Ernest E. Jones, Chair

Philadelphia Safe and Sound

February 21, 2008

            Good afternoon, Majority Leader and Committee Chairman Tasco, members of

 

the Committee, and other City Council members. I am Ernest Jones, volunteer chairman

 

of the board of Philadelphia Safe and Sound, a position I have held since 2000.

 

Seated alongside me is Anne Shenberger, President and CEO of Safe and Sound, since

 

January 2006.

 

            Thank you for the opportunity to appear before you today. A cutback in program

 

funding that has been very troubling for all concerned was the immediate situation that

 

triggered this hearing. But we also know that there are ongoing questions and even

 

misconceptions about Philadelphia Safe and Sound that we are eager to answer. Our

 

organization is not perfect; we are open to fair criticism and suggestions for

 

improvements. We know that we must be accountable to our many stakeholders: state

 

and local taxpayers, elected officials, service providers, and the children and families

 

who depend on us.  We also believe that we have built a strong record of quality

 

performance that deserves to be better known. So we appreciate the opportunity to

 

provide information today, to let the sun shine in, and ultimately to turn our collective

 

attention to what matters most: the well-being of Philadelphia’s children and youth.

 

            Because I have been with Safe and Sound almost from the start, I would like to

 

begin with some history about our organization. I believe that is helpful to know where

 

we’ve come from so we can assess our performance and determine the directions in

 

which we should go.

 

            Safe and Sound was launched in 1997 with a multi-year Urban Health Initiative

 

grant from the prestigious Robert Wood Johnson Foundation. Philadelphia competed for

 

this grant by responding to RWJ’s invitation to cities across the country to explore the

 

possibilities of developing an initiative to create programs and take actions to foster the

 

health, safety and well-being of the city’s children. Mayor Rendell’s

 

Administration, led by Health Commissioner Estelle Richman now Secretary of the

 

Department of Public Welfare and Human Services Commissioner Joan Reeves,

 

convened a diverse group of community leaders to develop ideas and plans for the new

 

initiative. The result was a winning proposal, selected as one of only five in the nation, to

 

establish Philadelphia Safe and Sound. The initiative was not established as a separate

 

organization; rather, it was  set up under the oversight of Philadelphia city government

 

and the city was the actual grant recipient. The original intent of Philadelphia Safe and

 

Sound, therefore, was and remains to operate as a partner to local government, applying

 

its independent capabilities and expertise to improve systems and services aimed at

 

strengthening the health and welfare of our city’s children.   

 

            In 2000, Safe and Sound obtained its separate 501(c)3 nonprofit

 

certification from the IRS.  At that time, the Board of Directors was formed and we are

 

fortunate to have a knowledgeable, committed and representative group, from both 

 

business and the nonprofit arena, willing and able to set the policies and guide the

 

organization’s direction and growth. Nearly half of our current Board members were

 

recruited since Ms. Shenberger became CEO. Our board now includes: The Honorable

 

Lillian Harris Ransom, Vice Chair; Patricia DeCarlo, Secretary; Michael Karp, Treasurer;

 

David Allen; John Chin; Walter Clayton; Paul DiLorenzo; Robert Listenbee; Edward

 

McBride; Thomas McKenna; Bernadette Mulligan; Jan Shaeffer; Michael Pearson;

 

Loraine Ballard Morrill; Vincent Thompson; and Leonard Caldwell. We remain

 

interested in adding leaders who will further strengthen our complement and broaden

 

our skills and perspective.

 

            Similarly, Safe and Sound has benefited from qualified, professional staff.

 

The initial search committee under Mayor Rendell selected Naomi Post Street, an

 

experienced attorney and child advocate, to head Safe and Sound. We all know that this

 

selection created a public cloud and political legacy for Safe and Sound.  Nevertheless,

 

under Mrs. Street’s leadership Safe and Sound got off to a good start, developing its

 

signature research products—the Children’s Report Card and the Children’s Budget,

 

conducting a corporate fundraising campaign, and collaborating with city government

 

and other agencies to launch valuable programs including after school and Beacon

 

centers and the Youth Violence Reduction Partnership (YVRP). The Robert Wood

 

Johnson Foundation followed its initial four-year grant with another financial 

 

commitment, signaling its satisfaction and confidence in the performance of Safe and

 

Sound.

 

            Naomi Post Street left Philadelphia Safe and Sound in 2002—six years ago. 

 

Today’s leadership team, headed by Anne Shenberger, a 30-year veteran of child

 

advocacy and social service management with the Pennsylvania Department of Public

 

Welfare, has the experience and skills needed to run a top-notch organization. It is time

 

to recognize a new day at Philadelphia Safe and Sound.

 

            The board of Safe and Sound takes its fiduciary responsibilities very seriously.

 

Our numbers are closely reviewed by the city and over the years, our auditor—Mitchell

 

& Titus has issued clean audits, including the most recent one.

