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Interview with Alan Butkovitz
Last week, Dan posted an interview we did with Brett Mandel (you can see it here) who is running for City Controller. The Butkovitz campaign (Alan Butkovitz is the incumbent Controller) saw the piece and expressed an interest in doing their own YPP interview. We sent over some questions to the campaign (composed with the help of some regular writers) over the course of a few days. You'll find the results below absent a 4th question which the Controller has not yet answered. He is of course welcome to post it in the comments. Just as with Brett, we tried to come up with the toughest questions we could that would get to the heart of progressives' thoughts on this race.
YPP: There are a growing group of voters who identify as progressives or reformers (or both) and are skeptical of anyone involved with the party machine. As an incumbent, a former ally of Sen. Fumo and a current friend of John Dougherty, you have been cast in the role of "machine" candidate. How do you respond to this and why do you think progressives should vote for you?
Butkovitz: While I understand the reservations that some progressive activists may have over my association with the so-called Democratic "machine," I reject the notion that a person cannot be a progressive solely because he or she is a part of the Philadelphia Democratic Party.
I strongly reject the Fumo connection. I stood up to Vince Fumo when he tried to stop an investigation I was conducting of the School District where I uncovered a $200 million deficit when Paul Vallas was telling the public his books were balanced. Fumo not only threatened my "political" life, he tried to have legislation drafted taking away my authority to audit the School District of Philadelphia.
I have stood up to both John Street and John Dougherty in the past and will continue to stand up to anyone or any political entity that tries to interfere with any audit or investigation I am conducting.
Not to stray off the topic of Fumo, it should be noted that Brett Mandel, one of my opponents is now the Fumo Organization candidate, having been endorsed by Frank DiCicco who was named in the Fumo indictment, as well as having been brought up during Fumo's corruption trial.
While I am a ward leader, so is Mayor Michael Nutter and so too are so many other dedicated individuals who share a common progressive philosophy, and identify with the ideals of the Democratic Party. The Democratic Party is about inclusion and moving all of society forward - leaving none behind. We are a party that believes in equality and equal rights and standing up for those who can't stand up for themselves.
After eight long disastrous years under George W. Bush, President Barack Obama is now leading our rebirth and the fight for a progressive reform agenda throughout our country, yet didn't President Obama come out of the Chicago political machine?
While we may have our differences, I believe the overwhelming majority of Democratic committee people in Philadelphia are good, dedicated neighborhood activists who care deeply about their communities and their neighbors and our city as a whole - just as so many progressive activists do.
It takes all kinds of people and opinions to make a community strong. I believe Philadelphia's best asset is our diversity - our diversity of peoples and opinions. I have always viewed myself as one who believes in progress and believes in a progressive agenda.
As City Controller, I led what was called a "groundbreaking" investigation of MBEC (Minority Business Enterprise Council) and exposed numerous barriers confronting minorities, women and disabled owned businesses in fully participating in city work and contracts. I also outlined clear steps to remove those obstacles and provide for the full participation of minorities, women and disabled-owned businesses in city work.
I also took criticism for successfully divesting the city's pension fund from companies doing business with the Sudanese government because of their genocide against the people of Darfur. I am a citizen of Philadelphia, but I am also a citizen of the world and I will not stand by and do nothing while this "holocaust" continues. As a Jew we promised the world that never again would we allow another holocaust. I stand committed to that ideal and reject those who would criticize me on this critically important issue.
On the financial side, I have tripled the number of comprehensive performance audits conducted by the Controller's Office each year - over 120 audits to date. My audits have identified over $700 million in revenue and savings for city taxpayers.
In endorsing me for re-election, Mayor Michael Nutter cited our work together on a number of issues, as well as my audits and recommendations to save taxpayers millions. Progressives have stood with Mayor Nutter despite the fact that he came from the ward structure, and remains a Ward leader, because they support the progressive policies he has fought for throughout his career.
