COMMUNICATION 000072
Controlled by CITY COUNCIL

Description

BUDGET ADDRESS

PRESENTED BY
MAYOR JOHN F. STREET
TO CITY COUNCIL
ON THURSDAY, FEBRUARY 3, 2000

GOOD MORNING COUNCIL PRESIDENT VERNA, MEMBERS OF CITY COUNCIL, MEMBERS OF MY CABINET AND ADMINISTRATION, SPECIAL FRIENDS AND GUESTS.

IT IS A RARE OPPORTUNITY, A UNIQUE CHALLENGE AND A SPECIAL PLEASURE TO APPEAR, AS MAYOR, BEFORE THIS LEGISLATIVE BODY IN WHICH I SPENT 19 OUT OF THE LAST 20 YEARS.

HAVING SAT THROUGH 19 BUDGET MESSAGES, I UNDERSTAND HOW YOU FEEL. MY MESSAGE WILL BE BRIEF.

IN MY INAUGURAL ADDRESS, YOU HEARD ME DESCRIBE MY VISION OF A BETTER PHILADELPHIA - MY COMMITMENT TO NEIGHBORHOODS, TO EDUCATION, TO BLIGHT REMOVAL, TO "TOURISM DEVELOPMENT," AND TO JOB CREATION.

NONE OF THIS WILL BE POSSIBLE IN THE YEARS TO COME IF WE DO NOT EXERCISE THE DISCIPLINE TO LIVE WITHIN OUR MEANS.

TODAY I PROPOSE AN OPERATING BUDGET OF $2.7 BILLION AND A CAPITAL PROGRAM OF $140.3 MILLION.

THIS BUDGET ALLOWS US TO BOTH REALIZE OUR VISION OF A BETTER PHILADELPHIA, AND MAINTAIN OUR FISCAL DISCIPLINE.

THE FISCAL STABILITY OF THIS CITY IS IMPORTANT BECAUSE:

IT GIVES CONFIDENCE TO DEVELOPERS, WHO BRING JOBS AND ECONOMIC BENEFITS TO OUR CITY

IT ATTRACTS NATIONAL RETAILERS TO PHILADELPHIA, WHO BRING MUCH NEEDED TAX REVENUES

IT LOWERS INTEREST RATES ON THE FUNDS WE BORROW FOR IMPROVEMENTS IN OUR RECREATION CENTERS, OUR LIBRARIES AND OUR HEALTH CENTERS, AND

AS A RESULT PHILADELPHIA HAS JOINED THE RANKS OF THE NATION'S PREMIER CITIES.

WE ALL SHARE A VISION OF A BETTER PHILADELPHIA THAT IS A WORLD CLASS CITY WITH A VIBRANT AND FLOURISHING ECONOMY SUPPORTED BY LOWER TAXES, ENHANCED CITY SERVICES AND A FISCALLY SOUND AND RESPONSIBLE GOVERNMENT.

THE BUDGET I PRESENT TODAY IS A CARRY FORWARD BUDGET. IT LOWERS TAXES. IT ENHANCES OUR CURRENT LEVELS OF SERVICE -

NOT BY INCREASED SPENDING, BUT BY SMARTER SPENDING.

LOWER TAXES AND BETTER SERVICE WILL MAKE PHILADELPHIA MORE COMPETITIVE AS A PLACE TO LIVE AND WORK.

THE TAX REDUCTION PROGRAM WHICH EXTENDS THROUGH FISCAL YEAR 2005 WILL SAVE PHILADELPHIA RESIDENTS AND BUSINESSES $1.1 BILLION IN WAGE AND BUSINESS TAXES.

IN ADDITION, IN ORDER TO BALANCE THE BUDGET, WE WILL AGGRESSIVELY PURSUE $60 MILLION IN SAVINGS BY 2005, THROUGH MANAGEMENT AND PRODUCTIVITY IMPROVEMENTS.

THIS IS WHY WE ARE WORKING CLOSELY WITH THE GREATER PHILADELPHIA CHAMBER OF COMMERCE, THE AFRICAN AMERICAN CHAMBER OF COMMERCE AND THE PHILADELPHIA HISPANIC CHAMBER OF COMMERCE. THEY WILL TO HELP OUR CITY MANAGERS IDENTIFY NEW AREAS FOR POTENTIAL COST SAVINGS AND REVENUE ENHANCEMENTS.

