1 2 CITY COUNCIL 3 CITY OF NEW YORK 4 -------------------------------x 5 THE TRANSCRIPT OF THE MINUTES 6 of the 7 COMMITTEE ON FINANCE 8 - and - THE PUBLIC SESSION 9 -------------------------------x 10 11 May 21, 2008 Start: 2:45 p.m. 12 Recess: 5:22 p.m. 13 City Hall Council Chambers 14 New York, New York 15 B E F O R E: 16 DAVID WEPRIN 17 Chairperson, 18 COUNCIL MEMBERS: Diana Reyna 19 Gale Brewer Leroy Comrie 20 Bill DeBlasio 21 22 23 24 LEGAL-EASE COURT REPORTING SERVICES, INC. 17 Battery Place - Suite 1308 25 New York, New York 10004 (800) 756-3410 2 1 2 A P P E A R A N C E S 3 Lewis Fidler 4 James Gennaro Alan Gerson 5 Eric Gioia Robert Jackson 6 Oliver Koppell Michael McMahon 7 Helen Sears Peter Vallone, Jr. 8 Albert Vann David Yassky 9 Vincent Gentile Vincent Ignizio 10 James Oddo 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 3 1 2 A P P E A R A N C E S (CONTINUED) 3 Martha E. Stark 4 Commissioner NYC Department of Finance 5 Michael Hyman 6 Assistant Commissioner for Tax Policy NYC Department of Finance 7 Leonie Haimson 8 Executive Director Class Size Matters 9 Ann Kjellberg 10 PS PAC 11 Dan Golub Senior Policy Advisor 12 Office of Manhattan Borough President Scott Stringer 13 David Moog President, Local 1757 14 Vice President, District Council 37 15 Bess Matassa Office of Assemblymember Deborah Glick 16 66th District, New York County 17 Monique Flores Director 18 University Settlement Beacon 19 Walissa Rodriguez Beacon 219 20 Dr. Cary Goodman 21 Directions For Our Youth 22 Kaylena Gonzalez Franklin K. Lane 23 Diana Tores 24 Good Shepherd Services Beacons 25 4 1 2 A P P E A R A N C E S (CONTINUED) 3 Shawnta Alston 4 Beacon 141 Program 5 Larry Acosta Cypress Hills Beacon 6 John Kixmiller 7 Center for Family Life Beacons 8 Michelle Yanche Neighborhood Family Services Coalition 9 Doug Israel 10 Director of Research and Policy The Center for Arts Education 11 John Welch 12 Program Director Safe Horizon Streetwork, Lower East Side 13 Sara Woolley 14 Program Director Coalition for Hispanic Family Services 15 Mr. X 16 John P. Albert 17 After School Corporation 18 Moises Perez Alianza Dominicana 19 Llunorkys Veras 20 Alianza Dominicana 21 Awilda Rivera Alianza Dominicana 22 Diana Rodriguez 23 Alianza Dominicana 24 Luz M. Familia Alianza La Plaza 25 5 1 2 A P P E A R A N C E S (CONTINUED) 3 Joseph G. Garber 4 Member NAB No. 1, Kings County 5 Corresponding Secretary Civil Service Merit Council 6 Peter Kleinbard 7 Executive Director Youth Development Institute 8 Jara Lara 9 Alianza Dominicana 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 6 1 COMMITTEE ON FINANCE 2 CHAIRPERSON WEPRIN: The Finance 3 Committee is back in session and we are no longer 4 joint with anyone. But we're very pleased to have a 5 frequent guest, a Commissioner who has been with the 6 Administration from the beginning, and very hard 7 working and has come before this Committee on many, 8 many occasions and is doing an excellent job, and of 9 course, I'm referring to Commissioner Martha Stark. 10 Good afternoon. 11 COMMISSIONER STARK: Good afternoon. 12 CHAIRPERSON WEPRIN: Do you have a 13 prepared statement? 14 COMMISSIONER STARK: I do. And I'll 15 read it and, of course, be happy to take any of your 16 questions. 17 CHAIRPERSON WEPRIN: Okay. 18 COMMISSIONER STARK: Good afternoon, 19 Chairman Weprin, and members of the Committee on 20 Finance, especially Council Member Brewer. 21 As you know, I am Finance 22 Commissioner Martha E. Stark, and I want to thank 23 you for inviting me to testify today on the Fiscal 24 Year 2009 Executive Budget. 25 I'm going to do five things this 7 1 COMMITTEE ON FINANCE 2 afternoon: 3 First I'll discuss how the Executive 4 Budget affects the Finance Department, and I'll 5 specifically address the additional three percent 6 Expense Budget cut. 7 Second, I'm going to discuss the 8 results of the annual lien sale. 9 Third, I will briefly summarize the 10 assessment roll changes since the tentative roll was 11 released in January. 12 Fourth, I'll update you about 13 legislation that we are following in Albany, and an 14 important bill we hope you will support and pass 15 very quickly here in the Council. And, finally, as 16 always I'll be happy to take your questions. 17 When I appeared before you in March, 18 we learned from OMB that all City agencies would 19 have to cut their Fiscal Year 2009 Expense Budget by 20 another three percent. 21 I know the Council Finance Committee 22 staff has been in touch with our Budget Director to 23 get more details about the cuts in our budget. 24 Let me assure the Committee that we 25 will be able to reduce our expenses without 8 1 COMMITTEE ON FINANCE 2 adversely affecting the quality of services we 3 provide, or reducing the amount of revenue we 4 collect. 5 First we will reduce our personal 6 service cost by $1.3 million. More than 800,000 of 7 that will come from reallocating resources and 8 reducing expenses in the Adjudications Division. 9 These changes will have a minimal 10 impact on the service we provide to people who 11 challenge their parking tickets, primarily because 12 of the efficient method that we have adopted for 13 adjudicating tickets. 14 In addition to ensuring that tickets 15 are properly written to the public and dismissing 16 them if they are not, we have also developed a 17 program to efficiently adjudicate tickets issued to 18 businesses that deliver goods and services in New 19 York. 20 As a result of all of the changes to 21 ensure that tickets are adjudicated timely, we have 22 eliminated the need for more than 1 million hearings 23 each year. 24 As you know, we have been committed 25 to achieving and measuring results at Finance. 9 1 COMMITTEE ON FINANCE 2 Therefore we have chosen budget cuts that will not 3 affect services. 4 For example, people in Adjudications, 5 people requesting a hearing will: 6 - receive a decision by our Hearing 7 By Mail Unit within three weeks; and 8 - having a hearing in any one of our 9 business centers in less than an hour with time left 10 to even grab a sandwich. 11 Just as a reminder, when I started my 12 tenure at Finance, the average wait time for a 13 Hearing By Mail was more than four months, and it 14 took hours to have a hearing at our Business Center. 15 Second, we will reduce our Other Than 16 Personal Services Budget by 3.9 million. To 17 accomplish these savings, we will, among other 18 things, build internal capacity, especially in the 19 information technology area, and we will reduce 20 costs by 1.1 million as we rely less heavily on 21 outside technical consultants. 22 We are going to do a little 23 contracting in as well. Finance used to contract 24 with armored car companies to transport cash and 25 checks from our payment centers to our lock box 10 1 COMMITTEE ON FINANCE 2 banks for processing. 3 Instead of spending almost 430,000, 4 we will utilize our Deputy Sheriffs for this part of 5 our operation. 6 By utilizing technology and relying 7 more on e-mail, as the City Council's Technology 8 Committee has encouraged us to do, and we will also 9 consolidate office equipment and reduce mailings to 10 save an additional almost $200,000. 11 Let me turn to the lien sale, which 12 began with a 90-day notice on February 19th and 13 concluded on May 19th, two days ago. 14 As we announced at the start of the 15 lien sale, 23,770 owners received a 90-day notice, 16 and these owners owed a total of 307 million in 17 property charges and about 146 million in water 18 charges. 19 Since February 19th, Finance has 20 resolved 90 million or 29 percent of the amount that 21 appeared on a 90-day notice, people paid us 5.75 22 million in downpayments, and entered into payment 23 agreements that covered a total of 35.6 million in 24 outstanding debt. 25 I should note that this year for the 11 1 COMMITTEE ON FINANCE 2 first time we allowed owners to enter into monthly 3 installment agreements, as well as quarterly 4 installment agreements. 5 For homeowners we offer downpayments 6 as low as five percent of the total amount due, and 7 previously we required at least ten percent down. 8 Once again, I want to thank Council 9 Members for facilitating outreach events with 10 Finance and the Department of Environmental 11 Protection, to help us reach as many owners as 12 possible. 13 Your assistance helped us resolve 14 your constituents' debt, correct errors in our 15 records, and helped hundreds of people avoid having 16 a lien sold on their property. 17 It was a very busy outreach session 18 with your help. We conducted 50 sessions, served 19 more than 2,000 people, and helped 512 homeowners 20 enroll in exemption programs that made it possible 21 for them to both avoid the lien sale and reduce 22 their future tax bills. 23 Although the lien sale is over, our 24 efforts to help people pay the right amount on time 25 will continue throughout the year, and as always, I 12 1 COMMITTEE ON FINANCE 2 hope and know I can count on your help. 3 Let me turn to the final assessment 4 role for Fiscal Year 2009. The market value of all 5 City property is now 812.8 billion dollars. This is 6 for taxable real estate. It's 2.8 percent higher 7 than last year's final roll, a market value which 8 was a little less than 796 billion dollars. 9 The assessment that taxes are based 10 on increased a little less than five percent since 11 last year. 12 I can go through all the statistics 13 but they're there, and you certainly can read them, 14 as well as I. 15 There is one thing that I do want to 16 remind you, though, when we're valuing property and 17 the difference between the tentative and the final 18 assessment roll, and that is for properties that are 19 under construction, we're required to value those 20 properties on a tentative assessment roll. If the 21 property is not ready for occupancy on April 15th 22 and it's the first year of construction, the value 23 is removed. 24 For most commercial properties and 25 residential properties that have applied for 421-A, 13 1 COMMITTEE ON FINANCE 2 they have three years to complete construction. So, 3 there's this little kind of game I would call it, 4 where you put the value on and you pull it off, that 5 accounts for some of the changes between tentative 6 and final roll. 7 Finally, I thought I would update you 8 on some of our legislative efforts. 9 Currently we have a bill pending in 10 Albany involving rental car companies. 11 I do think, Council Member Brewer, 12 you and I have talked a little bit about rental car 13 companies. The current deal now is that they pay us 14 $1 per month per car in their fleets. An amount that 15 has not changed since 1981. In exchange, they send 16 us the local address of the person who rented the 17 car, which often times is the New York City 18 temporary address, like a hotel. 19 We don't tow the vehicles with 20 outstanding tickets and a rental car company is 21 absolved of any liability. 22 When this law was adopted, the use of 23 credit cards was certainly a lot less widespread. 24 However, now rental car companies are now in the 25 best position to remit charges for tickets issued to 14 1 COMMITTEE ON FINANCE 2 their vehicles. In lots of instances renters do not 3 live in New York City and therefore Finance is not 4 able to collect as effectively. 5 For example, more than 80 percent of 6 parking tickets issued typically get paid within a 7 year, for rental cars the payment rate is below 50 8 percent. 9 While we would prefer to have the 10 rental car companies collect the tickets and remit 11 the payment to us, the bill we proposed in Albany 12 would be -- would at a minimum raise the amount of 13 the fee to $5 per month per car or $60 per year per 14 car. 15 If passed, this bill would generate 16 more than $7 million in revenue and would help 17 offset the loss that we currently experience from 18 not being able to collect those tickets, especially 19 when the person renting them are not from New York 20 or the tristate area. 21 In addition to having our own agenda 22 items, we closely track and offer support for 23 legislation introduced by others. 24 There are two bills that are pending 25 that we think are worth looking at. One of them 15 1 COMMITTEE ON FINANCE 2 involves utility property. There is an interesting 3 thing that happens with utility property. Two 4 different entities value property, the same kind of 5 property, and it depends on whether it's passing 6 under public property, over or under public 7 property, or private property. 8 There is a bill in Albany that would 9 have the State value all of the property regardless 10 of where it is under private or public, and that's 11 Assembly 8030 Senate 5302. The other bill is 12 Assembly 8666 and Senate 6207, introduced by 13 Assembly Member Danny Farrell. It addresses how the 14 City values vacant land north of 110th Street in 15 Manhattan. 16 The bill would require Finance to 17 reclassify vacant lots in northern Manhattan as 18 commercial property instead of residential. 19 I hope that as we head into the last 20 weeks of the session, we can actually count on the 21 Council's support of those two bills as well. 22 I'm actually scheduled to be in 23 Albany the first week in June and would certainly 24 welcome having the Council's support. 25 I'm going to stop there and then I'm 16 1 COMMITTEE ON FINANCE 2 happy to answer any of your questions. 3 Thank you. 4 CHAIRPERSON WEPRIN: Thank you, 5 Commissioner. 6 You referred to the water lien sale 7 and the property tax sale in your testimony and you 8 may be aware that I, as well as Councilman Jim 9 Gennaro, Chair of the Environmental Protection 10 Committee, were very upset that the Water Board 11 decided to institute a 14 and a half percent rate 12 hike for water rate payers this past Friday, prior 13 to actually finding out what the results were from 14 the Water Lien sale, and actually, to add insult to 15 injury, they claimed originally a year ago that the 16 reason they had to propose an 11 and a half percent 17 increase last year, and a proposed 11 and a half 18 percent increase this year effective July 1st, which 19 is now the 14 and a half percent, was because we, in 20 the Council, and me, in particular, refused to allow 21 for stand-alone water lien sales. And, you know, 22 you're aware of the whole situation with the 23 compromise and allowing it. 24 And it just seemed to add insult to 25 injury that they wouldn't even delay their vote 17 1 COMMITTEE ON FINANCE 2 until the actual water lien sale results were in, 3 which, you know, I took personal offense to, and as 4 well as Chair Gennaro. 5 Do you have any comments on that? And 6 can you give us some actual numbers that took place 7 from the sale? 8 COMMISSIONER STARK: New mike here it 9 looks like. 10 CHAIRPERSON WEPRIN: It is. It is. 11 COMMISSIONER STARK: In any event -- 12 CHAIRPERSON WEPRIN: It's throwing us 13 off, too. 14 COMMISSIONER STARK: I actually don't 15 have any comment and wasn't aware that the vote had 16 taken place. I was actually away until late 17 yesterday and having caught up on all the news. 18 But the second thing is, we don't 19 have final details about the lien sale. We gave you 20 some preliminary numbers that we had as of last 21 week. Essentially payment, the time for payment 22 ended on Friday, and so we are still running through 23 all the information in our system, and as soon as we 24 have updated numbers we will certainly get them to 25 this Committee. 18 1 COMMITTEE ON FINANCE 2 I'm not sure how much they were able 3 to collect on the outstanding debt on the water 4 side. We at least have a sense on the property side, 5 that as of the last run that we did on Friday, we 6 know that we had collected in cash about $90 7 million. Some properties certainly were pulled, and 8 so I don't know what the total dollar value is of 9 those pulled properties, for various reasons. It 10 could be they had an exemption pending with Finance, 11 we didn't want to sell a lien and then we were going 12 to grant an exemption down the road. 13 I'm certain that we'll get you the 14 details that you need. 15 CHAIRPERSON WEPRIN: Okay, another 16 issue that came up during the whole course of the 17 water lien sale debate, and actually the Water Board 18 agreed with Chair Gennaro and myself that the excess 19 rental payment that now goes into the general fund, 20 which was originally used to pay for the water 21 system and to cover the debt service on the original 22 bonds that used to be issued by the City of New York 23 as General Obligation Bonds for water and sewer 24 purposes which are now obviously issued by the Water 25 and Finance Authority, that there is excess rental 19 1 COMMITTEE ON FINANCE 2 payments, I think the number for this year was about 3 68 million and then it was a little over 100 million 4 for the fiscal year starting July 1st, and then it 5 grows to about 300 million over the next few years, 6 and that money, if it did not go into the General 7 Fund for general operating purposes of, you know, 8 City services, that money could be used to keep the 9 rate down so we don't have these double-digit water 10 rate increases each and every year. And that would 11 really just require the Director of the Office of 12 Management and Budget or the City through him not to 13 request that additional money; do you have any 14 comment on that? 15 COMMISSIONER STARK: I don't have any 16 comment on that. You know better than I, 17 Commissioner Lloyd and Budget Director Page are 18 really much more familiar with the Water Authority 19 system than I, and I trust that they have and will 20 answer those questions to your satisfaction. 21 CHAIRPERSON WEPRIN: Okay. Not to our 22 satisfaction. They might have some answers, but I 23 don't think it will be to our satisfaction, but 24 that's a debate for another day. 25 Getting to the PEGs in the Finance 20 1 COMMITTEE ON FINANCE 2 Department. The hiring freeze and vacancy reductions 3 that the Mayor has ordered all agencies to undertake 4 will result in 124 less personnel in Fiscal 2009 for 5 the Department of Finance. 6 Please explain exactly where these 7 reductions will occur within your agency, and how 8 will it affect the Department of Finance's programs? 