Closing the Funding Gap in

Philadelphias Public Schools

A Proposal

By
Sam Katz

March 12, 2015

Closing the Funding Gap in

Philadelphias Public Schools
A Proposal

March 12, 2015

For decades, Philadelphias public school system has confronted a massive resource
Services, programs, staffing and educational supports afforded students in wealthier
school districts have often not been available to students who attend Philadelphia public
schools. SRC Commissioner Bill Green recently observed, "the fundamental problem with
the district is that we cant get anyone to invest in us, because we cant get anyone to
believe that if they give us the money, we will be successful. That seems to be the number
one impediment to resources. From my perspective, this assessment is absolutely correct.
gap.1

Surely, money isnt the only thing that matters in preparing kids to become critical
thinkers, capable of competing for jobs and living self-sufficient lives and building a
foundation for good citizenship. But if money didnt matter, would the parents in Lower
Merion, Council Rock and Radnor be spending so much more of it to educate their children?
This proposal argues for modifying tax policy and using publicly owned
assets to narrow the resource gap in public education. It recognizes the critical
role in resource acquisition of corporate and foundation philanthropy. And it
argues for changing our long held practice of depending on the State to solve
this issue. Moreover, this approach says Philadelphia owns its schools, that
Philadelphias leadershippolitical, civic, clergy, labor, (notably the PFT who
are essential to the coalition that can make this plan happen) and business
has to evidence the will to exercise that ownership, and must finally accept that
closing the educational resource gap starts at home.
Since the 1960s, political leaders have argued that Harrisburg needs to do more. But
our experience has more often been disappointing even when the City has enjoyed
significant influence in State government, which it certainly does not today. Yes, Harrisburg
needs to do more. The fight for a funding formula that recognizes the poverty-wealth

1

Among other resources that address the data on this point, see:
(1) http://www.pewtrusts.org/~/media/Assets/2015/01/PhiladelphiaSchoolFundingReportJanuary2015.pdf?la=en; (2)
http://www.openpagov.org/school-spending/sdefault.asp ; (3) http://thenotebook.org/summer-
2007/07106/school-spending-student-southeastern-pennsylvania; and (4)
http://www.gse.upenn.edu/pdf/school_funding_summary_findings_steinberg_quinn.pdf

Closing the Funding Gap in Philadelphias Public Schools: A Proposal

disparity and for legislation that addresses the deficits created from student transfers to
charter schools are both critical intergovernmental issues. But I would argue our chances of
doing better improve dramatically only by demonstrating that closing the educational
resource gap is this citys top priority. We do more first! We show Harrisburg the money!
We evidence our commitment. We act like parents and take care of what our kids need.
I believe the place to start is with local tax policy and not tax rate
increases. The local tax base is the principal source of funding all government services of
which by far the single largest is public education.2 In response to the fact that our tax
system has a significant deterrent to job creation and economic growth, weve implemented
numerous breaks and transactional fixes to stimulate the citys economy. To address that,
policies to stimulate investment have been layered into the Citys tax regime. These multiple
tax policies and practices inadvertently contribute to the educational resource gap. Every tax
subsidy that drives one economic activity takes a bite out of revenue that would otherwise
flow to schools. We have always formed the policy question around jobs and development.
Now it is time we asked the question, can public education meet the needs of its students
with fewer resources so that other economic interests can accomplish more?
The second element of the strategy to address the school funding gap
should focus on the municipal pension crisis. A recent PICA staff report3 frames the
issue effectively. Philadelphias hugely underfunded municipal pension system (a $5 billion
unfunded liability in a pension system only 47% funded) is an enormous risk for employees,
retirees and taxpayers. It is also a major problem for closing the educational resource gap.
The financial and budgetary dots between the pension crisis and public education all
connect. Heres how.
The City treats that massive unfunded pension liability like mortgage
debt. The annual costs to pay off the debt approximate $464 million. There is
only one-way, long term, to address this crisis and that is to infuse the pension
system with capital. In doing so, lowering the appropriations to amortize unfunded
liabilities will enable the City to address both the pension crisis and school-funding gap,
simultaneously.

