Under the current. Then it would have been a year earlier under the legislation last year.
So your testimony -- I mean, when we -- Let me make sure I'm understanding this. When we talk about this $80 million, that's a reference to full implementation...
...of the legislation from last year, and the full implementation year was 2009.
Is that what we're saying? All right. And under the present circumstance, one, it appears that you have not estimated the full financial impact of the bill in front of us today.
But full implementation of this bill, 030163, is now 2010. 00066 Committee on Finance 04\14\03
Okay. All right. Can you comment on the 2007 issue, in terms of when there would be any impact? Which we now understand is not full impact. But, I mean, what's your response to a plan laid out, responsibly laid out, by the Councilman that has no impact on the City until fiscal year 2007?
Basically, you know, I can't dispute the timing that you laid out, whether it be --
I agree that that would be one of the scenarios. Another would be that if it were an application in April of 2006 that was reviewed internally. And I will say that will take staff and effort that we've not even addressed here.
It would take a 00067 Committee on Finance 04\14\03 while to be able to do that. My idea of using existing state data in getting a file meant that we could use electronic information processed far more quickly and efficiently whenever we were able to do that. But whether it were in fiscal '06, or as you more properly point out, fiscal '07, that would be the first that we would actually be handling the refunds. And so, I agree with that time scenario, based on the current legislation.
In my earlier testimony or questioning of you about your testimony, I emphasized the impact on the person receiving the exemption from Wage Tax. You seem to be very concerned about revenue. But let me ask you, from the point of view of economic growth and the bringing in of new businesses, it used to be in the old days, maybe 00068 Committee on Finance 04\14\03 100 years ago, that an employer moved a plant or a business without consulting employees. But I think it's pretty clear today that employees have a lot to say, and if they oppose a move, it's a serious matter. With the present Wage Tax, every employer is faced with immediate opposition of employees who will suffer a four and a half percent cut in their pay. So that in order to win their support, the employer has to say: I'll pay you an additional four and a half percent in wages to make up for what you're going to pay in a Wage Tax. So that this is also, though I don't emphasize it because it doesn't have to do with fairness to the low income workers, but it has a great deal to do with economic development. This is a tremendous tool for bringing in businesses, because you were overcoming one of the basic defects that an employer frequently faced with the need to increase the salary of the staff members or his employees because the City Wage Tax. It's a real 00069 Committee on Finance 04\14\03 deterrent to businesses coming into the City. So that it would appear to me that from a revenue production point of view, the Revenue Department ought to be strongly favoring. I'm not saying you'll say that publicly here at a hearing. But it would seem to me within the debates that take place within the government, the Revenue Department would be in a very favorable position to support this as a means of increasing revenue, so that everybody gains by this policy of fairness in our tax structure. What comment do you have to that?
That's a policy judgment that I would not comment on here.
Publicly. But I hope you'd think enough of it to use it privately in discussions, because I let that area of economic development to Councilman Goode generally. And that's the reason I didn't want to be trespassing on his field originally, and based this entirely on the fairness to the worker. But it seems to me to make economic growth for Philadelphia much more of a reality than it is today. 00070 Committee on Finance 04\14\03 Thank you, Madam Chair.
Thank you, Councilman. Any other questions? Mr. John Hogan, Green Party Candidate for City Council-at-Large. Thank you, Mr. Shapiro.
Good morning. Welcome to our hearing. Would you identify yourself for the record and begin your testimony.
Thank you. Thank you, Councilwoman Blackwell. My name is John Hogan. I'm the Green Party candidate for City Council-at-Large. And I'm here to testify in support of Bill 030163. Because The Home Rule Charter limits the City's ability to levy taxes based on people's ability to pay, it's vitally important to look for ideas like Councilman Cohen's to provide relief for our low income citizens. So many of the City's tax breaks in recent years have ended up going to people who can afford to leave the City, in an effort to convince 00071 Committee on Finance 04\14\03 them to stay, or else to out-of-town businesses in the hopes that they will move here. Some of those efforts have worked; some haven't. But whatever the consequences for the City's revenues, we went ahead and provided them. It's past time that we gave a thought to the people who cannot afford to move out to the suburbs, both to give them a respite from the highest Wage Tax in the country, and to reduce their need for City services by putting more money in their pockets. Philadelphia stands to gain far more by providing money for people who are certain to spend it locally than by offering it to people in businesses who are just as likely to spend it elsewhere. More of that money will be spent in Philadelphia's neighborhoods and locally on businesses, which helps out those businesses that cannot afford to relocate. This bill will help people keep and maintain their homes, which means fewer homeless people the City has to find shelter for, and fewer 00072 Committee on Finance 04\14\03 abandoned homes that the City will have to eventually demolish. This bill will help people keep their jobs, because they can pay for child care or transportation, so that they can report to work, which means more Wax Tax review. It can mean less crime, fewer uninsured cars, fewer of so many of the problems that are now squeezing the City's budget. I urge you to pass this legislation. Thank you.
Thank you very much. Any questions? (No response.)
That will end the testimony for Bill Number 030163. We will now have the clerk read the title of the next bill, Bill Number 030023, after which Councilman Goode, the bill's sponsor, will speak. Thank you. 00073 Committee on Finance 04\14\03
Madam Chair, before we go on to the next bill, I have an amendment to offer.
Would you like to offer the amendment at the Committee part of the hearing?
BILL 030023, An Ordinance amending Chapter 19-200 of The Philadelphia Code, entitled "City Funds - Deposits, Investments, Disbursements," by revising the list of City depositories because of non-compliance with certain provisions of that Chapter, under certain terms and conditions.
Thank you, Madam Chair. Our previous hearing on March 26th, the City Treasurer presented testimony on this bill. He's not able to be with us today, but he 00074 Committee on Finance 04\14\03 did furnish a letter which will be contained in the Committee Member's package, dated April 10th, which actually lists the City depositories, which he believes are in compliance with the Bill 6 030022, passed unanimously on April 3rd. I will be offering an amendment to add one bank to the list of depositories that were approved by the amendment offered on March 26th, but I'll do that in the Public Meeting.
Thank you very much. Are there any questions or would anyone else like to make a statement? (No response.)
All right. That will end our hearing part of this meeting. (Public hearing concluded.) 00075 CERTIFICATE I HEREBY CERTIFY that the proceedings and evidence are contained fully and accurately in the stenographic notes taken by me upon the public hearing of The Philadelphia City Council, taken on April 14, 2003, and that this is a true and correct transcript of same. _____________________________ DAVID A. DEIK, RPR and Commissioner of Deeds (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.)