I guess, lastly, any information that you can share with us that might shed some additional light on this entire topic. I thought that, again, quite honestly, a few years ago we had crossed a little bit of a threshold with regard to some components of this debate about size, how many, you know, lean, nonlean, all of that discussion.
I think what the Board and Council have heard has been that the district, when compared to other school districts in the state, spent more on instruction than the state average. And there were different ways of that being said. I think that that is a claim that's been made over the years, which I think is consistent with what Rhonda is saying. But I do know that a lot of us have been much more hands-on involved in digging into the numbers behind the multi-year plan.
Maybe you can 366 BILL NOS. 010011, 010012, 010013 provide to us, through the Chair, some analysis over the past, let's say, five to ten years of the instructional and operating costs of the district from a year-to-year comparison, as well as any reductions in the number of employees that administer or help to operate the district. It might shed some additional light on this. And maybe you can kind of move the debate forward, or at least get more into -- even if you took draconian steps -- which for the moment I am not necessarily suggesting, because I know that there have been some cuts -- but at the end of the day, I mean, you do some people to run many of these entities. They will not run by themselves, and they are in some pretty critical areas. Are regard to the --
Councilman Nutter, if I may just interject for one second. On the multi-year plan, there is a chart which indicates that our administrative positions, funded from all sources, from our grants and from our operating funds, have continued to decline over this ten-year period. What we have been really careful not to 367 BILL NOS. 010011, 010012, 010013 do in this multi-year plan is to put any sort of comparison in that can't be absolutely verified from a source other than our own information. And we did look very carefully at what the Pennsylvania Department of Education provided. I don't think it would quite answer the question that you have addressed. But we will go back and try.
Great. With regard to the phone discussion, I happen to like Nokias personally. Nokia is a great phone. I don't know anything about the Nextels. But, you know, you will have your folks check that out. Ms. Kahn, let's talk about deficit financing, and what that means as a component of all the other items that we discussed earlier; local sources, nontax revenues, grants. What do you mean in the area of deficit financing, and what are your thoughts about this?
Well, I am actually going to ask our CFO to describe what some of the examples of that could be. But, I mean, the point being that if we 368 BILL NOS. 010011, 010012, 010013 are going to maintain the School District and run it, then we just need to have the dollars to do that. So it is a way to get the infusion up front, and to be able to work on a plan that people have all bought into, so that we can do that over a number of years. And that's certainly a mechanism to do that. But I believe, as Rhonda will point out, that that would not be positive possible. I mean, we would not be able to do that without being able to show that there was in fact a plan in place that we could adhere to in order to, in effect, repay that.
Councilman Nutter, deficit financing, I think, is only a viable option for us to the extent that we show that over a three-year period, ideally, or perhaps over a five-year period, because we may need to look five years, to achieve an end where our revenues and our expenses are in line. That's the way that deficit financing would be granted for us. So we need to look at all other ways to close that gap. 369 BILL NOS. 010011, 010012, 010013
You used the term, that's how it would be granted to you. Do you need state authorization for that?
It would depend on the authority that we used for borrowing. There is history for the state legislature to have approved deficit financing. There may be some other vehicles available to us, as well. And we are looking at all of that, in fact, this week.
I guess, as you said earlier, I mean, until the financial picture is clearer or more aligned, it wouldn't make sense necessarily to do deficit financing, because you wouldn't be able to demonstrate the capacity to pay it back.
It is the last component that we would put in, and that's absolutely right. Because we would need to show an ability to amortize 370 BILL NOS. 010011, 010012, 010013 the debt to pay it back over time.
In the first round of this discussion we talked about potential additional local revenues, and what the city might do, the whole larger argument about local tax effort and the like. If you look at the city's five-year plan, I believe we have accounted for the $15 million every year going forward. I think the fund balance five years from now is rather on the slim side. And between now and then, we will have reworked all of our municipal contracts. Because I think the police and fire signed for two each, 33 and 47 for four, and so they will all come back up in '04. What is it about our five-year plan that gives you comfort that, even if we wanted to, we would be able to do more? And, again, what would we do?
I don't think we can speak, I think certainly I can't speak, for the city in terms of what can be done. And we have looked at the five-year -- 371 BILL NOS. 010011, 010012, 010013
I am not necessarily asking you to speak for the city. I am asking you to speak for the School District, in terms of what you have been able to see. I mean, I think other than a few places that our illustrious budget director likes to hide a few dollars, our plan is already out, we have had full public hearings about it. I mean, it is what it is. So I am asking you to speak, from the School District's perspective, based on a document that is out in the public forum, and tell me what you think is in there that you might identify that could help you?
I would have to take the five-year plan at face value. I have read it from cover to cover. The numbers that are in there tell the story that you have just told. If we were to look for ways for local sources to help us, without having a dollar-for-dollar impact on the city, one of those avenues is to consolidate certain services, which is obviously, then, a priority for us as we look at additional resources from the city. 372 BILL NOS. 010011, 010012, 010013 But beyond that, I think at this point we are relying on the city to go through their budget with more knowledge than we could.
