive maintenance functions. So I think as part of the need to help society understand that vocational ed. should not be perceived as a dumping ground, that you have to be extremely bright and capable, with a high level of reading skills if you're going to do well in a career in a technical-education program.
Well, what do we anticipate doing about raising the level of the reputation of voc. ed.? because what's happened -- again, you are the academic officer, so you're not making necessarily the financial decisions on where the money goes; you're dealing with what you're given. 236 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
The point is that I think that under Dr. Hornbeck, for example, voc. ed. was looked down on as a dumping ground, as a place that was less than the same caliber as these others academically-oriented students. Doesn't it make more sense to invest more of our existing resources into getting kids ready for work and for mortgages and for raising families?
Yes. We actually are. And in our current restructuring over last summer, the Office of Curriculum and Instruction and Assessment, we actually have an office called "Career and Technical Education," where we have a staff of employees whose sole function is to upgrade not only the reputation and the status, but the perception of what vocational education -- now referred to as "career technical education" -- is. I think it has to do a lot with also continuing to remove that line between, This is academic work and this is handle work, because you can't separate it like that anymore; it all has to be high-calibre, challenging work so We have 237 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS standards around what career technical education should be, we have intensified our professional- development efforts around that. At the forum I just spoke to on Saturday at Edison High School, they had career technical- education teachers and principals from around the City in attendance, with a nationally prominent speaker to talk about the changes he has seen across the country.
What kind of outreach do we do within the comprehensive high schools now about children, boys and girls, looking at potentially shifting over to -- especially kids who seem in the classroom to be unattentive or perhaps distracted or unchallenged or not interested or motivated. Have we been able to do some outreach to see if we can't get them sparked in a different direction as opposed to simply having them drudge through a normal school day?
Well, I think part of what is needed -- and, again, I alluded to this earlier -- is really having the capacity at the high school level to have ongoing support for reading, because what we very often find is those students 238 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS who are turned off, who are inclined to be the students walking the hallway, if you really look at what their need is, they need to learn how to read. Because if you're sitting in a high school class and you can't read, you have to fake your way through your course work.
Well, I guess the question then is, how did they get to the high school class in the first place if they can't read through elementary and middle school?
Right. That is why we have benchmark grades of 4 and 8, that is why we have instituted more vigorous promotion standards at those grades so that students cannot just be passed on socially through social promotion.
I think that you can continue on. There are other members waiting. If you give a --
We've read a lot about discipline and we've seen a lot about the 239 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS discipline issues. At some point in time, do we not need some type of residential boarding facility for our young people that need to be removed from the general population of our student body because of the safety, the threat that they pose to people, whether they're deemed special-education students or whether they're not? But, you know, I've talked to principals in every level of this district, both in the middle schools and in the high schools, and if I ask them, how many kids in your school really cause you a problem? Of your 6, 700 or your 1,000 or your 1200, how many are really problems on a day-to-day basis? And the answer I normally get is 10 to 15, that 10 to 15 terrorize the school. Those 10 to 15, for whatever reason, whatever social reason or whatever; home situation or whatever; poverty issue or whatever; substance-abuse issue or whatever it is, it is disrupting the academic and educational opportunities of everyone else in the school, terrorizing the teachers, terrorizing the staff, and need to be removed -- not removed and thrown into the street, but removed and be made to go either 240 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS through court other or some other effort to a mandatory requirement for residential treatment, residential education, a way to get them out of their environment. When I look at Glenn Mills, for example, and I know it's a very expensive setting, but the work that's done there with extremely difficult problem children and young adults is phenomenal, the product that they turn out. Residential setting, out of their neighborhood, away from the dysfunctional family, in an environment with good academics, good nutrition, good health, good opportunities for athletics. To me, we need at some point in time, for their good and for the good of the system and its reputation -- or bad reputation at this point -- get them out of there. And I don't mean that in a kicking-them-out-the-door attitude, but a place where they can go and get a chance, because they're disrupting everyone else's day. And I never understood the "special education" label to begin with. I mean, I understand when a kid is challenged physically or there's a learning disability challenge, a hearing, 241 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS a sight, a physical disability, I understand all of that. But at some point in time, a person's a thug or they're not, and the thugs sometimes get labeled as "special ed." individuals, which gives them protections beyond anyone's rationale. And what do we do to change that wall or legal precedent that requires us to that, and what do we do about putting them somewhere where they can get -- and I'm not talking about sending them to Texas like we do with every other DHS problem that we have, but doing something in the region that makes sense, or on the residential side.
The scenario that you just pointed out is very complex. It is true that not all students needing special-ed. services are problematic, and not all problematic students need special-ed. services. However, with the current law as it is, we do have to ensure that we are following legal procedures before we label a kid one thing or another and that we give every child due process. I can agree 100 percent with what you said about the small percentage of students that 242 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS really do make the environment disruptive. During the three years when I was principal at Simon Gratz High School, if someone had said to me, you know, how many of your students really make life miserable? it would really be a very small number, a very small number.
And how sad is that that, that we are held hostage by a very small number. And, again, I'm not asking for a legal opinion, but what about the due-process rights of those kids in the classroom, of that teacher that has to put up with the potential of being assaulted or at least verbally abused on a regular basis? And I mean this rhetorically, but do they not have due-process rights also? And what do we do about changing the law to give us more ability to deal with these children? And, again, I want to reiterate, 'cause sometimes when I say things, it's taken as if I'm telling to throw them out in the street and get rid of them. That's not what I'm saying. What I'm saying is that we need in some way to move them out of that environment so that the rest of the kids, the majority of the kids, can 243 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS flourish, and they can have some opportunity to correct their lives or to get themselves back in some semblance of order. But to allow them -- and, again, I know you're not allowing them, but you feel that you're forced to allow them sometimes roam the halls, to disrupt the classrooms, to terrorize the school yard. It's just, I guess, unfathomable to me that we allow that to happen. I mean, what do we need to change it at the federal or state level to get those handcuffs off of us and on them, some of them?
Mr. Kenney, one of the things that was apparent yesterday as well is that there is that very serious concern with your counterpart deliberative body in Harrisburg. One of the things that you now, and I believe that we have talked about it, is the importance of this matter, and I believe that you know that we have made several things a priority. And Dan Whelan and I are focusing on an anti- disruption task force. What can be done on the federal law statute, obviously, is we can cajole our federal 244 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS legislators to make the change necessary in terms of the federal-governing law. We asked yesterday that the same thing happen with the State. But the other thing to keep in mind about this is our facilities like CEP and other longer- term residential facilities are also important, and they're important from the standpoint that they have to be viable, they have to be -- if you're going to have someone committed a felonious assault, there has to be that predictability. I did not realize and did know what the Boone School was, but when I talked to certain -- and I attempt to use the term graciously -- "old-timers," the fear of the Boone School was world -- (Indiscernible, laughter)
That's correct. So we see it as being necessary to have that predictable outcome. 245 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS In addition, we do have on the books the Student Code of Conduct, and in my opinion, it is not being enforced in a uniform manner. We're looking at that from our task force standpoint, and we're working also with some legislators from the Northeast in terms of doing some of the things we need to do. That's an area that I think you're going to see improvement on with this commission.
Does that include potentially more cooperation with the State's Victim Advocate Harvey Rice?
The story in the Inquirer was very disconcerting that school principals decide on their own basically whether or not to call in Mr. Rice or to look for his services, and it's up to them individually to make that decision, and that is not a consistent approach to this problem.
The first call that I made in terms of the constitution of the task force was Harvey Rice, and we're going to be working on this.
Thank you very much. 246 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS Thank you very much, Madam President.
Thank you. Dr. Farmbry, do we now know how many bilingual teachers we have?
I'm still getting the bilingual -- there's 236 bilingual teachers, but the actual question I think that you had is, for the 32 positions that we're talking about, which schools will be impacted? and I'm still waiting for that information. On the Latin question, there is a total of 238 and 8 teachers currently taking the Latin in the district, and the most recent school to drop the Latin program due to lack of interest was Frankford High School last year.
I do agree with my colleague. I don't think youngsters should have that choice.
I don't think a 13-year-old can make that decision that this is not for me.
Of course. 247 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
I couldn't make any decision at on what color socks to where, let 4 alone what languages to take in school. So again, I 5 would -- 6
Thank you, Madam Chair. I think it should also be noted for the record that there are reports that many of the people at the Boone School were nervous that Councilman Kenney might actually end up attending there as well. (Laughter.)
Chairman Nevels, let me ask you some different questions. I've focused a fair amount on the financial side, and I have some 248 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS other questions in that area, but I'd like to shift to a different topic. First, from the SRC standpoint, what is the role of parents in determining the future and the educational opportunities for their children at their schools presently and going forward?
The third principle that the Commission embraced is treating parents as families. Currently, of course, there are the home-and-school councils and other associated organizations. What I would like to focus on is, going forward, what we plan to have in place in light of the changes that we are looking at, and I'm going to ask my colleague Sandy Glenn to outline again in general terms how we're going to have folks involved in that.