ACORN recently endorsed me because of my progressive philosophy and history. I would ask that progressives keep an open mind - and open the lines of communication between us. I would ask that progressives join Mayor Nutter and ACORN and support me in the Democratic primary on May 19th.
YPP: It’s been almost 18 months since your office promised a full accounting of the Philadelphia Parking Authority. Why has there been such a long wait and do you expect your findings will lead to significant change at that agency?
Butkovitz: While Governor Ed Rendell asked us to audit the Philadelphia Parking Authority in November of 2007 and promised to provide the necessary funding to conduct the audit, his office refused both to approve the scope of the audit and refused to provide the funding he had originally promised. After waiting for almost six months with no answer or funding from the Governor's Office, we decided to move ahead on our own in June of 2008.
As with any audit, it does take time. Our audit of the city's Emergency Medical Service took over a year, as did our audit of the Department of Licenses and Inspection - as well as our audit of the Water Revenue Department's Project Ocean. With that said, the audit of the PPA is nearing its conclusion and we should be releasing it shortly.
YPP: The biggest progressive criticism against Brett Mandel's campaign is his history of tax cut support (an issue which has been a long-time topic of debate on our blog). You have adopted the language of some Philadelphia progressives on the trail and accused Mandel of supporting "right-wing, trickle down economics." During your term in office, Council has passed tax cutting bills supported by Mayor Nutter. How did you respond to those?
Butkovitz: Please excuse the length of my response, but before I answer your question directly, let me first reference an Op Ed by Phil Goldsmith that was published in the Philadelphia Daily News on January 2, 2008. Entitled "Time to cut tax-cutting," the first paragraph read "We are in the midst of a tax cutting craze, City Controller Alan Butkovitz said at a press conference as 2007 was coming to a close."
Two paragraphs later Goldsmith wrote, "Butkovitz's warning was music to my ears. It has been a refrain I have been singing for several years. There has not been enough balance between the clamor for tax reduction and residents' desire for quality services, both of which are essential for a city that aspires to world class status."
Here are some other pertinent excerpts from Goldsmith's op ed:
"Butkovitz has taken shots at some sacred cows as city controller, and his style rankles a lot of people. He was the first elected official to take on former School District Chief Executive Officer Paul Vallas at a time when the establishment still thought Vallas walked on water. Butkovitz had the audacity to tell us that Vallas was really walking on ice that was melting faster than a popsicle in August. Sure enough, the school district's rosy budget picture turned into a huge deficit due to overspending and a lack of accountability and fiscal oversight.
Regardless of his bedside manner, Butkovitz's attack on another sacred cow-the tax cutting craze- deserves to be taken seriously. And, hopefully, the Nutter administration, which is committed to improving customer services, is willing to join the issues of tax policy and service levels rather than treat tax reduction in a vacuum.
In the meantime, let's heed the warning of the City Controller: Let's end this tax cutting craze and turn our attention to service levels. Let's get our people to the hospital on time."
Goldsmith's op ed was in response to my call to end business tax cuts, and my nationally recognized performance audit that found our EMS units were arriving late 40% of the time because there were not enough ambulances to handle the number of emergency calls.
The Daily News headline for the article covering the release of my EMS audit read: "Butkovitz: Halt tax cuts, fix EMS"
Since first getting elected, I have been a vocal advocate for stopping this misguided "craze" - led by Brett Mandel and his pro-business cohorts - of providing tax cuts to business. Businesses already get deals and tax cuts galore at the expense of average citizens who get short-changed in much-needed city services.
I believe we all have to pay our fair share - and that includes businesses that use the same city services as we all do.
ACORN recently endorsed me because of my progressive philosophy and history. I would ask that progressives keep an open mind - and open the lines of communication between us. I would ask that progressives join Mayor Nutter and ACORN and support me in the Democratic primary on May 19th.