Are you anticipating that something will happen in the course of the current ongoing budget process? We have had all of our departments in. Good, bad, or indifferent, the way the schedule lays out, the School District is the last piece of this. Somewhere in the next few weeks, more than likely, we will vote on note only the budget, but also the five-year plan. Do you anticipate something happening between now and then involving additional support for the School District?
I mean, I would certainly anticipate ongoing discussions to occur between now and then. Whether there would actually be a request for any formal action between now and then, I just don't know yet.
The formal request for any action would come as a result or out of these other discussions? 373 BILL NOS. 010011, 010012, 010013
Yes. I mean, other than -- you know, this hearing is based on the current tax bills, of course. But other than action on those, I am saying that any supplemental or additional action, you know, I can't tell you exactly when that might come.
Okay. Let's talk about one consolidation issue. I know this issue was raised yesterday. It was not crystal clear to me as to what the issues were. I know that there was discussion yesterday, and that's also reported in the morning paper, on the school safety, police issue. The police department, one of their spokespersons, is quoted as saying, "However, there are labor and contractual issues that must be addressed by the School Board that remain impediments to the city police takeover of school security." Could you detail for me what they are and what is the Board's position with regard to possible turnover in direct jurisdictional responsibility from the School District for the 374 BILL NOS. 010011, 010012, 010013 police, where your police force is, versus complete oversight and merging with the city police department?
I won't speak to what the School Board's position is. I will let the President speak to that. I do know that there are some labor issues. And the issue we have, the labor contract we have, with our police officers, I think, goes to 2004. But there is, I think, some issues there with deployment and so forth. And we would have to sit down and work with the city and identify what those issues are, and obviously work with the union if we were going to go down this path. I don't think -- it is not something -- it is not going to be an easy thing, otherwise it would have already been done. It is something we have to work towards, if that's where we want to go. But there are some issues in terms of how officers get selected by schools, and I think what they call a bidding process, and some issues like that. And the President may be a little bit more familiar with those. 375 BILL NOS. 010011, 010012, 010013 Those are issues that we would have to sort out with the city, identify which ones are the real impediments, and work towards that solution.
Mr. President, before you start. Mr. Goldsmith, let me make sure that I understand. Did you just say that with regard to school security officers, these are, I believe it is called, Act 235? These officers carry weapons; is that correct?
They have some training from the Philadelphia Police Department. They have police powers, they have power to make arrests. They do not carry weapons.
Did you say they bid for where they are going to work?
When there is a vacancy, as I understand it, in a school, that the officers -- and I presume it is by seniority -- can choose which school or who wants to fill that vacancy. 376 BILL NOS. 010011, 010012, 010013
Historically, Councilman -- and I may get some of this wrong -- but my understanding from asking similar questions is that, once upon a time, I mean, there were folks, this was much less, much less formal police-type functions, more like an NTA. And they were school-based, schools would buy the position. And when we went to having deputized police, that system stayed. And, as a result, we now have a system that has people that are school-based, as well as people that are kind of, you know, more roaming folks. One of the recommendations that was made by the Harnett report, which makes a whole lot of common sense, is, if you are going to make most effective use of your police, you should deploy them according to need, according to some kind of management methodology. And the growth in the school police out-paced the changes in management and changes in practice that would give you the type of flexibility that a police commander would probably normally want in best using that force. On the general question of the 377 BILL NOS. 010011, 010012, 010013 technicalities, I don't know what the technicalities are. I imagine that anything like this is complicated, and anything like this is done over time. You don't get it all done at once; you probably need to phase it. But, generally speaking, I think that whether you are talking about this or you are talking about broader issues, where there is a will, there is a way. And it is just, you know, if it were determined that this were a direction that we would want to go in, I am sure a reasonable implementation plan could be done that takes into account all parties, including labor issues.
Let me ask this question with regard to safety and security. There is a chart associated with today's story. It is not necessarily attributed to any chart or graph that you may have handed out yesterday. And I think an Inquirer staff artist constructed this. But they showed that safety and security and in fiscal '95 costs $12.9 million, and in fiscal 378 BILL NOS. 010011, 010012, 010013 '01 it is 24.8. Obviously there is about a $12 million increase. Has there been any discussion, for instance, while you are working through the legalities of who does what and where they work and all of that system or process, for instance, when we talk about consolidation or how the city can try to be helpful, has there been any discussion about the city trying to pick up some of those additional costs associated with your security, more than likely either through the police department or whatever other arrangements that we have? And then I want to talk about that chart.