WHILE THE BUDGET AND FIVE-YEAR PLAN INCLUDE FUNDING FOR CITY SERVICES AND KEY INITIATIVES - LIKE EXPANSION OF AFTER SCHOOL PROGRAMS, - IT IS A CONSERVATIVE BUDGET.

IT MUST BE CONSERVATIVE BECAUSE, BEGINNING THIS YEAR, WE WILL START SPENDING THE $205.7 MILLION SURPLUS THAT WE ACCUMULATED OVER THE PAST SEVEN YEARS. IN FACT, WE EXPECT ABOUT A $55 MILLION OPERATING DEFICIT IN FISCAL YEAR 2000 AND WE PROJECT OPERATING DEFICITS IN THREE OF THE NEXT FIVE YEARS.

THOSE OPERATING DEFICITS DO NOT COME AS A COMPLETE SURPRISE. THE SURPLUS WAS BUILT UP IN ANTICIPATION OF INCREASED COSTS, INCLUDING OUR CURRENT LABOR CONTRACTS.

THE $205.7 MILLION SURPLUS WAS CLEARLY A FISCAL ACHIEVEMENT, BUT THE GREATEST MISTAKE WE COULD MAKE WOULD BE TO FORGET THE PAINFUL HISTORY OF OUR FINANCIAL CRISIS OF THE EARLY 1990'S.

YES, WE HAVE RECOVERED FROM THE WORST FISCAL CRISIS IN THE CITY'S HISTORY AND ACCUMULATED A RECORD SURPLUS. BUT THIS SURPLUS WAS BUILT, IN PART, BECAUSE OF EXTRAORDINARY FACTORS.

FOR EXAMPLE:

THE UNPRECEDENTED GROWTH IN THE NATIONAL ECONOMY

ONE TIME SAVINGS FROM PRODUCTIVITY INITIATIVES

SAVINGS ACHIEVED THROUGH THE IMPLEMENTATION OF COST EFFECTIVE RISK MANAGEMENT PROGRAMS WHICH HAVE NOW BEEN STABILIZED, AND

RENTAL SAVINGS REALIZED BY CONSOLIDATING CITY OFFICES.

EVEN IF WE SPEND SMART, WE PROJECT THAT OUR $205.7 MILLION SURPLUS WILL SHRINK TO $4.9 MILLION BY THE END OF FISCAL YEAR 2005 WITHOUT ACCOUNTING FOR ANY INCREASED COSTS ASSOCIATED WITH NEW LABOR CONTRACTS.

MOREOVER, OUR ABILITY TO MAINTAIN THE FISCAL BALANCE IN THE FIVE YEAR PLAN COULD BE THREATENED BY OTHER FACTORS BEYOND OUR CONTROL.

WE ARE VULNERABLE TO ANY DOWNTURN IN THE NATIONAL AND LOCAL ECONOMIES.

WE ARE VULNERABLE TO ANY INCREASED DEMAND FOR CITY SERVICES AS A RESULT OF WELFARE CUTS.

WE ARE VULNERABLE TO ANY CHANGES IN STATE OR FEDERAL REIMBURSEMENT FORMULAS.

WE ARE VULNERABLE TO ANY SPIKES IN HEALTH BENEFITS COSTS FOR CITY EMPLOYEES.

WE ARE VULNERABLE TO THE POSSIBLE LOSS OF THE $18 MILLION ANNUAL RENTAL PAYMENT FROM PGW.

AND WE ARE VULNERABLE TO THE CONTINUING LOSS OF REVENUES AS A RESULT OF ELECTRIC DEREGULATION.

IN ORDER FOR PHILADELPHIA TO CONTINUE TO GROW AND THRIVE AND FULFILL ITS DESTINY AS A WORLD CLASS CITY, WE MUST MAKE IT CLEAR THAT THERE IS NO CONFLICT BETWEEN BEING "BUSINESS FRIENDLY" AND BEING "LABOR FRIENDLY."