Thanks to the Controller and Brett Mandel both for their answers to our questions. Again, Brett's interview can be found here.
And, for the curious, here is the last question we sent to Butkovitz that he has not yet had a chance to answer:
You have talked about your role in uncovering financial irregularities at the School District. Now that Paula Vallas is gone, what are your plans for holding the District accountable now? What are your most recent findings about the School District’s finances? What are your top concerns there?
Disclosure: I am the co-chair of the Liberty City LGBT Democratic Club whose members voted to endorse Alan Butkovitz. Liberty City is running a GOTV campaign for its endorsed candidates which is funded by member and candidate contributions (including one from Butkovitz). Dan, Jennifer and other folks who helped with this interview are either "undeclared" or Mandel supporters.


So he couldn't do the PPA because of budget limits
but he could tackle the Schools and Paul Vallas when Vallas questioned Butkovitz's own use of patronage in the School District budget. See the problem with that is that the School District is much, much larger than the PPA. According to the School District website, it employs 25,104 people and had an operating budget in FY'08 of 2.19 billion. But Mr. Butkovitz was able to tackle an operation of that scale on his own budget.
For the Parking Authority, he says he needed additional state funds and he delayed because they were not forth coming from the Governor. Looking back at Daily News coverage from when reports of the high levels of patronage and waste in the authority after the Republican take over surfaced, it only employed 1,051 people. I guess it helps that it has a much higher than industry standard number of "managers" and that 20 of them earn more than $100k a year.
Still it is troubling that Mr. Butkovitz's campaign manager, has for the last several years worked both doing PR work for the Controller's office while also receiving a $10,000 a month retainer from the Parking Autority, a retainer he is curently still receiving. One might wonder if some of Mr. Butkovitz's staffer's conflicts of interest, effect in some how Mr. Butkovitz prioritizes the level diligence he applies to different agencies.
I'm not surprised that Mr. Butkovitz thinks people should not be so distrustful of the ward structure because not only folks active in Democratic ward politics but according to some reports also some Republicans as well (who just so happen to work at the Parking Authority) have been vollunteering for his campaign. He appeals to ward leaders of all stripes apparently. I'd be especially curious to hear Mr. Butkovitz's response to those stories, if there as any accuracy to them.
I'm also glad to here that he is "not afraid to stand up to John Dougherty". Thats particularly impressive since according to the papers, about 30% of his campaign contributions in the last cycle came from Doc. A courageous man that bites the hand that feeds, it would seem.
Lastly, I was impressed by this quote:
I would presume that would extend to irregular deals to businesses like the Ritz Carlton that got such terrific ad hoc breaks on their property assessments from the BRT, as revealed in the recent Inquirer coverage.
See my problem is that Mr. Butkovitz has for several years been one of the staunchest defenders of the current broken and arbitrary tax property assessments because he liked the way they "revitilized" Center City. In fact rather than supporting legislation that would ease-in or defer the effects of assessments based actual property values, he suggested intentionally keeping inaccurate assessments on both businesses and homeowners indefinitely because they deserve a tax break, particularly in "vibrant" Center City - no matter how haphazard and random that break might be. Screw the neighborhoods apparently.
From his testimony to City Council:
In other words, yeah the assesments are out of whack, but its good that we charging some people and especially businesses less in Center City because their "vibrancy" is more important that being equitable to those who are overassessed. Don't find a way to protect people on fixed incomes while you fix whats broke. Just leave it unfair and arbitrary forever.
He's also a big fan of the 10-year tax abatement. In fact he apparently loooooovvves tax cuts to busnisses and condo developers in the name of economic growth - just as long as they come in the form of abatmens and confusing property tax deals.
You know, Mr. Butkovitz, I think the owners of the Ritz Carlton like the way you think.
De facto tax cuts to the "vibrant", politically connected and well-heeled are apparently just super with Mr. Butkovitz as long its handled behind closed doors by folks with ward connections. Got it.
