City Limits Magazine, March 1991 Issue

8/3/2019 City Limits Magazine, March 1991 Issue

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M arch 1991 N ew Y o rk 's C ommun ity A ffa irs N ews M a ga zin e

A R S O N A L E R T D D A Y C A R E M O N E YM A J O R T A X B R E A K F A C E S O V E R H A U L

$ 2 . 0 0


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C i ~ V L i m i ~ s Volume XVI Number 3

City Limits is published ten times pe r year.monthly except double issues in June/Julyan d August/September. by th e City LimitsCommunity Information Service. In c . a nonprofit organization devoted to disseminatinginformation co ncerning neighborhoodrevi alization.SponsorsAssociation for Neighborhood andHousing Development. Inc .Community Service Society of Ne w YorkNew York Urban CoalitionPratt Institute Center for Community andEnvironmental DevelopmentUrban Homesteading Assistance BoardBoard of Direclors*Eddie Bautista . NYLPIICharter RightsProjectBeverly Cheuvront. NYC Department ofEmploymentMary Martinez. Montefiore HospitalRebecca Reich. Turf CompaniesAndrew Reicher. UHABTom Robbins . JournalistJay Small. ANHDWalter Stafford . Ne w York UniversityPete Williams . Center for Law and

Social JusticeAffiliations for identification only.

Subscription rates are: for individuals andcommunity groups. $15/0ne Year. $25/TwoYears; for businesses. foundations. banks .government agencies an d libraries . $35/0neYear. $50/Two Years. Low income. unemployed . $10/One Year.City Limits welcomes comments and articlecontributions. Please include a stamped. selfaddressed envelope for return manuscripts.Material in City Limits does not necessarilyreflect the opinion of he sponsoring organizations. Send correspondence to: CITY LIMITS.40 Prince St New York. NY 10012.

Second class postage paidNew York. NY 10001City Limits (ISSN 0199-0330)(212) 925-9820FAX (212) 966-3407Editor: Doug Tu rets kyAssociate Editor: Lisa GlazerContributing Editors: Mary Keefe.Peter Marcuse. Margaret MittelbachProduction: Chip CliffePhotographers: Adam Anik.Andrew Lichtenstein . Franklin KearneyAdvertising Representative: Howard W.Sonner(212) 439-4707Intern: Joanne PassaroCopyright 1991. All Rights Reserved. Noportion or portions of this journal ma y bereprinted without the express permission ofthe publishers .City Limits is indexed in the Alternative PressIndex and the Avery Index to ArchitecturalPeriodicals an d is available on microfilm fromUniversity Microfilms Inter national.An n Arbor.MI48106.

2jMARCH 1991jCITY UMITS

1'-III'li't"Budget LessonsI f you're anything like me , math wasn't your favorite topic in sthooland the prospect of balancing your checkbook sometimes seemsoverwhelming. For these and other reasons, it's easy to feel alienatedby the city's number-crunching budget process. With policy analystsan d city officials engaging in statistical warfare, it's difficult for noneconomists to decipher who's telling the truth. Sometimes i t seems somuch easier to leave fiscal matters to the so-called experts.In this month's lead article, Editor Doug Turetsky spells out the resultsof this approach-a budget that meets the needs of Wall Street at theexpense of Main Street, 125th Street an d every other place where NewYorkers try to create livable communities.It may sound obvious, but the only way to take control from Wall Streetis to learn about the budget process and figure out how to pressure publicofficials. Holding po liticians accountable means more than simply voting them in or out ofoffice-itrequires letter-writing, petition-circulating,placard-waving and trips to City Hall. Sometimes these efforts seemfutile, especially with a City Counci l that has new powers but old ideasabout rublic participation.Stil ,when local voices come together loud and clear, politicians oftenlisten. This was proven last June, when housing activists pressured theCity Council to restore cuts made by the mayor to community groups thatprovide housing maintenance and anti eviction services. And at the statelevel, impressive organizing by AIDS activists from ACT-UP as well ashealth care workers an d their union has staved off draconian cuts.Once a broad range of advocates an d neighborhood residents areinvolved, other issues can be addressed. How can small, communitybased organizations work together with larger groups such as unions sothey don't end up competing for time an d attention from politicians? Towhat extent should groups promoting interconnected issues such ashousing, social services and transportation join forces? I f the cityabsolutely has to make cuts, which is the case, what suggestions dopeople within communities have?As always, it's easier to ask the questions than to provide the answersand make the necessary cuts. Nonetheless, understanding the process isthe first an d most vital step towards an open an d democratic governmentwhere a wide variety of voices can be heard .

* * *Sometimes we get so busy keeping up with bad news that we forget tohighlight some good news. Last November, City Limitsprofiled GwendolynSmith, a formerly homeless mother living with her five children in a cityowned crackhouse. As a result of the article, the Smiths moved to anew yrenovated three-bedroom apartment run by the housing authority inDecember. 0 LG.