9 COMMISSIONER STARK: For the most 10 part, the PEG reductions are going to be sort of 11 taken out of our attrition and we have attrited 12 enough positions that we think that we will be able 13 to fully satisfy most of those PEGs through our 14 yearly attrition amount which averages around five 15 percent or so a year. 16 Our operations, as I detailed in my 17 testimony, we actually have been very much 18 monitoring how we track people, how we track sort of 19 money, how to provide services and keeping a handle 20 on both our wait times, our customer satisfaction 21 requirements, and we believe we're going to be able 22 to do this without actually adversely affecting how 23 we deliver services. That's our plan. 24 But most of the 124 are going to come 25 out of our attrition numbers. 21 1 COMMITTEE ON FINANCE 2 CHAIRPERSON WEPRIN: Okay. And how 3 many of them include assessor positions? 4 COMMISSIONER STARK: I don't know, I'm 5 going to have to ask my Budget Director. 6 Do you have a sense of how many of 7 them are assessor positions? 8 No, we don't have it broken down that 9 way. Basically all of the attrition that happens 10 comes from wherever it is in the agency. 11 In fact, I believe that we've gotten 12 quite a bit of attrition from our Auditor Team, our 13 auditor staff, but essentially wherever the 14 attrition comes, that's where we'll take it and 15 that's how we're going to meet this PEG. 16 CHAIRPERSON WEPRIN: But, it's safe to 17 say, though, that some of those positions would be 18 excessive positions? 19 COMMISSIONER STARK: I'm certain that 20 it would. We have a 2,400-person agency. The 21 assessors are about 130 of those, and so to the 22 extent that we have to take a PEG reduction, if the 23 assessors are leaving, we are likely to not refill 24 those positions, that's correct. 25 CHAIRPERSON WEPRIN: Okay, it's come 22 1 COMMITTEE ON FINANCE 2 up in a number of forums, some that I've 3 participated in, and others that I did not 4 participate in. You know, particularly aimed at 5 civic associations in the boroughs and, you know, 6 homeowner associations where there is some feeling 7 that single-family homes, particularly outside of 8 Manhattan, are not getting the same accurate market 9 value without actually having assessors look at the 10 properties, as opposed to the computer model that 11 you've instituted and done the last number of years. 12 And one particular problem that has 13 come up, or an issue that has come up, is that a lot 14 of these knock-down houses are occurring and 15 rebuilding brand new houses, are occurring 16 throughout Queens, throughout Brooklyn, throughout 17 Staten Island, and other places, and in some cases, 18 without the actual assessor reevaluating the new 19 home, which is substituting for an old home, they 20 may have on the books an inaccurate amount of square 21 footage. For example, if a home was a 1,500 square 22 foot home and this new McMansion is now 4,500 or 23 5,000 square feet, in some cases we've been told 24 just anecdotally, but, you know, I can't verify the 25 accuracy of any particular situation, but that a 23 1 COMMITTEE ON FINANCE 2 situation could occur where say the computer model 3 sees that it's a 1,500 square foot and a home sold 4 for X millions of dollars, so therefore, you know, 5 the value is times the square footage, and then 6 they're using that as a model for a home next door, 7 which might not be in the same situation. So, it 8 seems to me that a way to possibly catch a few of 9 those fall-through-the-cracks situations, is to 10 actually have assessors at least periodically make 11 inspections and stops and to kind of evaluate the 12 condition of the new home. 13 Is there any possibility of 14 reinstituting having assessors look at single-family 15 homes? 16 COMMISSIONER STARK: The assessors, 17 actually I'm so glad to see David Moog here. The 18 assessors -- 19 CHAIRPERSON WEPRIN: I'm sure we'll 20 hear from him shortly. 21 COMMISSIONER STARK: The assessors -- 22 I'm glad. The assessors, I should just sort of say, 23 are actually in the field a certain part of the 24 year, which is when they're doing data collection. I 25 think it's very important for this Committee to 24 1 COMMITTEE ON FINANCE 2 understand that the assessor's work is seasonal. 3 Basically they do their values from July through 4 January, and then they're doing sort of a little bit 5 of clean-up work between that time. 6 My understanding from the leadership 7 and the property division is from, actually it's 8 very nice when the weather is much nicer, they are 9 actually assigned data collection work, and that 10 data collection work is driven by, in some instances 11 permits, but it's also to get a handle on sort of 12 neighborhoods. 13 So, I mean, maybe David will suggest 14 something different to you, but they are actually 15 required in part to be doing data correction and 16 collections. The point that you used, or that 17 example that you said is anecdotal, I would love to 18 know of instances, if you have them, where our 19 square footage remained on a reconnect, I mean a 20 sort of a property that is a knock down and put back 21 up still as a smaller size property. 22 That's property that certainly when 23 the assessors are out doing their data correction 24 stuff, they should pick up. It's also information 25 that we would pick up from picking up Building 25 1 COMMITTEE ON FINANCE 2 Department records and our models would be adjusted 3 accordingly to pick up the larger size of that 4 property. There is no question about it. 5 I trust that the assessors are doing 6 that, and this is not a question of needing more 7 people out in the field, possibly, you know, getting 8 themselves into trouble. 9 What we have been doing is using 10 technology, like every other assessing jurisdiction 11 around this country, the models that we have in 12 place have been updated, and I think we do actually 13 a fairly good job on valuing single-family homes. 14 When you look at all of the statistics that are used 15 by even the International Association of Assessing 16 Officers, of which several of the property 17 appraisers and assessors are members of. The numbers 18 that we do are actually quite good against those 19 statistics. 20 So, I believe that we're able to 21 handle that, and, you know, the assessors at the 22 numbers that we have, they're not taking any more 23 disproportionate cut that the rest of the agency. 24 We believe that we're delivering a 25 very good assessment roll with the numbers that we 26 1 COMMITTEE ON FINANCE 2 have. 3 Investing in technology, we're about 4 to roll out a new upgraded computer-assisted mass 5 appraisal system and I know the assessors are 6 excited about that new system coming on line. 7 CHAIRPERSON WEPRIN: Okay. This year, 8 for the first time you're using a gross income 9 multiplier to determine the market value of Class 2 10 rental in co-op and condo properties with more than 11 ten units. 12 Have you made any major revisions or 13 changes to the valuation of these properties, since 14 the revised notices of value were mailed in 15 February? And how has the use of this message been 16 received by the affected property owners? 17 COMMISSIONER STARK: The gross-income 18 multipliers, as I explained to you in February, is 19 an acceptable approach for valuing property, not 20 unlike basically using a cap rate. We have -- the 21 only change that we've made to the gross-income 22 multiplier is that we were advised by the Law 23 Department that the co-ops and the condos should be 24 valued at the same number, using the same multiplier 25 as the rentals, even though their expenses are 27 1 COMMITTEE ON FINANCE 2 different. We made that adjustment. I think we 3 reported that to you already in February. 4 Aside from that, the feedback that 5 we've gotten from people is not unlike the feedback 6 we've gotten about our cap rates. They think our cap 7 rates are too low. They think our gross multipliers 8 are too high. 9 Since they're inversely related, it 10 means that when they think our multipliers are too 11 high, they would tell us our cap rates were too low. 12 Essentially what people think is that 13 on the commercial side, they would like our market 14 values to be lower. I think that they would probably 15 argue that they really would like their taxes to be 16 lower. 17 So, we're not getting any different 18 complaints from the public about our cap rates or 19 gross-income multipliers. Essentially I think what 20 we've accomplished with the gross-income multipliers 21 and the cap rates is that now more people than ever 22 actually understand how we arrive at their value, 23 and we could have actual discussions about our 24 income, is our income estimate correct? 25 We can be very clear about how it is 28 1 COMMITTEE ON FINANCE 2 we arrived at our gross-income multipliers and our 3 cap rates in the case of commercial property owners. 4 There's been a lot more transparency to how it is we 5 value property and we have now been able to actually 6 have very good policy discussions about our values, 7 rather than the old way of doing it where no one 8 could actually figure out how it is we arrived at 9 our value. 10 So, no different complaints with the 11 gross-income multipliers than we had when we used 12 cap rates. 13 CHAIRPERSON WEPRIN: Okay, Council 14 Member Brewer, do you have some questions? 15 COUNCIL MEMBER BREWER: Thank you very 16 much. 17 This is something I should know, but 18 didn't the State pass Internet sales, if you're 19 buying something on the net the State is going to 20 get sales tax, or am I wrong about that? 21 COMMISSIONER STARK: Mike, do you want 22 to comment? I'm not sure what you're -- 23 COUNCIL MEMBER BREWER: I'm just 24 trying to see if there is any revenue in it for the 25 City. That's my question. 29 1 COMMITTEE ON FINANCE 2 COMMISSIONER STARK: Okay. 3 ASSISTANT COMMISSIONER HYMAN: (Not 4 identified for the record.) And it is, it does 5 affect both the localities and the State. Basically 6 they asserted a more aggressive nexus standard for 7 out-of-state Internet companies. 8 COUNCIL MEMBER BREWER: Right. 9 ASSISTANT COMMISSIONER HYMAN: Amazon 10 is the main one everyone refers to. So, when they 11 sell into New York, those transactions will be 12 taxable, but that is both the City and State sales 13 tax purposes. 14 COUNCIL MEMBER BREWER: So, what's the 15 revenue for New York City? 16 ASSISTANT COMMISSIONER HYMAN: I think 17 the Statewide estimate is about 50 million. 18 COUNCIL MEMBER BREWER: For the State. 19 ASSISTANT COMMISSIONER HYMAN: For the 20 State. The City is about -- 21 CHAIRPERSON WEPRIN: Can you just 22 state your name and title for the record. 23 ASSISTANT COMMISSIONER HYMAN: Sure. 24 Michael Hyman. I'm the Assistant Commissioner for 25 Tax Policy at the Department of Finance. 30 1 COMMITTEE ON FINANCE 2 CHAIRPERSON WEPRIN: Thank you. 3 ASSISTANT COMMISSIONER HYMAN: My 4 memory is the Statewide estimate is approximately 5 $50 million annual. The City's total of that is 6 generally about 40 percent. 7 COUNCIL MEMBER BREWER: Forty percent 8 of the 50 million. 9 ASSISTANT COMMISSIONER HYMAN: Yes. 10 COUNCIL MEMBER BREWER: Okay, because 11 nobody has talked about it during this budget 12 season. And do you think that -- I mean, how does 13 that get collected? Again, I should probably know 14 this. 15 COMMISSIONER STARK: Do you want to? 16 Go ahead. 17 While you're up here, why not? 18 ASSISTANT COMMISSIONER HYMAN: In 19 general the sales tax has a corollary tax called the 20 "use tax," where ostensibly if you consume a 21 product in New York City, the consumer is supposed 22 to remit it. Of course, that's cumbersome and an 23 innefficient collection mechanism. So, the idea here 24 is to impose the tax collection burden on the 25 vendors because they are the ones who hold all the 31 1 COMMITTEE ON FINANCE 2 records and everything, so the idea is you'll have 3 much fewer, you know, tax remitters to New York 4 State for local and State tax purposes. So, the idea 5 is kind of an efficiency measure, and to equalize 6 the playing field for local retailers versus the 7 sales coming from out-of-state firms. 8 COUNCIL MEMBER BREWER: Right. 9 All right, so we've started to see 10 this? Has legislation been signed? Like, has 30 11 percent of this 50 million started coming in to New 12 York yet? 13 ASSISTANT COMMISSIONER HYMAN: I 14 believe the effective date is June 1st, so it has -- 15 COUNCIL MEMBER BREWER: June 1st, 16 2008? 17 ASSISTANT COMMISSIONER HYMAN: 18 Correct. And, so, the first quarterly collections 19 would be in the fall. It has been signed as part of 20 the State's budget bill that was enacted. 21 COUNCIL MEMBER BREWER: Okay, then 22 that should help, I would think. 23 COMMISSIONER STARK: I think the 24 assumption is that it will likely be challenged by 25 several of the companies involved. This has 32 1 COMMITTEE ON FINANCE 2 certainly been an around-the-country issue. 3 COUNCIL MEMBER BREWER: Right. 4 COMMISSIONER STARK: Every taxing 5 jurisdiction has been trying to find a way to make 6 sure the sales tax on Internet sales is remitted. 7 And many of you will remember, when you completed 8 your personal income tax, they actually ask you if 9 you bought any out-of-state purchases. This would 10 certainly be a much more convenient way to have that 11 money remitted, similar to some of the issues we've 12 had on the cigarette tax, as well. 13 COUNCIL MEMBER BREWER: So, it's not a 14 done deal yet, is what you're saying? 15 COMMISSIONER STARK: That's right. 16 COUNCIL MEMBER BREWER: On the 17 rent-a-car, thank you very much. But I have a 18 question because when you rent a car, normally you 19 use a credit card, although you can use cash, and my 20 question is, if the rental car company is collecting 21 the fee for the rental car, what you're saying is 22 when you get a ticket, I thought the rental car just 23 puts it on your credit card? And then why can't they 24 do that for the person staying in the hotel, so that 25 I, as a New Yorker, don't have to pay. 33 1 COMMITTEE ON FINANCE 2 So, they're going to take that $5 3 extra on my bill. They're not going to absorb it. 4 So, I'm just wondering, so I'm sort of paying, like, 5 the water lien issue for the bad debt of the hotel 6 people, right? 7 COMMISSIONER STARK: No. Actually, 8 what I would say is -- 9 COUNCIL MEMBER BREWER: What would you 10 say? 11 COMMISSIONER STARK: The rental car 12 companies say that they do not charge your credit 13 card for the ticket, in fact. 14 COUNCIL MEMBER BREWER: They do. 15 COMMISSIONER STARK: And in fact, you 16 and I have had this conversation in the past, and 17 you know, it's interesting, they say they do not, 18 and they certainly do not remit it to us. 19 COUNCIL MEMBER BREWER: Okay. 20 COMMISSIONER STARK: In fact, what 21 they do is, they send us, well, in your case we 22 would find you, but they send us your name and your 23 address, and then what happens is Finance dunns you 24 for that amount. 25 COUNCIL MEMBER BREWER: I see. Okay. 34 1 COMMITTEE ON FINANCE 2 COMMISSIONER STARK: And that's how we 3 end up collecting it. 4 COUNCIL MEMBER BREWER: Okay. 5 COMMISSIONER STARK: But what we would 6 really like to have the rental cars companies do is 7 exactly what you thought they had been doing, and it 8 is possible, I wouldn't say that they don't do that. 9 What I will tell you is they will not remit that 10 money to us. In fact, the deal that they have in the 11 legislation allows them to not collect it, and, in 12 fact, instead we have sort of this $1 per plate and 13 the exchange is that they give us your address. And, 14 so, no, you are not in this instance subsidizing 15 anyone. 16 COUNCIL MEMBER BREWER: Okay. 17 COMMISSIONER STARK: What we think is 18 that given that collections against this are so 19 difficult to get, the fee should certainly go up. In 20 fact, the better deal would be for them to remit the 21 money. For the short period that it takes for them 22 to know about a ticket, it would be better for them 23 to charge your card and still give you the right to 24 at least challenge the ticket if there are 25 legitimate grounds for challenging it. 35 1 COMMITTEE ON FINANCE 2 COUNCIL MEMBER BREWER: Okay, well, 3 the next time I rent a car, if it costs me $5 more, 4 I'm going to let you know. 5 COMMISSIONER STARK: Okay. Well, let 6 me know if it's costing you a dollar more. 7 COUNCIL MEMBER BREWER: I will. 8 COMMISSIONER STARK: You know, it's a 9 dollar per vehicle and per month and if you are 10 renting it for a long weekend, I don't believe that 11 that fee should be showing up on your account. 12 COUNCIL MEMBER BREWER: Okay. You're 13 just so excited to get a car, you don't care what it 14 costs usually. 15 The issue on the SCRIE and the SCHE. 16 One of the questions I have, you have a great staff, 17 they're doing a terrific job. You know, these are 18 people who have lots of questions when they apply. 19 It's mostly seniors, obviously, and people who are 20 disabled, and your staff is very compassionate, 21 which is important for this community. But we are 22 all trying to get the State Legislature to increase 23 the ceiling, it's going up to 29,000, but I don't 24 even think that's enough. 25 So, my question is, do you keep any 36 1 COMMITTEE ON FINANCE 2 kind of statistics as to people who call and who are 3 not able to qualify because they're over-income? 4 COMMISSIONER STARK: It's a really 5 good question. I don't believe our processing people 6 are present. We do keep data about rejection and 7 rejection reasons, and including a rejection reason 8 being that the person's income is too high. 9 COUNCIL MEMBER BREWER: Mm-hmm. 10 COMMISSIONER STARK: I don't know then 11 that we do the next step, which would be to say how 12 much higher is it? 13 I'm certain we can get you the 14 details on that, but we do keep at least the 15 rejection reasons for not granting the benefit. 16 COUNCIL MEMBER BREWER: Okay. I would 17 appreciate, I know this is more of an Administration 18 issue, but I would appreciate support in Albany. We 19 obviously can't do it locally for increasing the 20 ceiling on all of them, SCHE, SCRIE, DRIE, 21 everything. Because so many people are rejected, 22 so... 23 The third question is, there is a 24 bill, there is two issues, one is, is Ronnie 25 Eldridge's condo assisted by any of your programs? 37 1 COMMITTEE ON FINANCE 2 That's question number one. I ask that every year. 3 And then second, the co-op issue of 4 paying a different schedule is also something that 5 has pending legislation. Those are my other two 6 final questions. 