Title
September 5, 2001
TO THE PRESIDENT AND MEMBERS OF THE
COUNCIL OF THE CITY OF PHILADELPHIA:
I am returning herewith as disapproved, Bill Nos. 000708, 000709, 010418, and 010419. These bills were passed by Council at its session on June 14, 2001.
Bill Nos. 000708, and 000709 would have transferred appropriation authority to enable a one-time payment of $45 million to the Philadelphia School District. I requested $20 million of these funds as part of last year’s short-term budget agreement with Governor Ridge, and $25 million to help settle the PFT Contract negotiations. In both circumstances the funds were clearly and specifically committed on a nonrecurring basis. Bil Nos. 010418 and 010419 in effect would have eliminated authorization for the City’s $15 million grant to the School District and replaced the revenue by shifting an additional 1.8 mills of the real property tax millage to the School District.
In my letter of May 30, 2001, I requested prompt introduction and prompt passage of the ordinances. Council acted expeditiously to comply with the requests. At the time, it was our expectation the General Assembly, in adopting the Commonwealth FY 2002 budget, would take significant steps toward enacting a long-term solution for the School District’s financial needs. We now know the General Assembly failed to address this issue in any meaningful way, and instead launched an assault on home rule, under the guise of helping fund public schools.
The City also has not received from the Commonwealth of Pennsylvania legally binding assurances that the funds provided by these ordinances would be exempt from the local revenue “maintenance-of-effect” provision of Act 46. Lacking such assurances, under a state takeover, the City could be ordered by a court to provide permanently a total of $60 million annually in new local revenues for the School District in addition to the $15 million grant the City provides currently. This result could occur if the court, in addition to requiring that the $45 million appropriation be continued on an annual basis, also required that the City provide annually both the $15 million grant and the $15 million in property tax millage that was to be substituted for the grant. This was never our commitment. Doing so would have a devastating impact on other City services. Under these circumstances, and in accordance with my commitment to you, I have not choice but to veto these ordinances.
I want to make it clear that this should not be construed as a lack of commitment to our children or the School District. As soon as the Commonwealth provides relief from the maintenance-of-effort provisions that we have been seeking, I again will ask for a one-time appropriation of $45 million for the School District. I also am prepared to recommend permanent new local resources for the School District, but only as part of a long term funding solution in which the Commonwealth is our partner.
Developing a long-term solution for the School District’s funding needs remains one of the highest priorities of my administration. Adequately funded public education in Philadelphia cannot be achieved by the City alone. Thus, Governor Ridge and I recently agreed on a timetable to enable the Commonwealth to complete it sanalysis and develop a plan to enable Philadelphia schools to compete edudationally and be stable financially. The Governor’s team is now studying all aspects of the School District’s operations and by September 29th the Governor has committed to present to the City his proposal for addressing the District’s long-term educational and financial needs. During the following 30 days, we will review and negotiate details of the Governor’s proposal and decisions will be made about who will assume primary responsibility for the operation of the School District. In any event, local government will not abandon its children and will always have an important role to play in public education in Philadelphia.
Your leadership and assistance will be vital to this problem-solving process. I look forward to working with each of you as we strive to bring the very best possible education to the public school children of Philadelphia
Respectfully submitted,
John F. Street
Mayor