Like many of you, we were absolutely shocked yesterday when Mayor Michael Nutter revealed the City’s “Plan C”/Doomsday Budget scheduled to go into effect in mid-September should the State of PA continue its inaction with regard to the city budget crisis. And while the plan is being widely characterized as a political gambit to light a fire under Harrisburg’s lame ass, the reality of Plan C, no matter what, is this: These cuts are all actually on the table right now. Some of them are bound to go through. And the challenges presented by it all will definitely write a new chapter in the history of the city, as well as define Nutter’s term and everything that comes after it. After the jump, a full transcript of Nutter’s speech at City Hall yesterday, just before he lowered the boom.

Revised Five Year Plan Delivered to City Council
Aug. 20, 2009

It would be polite but inaccurate for me to say good morning to you all. This is not a good morning in Philadelphia or in the Philadelphia region.

This is, rather, a tragic day that I’ve worked for many, many weeks now to prevent from happening. Other than the five days on which we lost police officers in the line of duty, this is my worst day of service as your mayor.

Today, in accordance with the directive from PICA, I transmitted to the Philadelphia City Council a revised Five Year Plan that if implemented will result in the largest lay off of Philadelphia public servants in our great city’s history.

The Plan C implementation has begun. The clock has started.

This proposed plan, if implemented, would be the most radical, painful and unprecedented dismantling of City government since the framers of our Home Rule Charter created our structure of government in 1951.

But as I’ve said for many weeks now, this terrible action need not happen if Harrisburg approves quickly and without amendment the legislation that temporarily raises our sales tax and makes changes to our employee pension payments.

And yet, under the revised plan I’m sending to City Council, thousands of city employees – hard-working people with families, mortgages and college bills, tax-paying city residents who come to work every day – face the loss of jobs in the midst of the worst recession since the Great Depression.

Equally important, these employees, to a man and woman, provide crucial services to the residents of Philadelphia, and those services would be dramatically diminished – an impact that will be felt very directly by residents of the city and the region.

This enormous reduction in service also comes at a time when the city is seeing dramatic increases in requests for those services – at homeless shelters, health centers, libraries and other city facilities.

In light of these impending reductions, very soon we must inform parents and guardians that recreation and library programs on which their children and others depend will not be available. These parents and citizens will need to start considering alternate plans.

Today, therefore, we formally began the process of preparing to cease operations in vast segments of city government. Every part of the government will be affected.

In the past, we talked about it. Today, the process begins.

1. Layoff process:
Reductions in force of any sort are not carried out in a haphazard or ad hoc manner.

Rather, governed by the city charter, civil service regulations and union contractual agreements, we are acting as a responsible manager of our personnel and the public’s resources.

It’s a real process that will cause real pain and real anguish. It will harm morale and lower productivity. It’s not done lightly and when it’s done it’s irrevocable.

It will require that layoff scores, which are basically a point system based on seniority, performance rating and other factors, be calculated for 12,000 employees in order to cut 3,000 positions.

For example, to lay off one police officer, we have to calculate layoff scores for every officer in the department. That means developing the layoff scores for 5,800 officers.

Hoping for the best but preparing for the worst, city departments had already started working and have completed layoff registers. We expect all departments will send these lists to the city’s Office of Human Resources tomorrow.

Layoff notices to employees will be delivered no later than Sept. 18, and with the two-week layoff notice required by civil service regulations, layoffs will become effective no later than Oct. 2.

2. Revised Plan goes to City Council:
Under the terms of the city’s intergovernmental cooperation agreement, City Council has 10 days to consider the revised plan.

While City Council can choose to approve or disapprove this revised plan, my letter to City Council today urged the body to waive the requirement of Council approval of the plan, because time is of the essence.

I made that request to expedite the plan’s delivery to the Pennsylvania Intergovernmental Cooperation Authority, which has set an end of the month deadline for receiving a final revised plan.

3. Overview of Revised Plan:
Without the prompt intervention of Harrisburg, the revised plan sets out a frightening list of devastating actions we would have to take:
· Almost 1,000 positions in the police department and 200 in the fire department;
· Trash pickup reduced to twice a month from weekly;
· All libraries, recreation centers and pools closed.
· The City will no longer fund the courts.
· Entire departments, including the Planning Commission, Commerce and Fairmount Park, will be shuttered.
· In all, 3,000 positions will be eliminated.