Councilman, I'd like to go directly to your specific question about how we see parents being involved in the future. One of the issues that the SRC is considering -- and I think we still have a significant amount of work to do -- is, we currently have informed school councils that are made up of 249 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS the principal, school staff, and parents. I believe that there are some schools where those councils are a very effective means for parental input. I think there are other schools where they do not function as they should. One of the things that we are looking to these education reform committees to do is to help us to work school by school in their area to develop meaningful and effective school councils. We, I believe, need to in the future review the composition and the charge of those councils and see where we can strengthen them and also, I think, make them more central to the, I guess, ongoing priorities of the school. So, again, that is a area we have identified as being critical, and we know that there are some forms, I think, that are worth replicating and some models that are worth replicating, but I think there are some areas that we want to modify.
Well, let me ask this question; it's a more specific question and directed at process. If in fact, there will be partnership schools or education management organizations or a 250 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS provider or a lead provider -- I think I've used most of the terms that I've come to understand recently in these various RFQs -- at the school level and whenever this list of, for the moment, news accounts indicate possibly 20, the Governor's plan I think was 60, there have even been discussions about possibly 100. If you're at "School X" and School X ends up on some list, or a series of schools in a particular area end up on a list, and somebody says, Well, we'd like to manage those schools or oversee those schools, whether it's one school or 12. What is the role of the parents of the children who attend that particular school? What is their specific and direct role, if any, in deciding whether that school will, in fact, become a part of someone's education management organization or someone's provider-related school or lead provider or any other terminology that you might want to use? What do they get to say or do about any of that?
Let me just speak to what we have reached consensus on as a body at this point which, again, I will admit, is a work in 251 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS progress, because it is not all decided. Currently what we have determined is that once the schools are identified, that the Commission would hold town meetings by area -- at this point it has not been agreed to do it by school but by area -- with the parents and other community members to receive their input, their comments about what potentially may happen at their school as well as for the SRC to lay out what the options are, as we see it to the extent that we are recommending these schools be handed over or managed by providers other than directly by the School District. So there would be that opportunity through the town meeting In addition to that, as the SRCs develop the RFP, the specific proposals that any EMO (educational management organization) will have to provide to the District, laying out what its plans are, explicit in that RFP has to be a parental engagement and community-involvement component to say how they will work beyond the times they are selected, how they will work; or fundamentally, I guess, in a more long-term fashion, with parents and with the community. So that is currently where we have 252 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS reached consensus, and that's what I can report at this point.
I understand. Suppose the parents, for whatever reason, after whatever the presentation is going to be, suppose the parents at that particular school decide that they don't want their school managed by "XYZ Entity?" Then what?
Well, I will say that at this point, the only alternative that has been identified is that parents will have the choice of attempting to enroll their student, their child in another school. There is not a formal part of the process for that outcome.
Well, I mean, doesn't that kind of create a situation -- I mean, is that literally kind of a take-it-or-leave-it situation? I mean, there must be another alternative between "Proposal X," you don't like it and so your next option -- and then we can talk about some of the mechanics of that -- I mean, given the timetable that we're on at the moment, I don't know how all of this will work. But, I mean, transfer to where, under 253 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS what circumstances? PH 36's had to be in back in November, unless you decide to change that particular process. I mean, we've obviously known each other for some time so, I mean, we're always going to be respectful with each other but, I mean, at best, maybe you're ready to go -- I'm not talking about you individually, but maybe the SRC is ready to go with some kind of roll-out of something in, what do you figure, May?
Okay, so let's say we're at May, the schools get on a list, providers come along, they've gone through the RFQ process, RFP, RF-whatever other letters you want to use of the alphabet. So schools, 60 schools, 100 19 schools, providers have been identified, they've 20 chopped up the universe, they start their -- what did you call it, "parental engagement community activism"?
They're having town meetings, you know, it's going wonderful in some 254 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS places, and it's a disaster in others, and there's mass rejection in various areas of whatever the idea is. I guess we could be talking 2, 3, 400 kids, however many parents times 2, 3, 500, 800, you're telling me that all of those people are -- then their option is to try to transfer their child sometime in the May-June time period for September?
Well, Councilman, I would have to say that I believe it would be foolhardy of the SRC to assume any plan would be successful without the cooperation, the involvement, the participation of parents and the community. So having said that, and not knowing -- because we have not gotten to that point in the process yet -- what the reaction would be, I do know I that -- I think we would be heading for disaster to think that we could force a solution on a school or a community that they do not have buy-in to. I can't say to you today that there has been a part of the process where we have figured out exactly what we would do there, but you need to understand that I believe -- I know myself and, I'm very sure, my colleagues are sensitive to that and understand that we don't need to set ourselves up 255 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS for failure. And if we are, say, disrespectful or insensitive to parents' or the communities' concerns, that's what we would be doing. So we need to figure out how we would respond and deal with that.
Well, how do you think you will assess or engage community buy-in? I mean, in many instances, at least through my experience -- I mean, the town meetings are wonderful for a variety of reasons. I mean, you know, I love a town meeting as much as the next person. In a town-meeting situation, people will bring a lot of stuff to the town meeting. Some have kids in schools, some don't, and unless you're going to make people either fill out a form or wear, you know, different-color hats or something, how do you know in a town-meeting environment whether the people person speaking has a child, five children, or never had a child in public school, but just basically wants to run their mouth and say whatever they want to say? And do you take that as either buy-in or opposition, or is there something more localized, more special for the actual parents? "Parent X," 256 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS their child is a registered, on-the-rolls, comes-to- school-every-day person. What I want to know is, for that citizen, that taxpayer, that parent, how do they access any of this in a way that someone has to actually seriously listen to them, hear what they're saying, and take their opinion in a way that says, We as a group of parents want to move in this particular direction or another direction. We'd like to do it in concert with the SRC, we may not want to do it with "Provider X," maybe we're thinking about "Provider Y," and we maybe don't want a provider at all and would like to stay with the program that the SRC can provide, obviously with all of the necessary educational components and a game plan that gets you to improvement. I mean, how do we do all of this?
If I may, Councilman, one of the things in the RFQs is, we ask the providers or the candidate-providers to give us a sense of how they have utilized and done the sort of community involvement and outreach that we're discussing. Obviously, one level of involvement and assessment comes from town meetings, but 257 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS additionally, one of the things that the Commission is looking at is an RFQ that has a component in it for what happens in respect of schools that you may manage, or will be about to manage, and how you plan to have outreach. Councilwoman Tasco asked earlier about what happens in the way of the community groups. One of the things that we've been grappling with, and we really started doing this last week late in the evening, was, how do you define a community group? There's a number of them out there freestanding.
Yes, we do. 258 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS But what we also know is, there are groups out there -- and this is why the community partnership model becomes very important in terms of what I said earlier, doing that matching of community groups with vendors and doing that outreach. We're going to monitor very closely what we're hearing from community groups about how they the given locality is responding to that solicitation.
Well, let me mention one thing, and I'll continue to take advantage of the Chair being distracted by Councilman Cohen. Along those lines -- and maybe I'll just kind of finish this with. I've obviously had a concern, and I think many other Councilmembers and certainly citizens and parents have had this concern for sometime. There was a news story about a week or so ago apparently following one of the Commission meetings, and part of it reads: "... and the Commission also weathered a barrage of complaints from community activists, some of whom requested that they allow parents to vote on whether their children's schools should be turned over to private managers. 259 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS "One of the Commission members told reporters that the panel would not abdicate its responsibility by allowing such voting. 'One of the things we have in the United States and Pennsylvania is a representative democracy. Representatives set the laws for it, set the criteria under which we do things, and that's how we're going to do it.'" Now, when I learned civics in about 4th grade or so, I thought that that meant that people who were being affected by something get to have a voice in what's being done. I'm not necessarily taking -- and I'm not going to take this even verbatim, I have no idea what the context was of the situation, and maybe a Commission member was a little harried at that moment. What I could take from that statement is, "We're in charge and you're going to do what we say and that's going to be the end of that discussion." I would tend not to think that the SRC would be adopting that kind of mindset, given that we've had all of this discussion today about partnership, and even the recent exchange has been about trying to support parents, encourage their involvement, try to get a sense from them of what's 260 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS going on. So I raise this issue, and you know as well that the Council took an action a while ago along these same lines. We don't need to get into the particulars of what that's all about, and it doesn't have to be exactly that way. I think the point that I'm trying to get across is, there has to be a mechanism that is clear, that is understandable, that can even be read. I mean, that's -- you know, what a concept! And that people understand that they will have a voice, and especially parents in the direction of the schools. It doesn't mean they can run the school. I'm not looking to run a school; I'm looking to have a voice, and parents are looking to have a voice in what's going on. And if somebody has a good program or a good game plan, generally they need to buy into it, support it, and make sure that it works well. On the other hand, I do need to hear a something a little different, at least to make this record better, as to what the SRC plans to do and what its mindset is with regard to parental involvement. And you can call it "voting," you can call it 261 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS "assessment" or "figuring out where people are." But it has to be legitimate, it has to be understandable, and people have to be able to sit in a place and say, Yes, I want to see this program that someone has given me in a reasonable amount of time that I can read, that I can ask a question about, and that I can understand, and I would want my child to go to that particular school to get that kind of education from that kind of provider, and they actually have something to say about it, and I need to hear about that from an SRC perspective.