ECONOMIC GROWTH CREATES JOBS AND GOOD WAGES CREATE ECONOMIC GROWTH.

OUR ECONOMIC STIMULUS PROGRAM WILL CONTINUE TO FOCUS ON DEVELOPING SPECIFIC STRATEGIES:

TO SUPPORT SMALL BUSINESSES,

TO BUTTRESS EXISTING INDUSTRIES, AND

TO DEVELOP NEW INDUSTRIES TO UNDERGIRD PHILADELPHIA'S ECONOMIC FUTURE.

AS I ANNOUNCED EARLIER, WE HAVE REACHED A CONCEPTUAL AGREEMENT WITH THE EAGLES THAT, WITH CITY COUNCIL'S SUPPORT, IS LIKELY TO ENSURE THAT OUR FOOTBALL TEAM WILL KEEP PLAYING IN PHILADELPHIA THROUGH 2011.

THE EAGLES ARE CONSTRUCTING A PRACTICE FACILITY AT THE SITE OF THE FORMER PHILADELPHIA NAVY HOSPITAL WHICH WILL CREATE 73 CONSTRUCTION JOBS, AND AT LEAST 215 PERMANENT JOBS.

THE CITY WILL RETAIN THE CURRENT AND FUTURE WAGE TAX REVENUE PROVIDED BY THE EAGLES - ABOUT $2 MILLION ANNUALLY.

WE WILL ALSO EXPLORE ALL REASONABLE STRATEGIES FOR DEVELOPING NEW SPORTS COMPLEXES FOR OUR TEAMS.

I EXPECT TO ANNOUNCE VERY SHORTLY THE PROCESS AND FRAMEWORK FOR OUR DISCUSSIONS WITH THE TEAMS AND, MOST IMPORTANTLY, COMMUNITIES LIKELY TO BE IMPACTED BY NEW STADIUMS.

WE WILL MAKE SURE THAT ANY NEW STADIUM DEAL MAKES ECONOMIC SENSE FOR THE TAXPAYERS OF OUR CITY.

WE SHARE A VISION OF A BETTER PHILADELPHIA WITH STRONG NEIGHBORHOODS FREE FROM BLIGHT, VACANT HOUSES, TRASH-STREWN LOTS AND ABANDONED CARS.

ALTHOUGH I AM PROPOSING A CONSERVATIVE BUDGET TODAY, WE WILL STILL UNDERTAKE SEVERAL NEW INITIATIVES.

PERHAPS THE MOST IMPORTANT OF OUR NEW INITIATIVES IS THE "SAVING NEIGHBORHOODS CAMPAIGN."

THIS WILL BE AN ALL-OUT ASSAULT ON NEIGHBORHOOD BLIGHT AND DESTABILIZATION. THIS CAMPAIGN IS ESSENTIAL FOR PHILADELPHIA TO RETAIN ITS VITALITY AND VIABILITY AS A DESTINATION OF CHOICE.

OVER THE LAST DECADE, THE CITY HAS SPENT OVER $100 MILLION TO DEMOLISH BUILDINGS AND ERADICATE BLIGHT. STILL, THE QUALITY OF LIFE FOR TOO MANY OF OUR CITIZENS HAS DETERIORATED BECAUSE OF VACANT, DETERIORATING BUILDINGS, TRASH-STREWN LOTS, AND ABANDONED CARS.

WE WILL PARTNER WITH COMMUNITY RESIDENTS AND CITY COUNCIL TO IMPLEMENT PLANS DESIGNED TO DEAL WITH THE SPECIAL NEEDS OF EACH NEIGHBORHOOD.

WE WILL FINANCE THE $250 MILLION "SAVING NEIGHBORHOODS CAMPAIGN" THROUGH ONE OF THE CITY'S DEVELOPMENT AUTHORITIES.

FOR THE FIRST TIME IN MANY YEARS, THE CITY WILL BE ABLE TO PLAN CREATIVELY AND ACT AGGRESSIVELY TO COMBAT BLIGHT IN OUR NEIGHBORHOODS, NOT ONLY BY AVERTING CRISIS, BUT ALSO BY CREATING REAL DEVELOPMENT OPPORTUNITIES BEFORE THE BLIGHT ULTIMATELY CONSUMES US.