Obviously, I mean, we would have to work out what the financial arrangements would be. I don't think we can simply say, hey --
Just to be clear, I am not suggesting for a moment that based on whatever Commissioner Timoney's current budget is, which is over $300 million for city police forces, I am not suggesting that the incremental cost over the past six years would be currently picked up by the 379 BILL NOS. 010011, 010012, 010013 police department budget. There would obviously have to be an increase in the police department budget to make this kind of expenditure or take on this kind of a responsibility. But the suggestion also then, it takes it off of your books, because it is now on ours. And whether we are absorbing it internally or the department gets the additional funds and then contracts directly with you to cover the cost, all of this is in the realm of, how do we get things off of your books and in this sharing enterprise or discussion that we are having? So I want to be very clear about that.
We have not gotten into those discussions; obviously we would have to.
I think then what I would ask is, through the Chair, if you could have your best legal minds over at the School District touch base with comparable folks over on our side. If you could just maybe give us a memo explaining and detailing what all of these factors, or in the folks person's term, the labor and contractual issues, that must be addressed. 380 BILL NOS. 010011, 010012, 010013 So that, one, we can at least understand them, so that we know what the story is. And then, two, give us a little bit after road map as to how you get there. We would appreciate it. If you saw the story in the paper this morning, the quick math on it seemed to indicate that this is a comparison of '95 fiscal costs versus 2001. It must have been either as a result of the testimony or a quick read of the budget. English for speakers of other languages went from -- this is '95 to '01 -- 10 million to 23 million; kindergarten, 21 to 46; payments to other educational entities, 24 to 44; we talked about safety and security, 12 to 24; charter schools, zero to 79. For a moment I would like to leave the charter schools out of this portion of the discussion. Is it that you have not received additional funding to go with additional growth in the other four areas? Do you get funding based on these items on a per-student basis or some other formula? And almost all of them, with the 381 BILL NOS. 010011, 010012, 010013 exception of the charter schools, represents a 100 percent or so increase from '95 to '01. Why is that? And did funding for these items get capped at a certain level, and you just had to pick up the increased costs?
For each of these, for bilingual students, there is some grant funding that is received. But our Operating Budget has to pick up these costs. There is not additional significant revenue. In fact, I can't think of any specific revenue in our Operating Budget.
Not in our Operating Budget that I can identify or recall. There is grant funding that is available; however, that only conversation so much.
But there is no, I guess, dedicated line item from the state, as there 382 BILL NOS. 010011, 010012, 010013 are a million items for a variety of services and activities, no one assists us in picking up the costs of ESOL?
-- that the Commonwealth of Pennsylvania is one of the states that does not have dedicated funding for ESOL, bilingual education.
Although the Pennsylvania Public School Code does require ESOL bilingual services be provided.
So it is a mandated service, with no commiserate funding?
On that one, too, Councilman, because I know Council has had an interest in the issue of immigration to the city, just to tell you what's behind that number, too. It is on of the summary of the financial update. The number of students served has also, 383 BILL NOS. 010011, 010012, 010013 it looks like, more than doubled during that time.
That was my next question. Is this also reflecting a significant increase in students served, or is there something else going on from a budgetary standpoint? Where are all thee students coming from in a city that continues to significantly lose population? I mean, what is the story here?
Well, I don't know that any of us are the experts on it. As you know, the School District's population, for starters, has increased around 22,000 students, while the city's population has gone down. So there is immigration to the city, and it is an issue City Council has paid some attention to in the last the year. And, I mean, that's generally been it. I mean, when you get immigrants to the city, they come into the public schools. To some extent you had some immigration into parochial schools, but there are also fewer of them. 384 BILL NOS. 010011, 010012, 010013
And to the extent that, one, we either want to encourage it, we obviously need to have these services. But, two, if people figure out that this is not an option for them, or a service that, you know, either has a long-term future or is being funded at the appropriate level, I think, quite honestly, it could negatively impact our ability to draw immigrants and others to the city because they are not going to see the kinds of programs that they are looking for.
For full-day kindergarten, that is mandated by desegregation order, by court order. In 1996 we put in full-day kindergarten for racially isolated schools, and then were mandated to do it districtwide. In 1997 we received a one-time payment from the Commonwealth, $17 million, in recognition of this demonstration project, and that funding ceased after one year.
So kindergarten is 385 BILL NOS. 010011, 010012, 010013 not mandated by the Pennsylvania School Code, but it became a mandate as a result of a court order. And I think this was the Judge Smith, Commonwealth Court case?
And between that time, notwithstanding the million for the pilot 9 program or the demonstration grant, this is 10 obviously not a pilot anymore or a demonstration, 11 other than a demonstration of not funding something 12 that needs to happen. 13 Has there been any discussion with the 14 Commonwealth about picking up kindergarten costs? 15 And does the Commonwealth pay anybody's kindergarten 16 costs in the 501 school districts? 17
It does not cover any additional costs for full-day kindergarten that may be offered by any other districts in the commonwealth.
I don't know that full-day kindergarten is universally -- in fact, I know that it is not universally offered. 386 BILL NOS. 010011, 010012, 010013
What about the people we primarily compete with and have to deal with on a day-to-day basis in the four counties around us?