Councilman, we have heard this body's sense and the articulation of that desire as well. We are putting into place, and will announce shortly, the ERAG system, the Educational Reform -- (Councilman Cohen offers pretzels to SRC members.)
Thank you very much, I appreciate it. I would love some mustard -- and a 262 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS beer. (Laughter.)
All I can say to the SRC is that if Councilman Cohen is offering you pretzels, you are in a world of trouble. Thank you very much.
We have the ERAG systemic in place. But, again, one of the things when I read the enactment of this body, what became clear to me was, there has to be some system way of involving participation and accountability. It's going to be in the contract. The community groups are going to have the ability to say, "Look, we don't think they're doing so well" or "We think they're really great." We're going to involve community groups. The manner in which they're involved is going to be a matter of contract as well as external process.
And the last thing I'll say on this particular point is, let me also encourage you, there were other provisions in that particular legislative effort --
-- that tried to lay 263 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS out a timetable. And, again, you'll hopefully develop your own timetable; that was our attempt to lay out something that says, You should get information from any of these entities at some point in time. You should have some reasonable amount of time to be able to read it, understand it, and make some decision for yourself and for your child. And if you choose not to participate in that, then there should also be a reasonable amount of time for you to then make other choices, to seek alternatives for your child, and not get caught in a Catch that has you opting out of one situation, 14 with no ability to hop in to another, because the 15 time that you should have made a decision was eight 16 months ago. 17 I mean, we will spin people around in 18 such a way that they won't know what's going on, and 19 I'm not sure what we will have accomplished at the 20 end of the day if we don't have a certain level of 21 coordination and consistency in this effort. 22 You're obviously, again, under a tremendous amount of time pressure. It's March. The things that we don't know don't change are that school ends in June, it starts back up in September. 264 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS So anytime you do something like this, it's always going to have a certain time pressure to it, and you're probably at the worst possible window to try to do something of this magnitude. Thank you.
You're welcome. The Chair recognizes Councilman Rizzo.
Thank you, Madam Chair. Mr. Nevels, I think that in an effort to be really candid with each other, there's some confusion on maybe my part and also some of the people that I talk to. The announcement was made abut the cuts at the Central Administration. Could you be real clear on -- there's a perception that the teaching element is not going to be affected by the work of the School Reform Commission, that it's kind of like, "Hands off, we're going to mess with the people that worked in the administration, but the school teachers, the curriculum, we're not really 265 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS going to mess with that." What I need to hear is that -- maybe the message that I think many people are hearing is that maybe there's politics or maybe there's other reasons, that things aren't going to change much in the way the kids actually physically get educated, but I think -- and, again, to be candid with each other, we got to hear that maybe the way we're teaching our children is going to change. Like today, I heard about a program, the Twilight Program, and I've been here trying to figure how a child gets educated in three hours a day, to did I hear?
Well, how does it -- how come in takes -- how many hours for a normal child, 6 hours a day, 5 hours a day? How many?
Well, how do you educate a child in hours, where it takes a kid that goes to school hours? So it just doesn't compute. So what I think I need to hear is, will the way we educate our kids change? And the message 266 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS that -- and maybe I'm not hearing it correctly and the people I'm talking to aren't hearing it correctly or understanding it, but is there a shot that maybe the way we do business in the classroom and the way we educate -- we heard today Latin might be history. Other programs, are they going to be reviewed to see if, in fact, the money that we spend for these programs is being spent -- is best spent? So let's talk about the educational side and the perception -- and if it's wrong, you need to clear it up -- that it's kind of, like, sacred ground.
Whatever the number of schools that we're going to engage, it will be substantial reform, and that's going to relate to curriculum as well. Believe me, the Commission is looking at the entire picture: How we do business, how we procure, how we manage Fleet Management, all of those things, food service. But, but, what we do is, we educate children. And, specifically, when you look at the number of schools that are going to be engaged as a part of our plan, that was going to be one of the 267 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS most profound changes that you can have affecting the most seriously impacted children. So we've talked a lot, and I think certain of your colleagues are right on the money in terms of talking about finances, talking about how we're going to try to do business differently, how we're going to try to save money and bring the budget in balance. But nothing can be more profound than looking at our -- and I won't say "worst performing schools," but rather, our children who are most in need, and impacting in a substantial way the way in which they learn and the curriculum that is imparted to them.
I'd like to ask the Superintendent just to go back to my question. How do you educate a child according to State law? I assume that they go to school five days a week, 3 to 6. How does a child get a -- how does a child graduate with that type of an education?
These students also very often go in the summer. Some of the other kinds of courses -- in other words, it's more of a tailored 268 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS program based on their deficits, whether it's reading, whether it's math, whether it's science. Very often these students, you know, may have ways of taking courses such as physical education and some of the other courses that really constitute the length of other students' days. Also, we have some students in twilight who not only go to the regular school but who also stay those extra three hours, so in addition, they're in, you know, school, plus three more hours of school.
Well, then, to finish up, I'm asking Mr. Nevels, are programs like this going to be basically, We're not going to touch this program? I'm not suggesting that it should be touched, because I don't know anything about the education or value of it or the lack of value, but all I would like to know is, is the School Reform Commission going to go program by program by program and look at it and say, You know, it would be nice to have this if we could afford to do this. But I'd like to know how you're going to approach this myriad of programs. Every time I turn around, there's another program. How are you going 269 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS to deal with that?
I'm going to defer question to my colleague Jim Gallagher, who is on the State Board of Education and can give you some insights to the M.O.
Mr. Councilman, we're going to do it methodically. It will take time. There are a long list of programs, you're totally correct, and we will audit them, but we will not audit them instantaneously. But I'll take this program as an example. We'll take a long, hard look at it. If it's of value and we can afford it, we'll move ahead with it. At this point, we tend to connect all of our decisions to the money that's available to the Commission.
Well, that's great, because what I heard -- no disrespect to the answer -- is that there's a program that a child goes to school for three days. Maybe they're doing something else someplace else, and I don't know how all of that record comes together to add up to six hours a day or five and a half hours a day of 270 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS productive -- of productive -- and I think that's an important part, productive hours to educate. Or is it just another way to move a person through the school system, give them a diploma, then they can't find job because they can't read or write?
Well, let me create a hypothetical student and see what the Superintendent thinks. These are older students, right? Mostly to -- 13
For the most part, they're 14 older students with very few high school credits 15 accumulated 16
They could possibly be a 17 student who would end up with a GED, correct?
So you're 18 years old, you've had a mixed experience, we still have faith in you, we think you can be a success. You enter this program and then simultaneous, you're taking GED credits. I'm making this person up, but it's a real person, you can be sure of this, that individuals at this stage are out there. 271 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS That person graduates, we find that person a job, possibly they go into the military, and come back as successful citizens. The option is you're sitting out there at with no alternatives. 6 But let me go back to what I said a few 7 moments ago. The driving force from my mind and, I 8 think, from all of the Commissioners' minds is that 9 we're looking at the student and his or her ability 10 to succeed in a program. 11 I really was taken by your comment on the 12 long list of programs. I'm not impugning or 13 demeaning what came before us, but I think we have 14 an obligation to look at all of these programs and 15 evaluate them and report back primarily to the 16 parents and students and then to the funders, and 17 that's what we're going to do. 18 I'll petition for time. All of the questions asked to date are realistic questions, but keep in mind, we are, in my opinion, on a very tight timeline, and we're going to try to behave and perform at the highest level possible.
Well, I appreciate that response, and I'm not picking on this program; I'm only using this program because it's out in 272 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS front of us today that you got a program, and I understand now the program a bit better, because I was under the impression that we had kids, the way it was said, I don't want to get up in the morning or I'm having trouble fitting into the normal school day, and I want to go to school at night. Well, I would hope that that's not the criteria. I hope the criteria is what was just described here, because it sounds to me that this is a program that should be looked at carefully. It could be a very good program, it sounds like it is, from my colleague's comments, but I'm pleased to hear that there's going to be a methodical -- an audit of every one of these programs to see if we can afford it -- and not just afford it, to see if it makes sense, that it's good for the kids, not just another to satisfy some politician to adopt a program that they have a good, fuzzy feel about that.
