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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 occ...
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