Philadelphia City Council Committee on Appropriations, 2 Mar 2022

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From YouTube: Committee on Appropriations 3-2-2022

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The Committee on Appropriations of the Council of the City of Philadelphia held a Public Hearing on Wednesday, March 2, 2022, at 9:00 AM to hear testimony on the following item:

220114 An Ordinance authorizing transfers in appropriations for Fiscal Year 2022 from the General Fund, certain or all City offices, departments, boards and commissions, and the Grants Revenue Fund, certain or all City offices, departments, boards and commissions, to the General Fund, certain or all City offices, departments, boards and commissions, the Water Fund, certain or all City offices, departments, boards and commissions and the Aviation Fund, certain or all City offices, departments, boards and commissions.

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Madam chair council, members and participants, we are now live.

C

Good morning it is wednesday march 2nd 2022. This is the committee on appropriations.

C

uh Before we begin this public hearing, I wanted to make the following announcement due to the continuing threat of public health from covet 19 and the variance city council committees are currently meeting remotely we're using microsoft teams to make these remote hearings possible instructions for how to the public may view and offer public testimony at these public hearings of council committees are included in our public notices that are published in the daily news, inquire and legal intelligence prior to the hearings and can also be found on fitfillacouncil.com and note that the hour has come.

C

Will the clerk? Will you please call the role to take attendance members that are in attendance? Will you please indicate you are present when your name is called also, please say a few brief words when responding so that your image can be displayed on screen when you speak, mr clerk.

D

Good morning, everyone, madam chair maria quinone sanchez, I am president councilmember kenyatta johnson.

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Council member isaiah thomas.

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Present council member brian o'neill president council member david, o.

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Council member alan dahm.

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Morty, madam chair and colleagues, president.

C

Thank you good morning, everyone, a quorum of the committee, is present and this hearing has officially been called to order. This is the public hearing on the committee of appropriations regarding bill 220114.

C

um Will the clerk read the title of the bill.

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Bill number 220114 authorizing transfers and appropriations for fiscal year, 2022 from general fund, certain or all city offices, departments, boards and commissions, and the grants revenue fund, certain or all city offices, departments, boards and commissions to the general fund, certain or all city offices, departments, boards and commissions, the water fund, certain or all city offices, departments, boards and commissions, and the aviation fund. Certain or all city offices, departments, boards and commissions.

C

Thank you before we begin to hear testimony from our witnesses we have for today. Everyone who's been invited to the meeting to testify should be aware that the public hearing is being recorded because the hearing is public. Participants and viewers have no reasonable expectation of privacy. By continuing to be on the meeting, you are consenting to being reported additionally prior to recognizing members for questions or comments they have for witnesses.

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I will note for the record at this time that we will use the chat feature available in microsoft teams to allow members to signify that they wish to be recognized in order comply with the sunshine act. The chat feature must only be used for this purpose.

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um Our first and only panelist list for to testify this this morning on bill two two zero one. One four is marissa waxman our budget director good morning. You are connected and ready to proceed great.

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Good morning, uh good morning, chairperson quinoa sanchez and members of the appropriations committee, my name is marissa waxman budget director and I appear before you today to offer testimony on bill 220114.

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The purpose of this bill is to obtain approval for the city council, from city council to transfer funds from the labor reserve to various departments for costs associated with the new collective bargaining agreements raises for exempt and non-represented staff and vaccination bonuses.

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The administration anticipated these costs in the fy 22 operating budget approved by city council, set aside funds in a labor reserve to be allocated upon ratification of new labor agreements. Those funds were to cover new contracts for dc 33 dc 47, the fop, the double f, local, 810 and school crossing guards. The reserve also included funding for two and a half percent raises for non-represented and exempt employees that were effective as of january 31st. 2022.

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Now that most of the new agreements have been completed, this transfer ordinance will move funds to the departments for the general fund. The total shift in appropriations included in the proposed transfer ordinance is 123 million 140 7 813.

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The ordinance includes excess appropriations beyond what is needed for the exempt raises, and those funds will be held in reserve. The ordinance also appropriates funds for the coven vaccination bonus. Most of the costs are for direct payments to employees allocated by department, followed by 37.9 million for fringe benefits, which appears in the budget for finance.