Well, we appreciate that level of scrutiny, and we also appreciate the reality that since students learn lots of different ways, one of the aspects that we're looking at is what constitutes differentiated learnings, what 273 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS constitutes differentiated instruction, and how much seat time is needed to really internalize meaningful concepts. I say that because if student is in school for three or four hours, if they well- constructed, multi-disciplinary units where they're learning science in the context of a social-studies question or vice versa, that in essence, you are learning skills in a combined fashion, without saying that I have to go to something for 45 minutes called "science," and 45 minutes called "social studies." So we are pushing more towards integrated, thematic units so students aren't looking at things as discrete, separate entities. But, of course, we're always looking at it through the lens of how rigorous is the content, the course content, being offered.
Are there going to be any significant changes? Does the 180-day rule still apply? Do we have to have 180 days of education?
You know, maybe that 274 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS should switch to hours, but are any of the rules that we have lived with for decades gone by the wayside or some things that we don't have to adhere to?
Yes. Actually the concept called "credits" is a concept that has actually gone by the wayside. We said (indiscernible) graduates be 23.5 credits, but it's actually defined by the State as "instructional planning units." It's not so much a credit, but what is the instructional experience of the child, not necessarily divided into credits. We still have a credit system, but we may over time be moving away from a credit system which is not so much tied in to so much seat time equals this credit. We are right now on a credit system at this current time.
Mr. Nevels, I'm going to finish. Are there any other significant changes that we need to know, like going away from credits to something new?
Not at this time. 275 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
You're welcome The Chair recognizes Councilwoman Brown.
Thank you, Madam Chair. I would like to go back to questions raised by my colleague Councilman W. Wilson Goode regarding the role and authority of principals currently and what that will look like under reform. We know that the research shows that where you have strong, assertive, engaged, active leadership at the principal level, attendance is up, the academic performance of the students is high, and parents are engaged. So you've spoken to using a baseline standard or a standard that's consistent for both public schools as well as those run potentially by the private contractor. What currently exists in terms of principal accountability? And under reform, what do you see putting in place to ensure that we move to having quality principals across the board, particularly when you look at the disparity that exists with low-end schools or schools who are not 276 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS performing as well?
The current situation is that principals are rated, so to speak, each year in something called a "Principal Performance Appraisal System." There are various domains relative to what constitutes good principal performance; one being, you know, test scores, community outreach, safety of environment, things of that nature. Principals also -- what also counts in terms of a principal's rating is test scores count. There is differentiated pay for principals based on how they are ranked. That particular process all happens under the auspices of the area academic officer, who is the principal's first rating officer.
Okay, so incentives are in place. That's encouraging. In response to Councilman Rizzo's question, I was struck by the -- he wanted specifics about what you are doing internally to eliminate the cost of running the Philadelphia public school system, one of which was you mentioned the cancellation of $15 million in capital projects. Purely for informational purpose, can you 277 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS share with us what some of those capital projects are? And in no way the question of the why; we know the why, that's why we're here. But can you share with us -- I believe it was your finance officer, finance director, that mentioned that there are $15 million cancellation of capital projects.
Yes. I have a list of everything except the projects. Some of the types would be along the lines of roofs were not being replaced on a scheduled basis, windows were not being replaced on a regular basis. The question that we asked was for each facility that's out there -- an example would be your roofing system or your windows system would, one would expect, last a set number of years -- 20, years, depending on the school. And when we 19 looked at the project initially, we found that it 20 was more of a haphazard process where specific 21 projects were not on this type of schedule. 22 And for that reason, we asked the 23 facilities folks on a project-by-project basis to go 24 back and take a look at all pending projects to 25 evaluate which ones made sense, and they are in 278 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS concurrence with the elimination of the 15. I will get a list for you tomorrow when we return.
You may be aware -- and I'm sure that you are, given the work that you all have had to do -- of a report that was produced by, I believe, Perks
Where is that in the mix of the analysis, given the instructive information that that report provided? (Witness comes forward.)
With all due respect, I've asked Tom McGlinchey, the Chief Operating Officer who's head of Facilities and Construction, to come up and respond.
Good afternoon. Would you mind repeating the question, please?
Sure. I don't remember the year, because it was before my time, but I do know that a consultant company with the last name of Perks produced a 279 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS comprehensive analysis of all of the facilities in the Philadelphia school system and the needed capital improvements that the School District should look at as it proceeded to the expenditure of capital dollars. So is that being considered as part of this analysis that you're currently going through?
The study you're speaking of was done by the Perks-Reuter Group in 1995.
And it was a snapshot at that point in time of all of the District's school buildings and what it would cost to bring those buildings up to a predetermined standard. The price tag on that at that time was $765 million; our estimate was about 50 percent of that was capital projects. We have used that as a base, along with our own assessment of facility needs, to determine what our capital program -- what projects to include in our capital program.
And was not that $765 million a result of back, incomplete or 280 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS unstarted projects as well?
No. It was simply an assessment of the existing buildings and what it would cost to bring them up to our predetermined standard, just the existing buildings. It did not take into account new-construction needs.
Councilwoman, I read that report quite slowly and I was quite interested in it. It's worth dwelling on for a moment. First of all, we should give people credit for good work. What the school managers did in recent years is, when you have construction problems, you can do the entire or you can do the shell. Roof windows: If you're short on money, you do the shell and then you go back later. And correct me if I'm wrong, what you did is you went and protected the shells of all of the 265 buildings, and then you're going to move back in and do the interiors. It's an imperfect model, but it's a very enlightened model in view of the challenges that they were facing.
Mm-hmm. 281 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
But I don't think we should be overwhelmed by it, because if you come up with a plan over a period of time, you can eat those costs, but it's quite a challenging piece of work right now.
And so as we're in this stage of developing a plan, and though that document as a tool may not be of relevance at this hour --
Yeah, that was a wise decision. (Addressing Mr. Gallagher.) And you can disagree with me Tom, if you so --
No, I think the qualifier is that that was just a snapshot in time. In other words, at that point, Perks Reuter went out and assessed the buildings. That was the need. There's an old saying in the facilities business that "rust never sleeps," so in the seven 282 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS years intervening, we've had some additional deterioration of the facilities, and we've invested quite a lot of money, as Dr. Gallagher says, in the envelope of the building to protect the inside, which we can attack after we've closed the envelope.
So is there any connection, then, to what you've just shared with us and the $15 million savings that we're looking to with regards to capital projects?
The $15 million savings that Mr. Doosey speaks of are essentially deferred projects, projects that we had scheduled for this year's capital budget, that we looked at, and determined we could get by for another year, another two or three years, without having to invest that money.
Very well. Thank you for that explanation. That concludes my questioning, Madam President.
Thank you, The Chair recognizes Councilman Cohen.
Thank you, Madam President. 283 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS With respect to that last answer, it's always been my understanding that the capital needs of the School District were far greater than the School District felt it could deal with in any one year and that, therefore, there would be cutoffs saying Well, this can't make a list this year, maybe it will make it in the next year. Has any consideration been given to the expenditure of that same $15 million to substitute on other projects which are desperately needed all throughout the City? There are all kinds of funding and roofing and housing problems that are desperately needed, and I just find it inconceivable that at this point, anybody would think of cutting the capital spending by $15 million because what ought to be happening is just the reverse.
My statement wasn't that the overall capital spending would be less by $15 million; my statement was that there were specific projects worth $15 million. What the SRC has requested of Facilities is that on a building-by-building basis, they come back to the SCR with a long-term plan for each 284 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS facility: What does each facility need from an engineering and architectural standpoint and from the evaluation of the building as it exists.
Well, that to me is not saving. When you defer the cost of replacing this work that is not being done now, it will probably be far more expensive than the $15 million when you decide to do it. I think it represents a loss and instead of arbitrarily being taken out, if your feeling is these projects can wait two or three years, substitute others which didn't quite make the list, because the needs are enormous all throughout the City. We've had testimony over many days of hearings as to the very basic capital needs. And we've gone along, we were unhappy about the limitation on capital spending, but we'd go along finally, but it seems to me to be the wrong direction go to find savings in something that is essentially going to wind up costing us more. So I ask that reconsideration be given there. Secondly, I'm very confused about many aspects. I hear the Chairman of the Commission talk about academic performance, academic achievement, 285 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS goals that he says exist in addition to the fiscal goals that he has in mind, and he talks about the academic standards. Now, there was distributed, I guess, today to us this document called the "Curriculum Renewal Plan," which was distributed by the School District of Philadelphia, and it carries at the beginning page a letter by the Superintendent, together with the Chief Executive Officer -- at that time, Philip Goldsmith, a letter to Judge Smith. Is that letter still valid?
Yes, it is. That is the document that I referred to in my testimony that is the academic procedural document for all work that we do. It is the Curriculum Renewal Plan that we worked on over the course of the past year under the guidance of Judge Doris Smith. We had to submit it to her for approval in the fall. We did, it was approved, and it is our guiding document, all the work that we do in curriculum instruction and assessment.
And I understood from your reply, Mr. Nevels, to a question that you agreed with the Superintendent's description that 286 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS this is the basic approach of the School District currently, under the School Reform Commission, that it's going to be the content of this booklet? Is that accurate?