2 The combined City and School District budgets for FY15 total in excess of $7.1 billion. The School District
will spend $2.6 billion or 36.6% of that total.
3
http://www.picapa.org/docs/OW/Philadelphia_Pension_System_012015.pdf
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Closing the Funding Gap in Philadelphias Public Schools: A Proposal

And the third element is philanthropy and private investment. Not so long
ago a sizable level of community philanthropy was invested in public education. Rather, we
need to engage philanthropy and private capital in supporting public educational initiatives
beyond what is afforded by the Districts operating budget. 4 There was a time when public
schools had powerful and supportive allies in the private sector, both corporate and
philanthropic. The civic and business community was organized to help schools. Today,
although there are uncoordinated important initiatives5, one would be hard pressed to
identify a similar sense of broad community spirit that supports strengthening schools.
Public finance including additional taxes, on property, sales and cigarettes, has generated
important allies, but private financial support for public schools remains in a deficit
position.
Each of these strategies, modifying tax policy, addressing the pension crisis head on
and developing a private philanthropic investment plan, collectively could help Philadelphia
narrow the school resource gap. Once underway, our messaging to Harrisburg will entirely
change and should strengthen the prospects for more financial support from the
Commonwealth, as partner. The Wolf Administration has outlined a very ambitious
program to increase educational spending. Exactly how much incremental state funding will
materialize will be known once the FY16 Commonwealth budget is approved (presumably by
June 30th). The challenge has been and will continue to be persuading the General
Assembly.
If citizens and our elected leaders considered the following, Philadelphia could make
a significant dent in closing the educational funding gap.
Tax Policy. Can Philadelphias schools afford to forego tax revenues to enable
higher education and hospitals among other non-profit enterprises to remain tax-exempt for
real estate tax purposes? Is the trade-off in tax revenue to continue 100% 10-year tax
abatement sustainable for schools? Should we be examining other tax incentives that incent

4

In the late 1990s, the Annenberg Foundation initiated Children Achieving that provided $50 million to the
School District of Philadelphia. This project met with less than robust results. I am not making an argument
for re-instituting that program; only that there was such a significantly resourced private initiative. For more
information on that program see: http://www.annenbergfoundation.org/about/directors-
activities/annenberg-challenge/challenges-sites
5
For examples visit: (1) http://www.williampennfoundation.org/ClosingtheAchievementGap.aspx; (2)
http://www.philaschoolpartnership.org/ ; (3) The Neubauer Family Foundation is funding a huge project to
provide for school leader development for all three sectors of schools (will be called Philadelphia Leadership
Academy).
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Closing the Funding Gap in Philadelphias Public Schools: A Proposal

private companies to locate to special zones or utilize other tax incented financing? Can tax
collection and enforcement practices be accelerated to drive more funding to education?
Can we continue to engage in a policy of transactional economic subsidy when one of the
clear impacts creates so much inequity for the school kids of our city?
What needs to change?
First, we need to change the policy of tax exemption for most non-profits.
Religious institutions, K-12 schools, social service agencies and others that address at risk
constituencies should continue to be exempt from real estate taxes. Obviously, this is
complicated but there are enough wise people to make it work. Whether we assess the value
of land and improvements so that eds and meds pay a rate that becomes a PILOT
(payment in lieu of tax) or follow the proposal made by Council President Clarke for a
partnership approach is a matter for study and debate. Boston, a city of 645,000, roughly
41% the size of Philadelphia, collected $25.9 million in PILOT payments (plus non-cash
community benefits) in FY2014.6 Philadelphia should have a target between $45-50
million annually in new tax revenue to flow from this source. It may be wise to step up to
these funding levels in a scaled manner.
Clearly, some important research has been
conducted in support of opposition to PILOTs 7. There is no argument that area hospitals
and universities add greatly to the citys vitality. But it is equally true that the population
that lives here creates the market and corresponding revenue streams for services supplied
by the area health care institutions. Similarly, the cultural life, infrastructure and
transportation services, diverse neighborhoods and communities make Philadelphia a
magnet for faculty, administrators, researchers, physicians and students of area universities
and medical centers. There are real costs to make a community great and real sacrifices that
also have to be made. It is time for current property tax exemption to be fixed.
Next, we need to re-examine the tax abatement, tax incentive districts
and opportunity zones, tax increment financing, and other site and project
specific mechanisms designed and implemented when Philadelphias economy