7 COMMISSIONER STARK: On just Ronnie 8 Eldridge's in particular, I'm not certain I could 9 answer for. 10 COUNCIL MEMBER BREWER: Okay. 11 COMMISSIONER STARK: All co-ops and 12 condos are -- 13 COUNCIL MEMBER BREWER: You know what 14 I'm talking about. 15 COMMISSIONER STARK: She is certainly 16 one of your most vocal constituents. 17 COUNCIL MEMBER BREWER: Most 18 definitely. 19 COMMISSIONER STARK: The co-op/condo 20 abatement is available at least through the end of 21 June for for all co-ops and condos. 22 COUNCIL MEMBER BREWER: She says 23 that's not enough. 24 COMMISSIONER STARK: Essentially if 25 they are not receiving other benefits. If they are 38 1 COMMITTEE ON FINANCE 2 receiving benefits that provide a higher amount, the 3 co-op and condo can choose whether or not they want 4 the abatement or they want to continue to say, for 5 example, receive J-51 or 421-A. That is scheduled, 6 the co-op/condo abatement, by the way, is scheduled 7 to expire June 30th. A bill has passed both through 8 the Assembly and the Senate to extend it for four 9 more years. We do expect that bill to be signed and 10 we certainly support that bill. 11 I think the second part of your 12 question had to do with the gross-income multiplier. 13 The gross-income multipliers that we developed 14 actually were very sensitive to expenses. 15 We made sure, because the difference 16 between using a gross-income multiplier or valuing, 17 using a cap rate is that you have expenses in a 18 formula. It's part of the reason why we had varying 19 gross-income multipliers. 20 Expenses on co-ops tend to be lower 21 than on rental properties, and so the way that we 22 compensated for that was to have a slightly higher 23 gross-income multiplier. Give that Section 581 of 24 the Real Property Tax Law says you have to value 25 co-ops and condos as if they are rentals, the Law 39 1 COMMITTEE ON FINANCE 2 Department felt we would be safer to have those 3 gross multipliers be the same. Even though the rates 4 were different, they thought they should be the 5 same. That was an adjustment that we made in 6 February on the assessment roll, so you will now see 7 that the co-op, condos and rentals have the same 8 gross-income multiplier. We still have to estimate 9 their income as if they're a rental property, which 10 isn't the most transparent way to do it. It doesn't 11 really make a lot of sense, but that's how we're 12 required to under the law. We should be shortly 13 releasing our report that takes a look at and 14 analyzes the tax burden for co-ops and condos, when 15 compared to one-, two- and three-family homeowners. 16 We're putting the finishing touches on that report 17 and hope to release it some time this summer. 18 COUNCIL MEMBER BREWER: Okay. And I 19 guess the other bill that I'm talking about, and 20 Nadine can help me here, will be the one that says 21 one can pay one's co-op taxes in a different time 22 period. 23 COMMISSIONER STARK: Yes. Sorry. 24 COUNCIL MEMBER BREWER: That's okay. 25 COMMISSIONER STARK: That's the 40 1 COMMITTEE ON FINANCE 2 assessment threshold bill. Basically right now the 3 threshold whether you pay quarterly or semi-annually 4 is -- 5 COUNCIL MEMBER BREWER: Eighty. 6 COMMISSIONER STARK: -- Eighty 7 thousand. 8 COUNCIL MEMBER BREWER: Eighty. 9 COMMISSIONER STARK: And one of the 10 things that we've done is provide the Council 11 Finance Committee and staff with our analysis of 12 different sort of thresholds that could be applied, 13 and we're very hopeful that is local legislation, 14 that the City Council will actually adopt something 15 that will allow for many more of those owners to pay 16 quarterly, since they have now crossed the 17 threshold. 18 COUNCIL MEMBER BREWER: And you would 19 agree with that? 20 COMMISSIONER STARK: Yes. 21 COUNCIL MEMBER BREWER: Okay. Thank 22 you very much. 23 COMMISSIONER STARK: Thank you. 24 CHAIRPERSON WEPRIN: We've been joined 25 by Councilman David Yassky from Brooklyn, who I 41 1 COMMITTEE ON FINANCE 2 believe wants to discuss the stipulated fine 3 program, but before we get to that, I just want to 4 ask one series of questions regarding some of your 5 outreach efforts. 6 It's my understanding that after all 7 of our outreach efforts there are still a number of 8 people that aren't enrolled in a lot of these 9 programs that actually make sense, such as, you 10 know, homeowners in SCHE, and disabled homeowners in 11 DRIE, and veterans' exemptions, and one that's 12 particularly annoying, and if you can give us an 13 update on what the percentage is, is those 14 homeowners that are not enrolled in the Star Program 15 and therefore are probably not eligible for the $400 16 rebate, even though they could potentially be 17 eligible. 18 Can you give us an update on any of 19 those outreaches, and particularly on the Star 20 Program and the $400 rebate? 21 COMMISSIONER STARK: A couple of 22 things. Let me just see if I can get to the tab here 23 that tells me what percent of the homeowners are 24 actually enrolled in Star and various other 25 programs. 42 1 COMMITTEE ON FINANCE 2 You are correct that we've done a 3 significant amount of outreach on Star to get 4 homeowners enrolled. 5 We also, on our automated City 6 register information system made it so that you can 7 check off and say something is your primary 8 residence and not actually have to complete sort of 9 information. 10 That said, I think I just have 11 numbers on the number of exemptions that we've 12 processed in the last couple of fiscal years, and it 13 has kept pace. I mean, in Fiscal '07, looks like we 14 processed almost 63,000 additional Star numbers. I 15 can get you up-to-date numbers but I don't have that 16 as a percent of the total ownership in, you know, in 17 the City of New York. 18 I think that Star will get you 19 basically Star, veterans, senior and -- veterans, 20 senior and the disabled homeowner exemption numbers. 21 I don't have those at my fingertips at the moment. 22 The other just issue that I would say 23 about those exemptions is we have made it really, I 24 wouldn't say easy for people to get the $400 rebate, 25 but you don't have to have Star to get the $400 43 1 COMMITTEE ON FINANCE 2 rebate. If you have the Senior Citizen Homeowner 3 Exemption, veterans or the disabled, we also give 4 you basically Star, as well as the $400 rebate. 5 So, we've done a lot of outreach in 6 this area. My sense is that we're basically hitting 7 most New Yorkers who do use their home as their 8 primary residence. 9 CHAIRPERSON WEPRIN: Well, is there 10 any way to tell who is not enrolled in any of those 11 plans, but could in theory be eligible for the $400 12 rebate, but is not being captured because they're 13 not enrolled in any of these programs or the Star 14 Program? 15 COMMISSIONER STARK: I think as you 16 know, we've done actually, and targeted the Council 17 districts with the most people not enrolled in the 18 program. 19 So, what we did was we took total 20 number of one-, two-, three-family homes, condos and 21 co-ops in a neighborhood. We've run it by your 22 Council districts, and then, you know, overlay that 23 with do they have these various exemptions. And 24 those Council districts with the lowest 25 participation rate we actually have targeted with 44 1 COMMITTEE ON FINANCE 2 our outreach efforts. 3 I believe that Sam Miller and his 4 team, the Assistant Commissioner for Communications, 5 and communications and government sort of outreach 6 has actually put together a list of who, and, you 7 know, we'll be basically out there in the next 8 several months targeting those districts to see if 9 we can find homeowners who are not currently 10 participating but should be. 11 CHAIRPERSON WEPRIN: Okay, can you 12 provide that information to us? I don't know if we 13 have it here. 14 COMMISSIONER STARK: We had provided 15 it. We can give you an updated run, if that would be 16 helpful. 17 CHAIRPERSON WEPRIN: Sure. 18 COMMISSIONER STARK: Absolutely. 19 CHAIRPERSON WEPRIN: I think that 20 would be helpful. 21 We've been joined by Council Member 22 Robert Jackson from Manhattan, and I'm going to call 23 upon Council Member David Yassky. 24 COUNCIL MEMBER YASSKY: Good 25 afternoon, Mr. Chair. 45 1 COMMITTEE ON FINANCE 2 Good afternoon, Commissioner. And I 3 just want to ask you, I know you've covered most of 4 the territory, but I just want to ask you about this 5 program that the Chair alluded to and that you and I 6 have spoken about a number of times - your 7 innovation to speed and make more efficient the 8 processing of parking tickets given to companies 9 making regular deliveries. You and I have talked 10 about this. You operate today a program that makes 11 the administration of those fines far more efficient 12 than it had been in the past by having the 13 Department collect them, apply the reductions that 14 would otherwise take place in traffic court one by 15 one by one by one and then send people a bill. You 16 don't need me to describe it, you created it. 17 Just my question, since this is a 18 budget hearing, if you were to discontinue that 19 program, which I hope you don't plan to, and I know 20 you don't intend to, assuming the same rate of fine 21 reduction in traffic court, which is what your 22 program does, what would you have to spend in 23 administration cost to make up for the, you know, 24 what would you have to spend in administration cost 25 beyond what you're spending today? 46 1 COMMITTEE ON FINANCE 2 COMMISSIONER STARK: Thanks for the 3 question. And really, thanks for your both 4 introduction and support of that bill. We were 5 really glad to see that bill introduced. It wasn't a 6 Finance bill per se, but it certainly did recognize 7 and appreciate a program that we worked hard to put 8 together to make sure we operated efficiently. 9 Essentially, as a result of that 10 program, we were able to reallocate about $4.5 11 million of resources within Finance. That came in 12 the form -- in two forms: one, in an actual sort of 13 cut in our expenses in the Adjudications Division. 14 The other was actually in reduced wait times for the 15 public. Whether it's the public who, you know, 16 they're challenging a ticket, or those companies 17 that opted not to enroll in this program. 18 So, if we were to stop that program, 19 essentially it would mean we would lose that four 20 and a half million dollars in savings. It would 21 certainly result in it taking longer for people to 22 have a hearing in our centers, as well as in our 23 Hearings By Mail Unit. 24 I noted in my testimony earlier that 25 we're down to now three weeks, if you request a 47 1 COMMITTEE ON FINANCE 2 hearing by mail, that's down from over four months, 3 when my tenure started. If you're in one of our 4 business centers, 90 percent of the time you're in 5 and out of there in 45 minutes or less. That 6 compares to two to three hours prior to my tenure. 7 And if we were going to have to redo those million 8 hearings individually, essentially all of those wait 9 times would go back up or we would have to hire a 10 significant number more judges to keep the wait 11 times constant. 12 This program, we certainly will not 13 stop it, within our ability to so do it, but 14 certainly, having it in law would ensure those 15 savings for future generations and I'm, you know, a 16 little disappointed to hear that the Committee 17 members haven't yet been so persuaded. I'm hopeful 18 that I can reach out to each of them and answer any 19 of the questions and concerns that they might have 20 about the bill, but it's certainly, to me, is a 21 government operating efficiently and smartly and I 22 am certain that with the right information your 23 colleagues will join you in supporting that piece of 24 legislation. 25 COUNCIL MEMBER YASSKY: Well, you 48 1 COMMITTEE ON FINANCE 2 should know the Committee Chair as well, Chair 3 Weprin, has been working very hard to make sure that 4 the information about the value of this program gets 5 out to all of our colleagues. 6 At this point, as you note, some have 7 been persuaded, some have not been, and others are 8 still mulling. So, we will continue to push to make 9 sure that enough of the mullers realize its value so 10 that we can go ahead and make this a permanent 11 fixture of the Department's operation for future 12 generations so that each one of those can save the 13 four and a half million dollars a year present value 14 that this program would enable them to save and put 15 to better use. 16 Thank you, Commissioner. 17 CHAIRPERSON WEPRIN: Thank you. 18 Councilman Jackson, do you have any 19 questions? 20 COUNCIL MEMBER JACKSON: No, I don't 21 have any questions, but I'm one of those individuals 22 that say that we should push forward this program in 23 order to save that money. 24 COMMISSIONER STARK: Thank you. 25 CHAIRPERSON WEPRIN: Thank you, 49 1 COMMITTEE ON FINANCE 2 Commissioner. 3 We have a number of people from the 4 public that have signed up to testify for comments 5 on any of the agencies that we heard from today or 6 topics we heard from today, starting with Division 7 of Youth. 8 And we're going to put it into four 9 panels. 10 The first panel will consist of David 11 Moog, who the Commissioner referred to, President of 12 Local 1757, the Assessors Union of DC 37. 13 Leone Haimson from Class Size 14 Matters. I apologize for not -- 15 COUNCIL MEMBER JACKSON: Leonie 16 Haimson. 17 CHAIRPERSON WEPRIN: Okay, I apologize 18 for -- 19 COUNCIL MEMBER JACKSON: Leonie 20 Haimson. 21 CHAIRPERSON WEPRIN: Okay, I apologize 22 for not being able to read your handwriting. 23 COUNCIL MEMBER JACKSON: Leonie 24 Haimson. 25 CHAIRPERSON WEPRIN: Ann Kjellberg 50 1 COMMITTEE ON FINANCE 2 from PS PAC. 3 Bess Matassa, representing 4 Assemblywoman Deborah Glick. And Dan Golub, 5 representing Manhattan Borough President Scott 6 Stringer. If that panel could come up. 7 Go ahead. 8 MS. HAIMSON: Thank you for having us 9 here today. I'm here to speak about the School 10 Capital Plan. When the City's current Five-Year Plan 11 -- 12 CHAIRPERSON WEPRIN: Just identify 13 yourself for the record. 14 MS. HAIMSON: Leonie Haimson of Class 15 Size Matters. Sorry. 16 CHAIRPERSON WEPRIN: Your title? 17 MS. HAIMSON: Executive Director. 18 When the City's current Five-Year 19 Capital Plan was first proposed, it was supposed to 20 have three relatively modest but important goals: 21 - to reduce class sizes in K through 22 3 to 20 students per class in all schools. 23 - to eliminate double and triple 24 shifts; and 25 - to remove all trailers and TCUs. 51 1 COMMITTEE ON FINANCE 2 As is now quite obvious, not a single 3 of these goals will have been achieved when the plan 4 ends next year. 5 In fact, in many schools, conditions 6 have actually worsened. Yesterday, we released the 7 results from the Principals Survey on overcrowding, 8 safety and class size, which included responses for 9 more than one-third of all New York City public 10 school principals. I did the study with Emily 11 Horowitz at St. Francis College. She would be here 12 today except for a medical emergency. 13 I want to thank Council Member Robert 14 Jackson for helping us fund and do outreach on the 15 survey. 16 The full report entitled "How Crowded 17 Are Our Schools?" Is posted on our website at 18 Classsizematters.org. 19 The results shocked even me. 20 Eighty-six percent of principals believe that class 21 sizes at their schools are too large to provide a 22 quality education, and that the primary factors 23 preventing them from reducing class size are a lack 24 of control over an enrollment in space. 25 Fifty-four percent of principals say 52 1 COMMITTEE ON FINANCE 2 enrollment at their schools is not capped at a level 3 to prevent overcrowding. 4 Half of them say that overcrowding 5 leads to unsafe conditions for students or staff. 6 Forty-three percent say that overcrowding makes it 7 difficult for students to get to class on time. 8 Nearly half of all respondents say that their 9 official capacity ratings in the Blue Book are 10 inaccurate. 11 Principals report ongoing battles 12 with DOE over their schools' capacity ratings. More 13 than one-fourth of all middle and high school 14 principals say that overcrowding makes it difficult 15 for their students to receive the credits or courses 16 needed to graduate on time. 17 At 25 percent of schools, art, music 18 or dance rooms have been lost to academic 19 classrooms, 20 percent of computer rooms on and on. 20 At 29 percent of schools lunch starts 21 at 10:30 a.m., or earlier, and at 16 percent of 22 schools students have no access to the school's 23 library. 24 Eighteen percent of principals report 25 their schools have classrooms with no windows. Many 53 1 COMMITTEE ON FINANCE 2 principals responded that special ed students are 3 getting their classes or services given in closets. 4 Since enrollment has been dropping 5 throughout most of the City every year of this 6 Administration, why do so many principals think this 7 is getting worse? 8 They observe that specific DOE 9 policies are creating the overcrowding and making 10 exacerbating conditions. More specifically, all the 11 new small schools and Charter schools put into 12 existing facilities have made overcrowding worse, as 13 well as the City's initiative to create more K 14 through 8 and six through 12 schools. 15 The results of this survey should 16 apall every New Yorker who has a conscience. Here we 17 are in the richest City in the world, yet we 18 continue to educate our children in closets and 19 third-world conditions. 20 There is no excuse for this. This 21 year we have a City surplus of $4.6 billion and 22 increased financial support from the State over the 23 last two years, including more than $8 billion of 24 additional capital funding and a higher 25 reimbursement rate. And today the IBO said that the 54 1 COMMITTEE ON FINANCE 2 surpluses are going to exist for at least the next 3 two to three years. 4 Despite all of these opportunities, 5 the City's own spending on schools is a proportion 6 of total capital spending is at least as a 14-year 7 low, and I have a chart in my testimony showing 8 that. And the new seats created has declined every 9 year under this Administration. And according to the 10 current Capital Plan, we will create twice as many 11 new seats in sports stadiums as new schools. 