At this point I'm just going to follow the lead of Ray's disclosure and say that for the record Mr. Butkovitz to quote myself is a "used car salesman of the worst order".
. His answers here largely confirm that impression for me.
-Sean
MrLuigi, my cat, actually only types half as badly as I do.
The responses are disappointing
to say the least. Thanks for breaking down the reasons why Sean.
Well, your candidate, Sean, has a great answer
to ending disparities in tax treatment on the business side. Just let them all not pay.
So are you ever going to respond on any issue
other than your hard feelings about how your testimony in front of Council back when John Street was mayor - before the scale of the patronage in the PPA post-Perzel became apparent, before the global economy melted down forcing financial crisis in cities across the country, before the pension fund tanked so hard it threatens to engulf the entirity of city government, before the full scale of waste in the BRT and Clerk of Quarter Sessions came to light?
Because I sometimes feel like you are living your own personal version of "Groundhog's Day", continually recreating every new event through the lens of that one single day.
Do you even actually care if the Parking Authority ever delivers all of the money it was supposed to the School District, Stan? Because I am beginning to have my doubts.
-Sean
MrLuigi, my cat, actually only types half as badly as I do.
Sean, thanks for another expected distortion of who and what
I'm all about. Your attitude toward me is truly despicable not because it's wrong but because you know it's wrong. I don't know how many people opposed to Brett have refrained from expressing their views because of your defamatory tendencies, but I would expect more than one.
Just keep piling on, Sean. I'm not responding to this particular idiocy.
If you actualy believe
in giving Philadlephians the best possible local government that equation has to include weighting the costs of corruption at some level. It can't fixate solely on the BPT. Its not all just about who you make pay, but also that what gets paid, gets effectively spent. On unfair property tax assesments the incumbent is even wrong on uniform fairness in terms of who pays. On patronage-driven abuse of the schools he's part of the problem himself.
You are right I'm trying to shame you into just once posting that patronage sometimes does real lasting damage to Philadelphia. For most people it would not be so much like pulling teeth.
-Sean
MrLuigi, my cat, actually only types half as badly as I do.
You're shaming yourself, Sean
Because just as you accuse me of being blind-sided, you're blind-sided on the cost of a morally abhorrent "tax me if you can catch me" local government. You are so filled with righteous anger at Butkovitz, and so taken in by Brett's alleged complete objectivity and transparency, that you are willing to take outlandish risks with the services that we all depend on.
And you're blind on the broader implications of BPT repeal and how accepting its philosophical underpinnings undermines anything the City might want to do to restrain corporate power. You just want to give up on that, apparently, in the pollyanish hope that some other government will take care of it. Just take a look at how well Washington is doing on that Sean. Take the blinders off and take a look.
So, Sean, maybe I need to see a dentist; maybe you need to be checked out by an optician.
What repeal?
He sanely supports the freeze on wage and biz tax cuts, although there are many, many Philadelphians who do not. I've argued with them just as vehemently as I argue with you. You don't seem to get that on the ideological rainbow of views on the BPT in Philadelphia, even amongst people who are registered Democrats, there are at least 4 or 5 shades beyond Brett Mandel.
Again Washington is not perfect, but when you compare it to the BRT or L&I they seem models of efficiency and they have the tools to fit the scale of the job. Philly local government not surprisingly has at best the tools to run effective local government.
-Sean
MrLuigi, my cat, actually only types half as badly as I do.
One other little detail about Brett that's under the radar
is that in one of his last acts as head of Philly Forward, he lobbied hard to reinstitute the gradual elimination, i.e., repeal of the gross receipts tax after the freeze expires in 2013. Council happily complied. So if you look at Section 19-2604 of the Philadelphia Code, you'll see that it schedules the tax to rapidly diminish to nothing, and then to fully expire in 15 years. That scheduled death wouldn't be there but for Brett Mandel.