IN ADDITION, WE ARE PLANNING AN AMBITIOUS INITIATIVE TO ELIMINATE ABANDONED CARS FROM CITY STREETS. OUR POLICE DEPARTMENT RECEIVED MORE THAN 4,600 COMPLAINTS ABOUT ABANDONED CARS DURING THE MONTH OF OCTOBER ALONE.

IT WAS CITY COUNCIL THAT FIRST BROUGHT THIS ISSUE TO THE FOREFRONT LAST SPRING, AND I KNOW THAT YOU FULLY UNDERSTAND THE EXTENT OF THE PROBLEM FACING OUR NEIGHBORHOODS.

WE ALL SHARE A VISION OF A BETTER PHILADELPHIA WITH NEIGHBORHOODS LIBERATED FROM THE PLAGUE OF DRUGS AND VIOLENCE.

THE BUDGET I PROPOSE TODAY INCLUDES MORE FUNDING FOR CRIMINAL JUSTICE PROGRAMS THAT WILL ENABLE US TO STEP UP THE FIGHT AGAINST CRIME.

FOR EXAMPLE, THE CAPITAL BUDGET INCLUDES OVER $4 MILLION TO COMPLETE THE POLICE DEPARTMENT'S NEW STATE-OF-THE-ART FORENSIC LABORATORY AS WELL AS ITS NEW BUILDING FOR THE 24TH AND 25TH DISTRICTS.

THE OPERATING BUDGET INCLUDES $2.5 MILLION FOR THE DISTRICT ATTORNEY'S OFFICE:

TO CREATE A NEW REPEAT OFFENDER UNIT;

TO EXPAND THE ECONOMIC CRIMES UNIT TO INCLUDE A NEW CYBER-CRIME SECTION;

TO ESTABLISH A NEW SCHOOL OUTREACH PROGRAM IN THE JUVENILE COURT UNIT; AND

TO ENHANCE THE OPERATION OF THE LAW DIVISION TO ENSURE THAT CONVICTED CRIMINALS ARE NOT IMPROPERLY RELEASED.

THE SCHOOL OUTREACH PROGRAM IS PARTICULARLY IMPORTANT. THROUGH THIS NEW PROGRAM, THE DISTRICT ATTORNEY'S OFFICE WILL COORDINATE ACTION ON JUVENILE CASES WITH THE SCHOOL DISTRICT. PROSECUTORS WILL VISIT SCHOOLS ON A REGULAR BASIS TO EXPLAIN TO STUDENTS THE TRUE CONSEQUENCES OF DELINQUENCY.

THE PROPOSED BUDGET ALSO INCLUDES $5 MILLION FOR POLICE COVERAGE FOR THE REPUBLICAN NATIONAL CONVENTION AND $10.8 MILLION TO FUND THE CITY'S MATCH FOR POLICE OFFICERS UNDER THE FEDERAL CRIME BILL.

ALL OF THESE NEW INITIATIVES WILL HELP MAKE OUR SCHOOLS AND OUR STREETS SAFER.

WE SHARE A VISION OF A BETTER PHILADELPHIA WHERE EVERY PUBLIC SCHOOL CAN GRADUATE STUDENTS WHO ARE PREPARED TO SEIZE THE OPPORTUNITIES ON THE HORIZON OF THIS NEW MILLENNIUM.

IN NO ARENA WILL WE BE MORE FORCEFUL THAN IN OUR UNRELENTING DRIVE TO MAKE PHILADELPHIA'S PUBLIC SCHOOLS A TRUE SOURCE OF PRIDE FOR THIS CITY.

I HAVE ALREADY IDENTIFIED EXPERIENCED PROFESSIONALS WHO WILL TACKLE THE CITY'S EDUCATIONAL CHALLENGES: A HIGHLY RESPECTED AND COMPETENT LOCAL SECRETARY OF EDUCATION AND PROGRESSIVE LEADERSHIP ON THE SCHOOL BOARD WHO WILL WORK IN PARTNERSHIP WITH CITY, STATE, FEDERAL AND OTHER STAKEHOLDERS.