Then why the need for all of the consultants and the RFQs for consultation on academic planning? It's always been my view -- I wish I had known of the letter, I would have had greater authority, but I've talked all over the City the last couple of years about how I thought Judge Smith's opinion set forth everything that basically needed to be done in the Philadelphia schools to bring it up to a really acceptable level of performance, and I'm glad to see that there is acceptance by the School District of that general conclusion. But why is there then a need for all of these consultant groups?
Because what we are going to do is, we are going to look at the proposals and the way that they're being effectuated within the District. 287 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
We're going to look at how we do business in terms of educating, and are we, in fact, providing the services contained in there.
You know, it seems to me the District currently is fully equipped to deal with that; it's shown it. It's shown it by this plan, it's shown it by some of the excellent schools that exist, by some of the excellent programs that exist, even in schools that in the test scores sometimes don't rate very favorably. It just seems -- it's a worrisome thing as to the need for all of these contracts. You know, it gives me difficulty when somebody says to me, Isn't it a fact, really, that the savings of the $25 million is going to be wiped out as soon as Edison or other companies come in? Aren't those positions going to be filled by that company? And I find it difficult to answer that. Incidentally, you talk about savings being identified. In the law, at which I feel more at home than in any other area, identification is always a very interesting and a very difficult 288 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS question. Couldn't you give us just in general the process by which you identified the ability to lay off this number of 325? How did the number get arrived at? You communicated -- what set that number; was it the financial needs, as you saw it, to effectuate a certain amount of savings? Had you gotten documents public or secret that indicated to you there was a great deal of fat around and that it was concentrated in certain areas? How did you communicate to the people in the charge of the departments what they ought to be looking for? 'Cause as I understood it, you sent a request to the heads of the departments to make recommendations. Is it a matter of cutting specific programs that people are involved in, or is it a matter of eliminating work? Could you just talk in process, could you just identify the process? How did you go about figuring out what the savings were that you identified? And how did you communicate and on what basis were these judgments made? Why wasn't it 50 million or, on the other 289 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS hand, million instead of million, that kind of thing? Could you explain that to us? What's the process that was used?
The process that was used 6 was a review of non-field personnel. Your pool 7 would be all employees that are not directly 8 associated with the schools, so you would exclude 9 all principals, teachers, bus drivers, custodians, 10 etc. 11 The SRC then asked senior management -- 12 myself, Dr. Farmbry, our peers -- and their direct 13 reports to take a look at their areas first on a 14 functional basis. Are there functions that are 15 being performed now, which, while it's nice, we 16 really don't have a viable need for them any longer? 17 Secondly, it would be for those functions 18 where there is a viable need. Senior management was 19 asked to take a look at existing staff levels and to 20 respond to the question, knowing the financial 21 situation the School District is in, what would be 22 their recommendations as far as what changes they 23 would make? 24 The dollar numbers that were provided to 25 them were targets, to be quite frank. Some areas 290 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS came over target, some areas came under target. The $25 million savings total was an aggregation of all of those numbers, and embedded in that number is the recommendations of senior School District staff, School District staff that were on board prior to the arrival of the SRC. It is not the SRC dictating to senior managers what functions should and should not remain. I can express an opinion on finance; I cannot express an opinion on Miss Farmbry's area, nor on operations. I rely on their professional expertise.
Were any department heads given any kind of goal or targets?
The total targets that were given were -- the actual numbers were in the $30 million range, with salaries and with benefits. It was -- it wasn't so much a goal as a -- what the SRC's looking for is a rationalization explanation of each senior manager's current staffing plan and 291 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS current operations.
Was there anything written to any of the people, or did you have an oral meeting at which the department heads were talked to, or was it a written communication you sent to them?
It's actually a combination of both: It was a discussion with Mr. Nevels, his interim CEO, and then there were written communications as far as the process to be followed.
Would it be possible for us to see the written communications s that were sent to the department heads?
I have no objection with that. The only thing I would ask respectfully is I think that since some of the functions have been identified but the individuals, or the specific positions, have not been quantified, I would be sensitive to the situation of the existing employees.
Well, I'm talking only of the communications that you sent to them.
That will be fine. I'll have that available to you tomorrow. 292 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
If we could have that tomorrow morning, that would be helpful, all right?
And is Commissioner Nevels and the others here going to be available tomorrow after the testimony by Debra Kahn before or after, whatever the President determines?
Councilman Cohen, I have just been informed that Mr. Nevels will be unavailable tomorrow; however, everyone else will be here. He has indicated that he would be more than happy to come any other time that Council so chooses. But everyone else will be here from the School District tomorrow to answer any questions.
Well, I think we need Mr. Nevels. We can determine that later on and he could come maybe promptly after tomorrow, sometime Thursday or Friday, if needed. I don't know whether he's actually needed.
And Mr. Nevels has indicated that he will stay as late as he has to this evening to answer any and all questions the Councilmembers have.
I think we're reaching 293 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS a level of --
I think so. Councilman Cohen, are you finished with your line of questioning?
Thank you. The Chair recognizes Councilwoman Tasco.
Thank you. I have just one very simple, basic question that is important to me as a District Councilperson and to the many community groups that are in our communities. If we go to these partnership consumes, and they are our own public schools, many of us use these schools for community meetings and programs. Will we have access to those buildings? You may not be able to answer the question now, but what would be the protocol for accessing the use of public school buildings under 294 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS the management of a private organization?
That's a detail that we're going to have to address; I can't give you an answer right now.
I mean, there are a lot of just basic questions that have to be answered relative to the whole contracting-out of public schools to a private manager as they relate to the community and the community's involvement, and I think we ought we ought to get some serious, serious consideration to all of those little nitpicky, we might call them, details, but to us, they're very important. When I want to do a meeting at Martin Luther King, who do I go to? And what are the rules an regulations? And do we have access to those facilities?
So one other question -- it's not really a question, but I like the statement that Dr. Farmbry made on her testimony when she talked about the principals and educators giving their discussion and ideas on reform. 295 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS And how have we included these principals and people who are already in the field, working in the whole element of reform? Are they being listened to? since they're there, they're the ones who are going to have to work, they have the experience. Or are we going to rely on consultants who come from the outside with their own notions of how things work, without really knowing the lay of the land of Philadelphia? Have they been consulted in terms of reform, the principals and other teachers that presently exist in the school system as we talk about reform?
One of the things that we have done is, we have -- in terms of the process, the consulting, the RFQs, the staff has been actively involved in this, not to mention what Jim said earlier, Jim Doosey said earlier, in the way of examining and identifying personnel needs within the administration building. So the answer to that question is yes. We plan in terms of the evaluation of the RFQs that came in, on the consulting side, we 296 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS utilized teams of individuals in the building, in the Parkway building, to assist us. Also, as we have looked at the identity of schools, obviously, the area academic officers have been consulted and the principals as well, it's my understanding.
The area academic officers have been consulted, really engaged with me in a conversation about what supports would be needed for any number of their schools to really bring about rapid reform. Principals themselves were not consulted unless at some of the area academic -- I mean, we got the essence of their feedback by virtue of the fact that area academic officers meet with their principals every two weeks, so they have a handle on what's going on. But they were not consulted personally in terms of whether or not their school should be on the list, you know, what their inclination is. Not at that level of detail, no. 23
Okay, thank you, Madam President. I'm fading. You are too.
Excuse me? 297 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
Mr. Chairman, let's talk very frank. There were negotiations between the Governor and the Mayor. When those negotiations ended, shortly thereafter, there were a series of appointments made by the Commission; I think, at that point, it was a one-person commission, yourself, I think, when the original $675,000 in consultant contracts were awarded. Being a Democratic ward leader, being very active politically for the last 35 or 40 years, names of people are known to me whether I know them or not, and I was struck by the fact that so many people were kind of well known only in the political world and in the political world that was largely associated with the Mayor of the City. And I wondered, how was it that you got those names that quickly and were able to make those appointments? Was it just coincidence, or what was 298 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS it? Or was that a part of the subject of negotiations that occurred between the Governor and the Mayor so that you were carrying out a part of the agreement that you were informed about?
Councilman, I have been involved in the law and in business and in finance for all of my professional career. I've been involved as a member of the Chester Upland Empowerment Team and also the Chester Upland Board that managed that distressed district. Over that period of time, I have come to know, and have worked with in all of those capacities, the individuals involved. And I had to draw upon them quickly to get to work, and that is precisely what I did, based on that experience that I had had in working with them in the past.
You referred, during an answer to a question, to Mr. Carl Singley as being the counsel of the School Reform Commission. It was a question that was asked about --
Yes, and I answered that in the context relating to DBE and MBE, yes.
Is it just a coincidence that he happens to be a person so 299 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS closely identified over so long a period of time with the Mayor, who is a part of these negotiations with the Governor?