But these kinds of actions do not have to happen if the Pennsylvania Senate approves House Bill 1828 without amendment next week and then sends it immediately to the Governor’s desk.

4. Real Costs incurred now:
Unfortunately, delay carries a real cost in dollars and pain.

On Monday, I outlined $20 million in spending cuts made necessary because our bill has not been passed. For each month we don’t have the temporary sales tax increase, we lose almost $10 million in revenue. So far, we’ve lost revenue for August and September.

There are other costs that we’ve already incurred.

The city departments have expended more than 4,000 person-hours to prepare the layoff scores. Now, the Office of Human Resources will use 8,000 to 12,000 person-hours checking and rechecking these layoff data.

And because HR has been tasked with checking layoff materials, 25 examinations for new employees have been cancelled in August.

The exams include those for Revenue Department tax investigators, firefighters, correctional officers and L&I employees who review construction plans. Very soon, we may have to cancel 23 more exams scheduled for September.

5. Impacts on Departments and Need to Notify:
Aside from the cost, complexity and pain associated with preparing for layoffs, the preparations for ceasing operations in entire city departments must begin well in advance of eventual shutdown.

For example, let’s look at the Recreation Department. The budget reduction will be almost $31 million as compared to the $700 million in resources that passage of House Bill 1828 would provide.

The revised plan calls for the elimination of 450 positions and will close down all programs. For example, it will impact 3,000 children served in 96 after-school programs. There are also 6 older centers serving 180,000 meals to seniors and sports programs serving 45,000 people – both programs in a city-run facility will end.

As the school year fast approaches, we will have to notify parents in early September that they should start considering alternative programs because the department’s after-school programs will be gone.

Similarly, the library system with a budget of almost $30 million and roughly 490 positions will cease operations and that means the LEAP after-school program for 80,000 children and teens will disappear. Hundreds of adults who are learning to read in literacy programs at the libraries will lose their bridge to a better life.

And again, in early September we’ll send out information alerting parents and the thousands of other users that the libraries will cease operations.

With a library system there is an added factor.

Every day thousands of books and materials are checked out and returned to the system. At some point during the month, we would have to stop lending books and call for the return of all outstanding books and materials.

In the Streets Department, where roughly 300 positions will be eliminated, the public will experience a huge change when weekly trash pickup shifts to an every other week schedule.

By early September, the public will be notified of their new trash collection schedule. They will also get details of reduced street lighting and switching a thousand traffic lights to all red flash.

Though the recession has clearly slowed development activity in the city, there are still projects working their way through the city development process. With 39 layoffs at the Planning Commission, potential development will come to a grinding halt.

And finally, let me say a few words about the police and fire departments.

They’re at the very core of our efforts to improve the quality of life in our city and in the last 18 months both departments have had stellar performance.

Under this revised plan, Philadelphia would have 929 fewer sworn officers and 43 civilian positions. For a city that had a 15 percent reduction in homicide last year, the biggest drop in a decade, and has almost a double digit reduction so far this year, this loss of police presence on city streets is the very definition of devastation.

Likewise, the deactivation of up to six engine companies, three ladder companies and up to five advanced life support medic units for a total of nearly 200 dedicated firefighters and paramedics, will have dire implications for the safety of every Philadelphian.

We will immediately undertake a study to identify the specific units or locations that will be impacted by the reduced funding in the revised plan.

Conclusion:
Let me conclude by stating the obvious – we need prompt action from Harrisburg. We ask simply for the tools to manage our own house. We’re not asking for one dime from Harrisburg.

Next week, after due deliberation, the Pennsylvania Senate can produce a major win for Philadelphians, Pennsylvanians and the honored body itself by taking action in the midst of this ongoing recession and budget crisis and passing House Bill 1828 without amendment.

Today, I say again, the crisis is real. The impact of inaction will be devastating. The clock is ticking.

This entry was posted on Friday, August 21st, 2009 at 11:07 am.