12 This Administration has devolved more 13 responsibility and autonomy to principals, claiming 14 they have all the tools they need to succeed. Yet, 15 principals themselves observed that they have no 16 control over the most important factors which 17 determine the quality of education in their 18 buildings, the amount of space and number of 19 students assigned to those schools. 20 Until and unless the DOE adopts a 21 more aggressive capital plan, the condition of our 22 schools and the future of our children will not 23 significantly improve. 24 We are attaching a petition signed by 25 over 500 parents from throughout the City in the 55 1 COMMITTEE ON FINANCE 2 last three days asking the Mayor and the Council to 3 work together to do better for the sake of our 4 children, to correct the current capacity estimates, 5 to plan for the growth that is overwhelming so many 6 of our neighborhoods, to create new incentives and 7 financing mechanisms so that developers will build 8 schools along with new residential and office space, 9 and to create enough new seats so that class sizes 10 can be reduced in all grades and that finally our 11 children can be provided with their right to an 12 adequate education. 13 Thank you for the opportunity to 14 speak to you today. 15 CHAIRPERSON WEPRIN: Thank you. 16 Go ahead. 17 MR. GOLUB: I'm used to the light 18 meaning off, because I've been doing this for years. 19 CHAIRPERSON WEPRIN: We're used it to, 20 too. 21 MR. GOLUB: My name is Dan Golub. I'm 22 Senior Policy Advisor to Manhattan Borough President 23 Scott Stringer. Sorry the Borough President couldn't 24 make it here today, but I know he wanted me to thank 25 Chair Weprin and Chair Jackson for holding this 56 1 COMMITTEE ON FINANCE 2 important hearing, and especially to thank Chair 3 Jackson and his staff for all their leadership on 4 the issue of school overcrowding and for their 5 participation in the Manhattan School Overcrowding 6 Task Force that the Borough President convened with 7 Ms. Haimson and Patrick Sullivan of the Panel for 8 Educational Policy as its chairs. 9 The Task Force has been looking into 10 the issue of school overcrowding, what its causes 11 are and what are some solutions, and many Manhattan 12 members of the City Council have been participating 13 in its work, and building on its work the Borough 14 President produced a report last month called 15 "Crowded Out," which I'd like to submit for the 16 Committee's information. It comes to the conclusion 17 that there is something very -- 18 CHAIRPERSON WEPRIN: Do you have an 19 autographed copy? 20 MR. GOLUB: I can autograph it, if you 21 want. Unless you're looking for the Borough 22 President's signature, which, you know, I could 23 probably get for you as well, if you're looking for 24 it. 25 The report comes to the conclusion 57 1 COMMITTEE ON FINANCE 2 that there is something very seriously flawed about 3 the process by which the Department of Education and 4 the School Construction Authority propose their 5 Five-Year Capital Plan and amend it on a 6 year-by-year basis. And we've come to the conclusion 7 that there is a real disconnect between our urban 8 planning and development policies and our school 9 construction policies and it results in a capital 10 budget that's before you today that's really 11 inadequate to serve the needs of our growing City. 12 As just one example, we found that in 13 four Manhattan neighborhoods where schools are 14 currently completely overcrowded by DOE's own 15 estimates, enough building and new construction was 16 approved in those areas to add 1,600 -- 2,300 new 17 public school students, but at the same time, the 18 City only added 143 seats to those neighborhood 19 schools. 20 That's really a totally inadequate 21 response to our development boom and we think that 22 the school planning process has to better adjust for 23 those issues. The Borough President has called for 24 three very important reforms to be made to the 25 capital planning process. The first is we need a 58 1 COMMITTEE ON FINANCE 2 transparent formula for planning for ongoing growth. 3 The second is we need to start planning at the 4 neighborhood level and not just at the school 5 district level, because the very large district-wide 6 trends obscure what's happening on the 7 neighborhood-by-neighborhood basis. And thirdly, and 8 most importantly, we need more seats. They need to 9 aim higher in their request for more seats and they 10 need to lay out very specifically how the number of 11 new seats they are proposing will eliminate 12 overcrowding, plan for ongoing growth and provide 13 class size reductions we desperately need. 14 The Borough President has written to 15 Deputy Mayor Walcott and School Chancellor Klein, 16 hoping that they will take an interest in reforming 17 the capital process in this way. We stand ready to 18 work with them, but in the mean time, we're 19 gathering petitions, as Leonie mentioned, calling on 20 them to make these reforms so that we have a capital 21 budget that meets our City's needs. And if anybody 22 is interested in signing those petitions, I know 23 that's not something the Council likes us to do in 24 this august body, but you can meet me outside, and 25 we hope to be able to work with the Council members 59 1 COMMITTEE ON FINANCE 2 so that we have a capital planning process that 3 meets our City's needs. 4 Thanks very much. 5 CHAIRPERSON WEPRIN: Thank you. 6 MR. MOOG: Good afternoon, to the 7 members of the City Council, and thank you for 8 allowing me to speak today at today's Finance 9 Committee hearing. 10 Many of the members have heard me 11 speak numerous times over the past seven years 12 concerning the importance of funding the assessment 13 process. From those hearings -- 14 CHAIRPERSON WEPRIN: Mr. Moog, could 15 you just identify yourself? 16 MR. MOOG: Oh, I'm sorry. 17 CHAIRPERSON WEPRIN: For the record. 18 MR. MOOG: David Moog, President of 19 Local 1757, Vice President of District Council 37. 20 CHAIRPERSON WEPRIN: Thank you. I know 21 who you are but that's for purposes of the tape. 22 MR. MOOG: From those hearings, many 23 members of the City Council have tried to help by 24 increasing the number of lines available to the 25 Commissioner of Finance to hire more assessors, or 60 1 COMMITTEE ON FINANCE 2 at least replace those assessors who have retired or 3 resigned, as was promised by Martha Stark five years 4 ago. 5 But during that time, the numbers of 6 assessors of Finance have dropped to less than 120 7 assessors. Just eight years ago we had over 190, and 8 even then we felt short staffed. Now the result to 9 all of those cuts are being realized in this tax 10 year. 11 Never have so many changes been made 12 by the Finance Department due to errors made on the 13 tax roll. Every single tax Class 2 property needed 14 to be changed soon after the tentative roll was 15 published. Thousands of other change by notices 16 based on reviews requested by taxpayers were issued, 17 exceeding any error list from any previous tax roll. 18 And the real shame of all those changes is the fact 19 that many of the building owners filing for those 20 changes had to pay for attorneys or tax 21 representative fees to get what should free, their 22 tax assessment. And for every change by notice, I 23 have no doubt another taxpayer's property is 24 under-assessed, leaving the rest of the taxpayers to 25 pick up the tab in a higher tax rate. 61 1 COMMITTEE ON FINANCE 2 I know that it's not the role of the 3 City Council to manage a mayoral agency. I know that 4 many of the members of this Committee would like to 5 have more input of how the policy is implemented in 6 the Finance Department when it comes to tax 7 assessments. 8 The narrow scope of the City Charter 9 limits the powers to the budget process and to 10 holding public hearings to gather information. That 11 is why I am asking the City Council to look into 12 passing Intro. 62 of 2006, restoring the assessors' 13 oath. 14 Before the oath was eliminated, it 15 was eliminated in 1993, I forgot to clarify that, 16 every parcel had to be inspected and valued 17 according to proper appraisal methods. 18 The broad use of gross-income 19 multipliers, derived solely from what appears to the 20 mind of the Commissioner of Finance, would never be 21 allowed. It was the elimination of the assessor's 22 oath that allowed the mushrooming of the assessment 23 corruption, from one that was limited to parcels 24 within a certain assessment district, to a criminal 25 takeover of the entire tax roll. 62 1 COMMITTEE ON FINANCE 2 Before the arrests of 15 assessors in 3 2002, changes were being made by corrupt assessors 4 who were not even working in the same borough as the 5 properties they took bribes on. They were able to do 6 this, because assessors no longer were responsible 7 for checking who made the changes to assessments and 8 why those changes are being made. 9 Ultimately, the solution to proper 10 assessment, a proper administration of the 11 assessment process and New York City lies in 12 separating the assessment process from the 13 Department of Finance. 14 In almost every major City, with the 15 exception of Detroit, Washington, D.C., and New York 16 City, the person who collects the property tax does 17 not value the property for the tax roll. 18 It is also illegal in New York State 19 to have the County Director of Office Property 20 Services also serve as the assessing agent. 21 Martha Stark acts as a County 22 Director for New York City for OPS. 23 I know that if the Charter Revision 24 Commission is formed this year, I will testify for a 25 creation of a Real Property Tax Commission to 63 1 COMMITTEE ON FINANCE 2 administer the assessment process. 3 From my testimony at the last Charter 4 Revision Commission, a recommendation was made that 5 the idea of a separate commission to manage, 6 assessors and administer the assessment policy 7 should be studied. 8 I recommend that the City Council 9 start looking into performing that study, as well as 10 reforms to the assessment policy and procedure. 11 In the meantime, I would recommend 12 the passage of Intro. 62 of 2006 in order to bring 13 accountability to the tax roll. 14 I want to thank you for your time and 15 for your past efforts to provide more funding to the 16 assessment process. 17 I would also like to make some 18 comments concerning what the Commissioner of Finance 19 testified to after the next -- 20 CHAIRPERSON WEPRIN: I was going to 21 ask you about that. So, you can respond in response 22 to my questions afterwards. I was going to ask you 23 specifically about some of the comments she made. 24 MR. MOOG: Sure. Thank you. 25 MS. MATASSA: Good afternoon. I'm Bess 64 1 COMMITTEE ON FINANCE 2 Matassa. I'm here representing Assemblymember 3 Deborah Glick. 4 As the Assemblymember who represents 5 Lower Manhattan neighborhoods that are experiencing 6 a startling amount of residential development, the 7 issue of new school seats is of serious concern to 8 my constituents. 9 Class size is one of the most 10 critical factors in achieving a sound public 11 education, which is a constitutional right and 12 government's duty to provide. 13 Unfortunately, despite the urgent 14 calls of advocacy groups and elected officials, the 15 City Administration has been inexplicably reluctant 16 to properly address both current overcrowding 17 conditions and projected growth in neighborhoods 18 across the City, resulting in classrooms that are 19 bursting at the seams and severely impeding our 20 students' ability to learn. 21 In the neighborhoods I represent, 22 which are contained within Community Education 23 District 2, the Department of Education severely 24 inadequate methods of assessing current conditions 25 and in planning for growth resulted in a capital 65 1 COMMITTEE ON FINANCE 2 plan that created no new seats between Chambers 3 Street and 42nd Street west of Second Avenue. 4 Somewhat baffingly, this occurred 5 despite an overwhelming number of new residential 6 development projects, both currently underway and 7 imminently planned for these neighborhood. That 8 Capital Plan failed our students. 9 The next Capital Plan cannot fail 10 them again. It must better address current 11 overcrowding conditions, revisit the DOE's seemingly 12 flawed methodology for defining capacity, allow for 13 planning at the neighborhood level, and include 14 innovative solutions to match school seats to new 15 residential growth. 16 First, the next capital plan must 17 align itself with the State mandate of 20 children 18 for class in grades K to 3 and 23 in all other 19 grades. These should not be viewed as mere targets, 20 but as absolute limits. In order to meet this 21 mandate, the current methods of assessing 22 utilization and capacity bear closer scrutiny. 23 These methods of data assessment 24 appear to not adequately reflect the actual 25 conditions endured by teachers and students in the 66 1 COMMITTEE ON FINANCE 2 classroom to the extreme detriment of our schools. 3 The City's near obsession with 4 quantifying our education system must reconcile 5 itself with the lived experience of those that know 6 the system best - teachers, students and parents. 7 Secondly, the DOE must finally make 8 understandable and transparent the ways in which 9 they consider new housing starts and other 10 demographic data when planning for new school seats, 11 and must communicate these to parents, teachers and 12 advocates. Coupled with a more thorough 13 consideration of input from these groups, the DOE 14 must forge deeper lines of communication with the 15 Department of City Planning, the Department of 16 Buildings and other relevant agencies to assess 17 projected developments using a variety of tools, 18 including building permits. 19 I am pleased to hear that the DOE has 20 expressed the willingness to consider pocket 21 overcrowding in the upcoming capital plan. The last 22 plan's woefully inadequate consideration of 23 overcrowding in the West Village and Tribeca, 24 certainly exemplifies the need to reassess the 25 geographic lens utilized for capital planning. 67 1 COMMITTEE ON FINANCE 2 Third, the City needs to explore 3 creative solutions or to fund and site new school 4 space. 5 Various forms of taxes and fees are 6 utilized in cities across the United States in order 7 to compel developers to provide school seats to 8 match the projected impact of their projects. 9 This, along with zoning amendments 10 and revisions to the environmental review process 11 could be enacted in order to ensure that school 12 space pays keeps pace with residential development. 13 The City must think imaginatively and 14 proactively, rather than continue to squeeze 15 children into already overcrowded classrooms, while 16 scrambling to identify new spaces. 17 The job of identifying new school 18 sites and creative solutions should not fall solely 19 to advocates, the DOE should utilize the community's 20 local knowledge and should collaborate with them to 21 identify new school sites and means in increasing 22 seats. 23 I am pleased to hear that the DOE has 24 just issued its plan to address the current 25 overcrowding situation in Community Education 68 1 COMMITTEE ON FINANCE 2 District 2. I look forward to reviewing this 3 proposal alongside the community to assess whether 4 it will adequately meet our needs. 5 I am hopeful that this plan will be 6 the first of many collaborative steps taken 7 throughout the City to both alleviate current 8 overcrowding and plan for the future. 9 I hope we will also depart from the 10 misguided belief the Charter and private schools 11 will one day obviate the need for public education. 12 Such a view fosters dangerous 13 cultural elitism and does grave disservice to all 14 New Yorkers. 15 Public education is the bedrock of 16 our democracy, by committing firmly to reduce class 17 sizes throughout the City, we can finally begin to 18 move towards the equitable education system that all 19 our children deserve. 20 Thank you. 21 CHAIRPERSON WEPRIN: Thank you. 22 Getting back to Mr. Moog. 23 You were present when Commissioner 24 Stark testified, were you not? 25 MR. MOOG: Yes. 69 1 COMMITTEE ON FINANCE 2 CHAIRPERSON WEPRIN: I asked her 3 specifically about the assessors not assessing 4 single-family homes but using computer models and I 5 thought that anecdotally that there were a number of 6 situations where homes that were previously much 7 smaller square footages were redone but were not 8 picked up because the assessors did not physically 9 go to the location. But she seemed to indicate that 10 assessors were still going out there and inspecting 11 single-family homes; do you want to comment on that? 12 MR. MOOG: They basically inspect 13 single-family homes if a building notice has been 14 issued and that building notice gets to the 15 assessor. 16 If alterations are made to a house, 17 that are not done with approval from the Buildings 18 Department, and many times dorms are expanded, 19 second floors are finished out, and work is being 20 done on the homes, if no official notice is ever 21 given to the Buildings Department, then no assessor 22 is ever notified. 23 In the past, it used to be routine 24 that every single parcel had at least a walk-by or a 25 viewing to see if the data corresponded with the 70 1 COMMITTEE ON FINANCE 2 property, corresponded with the data that was in the 3 system. 4 So, in many cases, and you know in 5 Eastern Queens, and I know from my own experience 6 over in Staten Island, you have homes that people 7 put dormers up, people expand a second floor, they 8 finish out whole second floors, they expand, they 9 close a portion in the back, and a lot of times that 10 work unfortunately is done illegally. It's not done 11 with the Building Department notice. 12 If it's done illegally, I mean it 13 happens all the time, those parcels are never 14 inspected. And if a parcel then has dormers built 15 out, a second floor finished, and then that house is 16 sold, you know that second floor finished out sells 17 for a lot more, and that skews the model. 18 What used to be done was that you 19 would do an inspection, check the data that was in 20 the system compared to what you see, and if there 21 was any changes, you would make those changes and 22 put into the system and it would adjust. 23 There has been substantial data decay 24 with these tax Class 1 homes, because although 25 they're required by law I think to inspect once 71 1 COMMITTEE ON FINANCE 2 every five years, every single parcel that hasn't 3 happened. 