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There are also class 200 allocations for a few departments such as fire and police, to reflect negotiated increases for uniform allowances. Bill 220114 also includes labor cost related transfers within the water and aviation fund. This ordinance does not contain any appropriations for purposes other than the cost of the new contracts covered vaccination bonus and raises for exempt and non-represented staff.

F

This concludes my testimony and I'd be happy to answer any questions council might have at this time.

C

Thank you marissa for the testimony.

C

For the purposes of the record, I noted that in paragraph three um you highlight that this ordinance includes excess appropriations beyond what is needed for exempt prices and those funds will be held in this reserve. Can you please explain for the record.

F

Certainly so um we had those two and a half percent raises for exempts effective on uh january 31st, 2022 uh five months worth of raises. uh The version of this ordinance introduced includes uh funding for more than is needed for those five months of raises, and so, as those were effective january 31st. Anything above the amount needed for that will be held in reserve for the administration departments.

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Back in november, when we had an appropriations hearing, we talked about this forthcoming appropriations to align um our represented um unions with our non-represented.

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um What has been the history in the past when budget, when these uh collective bargaining agreements have been agreed and when, um in the past, has the administration provided unrepresented members the comparable raises, um and why are we waiting seven months later into the budget on this particular occasion,.

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um uh Because I wasn't budget director at the time, I don't actually have all of the back knowledge about when, but I can certainly research that I can tell you that the decision that was made this year was balancing one as soon as those um uh the new contracts were done.

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We wanted to make sure that those exams and non-reps were getting raises going forward, but we also have to carefully balance that with understanding where the city's finances are, and we have a lot of needs in a lot of areas, and so this is what we felt we could do to find. It basically balance wanting to do right by our employees, who have been working incredibly hard and making sure that they also receive raises.

F

But the amount and the timing we decided within the context of the city's overall finances.

C

How many under unrepresented individuals are we talking about an exempt employees.

F

um I believe there are about 2 000 exempt employees, um and I will have to get back to you with the number for non-reps.

C

So so in the past, because I have been chair of appropriations for a couple of years here um when we, when these aligned, uh the latest we've provided folks with the comparable raises, has been around you know, september july, you know, obviously july 1st is is the beginning of the year, but we've done these in september. For the most part, um you know essentially, you're saying to exempt employees are not entitled to what every other employee got effective july 1st is that the position of the administration.

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So we've made these effective january uh 31st going forward and while it's you know obviously making sure that folks are treated the same as a priority, we have to balance this within the context of the city's finances and at different times. You know this doesn't make the situation any better, but they're not always treated the same exempt employees, at least the administration's exempts you know had to absorb some um layoffs as well as reductions um in salary through the pandemic. This has been an incredibly challenging time.

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We've had to make very hard decisions around pay around staffing levels, and we continue to have to navigate that and make the best decisions. We can.

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The chair recognizes that councilman, oh, has joined the meeting. um Lastly, what is the difference between what what what we're talking about between the?

C

If we were to give everyone, you know veteran back to september 1st, just pay, what how much money are we talking about for these non-exempt? It is.

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A little bit of excel 4.3 million dollars.

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So we're debating 4.3 million dollars, 2 000 employees on whether they should be treated with equity and fairness, as everybody else.

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That is the 4.3 million, is the difference between the effect raises that have already taken effect starting in january and going back further. Yes,.

C

And so for the record, even though city council is going to allocate this money in this decision of the administration that they will put this in a reserve fund and not issue it to the employees.

F

You are correct, yes,.

C

um Any questions from my colleagues.

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um Seeing none um is there. Anyone else here uh scheduled to testify on this bill.

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There so we had any no one called call up on the list.

C

So uh this could, if no, there are no questions here from further from the members of the committee and no other witnesses to testify um uh hearing none. I want to thank the panel marissa waxman, our budget chairman, madam.

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Yes, um councilman down.

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Has a question.

C

I'm sorry, I didn't see that councilmember dom chair recognizes bomb.

E

Thank you, man, I'm sure. Just a brief question from marissa, any of these funds probably were covered related. Have we used all the monies we had for the covet uh money from the federal government that we could have allocated some of these costs or have we used them all in other areas?.