I don't know exactly. I know there are a number of communities, even in wealthier communities, that don't have full-day kindergarten.
Why don't you give us a little chart or some analysis of what's going on with kindergarten around us. Payments to the other --
Councilman Nutter, if I can say, since you were not here yesterday, that what we did notice, just in terms of results, is that this year's four graders who scored extremely well on our test, that's the first group of students that had full-day kindergarten. So if there is some correlation, it is making a difference.
I think that was mentioned in your testimony? Okay. 387 BILL NOS. 010011, 010012, 010013 The payments to other educational entities, what is that?
Payments to other educational entities have two components. One is special education placements, which are required under the terms of an IEP, or an Individualized Evaluation Plan, for each student, which we have to comply with, which we want to comply with. Another component, about $20 million of the 45 currently, may be for children that are placed or students that are placed by a social service agency or through adjudication at some sort of a residential facility, at another School District, we bear the cost of that. There is not incremental funding for these types of placements, with the exception of approved private schools. And for approved private schools the Commonwealth picks up 60 percent of the tuition. Other than that, what the School District bears is the tuition cost, which we don't have control over, at many of these schools and districts.
Now, the 388 BILL NOS. 010011, 010012, 010013 Commonwealth does pay some direct costs for special education programs in the district; is that my understanding? Is there a different formula that the Commonwealth uses to account for special education programs?
But that, again, is for students who are in Philadelphia, in the district, as compared to students who are placed outside? Or is it for all of them ?
It is to cover all of our special education programs, that's what it is geared for. And it is measured just on a assumed percent of our population being in the high incidence or, kind of, common types of special education, and percent being in low incidents. So that's the funding. And to the extent that we can provide those services within our School District, we have some ability to measure and contain those costs. To the extent that the IEP, or in the 389 BILL NOS. 010011, 010012, 010013 case of regular education where there is an adjudication order, where we have to send our students elsewhere, we can't really control those costs, and there is not additional reimbursement that comes to us.
I was up at the table a little while ago. I know my colleague, Councilman Clarke's, name was right under mine, flashing in, I think your color today is mauve. And so I will yield the floor for my colleague.
Thank you, Councilman Nutter. Thank you, Madam Chair. Good afternoon. I wanted to ask you a question. Could you kind of get me up to snuff where you are with your capital programs as it relates to your facilities, improvements to existing facilities, any particular expansions or new facilities?
I can speak financially, and I think our chief operating officer would speak about how those dollars are spent. Under Mr. McGlinchey's direction, over 390 BILL NOS. 010011, 010012, 010013 the past several years, the School District has maintained steady funding of a Capital Program on an as-needed basis, starting with environmental remediation and maintenance, kind of core things that have to be done. During the 1980s, there were $250,000,000 of capital projects that were completed, and over the past decade there was a billion dollars. Mr. McGlinchey. MR. McGLINCHEY: Would you like me to give you a perspective on what we have done over the past several years and plan to do in the near future?
Not specifically; just a general overview. And particularly given the severity of your financial situation, capital needs will obviously have some impact on that. And I would just like to get a sense how much of a role that will play.
There are probably two issues to address. One is that we benefit from Act 150, 391 BILL NOS. 010011, 010012, 010013 which is a state intercept. What that does, for anybody who would buy our bonds, is, it gives them an assurance that state subsidies would go directly to a bondholder, if the School District for some reason did not make a sinking fund payment or a debt payment days before it was due. 8 That gives us an A plus rating out in 9 the market and enables us to get insurance. 10 The second issue that -- in fact, we 11 should comment that in addition to being able to 12 issue general bonds, because of that intercept 13 protection, we were actually one of the largest 14 qualified zone academy bond issuers this past year. 15 We were successful in placing over $22 million in bonds with PNC Bank. It was a private placement, for which we don't have to pay interest, which is a terrific boon for us. The issue that we have with capital bonds is that, even though we are able to issue our bonds very effectively, we are able to get insurance, we have the state intercept and have a very low rate out in the market, we still have debt service that we have to pay. And as we continue in the Capital 392 BILL NOS. 010011, 010012, 010013 Programs, the debt service in our multi-year continues to grow. So that's an issue that we look at.
Councilman, you are also aware of the history of the Capital Program, I know, and familiar with the fact that in our current inventory of buildings, our average school is over 60 years old, even with all the capital programs that have been done in recent years. And that a large part of the reason the Capital Program in recent years has been focused on what our folks call securing the envelope of the building, the roof, the walls, the windows, the door, to stop further deterioration. And that followed a period of time where there was very little Capital Program. And so some of what we see now is the effort of a whole lot of catch-up -- not enough catch-up, but a whole lot of catch-up -- that's happened just to secure the buildings that we have. You know, the average one being over 06 years old, and a few being over a hundred years old.