6

Boston received $25.9 million in PILOT contributions in fiscal year 2014, a 71.0% increase over what was
previously paid under the prior PILOT program in fiscal year 2011. This amount represents 74.8% of the $34.6
million requested PILOT amount. In all, 49 private institutions from the educational, medical, and cultural
sectors were identified as owning tax-exempt property valued in excess of the $15 million threshold
established in the PILOT guidelines. Note that neither Harvard nor MIT are located in the city of Boston.
http://www.cityofboston.gov/assessing/PILOTProgram.asp.
7
See Econsult Solutions report, The City of Philadelphia and its Higher Eds: Shared Goals, Shared Missions,
Shared Results at http://www.econsultsolutions.com/report/35740/
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Closing the Funding Gap in Philadelphias Public Schools: A Proposal

was in the tank and there was a pressing need to address job loss and economic
decline. Most studies that have been done to explore the impacts of these tax incentives
have found them to be extremely important and effective. None of these studies have ever
evaluated the impact of these tax subsidies on public education resources. It is obvious that
if the question was asked from the perspective of public education funding, researchers
might have different answers regarding whether or not these incentive arrangements should
be implemented, what their structure might look like and how long they should remain in
place. For example the ten-year property tax abatement might be valuable to create
affordable and low-income housing outside of the gentrification zone. But within the
widening Philadelphia zone of gentrification, real estate is red hot. The studies that have
concluded the value of tax abatement seem to assign extremely high correlation between
abated taxes and development/investment decisions.8 Financially, the loss of these revenue
streams in the future matter to school finance. Over the past decade, property tax
abatements would have generated $44.2 million for the School District.9 Im not arguing for
the elimination of tax abatement or the other programs intended to incent re-location and
economic development but I am convinced that too much value is assigned to real estate
expansion and tax incentives. There may be good reasons to continue to use them
selectively. But these should be predicated on todays market conditions and should focus
on locations and construction sectors experiencing disinvestment. Far too often, tax policy
stays in force well beyond its useful life. So it is time that all of these practices come under
close scrutiny and that the mechanisms, terms and longevity be re-calibrated to current
market conditions and real needs.
This change in approach reflects a policy of investing in human capital as well as in
physical capital. Most experts argue that labor costs necessitate the abatement for new
construction. If we could finally address the relative competitiveness of our convention
center costs with labor, perhaps the time is right to negotiate construction labor agreements
that will enable additional tax receipts to flow to education.10 A recent column in the
Philadelphia Daily News11 reporting how much better the experience is for exhibitors at the

8

See Kevin C. Gillens April 2013 report, Philadelphias Ten-Year Property Tax Abatement at
http://www.biaofphiladelphia.com/ufiles/abatement_report.pdf .
9
The total value of taxes abated during this period (FY 2005 to FY 2014) according the City Revenue
Department was $98.5 million of which $44.2 million would have been collected by the City assuming the
real estate development of abated properties had occurred.
10
Gillens report observes Philadelphia has the 4th highest cost of construction of any city in the country,
which is also 25% above the average national cost. (page 1)
11
http://www.philly.com/philly/news/20150301_It_s_a_new_day_at_the_Flower_Show.html
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Closing the Funding Gap in Philadelphias Public Schools: A Proposal