4 I just also want to take note of 5 several comments that the Commissioner made that I 6 wish to correct for the record. 7 CHAIRPERSON WEPRIN: Sure. Go ahead. 8 MR. MOOG: First, I'm really troubled 9 by the fact that she basically alluded that if we 10 hired more assessors they would get in trouble. And 11 it really is troubling that if you equate more 12 assessors doing an accurate job as people getting in 13 trouble, I think then you really should reevaluate 14 what you think the assessment process should be. 15 As for the acceptability of a 16 gross-income multiplier, the American Appraisal 17 Institute states in their textbooks, gross-income 18 multipliers are not an acceptable means of 19 evaluation for an appraisal purpose or for 20 evaluation. 21 It's just basically a rough outline 22 of what the property may be worth, but should not be 23 used for evaluation purposes. It further is stated 24 under the real property tax law 581-A, which was 25 passed in 2005, so the Commissioner should be well 72 1 COMMITTEE ON FINANCE 2 aware of 581-A, that any property in New York City, 3 actually in New York State, that was built with 4 government subsidy, or a government exemption that 5 allows set-asides, and I know Councilman Jackson and 6 yourself are quite familiar with the 2080 programs 7 in New York City, that those properties must be 8 valued using the income capitalization approach. It 9 cannot be valued by using a GIM. 10 There is probably between 15,000 and 11 20,000 apartment buildings that fall into that 12 category that were valued by the GIM which is 13 against Real Property Tax Law. 14 So, I do want to point these facts 15 out, that the gross-income multiplier is not an 16 acceptable method by the Appraisal Institute, and 17 also there has been not one court case in New York 18 State in which a gross-income multiplier was used in 19 valuing a property. 20 The courts have consistently for the 21 past 50 years stated unequivocally that the income 22 capitalization approach is the desired method to 23 value property, and even in cases of specialty 24 property, such as race tracks, Saratoga's race track 25 was valued by the income approach. So, it must be 73 1 COMMITTEE ON FINANCE 2 stated for the record that the courts of New York 3 have stated the income capitalization approach is a 4 proper method, the Appraisal Institute has said it, 5 and even the Real Property Tax Law, under 581-A, 6 said specifically you must value by the income 7 capitalization approach. 8 Thank you for your time. 9 CHAIRPERSON WEPRIN: Thank you. 10 Thank you, panelists. 11 The next panel will consist of 12 Monique Flores, from University Settlement Beacon. 13 John Kixmiller, from Center for Family Life Beacons. 14 Larry Acosta, from Cypress Hills Beacon. Shawnta 15 Alston from Beacon 141 Program. Diana Tores from 16 Good Shepherd Services Beacon. 17 We need some extra seats. And 18 actually, I have some more but I would like not to 19 have repetitive testimony. So, if you're pretty much 20 saying the same thing, I'd like you to kind of get 21 together and do that. 22 And the last one on the Beacons is 23 Wolissa or Melissa Rodriguez from Beacon at 215. 24 Dr. Cary Goodman, do you want to come 25 up, too? And Kaylena Gonzalez. 74 1 COMMITTEE ON FINANCE 2 We'll add some chairs. You can sit in 3 the front row, if you have to. 4 Should we do it in reverse age order? 5 Youngest first? 6 MS. FLORES: Is this on? I think 7 Walissa could probably sum it up for all of us, and 8 probably her testimony is even more important than 9 any one of us here. 10 But I think just to help her out 11 here, I think maybe I'll go first, and then you want 12 to try second? 13 MS. RODRIGUEZ: Yes. 14 MS. FLORES: Yes? 15 So, just to warm up the mike. 16 CHAIRPERSON WEPRIN: Okay, sounds 17 good. 18 MS. FLORES: So, thank you so much for 19 having us here and for having a hearing again. I was 20 here last month and I'm here again, and I'll keep 21 coming back if I need to. 22 CHAIRPERSON WEPRIN: Okay, that's 23 great. Give us your name -- 24 MS. FLORES: Monique Flores. 25 CHAIRPERSON WEPRIN: Just for the 75 1 COMMITTEE ON FINANCE 2 record. 3 MS. FLORES: Monique Flores. 4 CHAIRPERSON WEPRIN: Monique Flores. 5 MS. FLORES: Director of University 6 Settlement Beacon Program. 7 CHAIRPERSON WEPRIN: Thank you. 8 MS. FLORES: I have had both the 9 privilege and honor to be the Director of University 10 Settlement since its inception in the spring of 11 2000. 12 In my eight years I have witnessed 13 firsthand the tangible concrete outcomes that the 14 Beacon model offers to the community we serve. 15 Our Beacon serves more than 1,000 16 youth and adults and larger community a year. We 17 provide a safe, nurturing, engaging haven, where 18 young people and adults are involved in after school 19 activities, school recesses, summer day camp. 20 Our Beacon has: 21 - provided youth with close 22 relationships with caring adults; 23 - offered quality activities that 24 challenge and raise expectations for youth; 25 - engaged young people in 76 1 COMMITTEE ON FINANCE 2 decision-making and offered young people the 3 opportunities to exercise leadership and engage them 4 in civic activities; 5 - we've created jobs and career 6 awareness; 7 - supported parents with the 8 sometimes challenging task of parenting; 9 - advocated for young people when in 10 need. 11 - we have nurtured young people who 12 are going through tough times; 13 - prevented young people from 14 engaging in at-risk activity, such as gang 15 involvement, drug and alcohol use, teen pregnancy, 16 truancy, just to name a few. 17 All of our families depend on the 18 Beacon to keep their children safe and nurtured in 19 an environment that will allow them to flourish and 20 develop into positive, contributing members of 21 society. 22 Most of our parents are single 23 parents, low-income and some hold even two jobs to 24 pay the bills. They do not have the means to pay for 25 child care after school, and less alone a summer day 77 1 COMMITTEE ON FINANCE 2 camp. These parents depend on us to provide their 3 children with enriching experiences that would 4 otherwise not be available to them. 5 I am both shocked and distressed to 6 hear that the Mayor would even consider making a cut 7 to such valuable programs to our communities. 8 Including in his Preliminary Budget 9 is a reduction of 2.3 million for our Beacons, in 10 addition to a $4 million City Council enhancement 11 being automatically excluded from the Mayor's 12 budget. 13 Together these cuts represent an 14 annual reduction in Beacon contracts of 15 approximately $80,000 - a cut that would be 16 devastating to our Beacon services. 17 And let me just remind you that 18 Beacons, since early '90s, have been operating at 19 the same level. They have never been augmented. 20 This 80,000 would drastically impair 21 the quality and breath of service that we could 22 provide the community. 23 To our Beacon, this would mean less 24 elementary age children being served, less summer 25 day camp slots. We already have a waiting list of 78 1 COMMITTEE ON FINANCE 2 over 80 kids right now that are desperate in need of 3 summer day camp. 4 I am urging the City Council to 5 prevent the Mayor from doing this to our New York 6 City kids. Please restore these funds that are vital 7 to our programs, and instead of reducing our budget, 8 please ask him to increase our budget. 9 Thank you very much. 10 CHAIRPERSON WEPRIN: You ready? 11 All right. 12 MS. RODRIGUEZ: Hello, everybody, and 13 good afternoon. 14 My name is Walissa Rodriguez. I'm in 15 the sixth grade at School 219 in the Bronx and go to 16 the Beacon and Directions For Our Youth. Mostly I am 17 in the after-school program. 18 This is my first year at the Beacon, 19 and it has been a very big part of my life. They 20 help me with my work, and try to teach us how to 21 prepare for the real-life situation I may face 22 growing up. 23 My mother and father both work and go 24 to school, so if I don't have Beacon, I won't have 25 anyone to help me with my homework. 79 1 COMMITTEE ON FINANCE 2 Beacon has so many things to do, like 3 Step Up Book Club and Creative Writing. We go to 4 trips and have community shows so families and 5 friends could come to have fun and see their kids do 6 all sorts of things, and most people don't think we 7 can do them. 8 If I don't go to Beacon, then where 9 do I go? Where would kids learn to play a sport, 10 learn a new dance or even just have help with their 11 homework? 12 We need the Beacon. I need the 13 Beacon. 14 CHAIRPERSON WEPRIN: Thank you, 15 Walissa. 16 MS. RODRIGUEZ: I didn't finish. 17 I'm glad to have an opportunity to be 18 a part of such programs. When my younger sister gets 19 old, I want Beacon to be available for her, too. 20 From the very beginning, I loved 21 every part of Beacon 219, especially drama. This is 22 where I learned to become a leader and express my 23 feelings. 24 I have learned more in Beacon than I 25 think I would ever be able to learn in the street. 80 1 COMMITTEE ON FINANCE 2 When I am in Beacon, I know I am safe 3 and protected. I know I have someone to talk to. My 4 family away from home, my Beacon family. Beacon has 5 given so many kids like me the opportunity to grow 6 and learn to better themselves and their community. 7 Today I stand here asking -- now, let 8 me say that. Today I'm here standing and demanding 9 that we stop budget cuts. Beacon gives me the place 10 to be and speak and listen to speakers that talk 11 about their career and how they started in a school 12 as mine and live in a neighborhood like mine, but 13 still managed to have a successful career. 14 The staff at Beacon is now my family, 15 and like every family we must stick together and 16 fight so we can be better and stronger to help the 17 community. 18 (Applause.) 19 CHAIRPERSON WEPRIN: Walissa, how old 20 are you? 21 MS. RODRIGUEZ: Eleven. 22 CHAIRPERSON WEPRIN: Okay. And what 23 grade are you in? 24 MS. RODRIGUEZ: Sixth. 25 CHAIRPERSON WEPRIN: And where do you 81 1 COMMITTEE ON FINANCE 2 go to school? 3 MS. RODRIGUEZ: MS 219. 4 CHAIRPERSON WEPRIN: Very good. I 5 think you deserve an A for today's testimony. 6 MS. RODRIGUEZ: Thank you. 7 CHAIRPERSON WEPRIN: Okay, next. 8 MR. KIXMILLER: Hi. Thank you for 9 hearing us today. My name is John Kixmiller. I work 10 for the Center for Family Life. I've been working in 11 PS 503, 506, in Sunset Park in Brooklyn over the 12 last 25 years. 13 For the first ten years, from 1983 to 14 '93, we struggled to put programs together there 15 because there was no comprehensive funding for 16 community center-type services. A point I really 17 hope people could understand is that youth need 18 environments that include their families and their 19 communities after school and in the evening. 20 It is not really a good thing, 21 generally speaking, to fragment every program into 22 small age groups that don't have continuity. 23 Community centers are the way to go in terms of 24 building community and creating youth development 25 and supporting families. The Beacon model is the 82 1 COMMITTEE ON FINANCE 2 model of community centers of engaging families and 3 of engaging different age groups. 4 This budget cut would make it 5 impossible to engage a variety of age groups and 6 parents in the same community center, and it would 7 impact the Beacon model by reducing its ability to 8 be what it was originally designed to be. 9 None of us want to see neighborhoods 10 go back to what they were in the eighties and 11 nineties. Beacons are one of the successful worldly 12 renown models for dealing with neighborhood decay 13 and the City that we have now is a very different 14 place, partly due to 80 beacons functioning well. 15 People come from all over the world 16 to see Beacons. The model has been replicated in 17 cities across the United States. Its character is a 18 particular thing that would be hurt by this budget 19 cut. 20 25 years of my experience is coming 21 here to say, please, at least retain the same budget 22 that has existed for the last 15 years. 23 Thank you, everybody, for listening. 24 CHAIRPERSON WEPRIN: Thank you. 25 MR. ACOSTA: Good afternoon. My name 83 1 COMMITTEE ON FINANCE 2 is Larry Acosta, and I am here representing the 3 Cypress Hills Community Beacon. 4 If we are faced with a cut of 80,000, 5 we will be forced to protect our middle-school 6 programming, to the detriment of many other services 7 to young children, teens and families. 8 We would expect a cut or eliminating 9 our drop-in teen center on Mondays and Fridays, our 10 basketball leagues on Wednesdays and Saturdays, our 11 Saturday Arts Program and our GED Prep Program. 12 We would be also expected to cut our 13 seats in our After School Program and our Summer Day 14 Care Program. 15 We are not able to completely and 16 currently meet those standards, as the demand in our 17 community is very high. 18 Our first registration for our summer 19 camp was held on May 15th, 2008. Within one hour we 20 filled 125 spots. 21 We also started a waiting list within 22 the other hour of 125 more spots. A hundred and 23 twenty-five more spots. 24 Any funding cut, even a small amount, 25 would definitely have a long-lasting ripple effect 84 1 COMMITTEE ON FINANCE 2 in our communities, resulting in youth becoming more 3 involved in gangs, drugs, alcohol, participants 4 being left alone at home while parents work long 5 hours or parents are educating themselves for a 6 brighter future. 7 Our beacon currently serves about 8 1,400 children, teens, adults, as of April 2008. I 9 was a product of this Beacon Program. I am now 23 10 years old, I have a BA in social work. I wouldn't 11 have done it. My mother was a single parent. I was 12 raised in a single-parent home and the Beacon was my 13 avenue of success. I went three from the 3:00 to 14 6:00, even to 9:00 sometimes. 15 Once again, I urge you not to cut the 16 funding, and to actually increase or remain the 17 same. 18 Thank you. 19 COUNCIL MEMBER JACKSON: You know 20 we're not proposing the cuts, right? 21 MR. ACOSTA: I do know. 22 COUNCIL MEMBER JACKSON: Okay. 23 It's collective. It's the millions of 24 people in New York City, not only us. We only 25 represent you. 85 1 COMMITTEE ON FINANCE 2 CHAIRPERSON WEPRIN: Go ahead. 3 MS. ALSTON: Good afternoon. My name 4 is Shawnta Alston, and I come from IS 141 Beacon 5 Program, and I will be speaking on behalf of our 6 participants, and some staff members that are in the 7 audience today. 8 COUNCIL MEMBER JACKSON: Where is 141 9 located? 10 MS. ALSTON: In Astoria, Queens. 11 COUNCIL MEMBER JACKSON: Thank you. 12 MS. ALSTON: We are here today to 13 inject the voices of all youth participants of New 14 York City and to advocate for their rights in this 15 fight against the proposed budget cuts that will 16 affect our youth community. 17 Our primary focus is to gain support 18 from our City Council members, and hold them 19 accountable to represent us in shaping policies that 20 provide young people with opportunities. 21 Every young person should be given 22 the opportunity to learn, grow and succeed in this 23 world. While the world is sleeping and eyelids are 24 shut closed, I am pondering on the issue on how the 25 Beacon Programs, summer day camp, after school 86 1 COMMITTEE ON FINANCE 2 programs, and Summer Youth Employment will be 3 affected if the proposed budget cuts are enforced. 4 As a working teen, Goodwill serves 5 over 7,600 youth and children. As a working teen -- 6 sorry -- what's in the best for our young people and 7 keeping them connected to the resources that are 8 available to them. Shaping our participants into 9 leaders for today makes me have an unquenchable 10 thirst inspiring them to be the best that they can 11 be. 12 In closing, as constituents, our 13 message to Mayor Bloomberg and all City Council 14 members is, please don't compromise a huge 15 investment. Our young people are the future, and I 16 would like to end on a quote: 17 "The final destination is not as 18 important as the footprints we leave behind for 19 others to follow." And it's anonymous. 20 COUNCIL MEMBER JACKSON: Who was that? 21 MS. ALSTON: It's actually anonymous. 22 COUNCIL MEMBER JACKSON: Anonymous? 23 MS. ALSTON: Yes. 24 COUNCIL MEMBER JACKSON: Okay. 25 CHAIRPERSON WEPRIN: Very good. 87 1 COMMITTEE ON FINANCE 2 MS. TORES: Good afternoon. I'm Donna 3 Tores, from Good Shepherd Services, representing 4 Bronx and Brooklyn Beacons of Good Shepherd. 5 Grounded in Good Shepherd, strong and 6 nationally recognized youth development model, 7 Beacon 35, in the Belmont area of the Bronx serves 8 1,200 young people, teens, adults and families 9 annually, providing a range of services, including 10 academic support, arts, cultural and recreational 11 activities, that support skill building, civic 12 competence, a sense of belonging, and community for 13 participants in the large community. 14 For over 25 years we have been a safe 15 haven in the out-of-school hours where thousands of 16 children, parents and other residents gather daily 17 for stimulating learning activities, support and 18 fun. 19 Unlike many programs in the 20 out-of-school hours, Beacons also serve large 21 numbers of adolescents, as well as parents and other 22 community adults, and are designed in response to 23 fit the specific needs of our communities. 24 We are the best option for our 25 children and families. Beacons are the best options 88 1 COMMITTEE ON FINANCE 2 for our children and families. For many, we are the 3 only option. The cuts now proposed in the budget 4 would devastate our Beacon's ability to meet the 5 needs of our family and the needs of the communities 6 we serve. 7 The Mayor's plan to cut the monies to 8 support events and drop-in activities clearly does 9 not recognize the importance of these activities in 10 the development of a safe place, where the community 11 knows that they are considered part of the family, 12 and where their needs come first. 13 These events provide venues for our 14 youth to provide practice -- for youth to practice 15 community service and leadership skills, and receive 16 community recognition, our core best practice of 17 youth development. 