THIS WEEK, I APPOINTED THE PANEL THAT WILL NOMINATE NEW CANDIDATES FOR MEMBERSHIP ON THE PHILADELPHIA BOARD OF EDUCATION.

OUR EDUCATIONAL CHALLENGES ARE NOT NEW, BUT THERE IS NEW URGENCY TO OUR TASK. THIS GREAT CITY CANNOT PROSPER UNTIL WE HAVE A SCHOOL SYSTEM THAT PRODUCES A QUALITY OF EDUCATION THAT ENCOURAGES FAMILIES AND BUSINESSES TO STAY IN OUR CITY. THIS GREAT CITY CANNOT PROSPER UNTIL WE HAVE A SCHOOL SYSTEM THAT ADEQUATELY PREPARES STUDENTS FOR THE RIGORS OF HIGHER EDUCATION AND A HIGH-TECH WORKPLACE.

PUT SIMPLY, WE MUST ASSURE YOUNG PARENTS THAT THEIR CHILDREN WILL HAVE THE OPPORTUNITY TO OBTAIN THE EDUCATION THAT THEY NEED TO SUCCEED. GOVERNMENT'S RESPONSIBILITY IS TO PROVIDE THE SCHOOLS WITH SUFFICIENT RESOURCES TO PRODUCE THOSE OPPORTUNITIES.

BECAUSE IT DOES NOT RECEIVE AN APPROPRIATE LEVEL OF FUNDING FROM THE COMMONWEALTH, THE SCHOOL DISTRICT DOES NOT NOW HAVE SUFFICIENT RESOURCES. THE DISTRICT PROJECTS THAT IT WILL END FISCAL YEAR 2000 WITH A CUMULATIVE FUND DEFICIT OF $42 MILLION AND THAT DEFICIT COULD REACH $183 MILLION BY THE END OF FY2001 - EVEN WITHOUT FUNDING FOR CRUCIAL INITIATIVES LIKE REDUCING CLASS SIZE, SUMMER SCHOOL AND AFTER SCHOOL PROGRAMS.

WITHOUT EQUITABLE STATE SUPPORT, THE SCHOOL DISTRICT'S FISCAL CRISIS WILL UNDOUBTABLY WORSEN.

I WILL BE MEETING WITH GOVERNOR RIDGE, STATE LEGISLATORS AND MEMBERS OF THIS COUNCIL TO START WORKING TOGETHER TO FULFILL OUR RESPONSIBILITY TO PHILADELPHIA'S CHILDREN.

SIGNIFICANT PROGRESS HAS BEEN MADE. BUT WE MUST WORK TOGETHER TO IDENTIFY SOUND MANAGEMENT PRACTICES THAT ENSURE THE BEST POSSIBLE USE OF AVAILABLE RESOURCES. TOGETHER, WE MUST ACHIEVE A LASTING SOLUTION TO THE SCHOOLS' CHRONIC FUNDING PROBLEM.

THE PROPOSED BUDGET ALSO INCLUDES A $1.5 MILLION INCREASE IN THE CITY'S SUBSIDY TO COMMUNITY COLLEGE, FOR A TOTAL OF $20.8 MILLION, AS A FURTHER INDICATION OF OUR COMMITMENT TO ENHANCING EDUCATIONAL OPPORTUNITIES FOR ALL PHILADELPHIANS. THE ADDITIONAL FUNDING WILL ALLOW COMMUNITY COLLEGE TO PROVIDE CLASSROOM BASED COMPUTER TECHNOLOGY AND MAKE INFRASTRUCTURE IMPROVEMENTS AND RENOVATIONS.

AT MY INAUGURATION, I PROCLAIMED THAT THE YEAR 2000 WOULD BE "THE YEAR OF THE CHILD" IN PHILADELPHIA. THIS WEEK I ANNOUNCED THE CREATION OF A NEW OFFICE OF CHILD CARE AND THE FORMATION OF THE PHILADELPHIA COMMISSION ON CHILDREN WHICH DEMONSTRATE OUR STEADFAST COMMITMENT TO THE YOUNGEST, THE MOST PRECIOUS AND THE MOST VULNERABLE AMONG US.