Pennsylvania Convention Center creates a sense of optimism about a new collaboration with
labor to tackle this issue in the interests of strengthening funding for schools.
Finally, the City needs to address the absurd and embarrassing
performance of its tax collection system. Several years ago, this was made a top
priority. There has been much progress to report on collecting current tax obligations.12 Yet
more than $1.2 billion of uncollected taxes and obligations due the City and School District
remain outstanding. In excess of $820 million (68%) of this amount is owed in real estate,
water and gas bills.13 The underlying value of the real estate on which these delinquencies
remain outstanding is in the billions of dollars. In view of this incredible disconnect, experts
in the real estate market and professionals in the tax collection business believe that
Philadelphia could realize between $250-$400 million in collected taxes on this unpaid
delinquent inventory. There are simply no excuses for not aggressively taking the steps
necessary to collect. Yes, this is complicated but it is also the lowest hanging fruit. We need
to make collecting collectible taxes a top revenue priority. This situation also needs to be
cleaned up. Those delinquencies that are irrevocably uncollectible should be written off. A
major initiative on this through tax lien sales, for example, could seed fund the educational
endowment and kick-start private sector philanthropy. It would also send a powerful
message to tax deadbeats that Philadelphia is no longer willing to look the other way when it
comes to collecting delinquent payments. It is unlikely that the skills and enforcement
culture is sufficiently present within City government to do this (or else it would have
already been done). This may be an area where third party engagement, for example
through wholesale tax lien sales and outsourced collection entities, could prove very fruitful.
Given that the City realizes no current revenue from tax exempt, tax abated, tax free
zoned and tax delinquent properties, it would be smart to define a ten year period during
which all of the new revenue generated from reforms in these areas be dedicated solely to
the School District. A goal of $75 million annually recurring locally generated fundingnot
requiring tax increases--is achievable.

12
As reported by the Pew Charitable Trusts at http://www.pewtrusts.org/en/research-and-analysis/fact-

sheets/2014/12/philadelphia-improves-on-collecting-delinquent-property-taxes and
http://www.pewtrusts.org/en/research-and-analysis/reports/2013/06/27/delinquent-property-tax-in-
philadelphia-stark-challenges-and-realistic-goals and at http://www.pewtrusts.org/en/research-and-
analysis/fact-sheets/2014/12/philadelphia-improves-on-collecting-delinquent-property-taxes
13
Data acquired from Philadelphias Office of Property Assessment.
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Closing the Funding Gap in Philadelphias Public Schools: A Proposal

Pensions. Reforming pensions is an important goal and the PICA report has offered
some excellent recommendations.14 The General Fund includes $687 million15 in FY15 to
fund our municipal retirement system, making it abundantly clear why we cant adequately
finance infrastructure, lower wage taxes or adequately support public education. Only one
strategy will make a dent on this crisis and that is to infuse the pension fund with cash.
Selling bonds is an inflexible funding tool and the capital markets are skittish about this
option that, if widely exercised, could flood the markets. Relying on annual appropriations
has undermined our capacity to address other needs. Awaiting a federal or Commonwealth
bailout is a pipe dream given that most state and municipal pension systems are deeply
underwater. If you question that assertion one only needs to look at the situation in
Pennsylvania where, combined, the State employees and teachers pension funds have a total
unfunded liability of $50 billion,16 and where State annual appropriations to retire that
liability are woefully inadequate. 17
What we can do to generate cash for the pension fund is look to resources the city
owns. We can sell or otherwise monetize profitable operating assets, the businesses that
Philadelphia simply does not need to be in. I have long supported the sale of PGW for
precisely this purpose and reason.
Perhaps City Council partnering with a new
administration can structure an approach that will generate an infusion of cash from a
public-private partnership.18 We should all be agnostic about the legal structuring that
enables monetizing these assets but we need to be purposeful in pursuing this. And we dont

