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Updated: Nutter enlists homeless providers to support soda tax
Updated: Mayor Spokesman Douglas Oliver returned an earlier call today. His response is below
Updated: Nutter enlists homeless providers to support soda tax
Updated: Mayor Spokesman Douglas Oliver returned an earlier call today. His response is below
How do you know the mayor is serious about the soda tax? He's putting the screws on homeless shelters.
In an email to service providers — scooped right out of my hands by my intrepid colleagues at It's Our Money — Dainette Mintz, Director Office of Supportive Housing and Deputy Managing Director for Special Needs Housing, asked that providers show up to this Thursday's budget meeting in support of the mayor's proposed tax on sweetened beverages.
It isn't exactly breathtakingly out of line for the administration — or any administration — to put a little good old fashioned pressure on departments to support a budget proposal.
But this request is a bit different: it's highly specific, being made to a department whose providers have had to cut services for several years in a row; and while departments are often asked to come and support a budget they're part of, the direct relationship between the Office of Supportive Housing and the soda tax isn't obvious.
In fact, it's a little convoluted, as expressed in the letter below. Some service providers seem befuddled:
"To support a patiucalr tax — that's unsusual," says one. "I'm not sure what we'd all do — come together and chant?" the provider added.
Larry Ceisler, a long-time Philadelphia media consultant currently working for the Beverage Coalition – which opposes the sweetened beverage tax – argues that the mayor, who has criticized the lobbying effort afoot, is effectively using a multi-million-dollar department to lobby.
"The mayor is playing hard-ball. I understand, I get it," says Ceisler. "What the proponents of this tax want to do is to shoot the messenger, the lobbyists and people asked to lobby for people who feel threatened by this tax Â… But if you look at that letter, and its implications, to me that's akin to a twenty-million dollar lobbying campaign."
Mayor Spokesman Douglas Oliver vehemently denies that the letter was anything other than an attempt by the administration to"make sure that our stakeholders are aware of the reality that we're facing as a city, and that they're facing as providers. And that they have an opportunity to voice their opinion if they should choose to do so."
As to why providers were being asked to support the beverage tax in particular, Oliver argued that since the rest of the budget has passed committee, the beverage tax essentially is the rest of the budget.
Asked if other departments' vendors were contacted in the same manner, Oliver said he wasn't sure, but that "Everything didn't necessarily go out at the same time on the same day."
Indeed, the Office of Supportive Housing isn't the only agency being called upon: an email from Health Commissioner Donald Schwartz to unknown recipients reads:
On Wednesday, March 17, 2010 Health Commissioner Donald Schwarz will testify about this important public health initiative. Â The hearing will begin at 10:00 am in room 400 in City Hall. Â Members of the public are invited to attend.
The mayor's press office did not immediately respond to a request for comment. Here, below, is the letter from Ms. Mintz:
Dear Colleagues:
As you may know, the City has been engaged in budget hearings with City Council in an attempt to pass a balanced budget for FY 11. Yesterday, Council passed a budget which included $17M in additional spending cuts; $4M in new taxes on smokeless tobacco and cigars; $7M in new revenue to be generated from additional trash pick up fees from small businessess and multi-dwelling residences; and, $ 86M in additional revenue to be generated via a 9.9% increase in property taxes for 2 years. City Council did not pass the Mayor's proposed Sugar Sweetened Beverage Tax.
The budget passed by Council will reduce the City's fund balance (cash on hand) to $ 42.5M and this will impede the City's ability to borrow money. The Administration believes that a fund balance of $ 42.5 M is insufficient and will result in an unstable cash position. A large percentage of the City's revenue is not realized until the beginning of each calendar year (January) and, in practical terms, the City may not have enough cash on hand to meet all of its contractual obligations over the next six months.   In addition, there is a concern that the State of Pennsylvania may not pass its budget on time just as what occurrred last year. If this happens, the City would not receive its cash payments from the State thereby further reducing the available cash on hand. That scenario coupled with the lack of additional incoming revenue and the inability to borrow money could result in the City freezing payments similar to or even worse that what was experienced last summer.
On Thursday, May 20, 2010, the Administration plans to go before Council to present the impact of Council's budget and the need to pass the Sugar Sweetened Beverage Tax.
While the Administration understands that the Sugar Sweetened Beverage Tax may not be popular, it is the only revenue generating proposal on the table. The Administration is therefore asking for a collective effort in support of this tax and that you show your support by coming to City Hall, 4th Floor on Thursday, May 20, 2010 at 10 AM.
As always, thanks very much for your continuing partnership with us as we work to end homelessness.
Dainette
So the city wants to close the budget deficit on the backs of the homeless residents I work with. My shelter has a single soda machine so that will make a big difference. This is the same city whose police department just announced it will longer respond to 911 calls for car accidents in which no bodily injury is reported. And this is the same city that was paralyzed by a Septa strike last year in which $26/hour bus operators and subway ticket booth collectors can continue to treat the public with disdain.
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