 

Those audits are available to the committee. Safe and Sound is continually reviewing its

 

policies and practices to foster responsive and responsible financial management. We

 

understand that the Commonwealth’s Department of Public Welfare intends to conduct a

 

new audit and the City Administration will be sending in an assessment team. We

 

welcome both.   

 

 

Our financial affairs are conducted with competence, candor and communication between the board and staff. We operate in a complex and often uncertain financial atmosphere inherent in the public sector budget process. Safe and Sound must adhere to the priorities and processes of each city Administration, balancing them with the capacity of the organization to deliver what is required of us.

 

            The $21million budget addition that brings us here today was one of those

 

difficult and complex situations. It is important to set the record straight as to precisely

 

what transpired, not to blame others or absolve Safe and Sound but to help you

 

understand the dynamics of the past several months and possibly suggest procedures that

 

could avoid future occurrences. For over a year now, Safe and Sound has been

 

dealing with the conflicts and consequences brought about by the previous

 

Administration’s directive to gear up for a significant expansion of anti-truancy and

 

violence prevention programs in FY ‘08. These priorities were well-publicized. Even

 

though the State Department of Public Welfare denied the city’s request for increased

 

funds to support these services, in August of last year Safe and Sound was provided with

 

a signed, fully authorized contract for $75 million, incorporating the $21 million increase,

 

and therefore was obligated to begin fulfilling the requirements of the budget and

 

contract. In October, when City Council did not act on a transfer ordinance to

 

appropriate the additional dollars, Safe and Sound issued a letter to its providers advising

 

them of the budget situation and suggesting that they evaluate expenditures and possible

 

actions to be taken. Safe and Sound put a hold on filling budgeted positions. Through

 

December, Safe and Sound submitted multiple revised budgets and contingency scenarios

 

to accommodate the actual amount of available funds, but the City Administration did not

 

accept them and instead instructed Safe and Sound not to curtail

 

programs or lay off staff. 

 

            Although Mayor Nutter has now announced his intention to reinstate the

 

programs Anne will describe in more detail the steps that Safe and Sound took to

 

identify, recommend and implement program and administrative cuts since being

 

informed last month that the additional monies would not be forthcoming. We are well

 

aware that the    new Mayor and City Council were put in a very difficult situation,

 

squeezed between raised expectations and insufficient funds. Our community providers,

 

Safe and Sound itself, and most important, the children and families we serve were

 

caught in this squeeze as well.  We were motivated only by a desire to expand services

 

for children and youth. Now it is important for us to work together to provide continuity

 

of services and avoid future disruption. Safe and Sound’s annual budgeting process

 

always has had its share of uncertainties and challenges, but this experience has made us

 

even more cautious and vigilant.     

 

            While addressing immediate problems, it is also important that we collectively

 

and cooperatively focus on the future for the good of our kids.  

 

Beyond the budget, Safe and Sound is eager to work cooperatively with city

 

government and other community organizations to develop the best possible approaches

 

to meeting the needs of children and families. Safe and Sound has much to offer in the

 

way of research and program development, contract management, program

 

evaluation, a system of provider support and access to national networks. Yet its role as

 

a support organization to city government is not unique.  Departments rely frequently on

 

the good work and assistance of other partner and intermediary organizations, such as the

 

Philadelphia Health Management Corporation, PMHCC, and the Greater Philadelphia

 

Urban Affairs Coalition.  It is important for City Council and others to fully understand

 

that Safe and Sound is not given a pot of money to do whatever it wants with it. In fact,

 

Safe and Sound allocates the money into programs as directed by the Department of

 

Human Services (DHS). The vast majority of money is then forwarded to provider

 

organizations. Our job is to provide appropriate oversight, program management and

 

support and evaluation. Put another way, the current situation we find ourselves in is not

 

because there is a Safe and Sound or any other fiscal intermediary. This problem would

 

exist regardless because the administration’s directives would have been carried out

 

directly by DHS.

 

We believe that Safe and Sound has provided value over the years by providing

 

programmatic oversight and support and objectively evaluating the effectiveness of the

 

programs. It is our hope and commitment to do everything within our power to make the

 

controversies that have surrounded Safe and Sound become old news so that we can

 

provide even more value.

 

            But much more important than the standing of Safe and Sound is the standing of

 

Philadelphia’s children. We all should be proud that Philadelphia has built a network of

 

constructive violence-prevention and youth development programs that has brought our

 

city national recognition and made a difference in the safety and well-being

 

of children and teens. And we all know that much work remains to be done. So we will

 

be pleased to answer your questions about Safe and Sound to the best of our ability today

 

and provide all of the information you seek. Afterwards, I hope that together we can

 

focus on fulfilling our commitments and aspirations for young people and determine how

 

Philadelphia will go forward to provide the highest quality services, cost effectively, with

 

the least disruption and greatest accountability.

           

            Thank you.