14
I might not be totally objective. This research for that report was initiated while I Chairired the PICA Board,

on which I served from February 2011 to February 2014. A copy of that report is referenced above in
footnote 3.
15
This amount includes $92.2 million in normal costs (employer contributions), $464 million to amortize the
unfunded liability and $131 million for debt service on the ill advised 1999 $1.2 billion of Pension Obligation
Bonds. The amortization costs represent 10.9% of all General Fund spending. In FY03, these costs
represented 2.9% of General Fund spending.
16
Actuarial reports on the State Employee Retirement Systems unfunded liability at June 30, 2013 calculated
that liability to be $17.9 billion. For the same date, the unfunded liability of the Pennsylvania School
Employees Retirement System was $32.6 billion. There are more than a few actuaries who believe that both
of these calculations understate the dimension of this liability and that the actual combined number exceeds
$60 billion.
17
Consider that with unfunded liability of $5 billion, Philadelphia appropriates $465 million to amortize its
pension problems. Pennsylvanias problem is 10 times larger while its amortization appropriates is only three
times the amount that Philadelphia funds.
18
For a discussion on what public private partnerships are and how they can work see:
http://www.ncppp.org/ppp-basics/7-keys/
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Closing the Funding Gap in Philadelphias Public Schools: A Proposal

need to own our gas business19 anymore than we need to own our airport, our water
business or the parking business. All of these can and will command excellent valuations in
the municipal infrastructure marketplace and their sale or lease can generate the significant
cash needed to address the pension problem. If these operating business are not
municipally owned or operated, will we still turn our faucets on and get water, get gas to
cook and heat, be able to fly in and out of PHL and find places to park our cars? Everyone
knows the answer is that we most certainly will.
Consider this simple math. For every dollar transferred to reduce unfunded pension
liability, the City can reduce its annual appropriation by 8-9 cents. For every billion dollars
used to reduce the liability, annual appropriations would be reduced by $80- $90 million. If
PGW can generate $600 million net of funding its employee pensions20, pay off PGW debt
and fund certain reserves, Water, Airport and Parking should be expected yield at least an
additional $2.2-$2.6 billion in net proceeds.21

19

Among the 25 largest cities in the U.S., Philadelphia, San Antonio and Memphis are the only ones that own
their gas business. See: http://www.apga.org/files/public/11-23-09Top100.pdf and
http://www.factmonster.com/ipka/A0763098.html .
20
I think the best case for selling PGW is (unintentionally) presented in the report prepared for the
Philadelphia City Council by Concentric Energy Advisors, Inc. in October 2014 and can be read here:
http://phlcouncil.com/wp-content/uploads/2014/10/FA-Report-Final-October-2014.pdf
21
Applying valuations to the Water, Aviation and Parking operating businesses of Philadelphia absent careful
analysis is difficult guesswork. PGW and the Philadelphia Water Department are comparable in gross
sales/revenues, approximating $650-$700 million annually. There is significant upside in the water business
versus gas. Historically net revenues after operations total approximately $240 million for Water and $120
million for PGW. Outstanding Water Revenue Bonds approximate $1.7 billion (see:
http://www.phila.gov/investor/pdfs/OSPhiladelphiaWater2014A.pdf, page 149) while Gas Works Revenue
Bonds are slightly in excess of $1 billion (see:
http://www.pgworks.com/files/pdfs/FY2013AuditedFinancialReport.pdf, page 18). The Water business
should generate $3.5-$4.0 billion and could net the City in excess of $1 billion. Aviation is harder to gauge
since there have been no sales of major American airports. A Federal demonstration program
(http://www.faa.gov/airports/airport_compliance/privatization/) granted Chicago the right to sell Midway
Airport but that sale has not been executed although the original plan called for a 99-year $2.5 billion lease.
Perhaps PHL could seek to replace Midway in the Federal demonstration program. Major airports around
the world have been fully or partially transferred to a variety of ownership groups each with varying levels of
success. The sale of PHL and its Philadelphia Parking Authority garages, one PPAs major money generators,
would likely need to be executed in tandem for the City to realize the full value of an airport sale. The sale of
the Lisbon, Portugal airport was completed in 2013 for $4 billion (see: http://reason.org/files/apr-2014-air-
transportation.pdf). Finally, in conversations with a major investment banking firm several years ago, I was
advised that a sale of the Philadelphia Parking Authoritys operating business and assets could generate
between $300-$400 million in net proceeds.
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Closing the Funding Gap in Philadelphias Public Schools: A Proposal