ANOTHER MAJOR NEW INITIATIVE IS "KIDS INVOLVED AND DEVELOPING SKILLS" WHICH FOCUSES ON KEEPING CHILDREN OFF THE STREET BY PROVIDING THEM WITH CONSTRUCTIVE ACTIVITIES AFTER SCHOOL.

THROUGH THE KIDS INITIATIVE, MY ADMINISTRATION INTENDS TO DRAMATICALLY INCREASE THE NUMBER OF CHILDREN WHO HAVE A SAFE PLACE TO LEARN AND PLAY IN THE AFTER SCHOOL HOURS AND DURING THE SUMMER.

ADVOCACY GROUPS SUCH AS PHILADELPHIA CITIZENS FOR CHILDREN AND YOUTH ESTIMATE THAT PERHAPS AS MANY AS 75,000 CHILDREN GO UNSERVED.

IN RESPONSE TO THIS CRITICAL GAP IN SERVICE, THROUGH KIDS, THIS BUDGET PROPOSES TO INCREASE FUNDING FOR AFTER-SCHOOL PROGRAMS TO MORE THAN $4 MILLION BEGINNING IN FISCAL YEAR 2001.

THIS WILL ALLOW THE RECREATION DEPARTMENT TO EXTEND ITS AFTER-SCHOOL PROGRAMS UNINTERRUPTED THROUGH THE SUMMER MONTHS.

WHEN THE FUNDING INCREASE IS IMPLEMENTED, ALL SITES CURRENTLY OFFERING THE POPULAR AFTER SCHOOL PROGRAMS WILL ALSO OFFER CAMP ACTIVITIES WHILE SCHOOL IS OUT OF SESSION.

THIS BUDGET ALSO ALLOWS THE FREE LIBRARY TO EXPAND THE LEARN, ENJOY, AND PLAY PROGRAM (LEAP) TO EVERY LIBRARY THIS YEAR AND TO EXPAND OPERATIONS FROM 40 TO 52 WEEKS A YEAR.

THE FREE LIBRARY'S SUMMER READING PROGRAM WILL SERVE 48,000 CHILDREN THROUGHOUT THE CITY AND THE POPULAR "SCIENCE IN THE SUMMER" READING PROGRAM WILL SERVE 1,800 CHILDREN.

IN ADDITION, IN THE FALL OF 2000, THE LIBRARY EXPECTS TO OPEN THE NEW "INDEPENDENCE" BRANCH, WHICH WILL BE LOCATED WITHIN THE BALCH INSTITUTE ON SEVENTH STREET IN EAST CENTER CITY. THIS BRANCH WILL MEET THE NEEDS OF A DIVERSE ETHNIC, CULTURAL, AND SOCIO-ECONOMIC POPULATION IN A LOCATION CONVENIENT TO THEIR COMMUNITY.

MOREOVER, KIDS INITIATIVE WILL FORGE PARTNERSHIPS WITH SCHOOLS, CHURCHES AND SYNAGOGUES, PHILANTHROPIC ORGANIZATIONS AND COMMUNITY GROUPS IN ORDER TO PROMOTE THE PROGRAM AND GENERATE PERMANENT FUNDING SUPPORT AS WELL AS ADDITIONAL AFTER-SCHOOL PROGRAM SITES.

FINALLY, THE CAPITAL BUDGET PROPOSED TODAY INCLUDES $140.3 MILLION IN CITY-FUNDED PROJECTS. THIS BUDGET WILL ALLOW US TO CONTINUE TO FUND THE KINDS OF INFRASTRUCTURE IMPROVEMENTS AND RECREATIONAL AND CULTURAL ENHANCEMENTS THAT WE HAVE FUNDED IN RECENT YEARS. WE WILL ALSO BE ABLE TO LAUNCH SEVERAL NEW PROJECTS.

CITY-FUNDED CAPITAL PROJECTS IN FISCAL YEAR 2001 INCLUDE:

$5.1 MILLION FOR SEPTA'S ONGOING TRANSIT REHABILITATION PROGRAM. THIS PROGRAM WILL IMPROVE THE QUALITY OF TRANSPORTATION SERVICE FOR THE ONE-HALF MILLION PEOPLE WHO RIDE SEPTA DAILY.