18 They are also opportunities for the 19 community to build pride and togetherness, and most 20 importantly, to provide an anchor that supports the 21 Beacon as a center for positive growth, information 22 sharing, and skill building for all. 23 We urge the Council to stand in 24 support of our children and families, and let them 25 know that you have heard their and our voice by 89 1 COMMITTEE ON FINANCE 2 making Beacons a priority for full restoration this 3 year. 4 Thank you for supporting Beacons over 5 the years. The Council has always been the critical 6 force that has kept Beacons strong and stable in 7 good years and in bad. 8 We look to you once again to protect 9 this vital community force. 10 CHAIRPERSON WEPRIN: Thank you. 11 (Applause.) 12 COUNCIL MEMBER JACKSON: I have a 13 question for -- 14 CHAIRPERSON WEPRIN: Let them finish. 15 Let everybody finish. 16 COUNCIL MEMBER JACKSON: Oh, everybody 17 is finished? 18 CHAIRPERSON WEPRIN: No, not yet. 19 COUNCIL MEMBER JACKSON: No, I don't 20 want the little one to leave. 21 CHAIRPERSON WEPRIN: Dr. Goodman, do 22 you want to go? 23 DR. GOODMAN: Yes. 24 COUNCIL MEMBER JACKSON: Okay. 25 DR. GOODMAN: Did you want to ask her 90 1 COMMITTEE ON FINANCE 2 a question first, Councilman? 3 CHAIRPERSON WEPRIN: No, we'll hear 4 from you first. 5 DR. GOODMAN: Thank you. 6 Good afternoon, Chairman Weprin. Good 7 afternoon, Council Member Jackson. We're delighted 8 to be here again. This is our third year in a row 9 that we've come before you to urge that you take ten 10 percent of the surplus funds that the City is 11 experiencing and appropriate those funds for youth 12 programs. 13 We are here today with 14 representatives from the Service Learning Program, 15 from the Beacon Program and from our Drop-out 16 Initiative Program. Each one of our young people is 17 holding a petition. 18 Would you guys hold up your 19 petitions? 20 I think there are 11 names on each 21 sheet. We've collected almost a thousand names, all 22 of which urge three things essentially: 23 One, restore and expand summer youth 24 jobs. 25 Two, restore and expand the money for 91 1 COMMITTEE ON FINANCE 2 after-school programming, and especially beacons; 3 and 4 Three, to restore and expand the 5 Drop-out Initiative, which Council Member Jackson 6 has just been a marvelous leader on behalf of. 7 We're kind of confused that the Mayor 8 doesn't understand, being that his background is in 9 investing, that the most critical investment the 10 City can make today is to invest in its young 11 people. And, so, we're here to bring today the 12 message that we think our young people deserve the 13 kind of economic support that the City can provide 14 to go along with the social, emotional and 15 educational and educational support that they get 16 from their staff and from their community. 17 So, today we're here to day, please 18 give the youth agenda that comes before you your 19 utmost attention, as you go into budget 20 negotiations, please try to explain to the Mayor and 21 I'm sure the young people who are here with us today 22 would be happy to help explain to the Mayor why it's 23 so important to allocate ten percent of the surplus 24 funds for youth. 25 And I'm here with Salena Gonzalez -- 92 1 COMMITTEE ON FINANCE 2 Kaylena Gonzalez, who is from Franklin K. Lane High 3 School and is part of the Mayor's Service Learning 4 Program Initiative. She is a young leader who is 5 learning how to lobby her City Council members, and 6 to speak in public, and I hope you'll give her, I'm 7 sure you'll give her the kind of respect and 8 attention that will help overcome her nervousness. 9 MS. GONZALEZ: Hello. 10 CHAIRPERSON WEPRIN: Hi. 11 MS. GONZALEZ: My name is Kaylena 12 Gonzalez. I'm 14 years old. I go to Franklin K. 13 Lane, and I'm in the ninth grade. 14 I'm here today to talk to you about 15 the New York City surplus money of $4.5 billion. 16 In case you're wondering, a surplus 17 is left-over money in the City's budget after all 18 expenses for the City has taken care of. 19 There has been a further cut in SYEP 20 jobs, which stands for the Summer Youth -- Summer 21 Youth Employment Program. But I don't understand 22 why? Why, out of the $4.5 billion left, why we're 23 not using it to help the youth? 24 Me being a part of the youth, I would 25 love to have a summer job, to feel independent. It 93 1 COMMITTEE ON FINANCE 2 would show me in the future how to manage my money. 3 It would show me a sense of responsible, work 4 experience, an opportunity to understand what I want 5 to do as an adult. 6 If you give ten percent of the 7 surplus money to the youth for the SYEP jobs, which 8 would have success adults in the future to know how 9 to manage their money. 10 This budget cut of SYEP jobs is not 11 the only budget the City is planning to make. There 12 is also a suggestion of budget cuts for the 13 Department of Youth Community Development, over $27 14 million. 15 This doesn't make any sense also. 16 Instead of increasing the budget to help the youth 17 and stay out of harm's way, they cut the budget 18 department to keep the young adults out of the 19 street. 20 Most of the time the reason many 21 young adults are in the streets, dropped out and 22 surrounded by bad influence is because no one is 23 there to help and reach out to them. 24 If you give ten percent, this ten 25 percent of the youth (sic), the $4.5 billion, maybe 94 1 COMMITTEE ON FINANCE 2 the Department of the Youth can reach out to all 3 those teenagers who is looking for some guidance. 4 New York City Times stated that 2,000 5 of the youth are out of work and out of school. If 6 ten percent is given to after school, they would 7 teach the young youth what they don't learn in 8 school. Like in school you learn about the 9 community. But in after school you learn about how 10 to fix your community. 11 Surprisingly, that was not the only 12 budget cut that was made. The cut in the budget was 13 eight-hundred thousand -- million dollars. The 14 budget cut is confusing because most of the time I 15 see on TV how there are not enough books, but they 16 have money for the TVs, and computers and air 17 conditioners in the school. 18 There are many schools that can't 19 afford books of the students. Young adults are the 20 future. We are the ones that are going to be in the 21 government in a few years. If ten percent is given 22 to the Education Department, there would be enough 23 money to give to the books (sic) to the young 24 adults. This way we can learn how to be successful 25 in the future. We could be doctors and lawyers for 95 1 COMMITTEE ON FINANCE 2 the future. 3 Increasing the youth may seem costly 4 right now, but it will save us billions of dollars 5 in the future. 6 Also, with the amount of youth 7 increasing arresting during the hours of 3:00 p.m. 8 to 6:00 p.m., funding for after-school programs is 9 so important to the safety of the youth, when the 10 youth get older, they're the ones that are going to 11 take care of all the older people, being the doctors 12 and the lawyers. We need these programs very much to 13 take us out of these crimes. There's so many 14 drop-outs, and crime rates that will go down, 15 because we'll be in society and a community, we will 16 learn how to not be, and how not to be in these 17 streets. 18 If ten percent is given to the 19 drop-out prevention, and so many other programs, we 20 can save the future and so many young adults. Who is 21 better to tell you what the youth need than someone 22 who is the youth themselves? 23 Thank you for your time. 24 CHAIRPERSON WEPRIN: Okay. 25 (Applause.) 96 1 COMMITTEE ON FINANCE 2 CHAIRPERSON WEPRIN: I'm sold. And if 3 you'd like an internship either in my office or 4 Councilman Jackson's office, just come sign up. 5 MS. GONZALEZ: Okay. 6 COUNCIL MEMBER JACKSON: Well, let me 7 just say to the two young people, especially, 8 Walissa and Kaylena -- Kaylena, is that correct? 9 MS. GONZALEZ: Yes. 10 COUNCIL MEMBER JACKSON: The way both 11 of you spoke and read your testimony, you made all 12 of us proud in this room, and I'm sure everyone that 13 will be watching this on public television access, 14 everyone who watches it, probably will say I'm proud 15 of these two youth, because you did an excellent job 16 representing yourselves, your family and your 17 community and the organization in which you belong. 18 But Kaylena, you were going on, and I 19 was saying, "David, tell her to wrap up." 20 MS. GONZALEZ: I'm sorry. 21 CHAIRPERSON WEPRIN: And I said "No." 22 COUNCIL MEMBER JACKSON: Because part 23 of -- 24 MS. GONZALEZ: I just have a very 25 strong feeling about this, so... 97 1 COMMITTEE ON FINANCE 2 COUNCIL MEMBER JACKSON: Oh, I know, 3 but you have to stay within the time frames, too. 4 But, no, really, you make us all proud, and 5 understand that we are not the ones who have 6 proposed these particular cuts, it's basically the 7 Mayor, and the Office of Management and Budget. 8 And, so, I wish there were 51 members 9 of the City Council sitting here listening to what 10 both of you had to say, because if they listened to 11 what you had to say, Kaylena and Walissa, what you 12 had to say, I don't see how anyone can cut the 13 funding for these Beacon programs, listening to 14 these two young people speak here today. 15 But I would strongly suggest that you 16 contact the Mayor, and try to get an appointment, 17 even though I don't think that that will happen, but 18 you never know, you've got to believe. But also, 19 Dennis Walcott is the Deputy Mayor responsible for 20 education, and I don't know if he's responsible for 21 youth, but he may be also. So, try to e-mail him or 22 call them so they can listen to you personally, 23 because I do believe if they listened to what you 24 had to say, both of you, that their minds would be 25 changed. 98 1 COMMITTEE ON FINANCE 2 And even if they don't get the 3 opportunity to say, yes, come in and talk to us, 4 your testimony today, I strongly suggest that you 5 send it to them, and send it to Christine Quinn, our 6 Speaker, and to your Council members, who represent 7 you. 8 But I am proud of all of you, and all 9 of the young people that are here, ten percent for 10 youth of the proposed budget surplus, which is 11 approximately 4 to 5 billion dollars. 12 Thank you very much. 13 And next we're going to hear from 14 Michelle Yanche, Neighborhood Family Services. Are 15 you here? 16 Richard Kessler, from the Center for 17 Arts Education. Richard is here? Okay, come on up. 18 And Mr. X. Okay, come on up, Mr. X. And John Welsh 19 from Safe Horizon Streetwork, and Suima Caseres from 20 Ridgewood Bushwick Senior Center. Are you here? She 21 had to leave. 22 Give me another one. 23 And Sara Woolley from Coalition for 24 Hispanic Family Services. Are you here? Come on 25 down. 99 1 COMMITTEE ON FINANCE 2 And you may begin, Michelle Yanche. 3 MS. YANCHE: Good afternoon. My name 4 is Michelle Yanche, and I work for the Neighborhood 5 Family Services Coalition. I'm here this afternoon 6 to represent the New York City Youth Alliance, which 7 is an umbrella network of youth advocacy 8 organizations in New York City, of which my 9 organization is a member. 10 I am here to present to you our joint 11 statement of priorities for the Executive Budget. 12 To start with, I'd like to thank you, 13 both Finance Chair Weprin, as well as Chairman 14 Jackson, for taking the time to hear from all of us. 15 COUNCIL MEMBER JACKSON: Okay, one 16 second, please. 17 Where is Walissa? Is she still here? 18 Come on and sit up here with me. Come up here, young 19 person. 20 Go right ahead. 21 MS. YANCHE: Thank you for your 22 leadership this year, as in all previous years, on 23 areas affecting young people, and the programs and 24 services that are so important in their lives. 25 The first point that I was going to 100 1 COMMITTEE ON FINANCE 2 raise was Beacons, but I don't think I could add 3 anything further to the incredible voices that 4 you've already heard and still will hear from, only 5 to say ditto. 6 On the Summer Youth Employment 7 Program, the Department of Youth and Community 8 Development testified this morning that as of today 9 they have received 103,000 applications, for what 10 last year was approximately 42,000 slots that were 11 able to be funded, and then with the projected cuts, 12 we would not even be able to serve 42,000 of those 13 young people. 14 The clear message is that the demand 15 among young people to hold a job and to contribute 16 to their families and communities is very high and 17 continues to be very high. 18 I know that this Council has been a 19 very strong supporter of summer jobs. And, you know, 20 I want to continue to urge you to do all that you 21 can to say to the Mayor that we can't afford to keep 22 young people who want to work from holding such an 23 important first job opportunity, which is what it is 24 for many of them. 25 Just quickly, I will just touch on 101 1 COMMITTEE ON FINANCE 2 some of the other areas that we have outlined as 3 priority for the City budget. The Immigrant 4 Opportunity Initiative, the Runaway and Homeless 5 Youth Initiative, the Runaway and Homeless Youth 6 Initiative, the TASC After 3:00 Program, of which my 7 colleague John Albert from the After School 8 Corporation will be testifying subsequently, the 9 Adult Literacy Services Council Initiative, and so 10 many of the Council Initiatives that really this 11 Council has been on the vanguard of making, creating 12 opportunities to demonstrate effect programs, to 13 create new programs. The Drop-Out Initiative, which 14 you, Chairman Jackson, have been in the forefront of 15 bringing to life Virtual Y, Teens Take the City, the 16 CASA Initiative, these are all so important to youth 17 organizations in New York City. 18 If you could please do all that you 19 can to ensure that this funding is preserved. 20 Finally, I just wanted to let you 21 know that the New York City Youth Alliance will be 22 holding a press conference on the budget cuts, next 23 Wednesday, May 28th at noon, as well as a rally on 24 Wednesday at 4:30 on summer jobs, and we have 25 already extended invitations to all of your offices, 102 1 COMMITTEE ON FINANCE 2 we hope that you will be able to attend. 3 Thank you. 4 COUNCIL MEMBER JACKSON: Thank you. 5 And Walissa is going to announce the 6 next speaker. 7 WALISSA: That is the Center for Arts 8 Education. 9 COUNCIL MEMBER JACKSON: Doug Israel. 10 MR. ISRAEL: Thank you so much. 11 I'm filling in for Richard Kessler. 12 My name is Doug Israel. I'm the 13 Director of Research and Policy with the Center for 14 Arts Education. 15 Thank you for this opportunity, 16 Chairman Jackson, Walissa, to testify today. 17 I would like to speak about he 18 proposed Capital Budget for the Department of Ed and 19 the School Construction Authority. 20 I have two pages of prepared notes. 21 I'm just going to hit the highlights. 22 The Center for Arts Education is 23 dedicated to ensuring that all New York City public 24 school students have quality arts learning as an 25 essential part of their K through 12 education. 103 1 COMMITTEE ON FINANCE 2 The central concern of the Center for 3 Arts Education as it relates to the Capital Budget, 4 grows out of our years of experience working in 5 public schools in New York City, and our knowledge 6 of the lack of adequate art space that exists for 7 arts education in schools across the five boroughs. 8 We have heard from principal after 9 principal that was forced to give up rooms, that had 10 to be commandeered, divided or walled, to 11 accommodate overcrowding, and these rooms, whether 12 they're theatres, music rooms, art spaces, have been 13 taken out of use for those purposes and turned into 14 classrooms. 15 In fact, according to the report that 16 was distributed this morning from St. Francis 17 College, 25 percent of those principals that 18 responded reported losing their art, music or dance 19 rooms to academic space. 20 As aptly stated in the "Art In 21 Schools Report" released by the DOE, the ideal 22 physical environment for arts learning is one that 23 is dedicated to the arts discipline, and 24 appropriately and comfortably equipped with the 25 specific equipment and the supplies needed to 104 1 COMMITTEE ON FINANCE 2 optimize students' experience. 3 The DOE also says that this lack of 4 available in-school art space is one of the top 5 three challenges to implementing arts education. 6 So, I'm going to skip to the bottom 7 of my testimony, our recommendations here. The 8 School Construction Authority currently is charged 9 with ensuring that there are art spaces in new 10 schools that are built, that house over 500 11 students. And their amended plan talks about 12 auditorium spaces that are being upgraded or 13 refurbished. But there is no mention of budgeting or 14 work-in-progress to reclaim those art spaces that 15 have been lost or to create new spaces in existing 16 schools. 17 We urge the Council to request the 18 DOE and the SCA provide a detailed spending plan on 19 upgrades and creation of art spaces other than 20 auditoriums in the City's public school. 21 We urge Council members and Borough 22 Presidents to investigate access to arts spaces in 23 schools in their district and direct capital funding 24 to ensure our students are directed access to 25 well-equipped facilities. 105 1 COMMITTEE ON FINANCE 2 And, finally, we call for the 3 targeted use of capital funds, whether in this 4 Five-Year Plan, or in the next Five-Year Plan, to 5 ensure that every single school has the space 6 necessary to implement arts education that lives up 7 to the State requirements. 8 Thank you very much for your time. 9 WALISSA: The next is John Welch, Safe 10 Horizon Streetwork. 11 MR. WELCH: Hi. I'm John Welch, the 12 Program Director for Safe Horizon Streetwork Lower 13 East Side, and I'm here to talk about, briefly about 14 a very small, but very crucial, amount of funding 15 for our program. 16 I'd like to take the opportunity to 17 thank the Youth Services Committee and the Council 18 for its support of Streetwork, and Streetwork Lower 19 East Side's site, in particular, for the past seven 20 years. 21 Streetwork is a drop-in center and 22 counseling program for homeless adolescents and 23 young adults, which reaches out to the populations 24 of street youth who are least able to be served by 25 other agencies and programs, due to drug use, 106 1 COMMITTEE ON FINANCE 2 behavior issues, mental health issues, et cetera, on 3 the youth side and due to service delivery models 4 not designed to accommodate people facing these 5 problems on the program side. 6 Streetwork as a whole serves 2,300 of 7 these young people per year. Our work is to resolve 8 crises and stabilize these youth as best we can, to 9 house them through our emergency shelter programs, 10 and to establish long-term counseling relationships 11 in which they can receive some element of the 12 parenting that they missed, and work toward making 13 better choices for their lives. 