If the Citys pension fund experienced an infusion of $3.0 billion22, 60%, or nearly
$280 million would be cut from the $465 million cost of amortization unfunded liability.
Take a sizable portion of those savings and dedicate it to schools and an additional $180
million to invest in the future of the children of this city would be available. The balance
might be used to increase pension fund amortization, invest in much needed infrastructure
or help enable wage tax reductions. Some have suggested that this strategy represents a
one-time benefit. That is wrong. These amortization costs are recurring annually. These
savings would materialize annually as well.
I recognize that opponents to these proposal will use politically charged messages like
privatization, threats to workers, higher utility rates, loss of development incentives,
the great things that the largest non-profits do for the city and more. There are valid
arguments and concerns to be considered, debated and addressed. The lease, sale or
partnership of these services is a very difficult strategy, no doubt. There are many issues to
be addressed with employees, their unions, regulation, rates and charges, legislation, the
FAA, the PUC, etc. But when a community makes a huge commitment to invest in the
education of its children and in its economic future, there is nothing but hard and complex
choices to make. The alternative? Wait for Harrisburg to finally come through. And that is a
bet we should not be willing to make.
Philanthropy. We ask much of the charitable institutions and philanthropic
individuals of Greater Philadelphia. But it would be myopic to fail to observe that the
charitable landscape has undergone an extraordinary transformation. The Annenberg
Foundation has moved to California. The Pew Charitable Trust has re-defined its mission as
a public charity. The Lenfest Foundation has donated much of its considerable resources.
Harsh economic conditions have imposed great demands on a shrinking asset base of local
charitable institutions. Certainly there are wonderful examples of generous giving, both
institutional and individual, to support a variety of educational initiatives throughout the
city. A read of the recent study commissioned by the William Penn Foundation23 shed
interesting light on the imbalance of charitable needs (in this instance in the arts) and the
supply of philanthropic resources. It is likely that this imbalance is even more acute in basic
education and other human service needs.

22

Or alternatively, an endowment could be created, with the funds invested and the investment income used
to cover the annual amortization expenses now paid to the Pension Fund by the General Fund.
23
Reported by the Inquirer at http://articles.philly.com/2015-02-09/news/58933303_1_arts-groups-arts-
community-william-penn-foundation
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Closing the Funding Gap in Philadelphias Public Schools: A Proposal

Philadelphia needs a massive endowment to generate significant annual income

streams to enable the School District to take on important projects beyond the basics. These
might include leadership development, professional development, after school programs,
and a host of options too numerous to list here. To create such an endowment will require
articulating a powerful vision and mission for public education, building confidence in the
leadership team empowered to execute on that vision and a universal acceptance that a new
level of community philanthropic responsibility is part of the equation. Only the investment
income of such an endowment should be incorporated in educational budgets. Might it be
possible to see that endowment grow to $1 billion over ten years and provide supplemental
support for schools in perpetuity? The city could kick start such an effort by dedicating the
collections from its currently uncollected tax delinquencies. Earlier, I suggested that there
might be as much as $400 million that could be generated (e.g. through a tax lien sale).
Investing what is collected through aggressive initiatives in this endowment would send a
powerful message and give such an initiative a much-needed launch. If the use of the
endowment earnings was driven by analytics of what really works, a successful marketing
program should enable securing support for this endowment fund beyond the geographic
confines of Greater Philadelphia.24
What is the rationale and how might the math work for such a dramatic
change in priorities and funding? Anyone who has read this memorandum to this
point is likely thinking about all of reasons, obstacles and political factors that render this
thinking impractical in Philadelphia. Ive been here all my life and know that getting even
little things done is a big deal. But this is a new time of bold thinking, optimism and
demographic change. The momentum weve built is only sustainable if we bend the poverty
curve. Will Philadelphia move towards a 35% rate of poverty or towards a 25% rate? The
answer to that question will determine whether we can sustain a viable future for the city. If
anyone knows of a way to do that aside from creating an educated workforce and citizenry,
Id love to hear it. But history shows that the path to success in every generation where
poverty has afflicted any demographic group has been through education and opportunity.
This plan envisions $250-$300 million annually in incremental locally generated
funding, for public education. Im convinced that rather than relying on any mayors
political skills with Harrisburg, though certainly valuable, that Philadelphia propose a new