I don't know the current relationship of Mr. Singley with the Mayor. I do know that in the past, I've worked with him on a number of occasions relating to counseling the Chester Upland School District on some other matters.
These are the kinds of questions being asked out in the community.
It was disturbing that the very first step taken by the School Reform Commission was the appointment of a whole lot of consultants, when we, in the Council, have felt that what's needed is money for kids in the schools.
In the classrooms, and that, we understood, was supposed to be -- we didn't accept it -- at least I didn't accept it, but at least I was told that it was going to be money for the kids in the classrooms, and the first set of 300 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS expenditures are unrelated to that entirely, but are related to PR activity, which I happen to think is probably the last thing that's needed. I think the Superintendent represents the School District very effectively, even in circumstances in which I may disagree with a conclusion she reaches, but she seems very firmly grounded, and I think that the District is fortunate to have her and to have most of the top-level people it has. I don't know about these 325; they're a great mystery to me to have suddenly discovered that there's 325 people wasting basically $25 million a year of much-needed money, and I need some proof that that's the case, because otherwise, I just think you're cutting when you ought to be strengthening and adding. And that, again, is what's being raised out in the community. We didn't touch upon the anti-labor aspect, but I hear on the air -- I heard this morning an ad on KYW, I've seen ads in the newspapers. Certainly the organized element in the School District feels -- feels very unsettled, very unsure, very unhappy about what seems to be going 301 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS on. And yesterday, I had one unfortunate experience in which I asked someone, through a mutual friend, to inquire about whether a person or an employee of the School District who I believed would have some information I thought relevant to our discussion today would speak to me, and the answer came back, "Nobody will talk to anybody at the School District anymore. They're all frightened to death." And I think that's not a healthy atmosphere, and I don't know whether it's the dismissal notices or the warnings of 325. You know, that sounds like some of these major cop corporations just chopping off without regard to performance. It leaves everybody with a lot of concern about what's happening. And I thought I ought to be impolite enough if that's what it is to raise that with you, because I think they deal with basic concerns that people have, and I would hope that you could address them, if not tonight, at a later time, not too much later.
Thank you, I will. 302 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
Did you have any comment now with respect to these concerns? (Laughter.)
One of the most difficult decisions that anyone can make is the layoff or reductions in force. After giving close examination to the operation in the administration building and also after consultation and asking for recommendations in the process that Jim Doosey described, we did make determinations that there were -- that it was a case where we could make those reductions in force without injuring the children. It is a difficult decision, but it's one that's very necessary, and it was recommended to the Commission, and it's one that we have to stand by.
Would you say that those employees did not perform useful services? I don't know who we're talking about, but whoever happens to wind up in the group being cut, would you say that their services were not useful to the students?
I will not say that, that they were not useful to the students. I will say 303 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS that from an administrative standpoint, the division heads related to us that those services were not essential from an administrative standpoint.
And until that time, you did not know that, or no one in the School District knew that?
These are difficult times, Councilman. We have a case where we have -- and it's not been recent, it has not been a recent phenomenon where we have run the deficits that we have. This was an effort, and is an effort, to bring some fiscal responsibility to a situation where a difficult decision had to be made. I'd rather make this decision than to have it directly impact the children. And it's one that, while difficult, I commend to the Commission -- I commended the suggestion to the Commission, and I stand by that.0
Why couldn't you recommend to the Governor that additional funding be made available?
I have, and my colleague Jim Doosey and I have gone to Harrisburg, and we will 304 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS continue to go to Harrisburg, with the desire and ask, continue to ask for more funding and more permanent funding, but until we get that, we will have to be prudent stewards of what we have, and we'll have to make the appropriate measures that we need to keep the essential services of educating children on track.
That's the longest yield that I can ever remember. (Laughter.)
You know, since 9:30, we've been here, and I'm still trying to internalize how you are going to impact low-performing schools and the majority of the schools in the City with less money. I'm still trying to understand what partnership schools are, when there's no actual money that is going to be available, 'cause people think, actually, that -- some of these partnerships think that they're going to get paid an administrative fee or other aspects of monies. 305 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS I still do not, and cannot, rationalize, and I don't think it has been articulated today the rationale for your existence. I really cannot. And maybe I'm blind in terms of -- but what we've heard from 9:30 till now, and I'll read the record to see whether maybe I'm mistaken, but I still don't hear from a comprehensive reform plan; maybe I'll hear it during the next few days, as we go on. I still don't see -- 'cause I'm very well acquainted with what Doris Smith wrote in her opinion and how you're going to be able to implement the changes that are needed out there in the Smith plan. And I still haven't heard an answer about what role these -- this school, this corporation, is going to play in the administration and what's going to be the administrative percentage that they have. I guess 7 percent, 8 percent. The rationale and -- before I left, the rationale for hiring some consultants for recruitment, I think, is not valid because we went through a process of changing the recruitment methodology, and it seems to be working. And I think one of the best things that we can have, and we can posit to a graduating person 306 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS from out of state, is a stable educational system. Say, Come over here to Philadelphia, where the parents are in revolt, the politicians are afraid to put money forward at the State level. We're cutting across the board, we can't fix the schools. I don't know how that's going to recruit teachers. I just came from the (indiscernible) Marin School, and there were 400 kids at 3:15 and around close to over 150 parents, and they were asking for answers. The principal could not give them any because the principal did not know what was happening or when it was going to be happening or if she was going to be there or not. One of the things we read is that there are going to be less teachers. I don't know how that reforms and how that's going to bring about less kids in the classroom, but maybe in the age of Harry Potter and the Lord of the Rings, magic can happen. I really sat here all day long, hoping that a comprehensive, well-articulated plan based on economics, based on solid educational principles would be presented to this Council, and I haven't heard that. Yet, we're supposed to put and, as Jim 307 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS Kenney said, mortgage the future of this city on something that people may not see and might not be around. You got to be able to convince the parents, you got to be able to convince this body. I mean, this is not about opposition or whatever; this is about that we believe basically that this country, this city has a commitment to the kids of this city and this state, and that commitment has to be made of a viable, well-funded, well-staffed, competent educational system. Like when I first began and I told you I have two kids, I cannot go home today and say, you know, I look forward to a September that is going to be bright and hopeful. I didn't hear that today as a parent -- forget as a politician, but as a parent, I didn't hear that today. That was not articulated. As a politician, I'm going to have to vote on something that has implications of over 30 years, and I don't know -- as a person that has never said no to any request from the Board of Education here that was reasonable, I don't know whether this bond issue to resolve a one-year deficit is realistic or not.
308 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS I don't know whether -- because we did that as a city. In '88, '89, we went into deficit- spending without really putting the right structure and really going after the structural deficit that we had. And everybody talks about PICA and you being like PICA, but you're not like PICA, because when the State House created PICA, there was a tax imposed to cover the investment that was going to be made. There is no such thing here; everything is coming out of the General Fund. And it seems like we're not fixing Peter, but we're robbing from Paul. And we're putting two institutions in a slippery slope to insolvency: The City and the school system, 'cause we're not fixing the school system, and you're not fixing the school system, and partnership schools are not going to fix the school system, and Edison is not going to fix the school system. And I'm just tired of over years sitting here, and Dr. Farmbry has been a part of this over the years. We've been discussing this year after year, from Connie Clayton to Hornbeck. And, honestly speaking, I do not yet, because I haven't 309 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS heard it from you, I have not heard the rationale, the articulation of a plan. I think he has to come back. Thank you, ma'am.
You're welcome. The Chair recognizes Councilman Nutter
Councilman, would you like me to call upon someone else?
No, Madam Chair, I will get myself together and try to keep up with the SRC. They were determined to wear us out today, and I'm just going to try to be a trooper through it all, and I just have a couple of other questions. Along the lines of what, in the last round I was talking about, the role of parents, separate from that, there has been some discussion today, and I've not gotten into the issue of the various EMOs, the providers, lead providers, community partner schools, but consultants, and then you're obviously going through that process right now. There has been a concern that, again, because this is public education and public dollars, 310 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS how much information will be shared and at what point with regard to the different contracts with EMOs, providers, lead providers, community partners, people who are going to be managing schools? They will have in essence, I think, if I'm understanding this correctly, a contract with the SRC; is that correct?
Okay. The question is, at what point are those contracts, public documents, how are they shared? how will they be shared with the public at large and the taxpayers? how will this be shared with members of City Council so that people can understand the nature of the contract, what's expected, and what the service is that's to be provided?
Upon the contract awards, there will begin the contractual negotiations between Council and the EMOs, and those will be the operative contracts. The second type of contract will also, of course, be with the consulting groups. Once those contracts are in form and finalized, they will be presented to the SRC for their approval pursuant to 311 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS a resolution process. They become public documents upon adoption and will be -- will certainly be available to the public.