Given the age of some of our facilities -- and we actually had this 393 BILL NOS. 010011, 010012, 010013 discussion earlier with the Department of Recreation, about at some point making the decision to stop putting a band-aid on some of these outdated, outmoded facilities, and looking at new construction, more efficient facilities -- are we at close to that point?
We have been doing new construction. Frankly, I think it has largely been triage. You know, by the time we have been putting -- I can't name a building that's been built that hasn't been way overdue. And the type of Capital Program that it would take to really get us to where a district of our size should be would be one that would make this number that we are talking about a whole lot bigger. Because it requires going out, borrowing money, then you have to pay, then you have to pay the mortgage, you have to pay the bondholders. And so right now, even what we are doing is straining our capacity.
Can you give me a sense of where we are going? I guess, Mr. McGlinchey, you would have a better sense of the 394 BILL NOS. 010011, 010012, 010013 need for additional schools. I mean, I actually understand there is a potential of what has actually targeted one school for my Council district and the potential of maybe one other one. Can you give me a sense of what we are looking for for the next five to ten years? MR. McGLINCHEY: I can give you a little historical perspective, if I might, at first. Since 1996, '97, we have built 6 schools, we have added 11 little school houses, and constructed 4 additions, and either built or purchased 7 annexes. We have increased our student capacity to almost 14,000 additional children and added about 1.2 million square feet. That's in the last five years. Going forward, through the year 2003-2004, we expect to add seven new schools, five elementaries and two new high schools, and for an increase in capacity for additional 6250 students and another million square feet of occupied space to our buildings.
Can you give me a 395 BILL NOS. 010011, 010012, 010013 status report of two schools in particular? One, the new Franklin learning Center, and also Engineering and Science, the time line on the deprogramming of that school and if you have a sense on what the strategy would be associated with the maybe ultimate disposition of the school? MR. McGLINCHEY: The Franklin learning Center is scheduled to begin operation in September of 2003. And the cost of that facility is 44 and a half million dollars. The other school.
What's the construction start date on FLC? MR. McGLINCHEY: The construction start date would be approximately September of this coming year.
All the acquisition issues resolved? MR. McGLINCHEY: Almost all of the acquisition issues are resolved. There are a couple of properties we are still seeking to acquire, but they are not in the footprint if that building, so that will not impede construction. 396 BILL NOS. 010011, 010012, 010013
Engineering and Science, I understand they are leaving North Philadelphia and going to West Philadelphia. And I was unhappy about that.
You are talking about the flip side, not about the construction of the new building.
I mean, we have gotten to a point now in negotiations with the Science Center and talks with Penn over the new building, and only now really getting enough certainty on what that's going to look like and the time frame to start thinking about the old facility. And there has not been any Board discussion on the disposition of that, no discussion at the Board on the disposition of that site.
Are you saying that the new facility is not a done deal yet?
No. The timing of it was something we were trying to figure out, because it is a pretty innovative project. We are going to be co-locating with 397 BILL NOS. 010011, 010012, 010013 incubators, science incubators, in the Science Center there.
That part of the city has appealed for all types of programs because of proximity to transportation, all that. We'd like to piggyback on the example we have set with one educational institution, and we would like to do some things. But we think there is good potential for partners with partnerships. At this point it is just too premature to talk about.
The Mayor gave Council a briefing, this was some time last the year, on the Neighborhood Transformation Initiatives Program. And in that discussion, there was some talk of potentially providing access to schools in hours beyond the traditional 3 o'clock, or whatever the closure time was, simply because there was an inability for people throughout neighborhoods to have places to meet, places to recreate in off hours. 398 BILL NOS. 010011, 010012, 010013 And I think he had actually asked a member of his staff to investigate the possibility of having a supplemental Capital Program that would essentially create entrances and locations so that you can secure the majority of the school, but still allowing access to a gym or allowing access to a computer facility. Are you --
The Mayor never fails to remind me that he is very interested in that. The city Planning Commission has undertaken, in cooperation with Mr. McGlinchey's office, to look at a couple of school buildings to try to get an idea, first of all, on a sample basis of what that might entail, in terms of the kinds of capital improvements that might be needed in order to have access for the kinds of activities, but not to have a schoolwide access. So, I mean, that's in, I guess, the beginning stages. To get a look at, you know, just so that we can start to get a handle on it before 399 BILL NOS. 010011, 010012, 010013 the development of a full-fledged Capital Program, but to get an idea of what that would be. I think we probably also need to, I mean, there are a lot of our schools that are used currently right now after school, and get a good census of what those are and what the scope of the usage is within those buildings right now. But it is City Planning, I think, that is helping to take the lead on that, in cooperation with the district.