$11 MILLION FOR THE REPAVING AND RECONSTRUCTION OF STREETS, HIGHWAYS, WALKWAYS AND BRIDGES;

$1 MILLION FOR THE CONTINUED REHABILITATION OF THE FAMILY COURT BUILDING AND

$4.1 MILLION FOR THE CONSTRUCTION OF A MULTI-PURPOSE FACILITY TO SUPPORT THE NEW WOMEN'S DETENTION FACILITY.

$1 MILLION FOR THE FURTHER DEVELOPMENT OF THE AVENUE OF THE ARTS - NORTH AND SOUTH.

$3.9 MILLION FOR NEW NEIGHBORHOOD ENHANCEMENTS. THAT INCLUDES SITE IMPROVEMENTS FOR HOUSING AND COMMERCIAL REVITALIZATION PROGRAMS, SUCH AS THE REDEVELOPMENT OF THE SCHUYLKILL FALLS AND MARTIN LUTHER KING HOUSING DEVELOPMENTS.

$14.3 MILLION FOR ADDITIONAL IMPROVEMENTS TO OUR PLAYGROUNDS, BALLFIELDS, COURTS, AND OTHER RECREATION DEPARTMENT FACILITIES. THERE IS ALSO FUNDING FOR THE REHABILITATION OF ROOFS AND HEATING OR SAFETY SYSTEMS AT VARIOUS RECREATION CENTERS, WITH $550,000 DEDICATED SPECIFICALLY TO SWIMMING POOL REPLACEMENT AND REPAIRS;

AND

$21 MILLION FOR THE PURCHASE OF NEW VOTING MACHINES THAT WILL REVOLUTIONIZE THE ELECTION PROCESS IN PHILADELPHIA.

CLEARLY, HOWEVER, THIS YEAR'S CAPITAL BUDGET CONTAINS LESS FUNDING FOR MANY DEPARTMENTS THAN HAVE THOSE OF RECENT YEARS.

THERE ARE SEVERAL REASONS FOR THAT:

FIRST, WE ARE FAST APPROACHING OUR LEGAL DEBT LIMIT. THIS DEBT LIMIT LIMITS THE AMOUNT OF MONEY WE CAN BORROW TO FUND OUR CAPITOL PROGRAM. BY THE END OF FISCAL YEAR 2000, WE WILL ONLY HAVE $288 MILLION LEFT IN OUR BORROWING CAPACITY. THAT CAPACITY CAN ONLY GROW AS WE REPAY OUR OLD DEBT OR AS THE ASSESSED VALUE OF OUR REAL ESTATE GROWS.

WE MUST DEVELOP STRATEGIES THAT WILL ALLOW US TO MAINTAIN A REASONABLY SIZED CAPITAL BUDGET WITHOUT INCURRING EXCESSIVE LEVELS OF DEBT.

WE MUST LIVE WITHIN OUR MEANS. WE MUST MAINTAIN OUR FISCAL DISCIPLINE. WE MUST ADOPT BALANCED BUDGETS THAT ARE A PREREQUISITE TO THE STABILITY AND CREDIBILITY OF PHILADELPHIA GOVERNMENT.

THE BUDGET I PROPOSE TODAY MEETS THIS CRUCIAL TEST.

I AM EXCITED AND HONORED TO HAVE THIS OPPORTUNITY TO WORK WITH COUNCIL AND THE CITIZENS OF PHILADELPHIA TO REALIZE OUR VISION FOR A BETTER PHILADELPHIA.

IN CONCLUSION, I WOULD LIKE TO REPEAT THE REQUEST I MADE AT THE END OF MY INAUGURAL ADDRESS:

I ASK FOR YOUR IDEAS AND ENERGY, YOUR COOPERATION AND PRAYERS, SO THAT PHILADELPHIA IN THIS NEW CENTURY WILL CONTINUE TO GROW AND THRIVE AND FULFILL ITS DESTINY AS A WORLD CLASS CITY, A PLACE OF HOPE AND OPPORTUNITY FOR ALL OUR PEOPLE - A BETTER PHILADELPHIA.

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• Feb. 3, 2000:  READ by CITY COUNCIL

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