Philadelphia Forward represents a lot of people
most of which are sane, a few of which are scary Cato Institute types. Brett was a charismatic voice for a diverse group. He himself is mid left in his own organization. I'm probably its far left fringe but something of a diehard on transparency and "reform" issues. They might not be as organized with Brett not at the reigns but those folks will continue to write letters to their Council people whatever he does. They are absoultely for the most part real people, regular citizens - not corporate lobbyists. You are wrong strategically to not recognize that.
I'm voting for Controller based on who would be the best Controller.
-Sean
MrLuigi, my cat, actually only types half as badly as I do.
Are you saying he doesn't really believe what he spent seven
years lobbying for, including on his way out the door?
What belief prevents Alan Butkovitz
from auditing the Parking Authority?
Maybe that's less important than the simple fact that he doesn't, and Brett would.
An auditor-in-chief who would put the City's expenditures online would do Philly a world of good, saving us money most of us didn't know we were spending.
You just changed the focus and scale Stan
1. the GRT as it stands is pain in the but. From my own business, its the part that makes us hire an accountant. I don't share your moralizing view of it. If my business exempted under your rules (which I do think has legal trouble) or the GRT portion is weaned away for other more modern biz taxes, its not a big difference personally.
2. Results matter. I think businesses should pay their fair share and it does not matter to me if thats accomplished through a mix of biz taxes, state and federal corporate taxes, and commercial property taxes or with the GRT. If our economy improves and the tide turns on job and population loss thats a huge bonus for Philadelphia
3. You do realize your first post used the phrase "BPT repeal" which is factually incorrect but that in your second post you switched the subject to only discussing the GRT portion. Thats a logical fallacy. I can draw you the Venn diagram to explain why its a mistake to conflate a part of something with its whole.
-Sean
MrLuigi, my cat, actually only types half as badly as I do.
Weren't you the one who was calling this tiresome?
Whatever.
1) Don't know what you're saying here. It sounds like the GRT really costs you money on the one hand, but it doesn't help you if it goes away on the other hand.
2) That would be fine with me; if we had some universal scale that taxed everyone fairly taking into account local, state and federal jurisdictions that would be great. We are so far away from that that it makes conversion of all City businesses into coops seem like child's play. It's on no one's agenda. So we're stuck trying to make the taxes of every jurisdiction that imposes them as fair as possible.
3) This lets me add to my point that Brett pretty much admitted in his interview here that his view on the BPT hasn't changed, but that he's not pressing the point right now. I posted the quote earlier. So as to the GRT, he took action when a bill was before Council. He had no such opportunity with the Net Income Tax because Council, in its infinite wisdom, and to our good luck, has not yet gotten to a schedule for deleting that tax.
Tiresome indeed
1. I meant a tax you have to figure out separately from the same basic net profit you have to figure out for all your other business taxes is an extra step in terms of different formulas to follow. Taxes can be also badly designed in terms of being an additional step or extra complicated. "A pain in the butt" means a.) its a pain in the but to pay a tax that has different criteria from every other biz tax in the world and b.) its annoying that you have to pay it whether you make a profit or not.
2.
Fair compared to what? See Figure 4.1 bottom of page.
Many would argue its not "fair" for someone starting a business to expect to pay 3.5 times what they would in any other large city other than New York or 5 times what they would pay in surrounding suburbs - and still have to wrestle with crappy permitting at L&I, a workforce that came out of crappy schools, high perceptions of crime and corruption.
3. So you are going to try and blow right past a glaring logical fallacy and an intentionally misleading twist of words and cover it over with baseless accusation, in other words. Got it.
-Sean
MrLuigi, my cat, actually only types half as badly as I do.
ward leader = patronage =massive waste
supporting a ward leader to find and route out waste is voting for the fox to guard the hen house.if someone doesn't like mandel's views on taxes ,vote for braxton.if they think mandel's views are irrelevant,vote for mandel.its that simple.