Are we also looking at the program side? Would it be the School District responsible for programs or would it be the City of Philadelphia Department of Recreations that would factor into --
All of that needs to be developed. But, no, I would not think it would be the School District. They would have primary operating responsibility. I mean, in some cases we are talking about some of the communities of faith coming in and having their programs. But it just makes sense to have it be housed in a school building for, you know, geographic reasons, and so many of the students are 400 BILL NOS. 010011, 010012, 010013 already there. But I think that, for the most part, that this is a case of partners, people who run after-school programs, a whole variety of other community agencies more likely, and just zeroing in on the school building as being the right place for a whole bunch of reasons, but not necessarily being the School District that is the provider and operator.
You are welcome. The Chair recognizes Councilman Nutter.
Thank you, Madam Chair. Just one quick financial question. There is something I understand called an Educational Empowerment Plan. Is that correct?
It has cost estimates that have been done that are associated with it.
And they are, is that, $16 million? How much is that? 401 BILL NOS. 010011, 010012, 010013
If you will look in the multi-year plan in Section 7, you will see the projections, or the cost estimates, that have been done for each of the out years, beginning with a cost estimate of $75 million for next year, Fiscal Year 2002, if the School District were to implement all that was proposed in the plan.
Now, that $75 million, is that incorporated into the anticipated $191 million deficit for next year, the $235 million cumulative deficit? Is that $75 million a part of that or is that additional?
It has not been added to the deficit figure for a few reasons. First of all, we know that, based on the Governor's proposed budget, that the School District would receive $17 million of direct empowerment funding to offset those costs. The School District's current intention is to fund the Empowerment Plan, to the extent that it is possible to do so, either through getting additional grants, which may be quite possible because the Empowerment Plan speaks to some very basic, and as Dr. Farmbry talked about, very 402 BILL NOS. 010011, 010012, 010013 important initiatives for the district, like literacy and math and science which are areas where grants may be available. And the School District, Dr. Farmbry, and Mr. Goldsmith, are also reviewing whether it is possible to allocate dollars currently available within the School District towards the Empowerment Plan implementation.
Well, again, though, as we talked earlier, I mean, I just have not had the experience where you can long-term grant fund anything that you either think is educationally important or you are required to have for educational purpose. I don't know whether we tried ever to grant fund, for instance, kindergarten, but we don't have an option on that. And there are many other examples, whether in the School District, the city, or other entities. And I guess then even if you were able to do that -- and I don't know what the costs are associated with the more-likely-to-be-grant-funded activities -- but even if you did that, what does it mean when you say you are going to fund the 403 BILL NOS. 010011, 010012, 010013 Educational Empowerment Plan to the extent that you can in the context of the $235 million cumulative deficit? Taking the off of the 75, in a 6 good-case scenario, leaves you with 58. Your grant 7 fund, I don't know, what, 10, 15 at the most, 8 probably? 9
We don't know at this 10 point what grants are available. And I guess we 11 also don't know the extent to which we can 12 reallocate current dollars. 13 We do know that the Empowerment Plan 14 speaks to some very important initiatives within the 15 district. It is not on top of what we do; it 16 actually intersects very well with what we do. As 17 Dr. Farmbry said, it is what we do.
So you are able to, as long as you isolate it, target it, and measure it, you are saying that you would, under these guidelines or parameters, be able to take some of the current funded programs and activities and say, well, this is how we are implementing this particular portion of the educational empowerment plan, and those dollars theoretically, and more than 404 BILL NOS. 010011, 010012, 010013 theoretically, are already in place because they are in our budget; is that what you are saying?
I think, Councilman, we can certainly do a piece of that, and that is what we will do. I think the point you are raising is a very good one. Because to the extent we want the initiatives in the Empowerment Plan to be in their entirety, in their entirety, what we do at the School District, it is very difficult to do that relying on, I believe, what me might call temporary, as opposed to guaranteed and recurring funding, that's right. And the class size is a very good example of that. The district was able to start that through a federal grant as the initiative. And we are hopeful, even with the change in Administration, that that funding will continue. What we have added to that is in fact operating money to further expand the initiative. But we want to be able to say that all of our classrooms have reduced class size, at least in K to 3. And we won't be able to do that without guaranteed, recurring, regular funding. 405 BILL NOS. 010011, 010012, 010013
Let me just make sure I understand this. Because many of us talk about the class size issue. And I guess maybe I have had to adjust some of my thinking to the current realities. In some places, one of the ways they deal with class size reduction, as well as just an overall analysis of the facilities -- Councilman Clarke raised this issue about facilities -- is to either build on to the current facilities, school houses, annexes, or, based on population shifts and where you have need, presently where you maybe did not have need a number of years ago and vice versa, as population is either lost or shifted, they have built new schools. And then automatically as students move around, you reduce class size. This literacy initiative, though, I guess is another form of that, where -- I mean, essentially, you just put more teachers or more instructors in the same classrooms, averaging 65, whatever, and you just try to make sure that the place that they are in is in relatively good to decent shape. Are we pursuing, I guess, both of those 406 BILL NOS. 010011, 010012, 010013 strategies, or one of them, or neither? I guess, what is the game plan around class size reduction and facilities review in the context of no dramatic increase in dollars to just build new facilities.