24
The widely touted $100 million investment that Facebook founder Mark Zuckerberg made in the Newark

school system was largely considered a failure. Why that was and what lessons might be learned for schools
districts like Philadelphia that seek significant philanthropic infusions was reported in an excellent article in
the New Yorker and can be read here: http://www.newyorker.com/magazine/2014/05/19/schooled
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Closing the Funding Gap in Philadelphias Public Schools: A Proposal

bargain to leaders in the State capital, one in which we demonstrate a re-set of our priorities,
that we want to be the nations leaders in educating our students. We need Harrisburg as a
partner on many fronts. This time Philadelphia is taking the lead. Were putting our money
where our mouths are. Were asking to match us to the maximum extent possible. I cant
predict what that might look like dollar wise. But consider that if that added $100 million in
new state money to the $25o million in new municipal money and $50 million in private
philanthropy, the School District of Philadelphia would have additional resources of $400
million, $4 billion over 10 years.
There is also the need for a public debate about delivering educational
services, about public, charter, magnet, parochial, home, cyber and other
schools and platforms through which our citys children learn. That is a
conversation for another moment and one I look forward to joining. But the
compelling argument I am hopeful of making here is that by prioritizing in financial terms a
major turnaround for todays 230,000 (and growing) public school population with $400
million new dollars annually we would make a major close the gap move. The imagination
ignites with what strong leadership, well supported political, by parents and private
In addition to moving the needle on the educational resource gap, this set of
proposals would:
Fully fund the pensions of employees and retirees of the Gas Works, the
Water Department, the Aviation Fund and the Parking Authority;
Eliminate the pension crisis confronting Philadelphias municipal
employees, retirees and taxpayers;
Kick start a renewed level of civic, business, and philanthropic commitment
to strengthening public education in the city;
Stimulate a debate about re-structuring tax incentivized economic
development policies;
Start a conversation and (hopefully, a negotiation) about how to bring
down the cost of labor in construction so as to free up abated and other
incentivized tax allowances to become available for public schools;
Free up additional funds in the General Fund budget of the City to be used
for infrastructure investment and wage tax relief;
Enable Philadelphia to demonstrate its renewed commitment to funding
education;
Change the dynamic in our State government relationship; and
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Closing the Funding Gap in Philadelphias Public Schools: A Proposal

Enhance our self-image and global image as a 21st century city ready to
address its educational and financial challenges.
Conclusion. This is an election year. A focus on polls, the horse race, media buys,
independent expenditures, and negative campaigning often overwhelm issues. But
campaigns can be highly valuable when they generate debate around our most important
needs and concerns. The 2015 Mayoral campaign is our best opportunity to clarify the kind
of city we want Philadelphia to be.
Philadelphia can no longer afford and should not be content with incrementalism.
There are thousands of young people facing a fork in the road, students in failing schools
and families with school age children and lots of choices.
Were their parents, not just to our own kids and grandkids, but to all of the kids in
this city. We, all of us, need to take care of their futures. We have important decisions to
make, hard ones requiring serious sacrifices.
Time is not our childrens ally. Lets focus on moving the needle and solving this
deficiency.
I hope youll post your comments and reactions at www.citizensam.net and that youll
talk to your network about these and other ideas.
Thanks for engaging.

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