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Budget Address
Mayor John F. Street
January 29, 2002
Council President Verna, members of City Council, members of my Cabinet and Administration, special friends and guests: Good morning.
Last January, I stood before you and proudly announced - "We are a government that gets things done."
2001 was a year of difficult challenges. Nonetheless, it was a year of accomplishment. Sustained by our shared ideals and nourished by pride in our great City, we continue to make progress on behalf of the people, the businesses which employ our workers, and the great region of which we are a vital part. Today, I can modify my statement from a year ago: we are a government that gets things done despite a series of difficult challenges -
• despite a national economic downturn and the abrupt end to the longest period of economic expansion in our history;
• despite a changing and very challenging political environment;
• despite the escalating security costs and emotional trauma caused by the tragic events of September 11.
Vince Lombardi, the ledgendary former coach of the Green Bay Packers, used to tell his players, "When the going gets tough, the tough get going." During the year 2001, we proved our toughness. We refused to let the rough economic climate impede our progress. We managed the affairs of the City with unwavering commitment to our vision of a better Philadelphia. We moved closer to this vision -
• forging a historic agreement with the Commonwealth and securing a better and brighter day for our public school students and their families,
• creating jobs by attracting entrepreneurs seeking a progressive pro-business environment,
• protecting and strengthening the hospitality industry,
• making our neighborhoods cleaner, safer, and more beautiful, and
• remaining faithful to our pledge to make every year in Philadelphia the "Year of the Child."
Tough times inevitably create new imperatives. If we are to succeed, we must maintain our focus, sustain our discipline, and remain undeterred in our vision.
We must never forget that the ideals uniting us are far more important than the details dividing us. At the end of the day, we are all on the same side - the side of the City we love and the people we are privileged to serve. Now more than ever, we need a partnership for progress.
If we are to continue to invest in our neighborhoods, strengthen our economy, and improve our schools, real partnership is essential.
The aftermath of the events of September 11 provide valuable guidance in forging this partnership for progress. In the difficult days and months following this tragedy, our nation demonstrated just how much we can do when we cast aside petty politics, work together, and devote ourselves to the common good.
The horror and anger ignited by the terrorist attacks on the World Trade Center and the Pentagon have not only redefined the American experience; they also ignited acts of bravery, valor and compassion that distinguish us as a society. The Philadelphia response to September 11 is exemplified by the work of the United Way of Southeastern Pennsylvania, the Red Cross, and the firefighters and other rescue workers who were among the first non-New York responders on the scene.
When I met them upon their return from Ground Zero, they were exhausted, emotionally spent, and very, very proud. Today we have with us Lieutenant Fred Endrikat, who led the recovery effort for the first several days at Ground Zero. Please help me welcome him and say thanks to the United Way, the Red Cross, and all the men and women who volunteered in our time of national need.
The coming year presents an array of complex challenges. The $3.1 billion general fund operating budget I present today sustains our long-standing commitment to incremental tax reductions, which have saved taxpayers more than $875 million in wage and business taxes since 1996.
As you will hear, in FY04 we propose to restructure our tax reduction program to provide a stronger stimulus to our business community, attract more jobs, and expand our tax base.
For the moment, however, let me acknowledge our Council of Economic Advisors: Philadelphia Federal Reserve Chairman Athony Santomero, Robert Inman, William Stull, David L. Cohen, and Steven Sanders. They have volunteered considerable time to the study of our tax structure and our economy. Their advice helped shape key provisions of this budget. Members of the Council, I thank you.
Neighborhood Transformation remains at the heart of my "Vision for a Better Philadelphia." Although we have not as yet unleashed the full potential of NTI, we have generated inspiring activity in neighborhoods throughout the city. We have cleaned 17,557 vacant lots, hauled 11,099 tons of debris, and removed over 100,000 abandoned cars from the streets of Philadelphia. In addition, we have visited with the owners and managers of more than 260 neighborhood-based businesses.
We are making progress and making a difference. I see it first hand when I visit neighborhoods, walk the streets, and talk with residents and local business owners. They appreciate what we are doing. We want what they want: safe and clean neighborhoods, open spaces where beautiful gardens grow and healthy children play, neighborhoods alive with pride and hope.
Nevertheless, we must do more. Blighted neighborhoods are an open wound on our City, breeding violence, drugs, disease, and despair. Let us act together to heal those wounds, so our neighborhoods thrive and people enjoy the quality of life they deserve.
Let us remember: sustained economic growth requires a City which appeals to both employers and employees - a place where people want to raise their children and spend their leisure time. Neighborhood Transformation is an economic stimulus. It is essential, not just for current residents but also for those considering a move to our City, whether for residential or business purposes.
Accordingly, I respectfully request that you amend the current Neighborhood Transformation legislation in ways that respect the aspirations of the people of Philadelphia, advance the cause of attracting entrepreneurs, and incorporate the priorities of eliminating blight and protecting the strong neighborhoods of this City from the insidious incursions of vacancy and abandonment.
While we have worked diligently to find common ground on NTI, make PGW more responsive to the people who depend on it, and stabilize the Philadelphia School District, we have not averted our attention from the creation of jobs, the continuing expansion of downtown, and the protection of our status as a premier destination city.
The new FedEx Distribution Center in Grays Ferry, the Kvaerner shipyard in South Philadelphia, the T.J. Maxx warehouse in the Northeast, the Eagles football stadium taking shape as you drive down I-95, the commitment by Bill Rouse to build the first skyscraper downtown in 20 years, and the announcement of the plans for the Comcast Pier at Penn's Landing, including the Please Touch Museum and the tram connecting Camden and Philadelphia: All of this is evidence of our success in creating a business- and developer-friendly environment which produces jobs for our City and region. We also are heartened by the pending acquisition of AT&T's cable division by Comcast Corporation and the decision by Citizens Bank to make our City a center for its operations.
Thank you to the Greater Philadelphia Chamber of Commerce, the Delaware River Port Authority, and Greater Philadelphia First who worked with our Commerce Department and PIDC to give life to many of these initiatives.
With your support, we are confident we can build on this success in the next fiscal year. Innovation Philadelphia is one key to this success, and the funds you authorized last year made it possible to attract a respected individual like Richard Bendis to our City.
Innova
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