I think actually the response to one took care of the response to the other; in that, our ultimate goal is to reduce class size, particularly in grades K, 1, 2, and 3, to a ratio of 1 to 17. Now, to the extent that that can happen in self-contained classrooms with one teacher, that's ideal. And we do have some models of that happening around the district. The only problem is that does mean more classrooms. So to the extent there is not the physical space to accommodate that, we are using the other model of having a teacher and a literacy intern, two in one classroom, which still gives you the class size reduction, which has helped in our strategies of attracting teachers to the district. But, in many cases, it is our lack of space that means that we have to do one over the other.
Now, the last 407 BILL NOS. 010011, 010012, 010013 person, Dr. Farmbry, I am sure you want to be in dispute or debate with is someone out of the Governor's office, given the precarious situation with the School District. But I was somewhat surprised in a story the other day to read that some spokesman on behalf of the Governor said that, in effect, either the jury was still out or there was conflicting data somewhere, wherever data is, about the efficacy of class size reduction, and what that does from an educational standpoint. This was a spokesperson saying that, you know, either it was not one of the greater things since sliced bread or maybe it meant something, maybe it didn't, and that there was literature out there that seemed to indicate that, you know, you do it, not do it, it doesn't make any difference.
I would have to say that reducing class size alone is not enough. That's why in our plan we have a very strategic plan around the professional development that accompanies it. Because, you know, a lot of people argue, well, if you go into some high school classrooms, you have reduced class size because of 408 BILL NOS. 010011, 010012, 010013 an attendance issue. So it is not just about reducing the class size, it is about the professional development that goes with it that will then lead to a different kind of classroom instructional practice.
Let me ask this one last question. And I know that generally whether you want to or not, you guys will be around for some time, and I think we are going to have the pleasure of spending some quality time together later on this afternoon. Because this afternoon will be a whole different story. But I did want to change topics for one second. And the issue is regarding the nature of our contact with parents around the -- I guess either, if you want to transfer or as your first coming into the system, you fill out your EH-36 form, I think it is due in November for the upcoming September. I think last year's date was November 17. And I called around. And very nicely people did, you know, take my calls, and eventually I was able to connect with the right person. But I guess as a potential customer, and 409 BILL NOS. 010011, 010012, 010013 parent of a school-aged child, you fill out the form whenever you do, but you get it in by November 17. Now, from a technical standpoint, until I started making some calls around, I had not heard from one person in the district about that application; from, we got it and we will get in touch with you at some point in time, we got it but we lost it, or anything within that regard. And, I mean, I have to tell you, I mean, I now know the answer, and some time this month I guess I am going to get a letter in the mail and we will all watch. And it sounds like match day for medical students, or something. Is your kid actually going to get in school. But, I mean, I have to tell you, I mean from kind of a customer service standpoint, I don't know of anything that I ever applied for or asked for or expressed an interest in that the people I was asking about or applying to for it had no 21 contact with me for four months. I mean, you know, I can get turned out for a credit card application in a couple of days. I mean, I haven't been recently. But... And I don't know how many EH-36s you 410 BILL NOS. 010011, 010012, 010013 get, and I know this is not a small operation. And I don't know how many parents call. Now, I am in a slightly fortunate position, and I recognize that. So if I call a certain office, someone will get back to me, they explain the whole thing to me. But that's only because I called. And it is impossible, I am sure, for that office to call every parent that is probably wondering what's going on. And so in that regard -- and I don't want to add to your costs -- but when those forms come in, is it possible to just send something out to the person to tell them within a few weeks or a month the same thing that somebody told me a couple of weeks ago, which is, you know, "The lottery, or whatever happens, happens around about a certain time. You are going to get a letter in the mail around another time. If you like what you got, fine. If you don't, this is what you should do," as opposed to just kind of sitting around? I mean, I can't look at the mail every day or wait for the postal person to show up with this hot letter from the School District. 411 BILL NOS. 010011, 010012, 010013 I mean, I was just astounded from just a pure customer service standpoint that there would be no contact with an entity that, I mean, I am going to entrust a pretty special and important person to.
Councilman, let me say obviously your point is well taken. And that's something that we should be doing and we will be doing. And I think the important thing is really having a philosophical mind shift that we're not the only game in town, and we are competing for customers. And so customer service orientation is not only important to what we direct toward our schools and our principals and teachers and so forth; it is also important for parents who are looking at, do they want to send their kids to our schools or to another school. So I think your point is right on. And I think it is not so much a cost issue as much as maybe just a philosophical mind shift between our ears that we have got to adjust to.