Could you envision any scenario where, upon the execution and the Commission takes the appropriate action, that those types of documents -- and I'd like to, excuse me, be rather narrow in the focus. In distinguishing those kinds of documents and contracts versus who you might have a contract with for pencil and papers and office supplies, but that those kinds of contracts, when the SRC takes its action, could you envision any scenario where in a spirit of partnership, those documents could be sent, for instance, to the Chief Clerk's Office here in City Council for the Council to get them directly from the SRC and have an opportunity to look at them as one of the entities that actually provides a significant amount of funding to the School District, and then naturally to the operations overseen by the SRC?
Certainly I think that it would be appropriate to raise that with -- and I will raise it with the Commission and make a determination as to the possible release. 312 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS I can't comment and say that I would favor that individually upon the adoption and their becoming public documents, but I would have to consult with my colleagues as well.
Okay. From your perspective, at least as chair, Mr. Nevels, who ends up evaluating the work of the School District and the SRC on behalf of the public?
The public does that, I believe, and this is an issue that has come up, and we were asked this yesterday in Harrisburg. One of the things that we would hope to do is to use our internal-measurement people to give us a sense of how we're doing. We believe that we have the capability and the capacity in-house to establish a baseline in terms of testing and measurement. Number two, on the evaluation of how contractors are performing, I made reference earlier to firms like School Works and Mathematica to give us a sense, to give the Commission a sense as to how we're doing across the board. Those are the kinds of measurements that we would look at. As you know, there is currently pending some legislation in Harrisburg relating to 313 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS establishing a board. I believe that we currently have the wherewithal at the Commission to make the evaluation necessary.
Okay. You may also be aware that there is actually a slightly different piece of legislation pending at the City level as well --
-- that would provide an outside -- it's actually called a "Performance and Accountability Board," which would monitor the activities and also establish some realistic measurements and goals for the School District and for the SRC. I naturally heard what you said in terms of some of the private entities that would give you an assessment of how you're doing. I would take the leap to understand that some of those entities, though, may be actually under contract to the SRC in providing those kinds of services?
Well, the entities that you mentioned, what was it, Mathematica and --
Mathematica is an example 314 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS of one, and also School Works is one that was utilized in Chester Upland.
Okay. Again, I would ask -- and I know, obviously, you need to consult with your colleagues and there may be other people. I think that under the previous construct of a board Of education -- recently, you know, there was a change in the Educational Supplement to the Home Rule Charter actually trying to move the School District in the direction of more accountability for the Mayor, and then this situation evolved. There is, I think, with reason, a feeling in many sectors of the City that there's no way for the public of Philadelphia, whether they have a child in the system or not, whether they have a kid in the system or not, if you pay property taxes, I feel that you have some relationship with the School District, that there is at the moment no way to have an independent assessment of what's going on over there on how the District or the SRC is functioning, and that was the impetus for that legislation. Again, I would ask if you would take a look at that and see whether we might be able to reach some level of agreement as to in the -- as 315 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS they say from time to time, who watches the watchers? and make sure that the public has an ability to get an independent assessment of what's going on. I think my last question or two for the day is, we had some discussion earlier about where this is all going and the distinctions between this particular plan and earlier City plan that you could actually see, where the City of Philadelphia, through its financial crisis, was going to not only get resources, but also be able to pass a structurally-balanced budget, if not leading to small surpluses. We talked about -- and Mr. Doosey was involved in this conversation -- the need for ideas and proposals for a possible change in the structure of how public education is funded. And you mentioned that there have been a number of ideas out there, but that ultimately, that's the answer to this particular question. I would ask you to take back to your colleagues at the SRC, and also members of the SRC have a variety of relationships with people. I would like to encourage the SRC, given the way you 316 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS were constructed, the fact that you have set terms, I believe, as best as I read, I think it was either Act 46 and/or 83. I believe the members of the SRC can only be removed for cause?
So at least three of the members are going to be around for a good while. I would like to encourage you, as a commission, to use not only the power of your office, the nature of your relationships, but what appears to be the independence of your appointments and the stability that that brings, to take a message to the variety of parties that need to be involved that unless there is a new formula, the SRC will become the former board of education. You will be saddled with an unanswered question of how you get to fiscal stability, and you will preside with great security over a system that still has no road map to financial stability and educational excellence. And that -- and not so much as a threat, 317 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS I don't really much believe in threats, but as a commitment to your service on the SRC, that if there is not, in fact, a realistic change in the funding formula that not only helps Philadelphia but also the other 500 school districts in the Commonwealth, that you really need to reevaluate your service on the SRC such that you don't become the former board of education that was powerless to raise taxes or to raise its own funds or to find its own solution. And that as a part of your commitment to working on the SRC, a big part of it is to use this as an opportunity to force the discussion about the change in the funding formula, because otherwise, I think you have to acknowledge, and then admit, that you won't be able to do your job. So, all that we've gone through, the independence you've been given, the inability to be taken off of the board or the commission other than for cause, what is the purpose for all of that security, if not to make a serious and realistic change? And I think it gives you an incredible opportunity in the bully pulpit to call for those changes. And, lastly, whether with some 318 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS legislators or some business people that you know. People that have backgrounds in public finance or education-finance issues, I would also ask if you could seek to have people who are not a part of the SRC or the School District, but other people, ask them on your behalf to begin to put together ideas that you will ultimately embrace and bring forward to the public to start this debate and discussion as soon as possible. Because I don't think you can have a legitimate debate and discussion about new funding formulas if there's nothing out in the public for people to -- they can either embrace it, they can maul, it they can do whatever they want to do with it, but for anybody to reject it, they should be prepared to step forward with their own plan. And I think if the School Reform Commission takes that posture and has a group of people who are legitimate in their field, have great backgrounds and the political capital to expend to come up with some ideas and plans, it at least forces people to deal with it as a realistic and legitimate concept, as opposed to the theoretical and the hoped-for. 319 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
Thank you. And you'll let us know what your colleagues say or think about that?
Absolutely. And, hopefully, you may recall in our last round of questioning that I stated that once we get a CEO in place, we'll be able to really focus our attentions on some of the oversight issues, including focusing on this very important systemic means of providing aid to ourselves and the other 500 school districts in the Commonwealth.
Thank you. Mr. Doosey, you mentioned earlier that part of the SRC's recent activities was either the elimination or the postponing of $15 million in projects, capital projects? Was that elimination or postponement?
I'll bring the list tomorrow. It's my understanding it's an elimination of the projects, and I will bring the list tomorrow for Council's review.
Okay, you anticipated the second part of the question. 320 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS Thank you for that. Now, lastly, last summer, there was a memorandum of understanding that was entered into by Mayor Street and Governor Ridge, and then in September, the end of September, there was an amendment made to that same memorandum of understanding primarily for extension purposes. And the two main provisions of that are: One, the Governor will examine the foregoing analysis and, no later than October 31, 2001, will provide to the Mayor a long-term proposal to address the educational and financial situation in the School District, including options to improve the educational performance and financial condition of the School District. With that in its proper context, Chairman Nevels, I need to ask you, the plan before us, $45 million in FY '02, $25 million transferred in millage, $20 million in the direct grant next fiscal year, $75 million from the Commonwealth next fiscal year, and the $300 million debt financing to eliminate the deficit this year, next year, and possibly somewhere between Fiscal Years '04 and '05, and return to deficits, I think in Mr. Doosey's 321 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS testimony, in '05. Does this plan meet the test of what that provision of the memorandum of understanding laid out back in July or back in September of 2001?
Councilman, I would have to go back and look at that memorandum and the context in which it's written. I will get back to you with an answer in that regard.
Okay, thank you. I appreciate your response. Thank you, Madam Chair.
Thank you The Chair recognizes Councilman Rizzo.
Mr. Nevels, I'm going to ask of you a request to forward some information to the Chair, and I just want to make sure, before we leave here tonight, that my request is communicated clearly to you so there's no loopholes or no misunderstandings of what I'm asking for. Whether the period be six months, a year before you arrived, I'd appreciate you providing to the Chair any consultants, contractors that were hired either by the School District or the Reform Commission as a result of the creation of the 322 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS Commission. So I want to make sure that I'm expressing myself clearly and I don't want to be told two months from now, Well, you didn't ask the question clearly enough. I think that you're understanding what I'm asking for: The names, the dollar amounts of the consulting contracts or contractors that have been hired to support the takeover, or whatever language we want to use. Am I basically covering it all? Am I going to be told, Well, you didn't ask for that in a subsequent conversation? I want to know who all of the contracts are and what these folks are doing -- not just for the Commission, but for the School District also.
Thank you Okay, Madam Chair, that's all I wanted to know.
Thank you The Chair recognizes Councilwoman Miller.
Thank you, Madam Chair. 323 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS Just a couple of questions, Mr. Nevels. When is the list of partnership schools going to be finished, if it hasn't already been?
That list... yeah, I believe that is available the first week in April.
The first week in April, okay. Can you send a copy to the Chair, to the President, and we'll get that?