F

So it depending upon which pot of money um you are talking about so fema dollars are typically on a reimbursement basis, um and generally you don't have to be approved costs. So we couldn't use that for that the cares act. Money have been fully allocated. So the remaining pot of money is the american rescue plan proceeds.

F

uh We are using those as revenue replacement, so basically they already are in part they get just treated as a revenue stream, and so that is funding that over the course of um until they expire in december, 2024 we are drawing down um and particularly because raises um you know, are going to be going forward. The fact that we're drawing funds down over time- it's not like this- is like one year. We revert to last year's salaries, um so we have in our five-year plan not drawn down all of our american rescue plan funds.

F

Yet, but in order to keep the plan balanced, we do draw them down uh over the coming years, including in this year.

E

It was a lot of the overtime that incurred the last year or two had to be. Probably I could we could argue it was coveted related. So I just want to make sure that we've uh captured all those monies from the federal government, because then we could. Maybe, if we capture more, we could use some of that to the uh unrepresented that the chairs are referring to.

F

Yeah, so at this point the arp dollar, the amount that we are getting is set. We have received the first tranche the second tranche, there's a schedule to receive. We do not anticipate any more, um so we are not able to. You know sort of assume more costs at this point because we're using it for revenue replacement, that's actually the most flexible way. We could use it.

F

So you know we could technically nearly do virtually anything with it and what we're really doing is replacing the revenue we lost and so that that in turn allows us to sustain our basic services. The challenges is the the funding that we are getting from the american rescue plan. Well, a tremendous amount of money does not come close to fully making us whole from the revenue losses compared to coven.

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So we are already that money is already just filling holes in the dam um and, unfortunately, we're not expecting any more of that sort of flexible money. We are gearing up to look at the infrastructure, investment, jobs act and some of the things, but those will have very prescribed uses. um The art money, which, basically is we know and have already allocated, is the one that's really flexible.

E

Okay, thank you very much. Merci. Thank you, madam chair.

C

Thank you, councilmember dom, um as I was saying earlier, if there's no one else here, uh this will conclude. Madam.

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Chair, madam chair uh councilman o'neill, I have a question, absolutely miss blacksmith, miss waxman, um the chair questions uh and your answers have dealt with um september 1st versus january 31st right. Is that correct? What was the actual?

B

If, if the non-rep employees had, if you had given the same retroactive to make everyone start their races on the same day, would it have been september 1st, or did the four unions raises begin before that.

F

The four reunions raises go back to july. First.

B

Thank you. So the chairs questions are really not giving full would not be giving full retroactive, but a compromise. Retroactive.

F

Correct so yes, okay, that's all 12 months, 10 months, five months.

B

I'm just clarifying thank you.

C

Thank you, council, member o'neill. I will again if this uh this will conclude that he, the public hearing, we will not go into our public meeting to consider the action to be taken on the bills before this committee. um We are now in our public meeting and we will convene the public meeting. I'm going to ask clerk to call the role to take attendance uh for members who are are participating in the appropriations uh public meeting.

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Will the clerk uh take roll.

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Madam chair maria quinoa sanchez.

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Council, member kenyatta, johnson president council member isaiah, thomas.

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Council, member brian o'neill president council member david, o president council member alan dom.

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C

Thank you a quorum having been uh established, um the chair is going to call on vice chairman um kenyatta johnson, for an amendment uh to build number two two 220114.

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Thank you, madam chairman, that the amendment for bill number 220114 be adopted from this committee with a fable recommendation. All.

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Those in favor say.

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Any opposed the eyes have it um the amendment to build number two to zero one. One four has been adopted. The the chair will now recognize vice chairman johnson, for a motion on the amended uh bill. Two two zero one, one four.

E

Thank you, madam chair I'll, move the amendment amendment to build number two 220-114.

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We report this committee with the fatal recommendation and further move that the rules of council be suspended to permit first reading of this bill at the next session of council.

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All those in favor.

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Any opposition uh c none uh bill number two, as amended bill number two: two zero one. One four will be reported from this committee with a favorable recommendation and further move that the rules accounts will be suspended to permit first reading at our next council session. This concludes the business before the committee on appropriations today. Thank you all very much for your attendance. Thank you, my colleagues.

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