14 The funds I'm requesting to be 15 restored are crucial to the safe functioning of 16 Streetwork Lower East Side and to creating an 17 environment of warmth, creativity and positive 18 regard that is the foundation of our clients' 19 participation in more intensive services, such as 20 case management, groups, psychiatry, medical care 21 and peer leadership. 22 These funds pay for the salary of the 23 youth advocate who works with clients in the milieu, 24 providing meals, low threshold counseling, 25 nutritional services, daily living skills, conflict 107 1 COMMITTEE ON FINANCE 2 resolution, and social skills building. 3 It's at this milieu level that some 4 of our clients who have had the most trauma, who 5 have lost the most hope or burn the most bridges, 6 get re-engaged in community and move toward values 7 of self-care and care for others that strengthens 8 the streetwork youth community. 9 This funding has provided an 10 important piece of our program's foundation over the 11 years, and I thank the Council for that stable 12 support and hope that the funding can be restored. 13 COUNCIL MEMBER JACKSON: What funding 14 are you referring to? 15 MR. WELCH: A discretionary piece of 16 money that comes through DYCD. 17 COUNCIL MEMBER JACKSON: Okay. 18 So, you mean the specific budget for 19 that program; is that correct? 20 MR. WELCH: Yes. 21 COUNCIL MEMBER JACKSON: Okay. 22 How much is that? 23 MR. WELCH: It's seventeen-and-a-half 24 thousand dollars. 25 COUNCIL MEMBER JACKSON: That's it? 108 1 COMMITTEE ON FINANCE 2 MR. WELCH: Yes. 3 I told you it was small, but it 4 honestly is really crucial to the way that we 5 function. 6 COUNCIL MEMBER JACKSON: I hear you 7 loud and clear. But considering we're talking about 8 hundreds of millions of dollars and a $60 billion 9 budget, 17.5 k is minuscule. 10 MR. WELCH: I agree. 11 COUNCIL MEMBER JACKSON: But crucial. 12 MR. WELCH: For us, yes, it's crucial. 13 COUNCIL MEMBER JACKSON: Thank you for 14 coming in. 15 MR. WELCH: Thank you. 16 WALISSA: Sara Woolley, Coalition for 17 Hispanic Family Service. 18 MS. WOOLLEY: Hi. My name is Sara 19 Woolley. I'm the Program Director -- 20 COUNCIL MEMBER JACKSON: Can you move 21 the mike closer to you. 22 MS. WOOLLEY: Closer? All right. Let 23 me see if I can follow-up after her. 24 My name is Sara Woolley. I am the 25 Program Director for the Beacon Center for Arts and 109 1 COMMITTEE ON FINANCE 2 Leadership, which is operated by the Coalition for 3 Hispanic Services in Bushwick, Brooklyn. 4 Every year at the Beacon Center we 5 serve over 1,000 participants on what is already a 6 very modest budget. 7 Two-hundred of these participants are 8 junior high school students and an additional 9 hundred are high school students. 10 Both historically difficult 11 demographics to reach. 12 At our beacon, we focused on 13 involving the whole family in the youth successes, 14 providing a range of services, including, but not 15 limited to, academic intervention, homework help, 16 civic engagement, teen sports and focused arts 17 programming, guidance and therapeutic and social 18 services. 19 This is not simply enrichment or 20 services which piggy-back on what a youth already 21 receives during the school day. For many children, 22 ours is the only outlet they have. 23 The feeder schools for our Beacon 24 Program are also the subject of massive cutbacks and 25 most have already cut any program which could be 110 1 COMMITTEE ON FINANCE 2 otherwise viewed as enrichment. 3 As you know, Beacons provide 4 communities across the City with safe havens in the 5 out-of-school hours where thousands of children, 6 parents and other residents gather daily for 7 stimulating learning activities, support and fun. 8 Unlike many programs in the 9 out-of-school hours, Beacons also serve large 10 numbers of adolescents, as well as community and 11 other community adults, and are designed in response 12 to specific needs of each and every community. 13 Recognizing their value, the City has 14 increased the number of Beacons from 80 sites from 15 the original ten that opened in 1991. 16 The cuts now proposed in the budget 17 would devastate Beacons' ability to meet the needs 18 of the communities we serve. Our Beacon is no 19 exception. The Beacon Center for Arts and Leadership 20 currently receives no other funding besides that 21 supplied by the Department of Youth and Child 22 Development. 23 Our Beacon would be forced to 24 drastically cut program which the families we serve 25 rely on. It would mean less therapy for children in 111 1 COMMITTEE ON FINANCE 2 need, less social services for families, fragmented 3 communication with schools and parents, and bottom 4 line, more youth out on the street after school. 5 They will go somewhere, and they will 6 grow up with or without our guidance. 7 Decisions made this year will affect 8 this City for years to come. We urge you to make 9 Beacons a priority during this budget season and 10 restore and protect the vital funding for Beacon 11 programs. 12 COUNCIL MEMBER JACKSON: Thank you. 13 WALISSA: Mr. X. 14 MR. X: Just two things. One, I admire 15 you and the other student, like you read speedy, 16 that's pretty good. Of course, when I was in the 17 fifth grade, 25 years ago this month, I didn't think 18 of coming here. So, I admire you. Wish I had done 19 that when I was in the sixth grade. 20 WALISSA: Thank you. 21 MR. X: I don't appreciate -- just two 22 things, one, I don't appreciate Michelle Bloomberg 23 (sic) cutting the Beacon funding. From what I was 24 told, the Beacons are helping these students stay 25 off the streets. Okay, I didn't hear about Beacons 112 1 COMMITTEE ON FINANCE 2 when I was in the sixth grade, that's fine, but for 3 him to do that, when he can make cuts elsewhere, 4 it's outrageous. 5 And that just leaves the MTA, I don't 6 appreciate the MTA officials dropping current subway 7 cars without getting, before getting the new cars, 8 if you don't already know, Robert, if you ride the 9 one train past Inwood yard, which is actually the 10 service yard, you'll see certain cars getting 11 scrapped. The R 32 cars, the R 40 cars, R 42, R 38, 12 R 32, they're getting scrapped. I haven't seen the R 13 38 cars dumped yet, but the MTA officials are 14 looking to order more cars for the B Division, okay, 15 they haven't been ordered, as far as I know. I 16 haven't seen them yet. Yet, he's going to dump all 17 the current cars, the current older cars, the R 32, 18 R 38, R 40, R 42, R 44, R 46, before getting new 19 cars first. That makes no sense. I don't understand. 20 That doesn't make no sense. 21 How are you going to serve the 22 customers better by doing that? That doesn't make 23 any sense. You're going to dump the old cars before 24 you get the new cars. That makes no sense. 25 COUNCIL MEMBER JACKSON: Mr. X, this 113 1 COMMITTEE ON FINANCE 2 is the City budget. This is not MTA. So -- 3 MR. X: No, but I'm just saying -- 4 COUNCIL MEMBER JACKSON: I hear you 5 loud and clear. I agree with you about MTA, but this 6 is not MTA. 7 Go ahead. 8 MR. X: That's it. 9 COUNCIL MEMBER JACKSON: Okay. Well, I 10 know you were here all day, so I know you absorbed 11 all of the information. So, let me just say, as a 12 member of the public, we appreciate you advocating 13 for the restoration of the money for the Beacon 14 Programs and the other programs. 15 MR. X: I'd like to sign their 16 petitions, if I can. 17 COUNCIL MEMBER JACKSON: Good. Well, 18 you can see them afterwards. 19 We have one more speaker of this 20 panel, I didn't call him up, is John Albert here? 21 John, please come up. And you're the 22 last speaker on this panel. And John is from where? 23 WALISSA: The After School 24 Corporation. 25 COUNCIL MEMBER JACKSON: Okay. 114 1 COMMITTEE ON FINANCE 2 MR. ALBERT: Thank you. 3 You have my testimony, so I'm not 4 going to read it. 5 Just as a way of introduction, I'm 6 John Albert with the After School Corporation and 7 TASC has been around for about ten years, and we are 8 widely successful in helping programs, after school 9 programs, operate around the City. And, so, I just 10 want to talk about a couple of things. 11 My testimony, you know, which you 12 have and I'm sure you'll read, but I just want to 13 add two things to what's already been said. 14 One is, there has been an important, 15 really important document that was released this 16 morning. It's a Citizens' Committee for Children 17 Report on the state of the youth, and they have two 18 pieces of information I think that are really 19 important to you. One about the number of kids who 20 are not receiving after-school programs. So, let me 21 just read this one statistic to you. 22 According to the Citizens' Committee 23 for Children -- 24 COUNCIL MEMBER JACKSON: Is that in 25 your testimony here also? 115 1 COMMITTEE ON FINANCE 2 MR. ALBERT: It's not written in there 3 because we prepared that yesterday and this came out 4 this morning. 5 COUNCIL MEMBER JACKSON: Okay. Go 6 ahead. 7 MR. ALBERT: But there is a need for 8 439,000 after-school slots. 439,000 after-school 9 slots. That's an enormous amount of slots, and, you 10 know, it's just really important to identify that as 11 much money as we're spending that there are so many 12 more kids that are being unserved. 13 Specific to the after-school 14 corporation, we receive $3.8 million from the City. 15 We're hoping to increase that by $1.7 million, so a 16 total of 5.5 million. Currently we serve 42 programs 17 in 37 Council districts. With the increase, we hope 18 to make sure that there is a program in every single 19 Council district. 20 So, you have a program, I think it's 21 PS 131 in your district. I'm 161 in your district, 22 but many of your colleagues don't have the benefit 23 of one of our programs. So, just in closure, I just 24 want to say that there is a tremendous amount of 25 need for after school programs, the investment from 116 1 COMMITTEE ON FINANCE 2 the City is really a minimal investment and so much 3 more could be done for young people. 4 One dollar spent in an after-school 5 program saves the government $3 in future services, 6 and I think that's really important to note. 7 Thank you. 8 COUNCIL MEMBER JACKSON: Did you say 9 37 or 47? 10 MR. ALBERT: I'm sorry, there are 37 11 districts. 12 COUNCIL MEMBER JACKSON: You mean 13 Council Member Districts. 14 MR. ALBERT: Council Member Districts, 15 right. 16 COUNCIL MEMBER JACKSON: So, in 17 essence, there are 14 -- 18 MR. ALBERT: There are 14 that are 19 unserved. 20 COUNCIL MEMBER JACKSON: Okay. Okay. 21 Can you provide us with that list, to 22 Counsel? 23 MR. ALBERT: We will definitely 24 provide the full list to Counsel, certainly. 25 COUNCIL MEMBER JACKSON: Okay, thank 117 1 COMMITTEE ON FINANCE 2 you. 3 Well, let me thank this panel for 4 coming in. We appreciate it. 5 The next panel is Alianza Dominicana, 6 Moises Perez, Ms. Veras, from Alianza, Awilda 7 Rivera, Luz Familia and Diana Rodriguez. And after 8 this panel, okay, she has to go. Thank you very much 9 young lady. 10 WALISSA: Thank you. 11 COUNCIL MEMBER JACKSON: Okay, thank 12 you. 13 Okay reading into the record the 14 testimony of Ridgewood Bushwick Senior Citizens 15 Council, Inc., IS 296 Beacon Program in Brooklyn, 16 New York. So, in the record, by Suma Casedes 17 (phonetic). 18 Mr. Perez. 19 MR. PEREZ: Yes, sir. Just with full 20 disclosure, I just want to say that Councilman 21 Jackson is my Councilman. And I'm certainly not 22 speaking to anything that he is not aware of, but 23 we're speaking for the record, and I want to just go 24 on the record in supporting the recommendations of 25 the Youth Alliance, vis-a-vis, the Mayor's proposed 118 1 COMMITTEE ON FINANCE 2 budget in particularly new services and many of the 3 things that I would want to say have been spoken to, 4 in terms of youth services, but just to add the 5 following, after you've been around enough times in 6 New York City, you kind of get things get built up 7 and then taken down again and only to have to go 8 through the process of rebuilding them over and over 9 again. And I think it's so important for the City 10 Council to be the voice that looks at youth services 11 in a more wholesome and comprehensive kind of a 12 manner, at one time and when the Beacon program was 13 created, the idea was that the Beacon would be an 14 integrating vehicle for youth services and we worked 15 many years to achieve that. 16 It was a place where young people 17 could address issues of education because the idea 18 was that they would be in the schools of health, 19 employment, family life, the arts and leadership 20 development. And today I'm joined by a number of 21 individuals from Alianza Dominicana, but I want to 22 point out particularly Eddie Silverio, who at 38 now 23 started to Direct our Beacon Program at IS 143 when 24 he was 19 years old, and had full responsibility for 25 the entire building, everything that went in there 119 1 COMMITTEE ON FINANCE 2 and supervising the adults, in fact who were there. 3 Raoul Garcia, when he came to Alianza when he was 16 4 years old, he is 25, he was a Beacon Director, and 5 heads now one of our Out-Of-School Time Projects. 6 Jocelyn, who came at 21, and we won't say how old 7 she is now, and has done just about everything in 8 her community, and Diana, who came at 13 years of 9 age, she is 24, is working on her master's, and I 10 think Diana got her BA when she was 20 years old. I 11 always point that out and embarrass her. When she 12 was 20 years old. 13 And the Beacon was a source of 14 leadership development for them, an opportunity for 15 them to contribute to their community, the fact that 16 people have pointed out here, that we've been on a 17 fixed budget since day one, we also operate, by the 18 way, a Beacon in the Bronx, in Highbridge, that the 19 very idea about the Beacon was supposed to be a 20 million dollars, and it was cut down to 500,000 in 21 order to bring more Councilpersons into the support 22 network, and yet, that was never revisited, and now 23 they would be cut even further is actually 24 devastating. And hitting, going against the idea of 25 the Beacon playing that centralizing role, Summer 120 1 COMMITTEE ON FINANCE 2 Youth Employment so far, I've learned today, that 3 3,300 young people have applied for our Summer Youth 4 Employment Program at Alianza Dominicana - 3,300. Of 5 course, if we kept that open for another two or tree 6 weeks, it would be even more than that, but we only 7 have a projected number of 1,212 slots. That's an 8 awful lot of young people who are not going to be 9 working in the summer. 10 And the Summer Youth Employment 11 Program, you know, it's not something that we're 12 getting young people. This is one of the most 13 amazing opportunities for any community to benefit 14 from the labor of young people, from their 15 creativity and all of the things they bring to the 16 table. I can speak to it and that's why I wanted to 17 point out these young people who began from a very 18 early age to contribute to the community, and we 19 just cannot afford in our community not to have 20 every summer that labor force contributing in 21 immeasurable ways. 22 Now, we began the Summer Youth 23 Employment Program in our community in 1992. The 24 summer of 1992 after the riots in Washington 25 Heights. And it seems that we never quite learned 121 1 COMMITTEE ON FINANCE 2 the lessons until we get hit in the head, you know, 3 with a big stake. And we're moving by de-funding 4 youth services this direction. 5 I could mention a number of other 6 programs, but the reality is, is speaking to the 7 parts doesn't do justice to the whole, and we need 8 to begin to look at youth services as a whole, as a 9 network, and stop talking about these little 10 piecemeal things, and fund it at the level that is 11 absolutely required and needed for the development 12 of our neighborhoods. 13 COUNCIL MEMBER JACKSON: Thank you. 14 Thank you. Okay, thank you. 15 Who is next? Who is the young person 16 on the end with the mike? Go ahead. Press the 17 button. Press it again and let it go. 18 MS. RODRIGUEZ: Now? My name is Diana 19 Rodriguez, and I'm 18 years old, and all I want to 20 say is with the proposed budget cut activities for 21 the youth, like myself, will no longer be in 22 session. My question towards this is, what will 23 happen to the youth who stays in after school 24 programs to do dance or participate in other 25 recreational enrichment, that would most definitely 122 1 COMMITTEE ON FINANCE 2 keep them out of the streets. 3 I'm sure I will speak for everybody 4 when I say that the Mayor is being unfair in doing 5 something like this to us. 6 When I was a sophomore in high 7 school, as a participant in La Plaza, I became part 8 of the rhythm and dance group, which is dance, and I 9 have been more than happy to be part of that dance 10 group. And as a senior now in high school, I'm still 11 part of the rhythm and dance group in La Plaza, and 12 to be honest, they have helped me a lot in life 13 because being a part of this activity, has shown me 14 not only to be afraid to express myself, it has also 15 shown me responsibility. 16 Because of all this, I am now in the 17 after-school program, and I am a tutor working in 18 the after-school program, helping the youth with 19 their homework, teaching them the reality of life, 20 and how they could be very successful in the future. 21 Not only that, but because I was part 22 of the rhythm and dance group, I am also a dance 23 instructor in LaPlaza, and I am, myself, teaching 24 the students how to express theirself (sic) through 25 dance. 123 1 COMMITTEE ON FINANCE 2 I ask you to please convince the 3 Mayor not to cut down the budget, because what will 4 happen to us when we are left in the streets doing 5 nothing. We're supposed to be safe. Being part of 6 the activities, it's supposed to help us not be in 7 the streets, and it's very helpful, it was helpful 8 to me so I think it will be helpful to any other 9 youth in this world. 