Because, I mean, you know that, I mean, if they haven't already, I mean, 412 BILL NOS. 010011, 010012, 010013 this really is around and about the time, pre-school, kindergarten, first grade. And I made a note to myself earlier before I started this. I mean, some people do actually have options. They have a lot of options. I mean, I am going to be here, I am not going anywhere. I made the decision as to where my daughter is going to go. Other people are in totally different situations. They can either stay here and pay, they can move and not pay, they can move and pay, they could do whatever they want to do. And if you haven't heard anything around February or March, you just start thinking about it. Because nobody is sitting around in August starting to make decisions about where their kid is going to school in September. They already made those decisions. We had that fight, and I am sure we are going to have some discussion about it as a result of last year's little thing with the 4 year olds, about the timing and when people need to know certain information and what goes on. So, I mean, I know a lot of forms, big 413 BILL NOS. 010011, 010012, 010013 systems, and all of that. But some kind of contact, I think, helps to go a long way towards, "Hey, we are thinking about you. We have this enormous system we are trying to run. We actually got your thing. We have it. We are looking at it. Tell you what's going on. If we know earlier, we will let you know."
But it is a matter of thinking more in terms of customer service. And, I mean, you are much more on top of things than I am. I just assumed I had missed it.
Well, just for the record, I got mine in the last day, that's why I remember what day it was. And it was hairy. Okay? So I'm not doing much better than you are. Thank you very much. I will see you guys this afternoon.
Thank you. I have just one question. What is the status of the proposed Kvaerner apprenticeship 414 BILL NOS. 010011, 010012, 010013 program? Does anybody know? It is my understanding Kvaerner wants the program in operation by September of this year?
Yes. We have been in discussions with the folks around that program. It is an excellent opportunity for our students. And Tomas Hanna, who is from our Education for Employment Division has been the point person for that. So I would ask him to come up.
Good morning. Tomas Hanna, School District. We are actually meeting tomorrow with Dave String at Kvaerner. We met, I want to say, three weeks ago with Ms. Hughes and Ms. Saunders from your office, along with Mr. String at Kvaerner. And we are now in the process of outlining what an apprenticeship program is going to look like. So that is underway. It is in process. We do understand that there was a communications issue that we have since resolved, and we are in contact with Ms. Saunders and with Ms. Hughes, and we are going to keep the folks up to speed on that. But we are confident we are going to 415 BILL NOS. 010011, 010012, 010013 work something out.
I am led to believe that they are talking about 300 jobs?
That's correct, 300 jobs. And what we are looking at is an apprenticeship situation. What we are understanding is that Kvaerner is having an agent work for us, and they are having issues with bringing kids in to follow up. And that the folks that they are receiving now out of high school just aren't meeting the standard. So the conversation we are looking to have is actually beginning in looking at beginning in the high school. When the apprenticeship program takes place, kids are in the high school, they are also going on site to Kvaerner through an apprenticeship, maybe a work-based learning component. So that upon graduation, they can actually fill in. And we are looking in the neighborhood of, my understanding is, we would like to look at September in the neighborhood of 90 to a 100 over 416 BILL NOS. 010011, 010012, 010013 the life of this. My understanding is, 300.
I thought it was 300 by 2001. But I don't think that we should lose out on this opportunity. Thank you very much. The Chair recognizes Councilwoman Blackwell.
Thank you, Madam President. This morning I understand World Communications Charter were to meet with the Board. Were other charter schools similarly ranked also supposed to meet with the Board, or am I wrong? I just got a report that they were due to meet with you -- or is it tomorrow at 8:00 a.m.? Tomorrow at 8:00 a.m.?
There is a hearing of the Board tomorrow at 8:00 a.m. relating to World Communication -- on the question of whether to renew or not review World Communication Charter's charter.
Other charter schools similarly ranked, will they have hearings or meetings?
This is on the issue of renewal of charters. They were only there were only 417 BILL NOS. 010011, 010012, 010013 four charter schools in that cohort in that first year. And of the four original charter schools, World Communications Charter is the only one that at this time has not been approved for renewal.
Let me ask you, for other charter schools who put in new applications, what happens to them then? Do they reapply or --
Somebody may have time frames more on the tip of their tongue. But a charter school that was not approved by the Board has the opportunity to request a hearing, a rehearing, before the Board, reconsideration. They can ask the Board for reconsideration. And if still not satisfied with the resolution from there, can go to the Appeal Board, state Appeal Board. They, I believe, also have the option of going straight to the appeal Board and not asking for reconsideration. And after the appeal Board, there is 418 BILL NOS. 010011, 010012, 010013 always the opportunity for litigation, too.
Thank you. Are there any other questions from members of the committee? Thank you all very much. The committee will stand in recess until 4 o'clock today. (Public Hearing adjourned at 12:40 p.m.) - - - 419 C E R T I F I C A T I O N I HEREBY CERTIFY that the foregoing proceedings of the Council of the City of Philadelphia of Wednesday DAY, March 7 DATE, 2001, were reported fully and accurately by me, and that this is a correct transcript of same. RE: COMMITTEE OF THE WHOLE _____________________________________ DEBRA A. WHITEHEAD, RPR