Also, in looking at Deirdre Farmbry's testimony this morning, there's some recommendations that were made by a list of principals, and I know they all precede with funding, funding, funding. If funding permits, will these recommendations be included, or are they being considered to be included in a reform plan? And also, are you using part of the Empowerment Plan to come up with whatever it is you're going to come up with your Comprehensive Reform Plan?
We are going to look at, as 324 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS I alluded to earlier in the day, the May 20th of last year Workout Plan. Also, we're going to include the Empowerment Report and also anything else including the acting Superintendent's recommendations included in her remarks.
Okay. Just so that I could be clear, who will make the selection of the community partners -- the partner groups?
That is correct. We will try to match them up; that's currently the plan.
Okay. Just in terms of structure, and we could talk more about this tomorrow, but will the area academic offices still exist with EMOs and how that's structured or what it will look like?
I can't imagine why not. We're going to use that structure with the educational reform councils. I can't imagine why that structure wouldn't exist going forward.
Okay. And I'd like 325 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS to just put one other thing on the record, and then I am finished for the day. When will you complete your CEO search? MR. NEVELS I'd like to defer to the chairs that are handling that.
For your information, Councilwoman, Dr. Gallagher and I are heading up the search committee for the SRC and are working jointly on that process. We anticipate, first of all, having the CEO in place for the beginning of the school year in September. We have engaged a search firm just this past week. We did announce that Hydrig & Struggles (ph) is the firm that will be working with us to identify the CEO for the District, we have a very aggressive timeline for them to bring in candidates to us, and we expect to have finalists identified ideally by the middle of June in terms of that timeframe, and then to have negotiated a contract and have the CEO in place by the end of the academic year.
I have a schedule in 326 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS front of us, and I'll just give you some of the highlights. April 1 through 8: Solicitation of nomination. The process begins. Public advertisements. I'll just pick highlights for you. April to 29: Candidates interviewed 9 in person. 10 May 20 to 27: Final interviews. 11 Sometime in June: Selection of the 12 candidate. 13 So we're -- to reiterate what my 14 colleague said, it's a very aggressive and 15 optimistic schedule. We are dealing with human 16 beings, and they behave in different ways at 17 different times, as we all know, so this schedule 18 may slide for a short period, but we feel a great -- 19 I used this term the other day and I'll use it 20 again -- a great sense of constructive anxiety, not 21 destructive anxiety, that we get this thing 22 completed quickly so that we can have a colleague sitting here with you, so we can enhance the level of exchanges. We need a leader in this position -- not 327 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS that we don't have one now, but we need a CEO. So we are very optimistic. And let me anticipate one additional question that came up the other day: Will people be interested in this position? We believe people will be interested in this position. It's a very challenging position, but it's a watershed moment in American education, and we are very optimistic. We believe that if we get the right person and that person wins your confidence and the confidence of the people throughout this city, we can be successful. So we're going to go at it with a great sense of urgency and a great sense of intensity, and I promise you that we will keep you posted as the events unfold.
Okay, I know the last time you hired Phil Goldsmith, he was hired because of his business, he came from private industry. And then you hired Deirdre as the CEO. Is that the same structure you'll be looking at, or are you --
Yes, we're following same structure: CEO, CAO. 328 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
Thank you The Chair recognizes Councilman Cohen.
It's a wide-open search, sir. All viable candidates are being considered. Present people -- people presently employed and any other individual who may be nominated from across the country.
All right, because I think Philadelphia's, unfortunately, begun a practice of assuming that people from outside of the City are more suitable, more qualified, and I would love to see somebody in Philadelphia occupy that position. But in response to the Chair of the Education Committee, you indicated you're thinking of -- is that a fiscal officer then, as Mr. Goldsmith was?
Let me describe it in this way. The Chief Executive Officer would be the 329 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS Senior Management Officer, fiscal, will certainly have some academic understanding, management principles, HR, all of the activities you would find in a chief executive officer, if I can use the corporate model as an example. And then the Chief Academic Officer would report to the Senior Management Officer. Another parallel that many of you will understand. Often universities will have -- a huge university have a president -- let's use Temple University, it's a revered place. Temple University has a president and a provost. The President does the broad-based management activities -- finance, public relations, promotion, government work. And then the provost does the internal academic work. The thought across the nation today, and I agree, is that these positions have become so complex and so demanding, that it's better to have two brilliant people than one brilliant person. And that's what's motivating this new model. And I think it's a grand idea, by the way. Today would be a good example. A year from now, there will be a CEO who will be testifying in this room, hopefully doing a fine job. And the 330 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS Academic Officer will be home running the shop, running the schools. The next day, you may invite the Academic Officer to come share his her time with you, and the CEO will be back running the shop.
Sometimes we tend not to recognize the gem quality of somebody close to us.
As a Philadelphian, sir, I applaud the constant employment of all Philadelphians, present company included.
By the way, I'm not petitioning for this position; I have a great position right now in East Falls.
You did an outstanding job, but I wanted to comment one another way 'cause you use language very similar to the kind of language I like. I think it's a watershed day, but I think it's a watershed day for public education, and my overriding concern is, I think when you take control away from the general populace, which has had it for a long time, I think you're damaging the image of and the reality of public school education. To me, public schools mean public in the 331 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS fullest sense, with heightened parent activity, not just being advisors. Parent activity means parents feeling that they are participating in making the decisions, not just in being part of a group of folks who are being used to, you know, provide some advice, some suggestions. It seems to me that in the education field, one of the great things in Philadelphia -- I think we were probably the first city in the country that really had a public education system, and I'm very scared that when you bring in these private consulting groups, even those partnerships that we talk about, they may be well motivated, but I think they do great damage, particularly when you bring in companies that are devoted to profit-making. That's got to be -- Mr. Nevels, I think you have to agree, a corporate, for-profit organization, its first duty, its first responsibility is to the shareholders, because they're the ones that have provided the capital, they're the ones that the Chief Executive Officer has to report to. And it seems to me that we need people whose first client and first concern are not 332 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS investors, but the people of Philadelphia. And that's the reason why I don't like to -- I don't mean to offend anybody, but I feel very strongly on this issue. I think that it is a watershed day for Philadelphia, and I hope that by next year, sitting at this table where you are testifying today will be members of a reconstituted Board of Public Education. The people of Philadelphia have worked too hard. We went through the process of an election just a few years ago. I happen to disagree with Councilman Nutter on the issue, but both of us felt it was very important that the decision be made by the people of Philadelphia as to the powers of the Mayor with respect to the appointment of board members. I don't think any of us ever considered the potential that there may be people who we don't regard as coming out of the Philadelphia public school arena sitting in your positions today, representing the people of Philadelphia. I don't think you do that. I'm not trying to impugn any motives here; I'm just saying I think that the School Reform 333 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS Commission is not the proper approach to use in the field of education in the City of Philadelphia. And so there will be a number of us committed to bringing back the total control. Before when people didn't like anything that happened at the Board or at the School District, they would know when a meeting was taking place because the meetings were public and were regular, and they could go down and voice their opinions sharply, directly to members of the Board. I know of it 'cause I was among those who at times in Council -- appeared as a Councilmember to protest Board decisions. I often thought that the Board of Education was wrong in what it was doing, but at least it was a close contact to the people in the schools, and every parent felt everywhere, Well, if nobody else listens to us, at least we can go down and make our voices heard at a public meeting of the Board of Education. And they're responsible to us, they're Philadelphians, we can control their selection. And we think that ought to be instituted. And ultimately, if we didn't like it, we could vote them out of office.
We can't vote you 334 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS out of office, we can't vote in your successors, we have nothing to do with it. Even the incoming governor, by the terms of the statute, would not be in a position to charge any of you except for cause, and that never happens politically. So I'm just saying that the framework in which you're operating is a framework which I think is anti-democratic, with a small D, and I don't think it bodes well for public education, no matter how well intentioned it may be Thank you, Madam Chair.
You're welcome. The Chair recognizes Councilwoman Blackwell.
Thank you, Madam President. I will keep it very short and sweet today. I have put together the issues, some issues in my district, save one area that's not my district, but I have a principal who comes from my district, so I'll submit that to you because it deals with various schools, and then you can consider that and get back to me.
Will do. 335 3/19/02 - FY '03 PHILADELPHIA SCHOOL BUDGET HEARINGS
Thank you. Are there any other questions or comments from members of the committee? (No further questions or comments.)
I really want to thank you for your patience. I know we've been sitting here for quite a while. I think it's been a very important day. The committee will stand in recess until tomorrow, Wednesday, March the 20th, promptly, promptly at 9:30 a.m.
Thank you. (Proceedings end at 5:39 p.m.) - - - 336 CERTIFICATE WE HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia's meeting of the Committee of the Whole of Tuesday, 3/19/02, are contained fully and accurately in the stenographic notes taken by us, and that this is a true and correct transcript of same. RE: Ordinance No.'s: _______________________________, Judy Barit Registered Professional Reporter and Notary Public _______________________________, Josephine Cardillo Registered Professional Reporter and 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.)