10 And also, aren't we supposed to be 11 the future for tomorrow? So, why is the Mayor doing 12 this to us? Thank you. 13 CHAIRPERSON JACKSON: Next. 14 That's a good question. You can ask 15 the Mayor. 16 MS. RODRIGUEZ: Okay. 17 CHAIRPERSON JACKSON: Request a 18 meeting with the Mayor. Request him to come up to 19 your Alianza Dominicana. I think Dennis Walcott, the 20 Deputy Mayor, was up there recently. They need to be 21 asked tough questions. 22 Next. 23 MS. RIVERA: Good afternoon. My name 24 is Awilda Rivera. I am a tutor at Alianza OST at 25 LaGuardia Luperon. Just recently I participated in 124 1 COMMITTEE ON FINANCE 2 an event in Washington Heights, which was the 3 Alianza Dominicana 18th Annual Youth Conference, 4 where 500 youth learned about social justice issues 5 affecting their lives as we speak. 6 I'm here to speak on the behalf of 7 the youth, and make you aware that all of the 8 cutting of the -- all of the cuts are affecting the 9 youth programs, and it is time to give to the youth 10 and show them how to progress themselves in the 11 future. 12 COUNCIL MEMBER JACKSON: So, you were 13 teaching youth about what, social justice, or social 14 what? 15 MS. RIVERA: No, I am a tutor in 16 Alianza Dominicana, but 500 youths were taught about 17 social justice. 18 COUNCIL MEMBER JACKSON: What subject 19 about social justice. 20 MS. RIVERA: Police brutality, gangs, 21 education, drugs. 22 COUNCIL MEMBER JACKSON: Okay. 23 MS. RIVERA: And any other affects 24 that happen in the community. 25 COUNCIL MEMBER JACKSON: Okay, very 125 1 COMMITTEE ON FINANCE 2 good. Thank you. 3 Next please. 4 (Applause.) 5 MS. VERAS: Good afternoon. My name is 6 Llunorkys Veras. 7 COUNCIL MEMBER JACKSON: How do you 8 pronounce your first name? 9 MS. VERAS: Llynorkys. 10 COUNCIL MEMBER JACKSON: Llynorkys. 11 MS. VERAS: Yes, sir. 12 COUNCIL MEMBER JACKSON: Okay. 13 MS. VERAS: Yes, I am a parent of four 14 children. Four children going to the program, Mosaic 15 Alianza Dominicana. 16 I'm also, I would like to say a 17 little bit of my story. I'm a president of the PS 11 18 school, where my children attend the public school. 19 And they go to the after school in Mosaic. And I 20 would like to, who ever need to fight for the right 21 or the children and me as a parent, do it, please. 22 And for the Mayor, being part of the after school 23 program, my children, when I start in the school, PS 24 11, I was just a parent. With the program Alianza 25 Dominicana, I be able to learn things to be able to 126 1 COMMITTEE ON FINANCE 2 help my children. They give me the opportunity to be 3 part of the program to be part of the computer 4 program, be able to help my children with the 5 homework, where I would not be able to speak English 6 like I do right now. They help me to show me how to 7 advocate for all the parents in the community. 8 And today I thank the programs that 9 they're offering for parents. I live in a community 10 that in part of this, part of the programs that 11 Alianza is giving it to our children, our parents, 12 parents that go to work like me, and, like, be able 13 to receive the service that Alianza give to our 14 children, and to the Mayor, you are making a big 15 mistake, making the proposals of cutting money from 16 those programs, because a parent like me to be able 17 to receive service, and my children, too, to 18 participate in those programs, is going to be a big 19 mistake. Please make us consideration, the people 20 that need to fight for us, that we need this monies 21 not being cut for the program of the after school. 22 Thank you. 23 COUNCIL MEMBER JACKSON: And where is 24 PS 11 located at? 25 MS. VERAS: PS 11 is located in the 127 1 COMMITTEE ON FINANCE 2 Bronx. PS 11 is the oldest school in the Bronx area. 3 COUNCIL MEMBER JACKSON: The oldest 4 school? 5 MS. VERAS: The oldest school in the 6 Bronx, in Highbridge. 7 COUNCIL MEMBER JACKSON: In 8 Highbridge. 9 MS. VERAS: Yes, sir. 10 COUNCIL MEMBER JACKSON: Thank you, 11 you're doing a good job. 12 MS. VERAS: Thank you, sir. 13 COUNCIL MEMBER JACKSON: Next, Luz 14 Familia. Is that correct? 15 MS. FAMILIA: Yes. 16 COUNCIL MEMBER JACKSON: Did I 17 pronounce your last name correctly? 18 MS. FAMILIA: Fam-il-eeya. 19 COUNCIL MEMBER JACKSON: Fam-il-eeya. 20 Go ahead. 21 MS. FAMILIA: I'm Luz Familia, and I'm 22 here because I have a 13-year-old teenager who was 23 giving me a lot of trouble, and I was looking in my 24 neighborhood, in the area, and my son was struggling 25 in the school, was looking for a place for him to do 128 1 COMMITTEE ON FINANCE 2 something, baseball, basketball, something that -- 3 somebody to help him. I look in the computer and I 4 found out that the Alianza Dominicana have a lot of 5 program there. I didn't know that about it. In my 6 neighborhood I was looking for some place to put my 7 son. But when I went to the Dominicana, I called 8 them, they told me, okay, you live in another 9 neighborhood, that doesn't matter, we can help you. 10 He support me with my son. He is doing now better in 11 the school. He is out of the street. And I think 12 that cutting Alianza, what they're receiving now, is 13 going to be like cutting the wings of kids that want 14 to fly to a new origin. Like my son, he was 15 struggling in school, he was looking for something 16 to do, but I don't find anything for him. And now 17 I'm glad that Alianza is there supporting my son. 18 He is happy with the basketball 19 program that they have there, with the program, and 20 he is now happy with that. And I'm glad that the 21 Alianza is there to support the Hispanic community. 22 And also, there is minority people in the 23 neighborhood that are receiving benefits for what 24 Alianza Dominicana is doing. 25 COUNCIL MEMBER JACKSON: Your son is 129 1 COMMITTEE ON FINANCE 2 in high school? 3 MS. FAMILIA: He is from PS 279, in 4 seventh grade. 5 COUNCIL MEMBER JACKSON: Okay. Well, 6 not only is Alianza Dominicana there to support 7 Hispanic people, but all people that need their 8 services. All people. All people, not only minority 9 people. All people that need help, whether you're 10 black, white, Asian, green, it doesn't matter. All 11 people. You agree with that, right? 12 MS. FAMILIA: Yes. I'm really proud of 13 the people that work there, because I see how kids, 14 they behave differently in front of other children. 15 They know how to behave and they're doing a good 16 job. 17 COUNCIL MEMBER JACKSON: Okay. Well, 18 let me thank you all for coming in. We have one 19 panel left with two people. I'm going to ask if you 20 don't mind to listen to them and stay, so... 21 In the next panel, thank you very 22 much, Joseph Garber, member of the Neighborhood 23 Advisory Board No. 1, and Peter Kleinbard, from 24 Youth Development Institute. 25 Is there anyone else that needs to 130 1 COMMITTEE ON FINANCE 2 speak? 3 Please come forward. 4 Last, but not least, and let me just 5 say to all of you, if you have never heard Joe 6 Garber, this is a man that is so knowledgeable, he 7 sits and absorbs information and on a time clock, I 8 only know one other person that speaks just as fast 9 as he does, and that is Leonie Haimson from Class 10 Size Matters. They can beat the clock. 11 Joe Garber. 12 MR. GARBER: Good afternoon, Chair 13 Jackson, Committee Counsel. My name is Joseph 14 Garber. I'm a member of member of Neighborhood 15 Advisory Board No. 1 of DYCD, and Director of the 16 Civil Service Merit Council. 17 I will quickly discuss several 18 agencies. I want to commend DOT for issuing the 19 strategic plan. It's excellent. There are features 20 here to train community leaders how to assist DOT. 21 Also, I want to make mention on page 22 71, if Deputy Commissioner Leon Hayward is in the 23 audience or is going to listen to this, he is in 24 charge of sidewalks and inspection management. There 25 is a very critical issue in New York City, 131 1 COMMITTEE ON FINANCE 2 especially the sidewalk surrounding public housing, 3 that are cracked. And Deputy Commissioner Hayward 4 introduced some initiatives to try to get money, and 5 I'm sure this is a capital issue, to fix sidewalks 6 throughout New York City, because this will increase 7 lawsuits of slip and fall. 8 I want to commend Councilperson Liu 9 for doing an excellent voir dire in questioning the 10 MTA. He proved that they don't have any plans as far 11 as money that's in the budget, that they're misusing 12 it, they're forecasting wrong, they're following the 13 acronym of poor planning permeates poor performance. 14 I'm curious if the consolidation of 15 all three bus lines, the New York City Transit, Long 16 Island Bus and Private under Senior Vice President 17 Joe Smith, will have some impact. 18 I was listening to hear about Martha 19 Stark discussing the assessor issue, and I think 20 that was well, the President of the Local Assessors 21 and Council Member Weprin did a good voir dire. 22 Let me speak about DYCD. God-willing, 23 in Fiscal Year 2010, Chair Weprin should try to 24 ensure that the DYCD questioning is not only on 25 youth services but the entire DYCD. 132 1 COMMITTEE ON FINANCE 2 As a member of Neighborhood Advisory 3 Board No. 1 and former Chair and Secretary, we are 4 one of the 43 NABs that deals with surfacing issues. 5 Now it's interesting to note that in the testimony 6 that Deputy Commissioner Bill Chong of DYCD, 7 whatever the acronym DYCD stood for, he forgot that 8 the proper acronym is DY and CD, as per pages 328 9 and 329 of the Official Directory of the City of New 10 York. 11 I have some questions, how were the 12 Beacon programs identified and selected? The Young 13 Adult Internship Program should assist connected 14 youth as well as disconnected youth. On page four of 15 the testimony, when it talks about CBOs with 16 partners, okay, there is a problem that when the 17 RFPs are read by the readers of the respective NABs, 18 there is forcing by the NAB liaison, and in this 19 case Michael Forch (phonetic) of NAB 1 of Brooklyn 20 to reach a consensus. Well, I have always felt in my 21 knowledge of government, if it's not right, if it's 22 dishonest, you cannot reach a consensus. 23 So, they are forcing you to reach a 24 consensus. I think the way the NABs are directed by 25 DYCD to read a proposal has to be revamped, okay? 133 1 COMMITTEE ON FINANCE 2 Also, as far as the DY and CD, the 3 way they handle the literacy program, it has to also 4 be revamped. 5 Now, on page -- the concept, how the 6 NABs come up with the priorities, it's too limited 7 in scope. So, I think that this has to be looked on. 8 But I think the whole criteria is that the City 9 Council has to look at the entire DYCD, not only 10 Youth Services. 11 That's basically about it. Thank you 12 for listening. 13 COUNCIL MEMBER JACKSON: Thank you, 14 Mr. Garber. 15 And Peter Kleinbard from Youth 16 Development Insitute. 17 MR. KLEINBARD: Hi. Thank you very 18 much for having me and for your patience. I wanted 19 to speak about the Beacons. I don't have a lot to 20 add from the very moving statements that were made 21 by young people and leaders in the community. 22 Just briefly, our organization, the 23 Youth Development Institute, feels an especially 24 strong connection to the Beacons. We helped to 25 develop them in 1991, with the City of New York, and 134 1 COMMITTEE ON FINANCE 2 have worked with them closely over the years, both 3 raising private money, more than $15 million, and 4 doing training and regular meetings to support them. 5 We also work with six other cities to 6 develop Beacon programs - San Francisco, West Palm 7 Beach, California, Florida, Philadelphia and a 8 number of others. 9 New York City really started a 10 tremendous movement with the Beacons, it drove a lot 11 of after-school funding nationally. Has brought 12 about billions of dollars for young people, and it 13 is the place where people come when they want to see 14 how to do Beacon programming. 15 We bring people all the time from San 16 Francisco, Philadelphia, Denver, Minneapolis and 17 other cities, because our Beacons are the national 18 models, even though they have suffered very 19 substantial difficulties around funding. 20 The notion now of a budget cut that 21 would cut them below their initial funding 19 years 22 ago or 18 years ago would be a terrible loss and 23 setback for our City. Remember that when the Beacons 24 were initiated, there was tremendous crime in our 25 communities. Some of the schools in which Beacons 135 1 COMMITTEE ON FINANCE 2 now operate were surrounded by police officers at 3 that time. Today that is no longer the case, and the 4 Beacons have contributed enormously to those 5 changes. 6 We really need to strengthen this 7 model, to supplement funding, not to reduce it. The 8 Council has played a critical role in protecting the 9 Beacons, and I would hope that we can continue to 10 have your support in building them, maintaining them 11 as an example throughout the country of how New York 12 City really demonstrates the best kinds of support 13 for its communities. 14 Thank you. 15 COUNCIL MEMBER JACKSON: Well, thank 16 you, and thank the organization for helping develop 17 the Beacon Programs in New York City which started 18 national, and as you indicated, increased the amount 19 of funding for after-school programs around the 20 country. 21 Last, but not the least, last but not 22 least, Jara Lara. Is that how you pronounce your 23 name? 24 MS. LARA: Yes. 25 COUNCIL MEMBER JACKSON: Alianza 136 1 COMMITTEE ON FINANCE 2 Dominicana. 3 MS. LARA: Hello. Good afternoon. 4 COUNCIL MEMBER JACKSON: I can't hear 5 you. You have to come closer to the mike. Come on up 6 to the table. Put your book on the table. Don't put 7 the book in your lap. Get around there. And are you 8 in school? 9 MS. LARA: Yes. 10 COUNCIL MEMBER JACKSON: All right. 11 Tell us what school you attend. 12 MS. LARA: I attend LaGuardia 13 Community College. 14 COUNCIL MEMBER JACKSON: Excellent. 15 Where is that at? In Queens or Brooklyn? 16 MS. LARA: Queens, sir. 17 COUNCIL MEMBER JACKSON: I knew that, 18 but I just wanted you to say where it was. 19 What are you majoring in? 20 MS. LARA: Radiology. 21 COUNCIL MEMBER JACKSON: What? 22 MS. LARA: Radiology in nursing. 23 COUNCIL MEMBER JACKSON: I'm sorry, 24 what? 25 MS. LARA: Radiology in nursing. 137 1 COMMITTEE ON FINANCE 2 COUNCIL MEMBER JACKSON: Radiology? 3 Okay, excellent. 4 Go ahead. What's your name? 5 MS. LARA: Jara Lara. 6 COUNCIL MEMBER JACKSON: Okay. 7 MS. LARA: My name is Jara Lara and I 8 represent Alianza Dominicana Mosaic Beacon. 9 Before I started to work at the 10 Beacon, myself and three other youth, of women, 11 started our own non-profit called "Bronx Pride." 12 About two years ago Bronx Pride had lost its 13 funding. 14 Because of the loss of the funding, 15 our program had ran out. Due to running out, our 16 program, 60 percent of our youth is unemployed, 20 17 percent of our youth is incarcerated, five percent 18 of our youth is no longer alive, and the other five 19 percent is nowhere to be found. 20 Moving on, my point is, is that these 21 communities matter. They are not meant only for 22 space, they are also meant to be other people's 23 homes. And that's it. 24 COUNCIL MEMBER JACKSON: Sorry, that's 25 it? 138 1 COMMITTEE ON FINANCE 2 MS. LARA: Yes. Yes, that's it. 3 COUNCIL MEMBER JACKSON: Now, you 4 indicated that you and two other individuals started 5 a group called "Bronx Pride." 6 MS. LARA: Three others. 7 COUNCIL MEMBER JACKSON: Three others. 8 So, it was four of you. 9 MS. LARA: Yes. 10 COUNCIL MEMBER JACKSON: And you gave 11 some statistics. So, where did you get those stats 12 from? 13 MS. LARA: We try to meet up with our 14 youth that we used to work with before. But we 15 couldn't get a hold of any of them. We talked to 16 some of the families and that's where we got our 17 stats from. 18 COUNCIL MEMBER JACKSON: How many 19 people -- and the statistics that you got, which did 20 you, for example, interview 100 families, 500 21 families? 22 MS. LARA: Just the families that we 23 worked with, which was about, we used to work with 24 about 200 families, during school we would work with 25 about 150 families and in out of summer school, 139 1 COMMITTEE ON FINANCE 2 which would be our camp, we would work with about 3 200 families. 4 COUNCIL MEMBER JACKSON: And how did 5 you do the -- how did you ask the questions? Did you 6 do it with a -- 7 MS. LARA: We just tried to meet up 8 with the families to see if we can start our program 9 again. But the families were just, a lot of them had 10 lost the youth that was in the program, so a lot of 11 them weren't interested anymore. 12 COUNCIL MEMBER JACKSON: And, so, who 13 funded the program? You said you lost funding. 14 MS. LARA: We were funded, our main 15 funding base was an award that we won for being 16 young African-American women trying to start our own 17 program. 18 COUNCIL MEMBER JACKSON: And how long 19 were you funded for? 20 MS. LARA: About four years. 21 COUNCIL MEMBER JACKSON: Okay. 22 How much was the funding? 23 MS. LARA: $2 million. 24 COUNCIL MEMBER JACKSON: How much? 25 MS. LARA: $2 million per year. 140 1 COMMITTEE ON FINANCE 2 COUNCIL MEMBER JACKSON: $2 million 3 per year. 4 MS. LARA: Yes, sir. 5 COUNCIL MEMBER JACKSON: Excellent. 6 Okay, well, thank you for coming in. 7 Thank you all for coming in. We appreciate you 8 giving testimony on this very, extremely important 9 issue. 10 It is now 5:22, I believe, and there 11 are no other witnesses, and this Finance Committee 12 hearing, today is May 21st, is hereby closed. 13 (Hearing concluded at 5:22 p.m.) 14 15 16 17 18 19 20 21 22 23 24 25 141 1 2 CERTIFICATION 3 4 5 STATE OF NEW YORK ) 6 COUNTY OF NEW YORK ) 7 8 9 I, CINDY MILLELOT, a Certified 10 Shorthand Reporter, do hereby certify that the 11 foregoing is a true and accurate transcript of the 12 within proceeding. 13 I further certify that I am not 14 related to any of the parties to this action by 15 blood or marriage, and that I am in no way 16 interested in the outcome of this matter. 17 IN WITNESS WHEREOF, I have hereunto 18 set my hand this 21st day of May 2008. 19 20 21 22 23 --------------------- 24 CINDY MILLELOT, CSR. 25 142 1 2 C E R T I F I C A T I O N 3 4 5 6 7 8 9 I, CINDY MILLELOT, a Certified Shorthand 10 Reporter and a Notary Public in and for the State of 11 New York, do hereby certify the aforesaid to be a 12 true and accurate copy of the transcription of the 13 audio tapes of this hearing. 14 15 16 17 18 19 20 21 22 23 24 ----------------------- CINDY MILLELOT, CSR. 25