Title
Authorizing a full and comprehensive joint investigation by Council's Committees on Law and Government and Commerce and Economic Development of the allegations raised in the PICA and Controller's Office reports concerning the Economic Stimulus Program and the use of quasi-governmental bodies to distribute public funds to private for-profit enterprises.
Body
WHEREAS, In June 1994, the City's Department of Commerce entered into an agreement with the Pennsylvania Industrial Development Corporation to fund the Economic Stimulus Program [ESP] to combat the loss of jobs, support existing Philadelphia businesses and help rebuild neighborhood commercial districts; and
WHEREAS, The Street Administration has decided to continue to fund the Economic Stimulus Program without incorporating any criteria for performance measurement or accountability despite the fact that the program has not demonstrated specific quantifiable results; and
WHEREAS, The City has made and will continue to make a major financial commitment to ESP, contributing $179.4 million of direct City funds to ESP for Fiscal Year 1999 and $763.8 million of direct City funds for Fiscal Years 2000 to 2005; and
WHEREAS, The PICA report found that there is a "strong likelihood that the number of jobs claimed to be impacted by the Economic Stimulus Program is distorted" due to the duplication of services by different City agencies; and
WHEREAS, The Controller's Office found numerous irregularities with ESP reports, including inadequate and infrequent issuance of reports, lack of any independent program audits of ESP (financial and compliance), lack of any mention of ESP in the Commerce Department budget and failure to disseminate reports to members of City Council; and
WHEREAS, The Controller's Office additionally found that the lack of formal guidelines used in extending ESP loans and grants erodes "public confidence" and "creates the impression that the administration of ESP lacks object...
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