Cover photograph by George Cohen


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FEATURE Weaver/Page 6The Bottom LineThe city's budget reflects the heart and soul of publicpolicy. It's vital to understand how it works. 12DEPARTMENTSEditorialBudget Lessons ........................................................ 2BriefsTax Break Faces Overhaul ...... ...... ... ................... .. ...4Futterman Fall ......................................................... 4Lawsuit Loses ................ ........ ............... ...... .............. 5New Nehemiah .. .................... .......... ........... ............. 5ProfileRobert Weaver: "The Days Aren't Long Enough" ... 6PipelineArson Alert ....... .... .... ............ ........... ............. .... ........ 8 Arson/Page 8Opportunity Knocks ........ ............. ......... .... .... .... ....17Review"My Soul Ain't Working" .............. ...... ..... ............. 20Letters ...... .. .. ..... .............. ... .... ............... ..... .... ......... .. .21

Bottom Line/Page 12

CITY UMITS/MARCH 1991/3


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check they don' t get additionalfinancing, Bradley explains thatit is the responsibility of thesecondary mortgage institutionto inform the city. "That is thecontrol. It was Aagranrlyviolated," says Bradley.Futterman says the loon fromthe Lawland Corporation wasextended to him as a personalfavor from one of thecorporation' s officers, LeanCharney. A member of thestate bonking board, Charneyhosts a cable television show onMideast politics and helpeddraft the Camp David accords.In 1990, some of Futterman's47th Street buildings wereforeclosed by the city and runby a managing agent. It wasduring this time that conditionsdeclined so drastically that anumber of tenants decided to goon rent strike. There areapproximately 70 units in thesix buildings and about a thirdof the tenants are now on rentstrike.Dav-Lee ManagementCorporation is currentlyoperating the six West 47thStreet buildings for the mortageholders. Tenants say newjanitorial staff have been hiredbut building-wide problems likeleaky radiators and malfunctioning intercoms have still not

been addressed. 0 UsaGlazer

LAWSUIT LOSESThe Housing JusticeCampaign' s lawsuit calling forcommunity review of the city's10-year housing plan wasrecently dismissed by AppellateJustice Joseph P. Sullivan .Sullivan' s decision, which

overturns a 1989 state SupremeCourt ruling, defines the 10-year housing plan as a loosestatement of policy gools rathert h a ~ a formal plan requiringreview.

In the earlier Supreme Courtdecision, Justice Leanard Cohenruled that since the plan targetsthe use of specific city property,it is indeed a plan and must besubjected to public scrutiny.A coalition of community,labor and religious groups, theHousing Justice Campaign

____________________Neighbortlood toughs: Th e UMMA Group has been kicking drug dealers out of their Flatbush neighborhoodfor 13 years. Th e organization recently received a 1991 New Yorker for New Yo rk award from the CitizensCommittee for New York City .(HJC) filed their lawsuit in 1988 .It charges that the 10-year planviolates city public reviewrequirements; will cause racialand ethnic discrimination;breach city and state environmental review requirements;and violate state constitutionalrequirements that the city "useits land-use power to serve thegeneral welfare."The lawsuit argues that the10-year plan, which aims tobuild, preserve and upgrade252,000 vacant and occupiedapartments, should provide low-income housing in proportion tothe number of poor peaple inthe city. According to HJCanalyses, just 1ercent of theapartments to be built under theplan will be affordable tofamilies earning $19,000 orless, and less than onepercent-- just 87 units-will beavailable to New Yorkers withan income of $8,000 peryear.

The lawsuit also contendsthat the plan violates the federalFair Housing Act because itsincome guidelines exclude 84percent of African-Americansand 89 percent of Latinos fromparticipating. But Sullivan ruledotherwise, stating, "Thosestatistics do not 'predictably'result in racial discrimination inhousing." Sullivan also decidedthe city "has no state constitutional obligation to zone low income housing as part of asupposed obligation to serve the

'general welfare'," and that thecity is not required to submit theplan for environmental review.The city's housing depart ment is "pleased that the courtrecognized that we are incompliance with the law interms of the 10-year plan," saysspokesperson Valerie JoBradley.Arthur Baer, an attorney withthe Puerto Rican Legal Defenseand Education fund who isrepresenting HJC in the lawsuit,says, "The decision is a majorseiback to the communities andpeoples whose lives are mostaffeCted." He adds that HJC isstill deciding whether they willappeal Sullivan's decision . 0Joanne P.... o

NEW NEHEMIAHConstruction is starting on

more than 50 0 row houses thatwill rise from desolate lots in theSouth Bronx. Sponsored bySouth Bronx Churches, thehomes will be part of theNehemiah program to providehousing for low-, moderate- andmiddle-income New Yorkers."The South Bronx is comingback again . .the renaissance ofa long-underserved neighborhood is now underway," saidMayor David Dinkins at agroundbreaking ceremony atThessolonia Baptist Church

recenrly that brought togetherhundreds of local residents aswell as local and citywideofficials.The Bronx Nehemiahprogram will create 54 0 newhousing units on scattered sitesin the South Bronx. Affordablefor families earning between$18,000 and $56,000 peryear, the new housing willinclude two- and three-story rowhouses and common gardenareas. Construction is expectedto be completed by 1992 andthe homes will sell for $50,000each .A coolition of 45 congregations, South Bronx Churchesoriginally hoped to build on alarge vacant lot between Brookand St. Ann's Avenues fromEast 156th Street to East 159thStreet but the city gave the landinstead to the New York CityPartnership, a nonprofit housinggroup established by citybusiness leaders.

Named after the biblicalprophet who rebuilt Jerusalem,the Nehemiah program startedin East New York, Where morethan 1 00 0 single-family rowhouses have been built by EastBrooklyn Congregations. Asimilar proposal for Arverne inQueens was rejected by the city.South Bronx Churches and EastBrooklyn Congregations werebath started with help from theIndustrial Areas Foundation, anational community organizinggroup. 0 Usa GlazerCITY UMITS/MARCH 1991 /5


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By Errol T. Louis

Robert Weaver: "TheDays Aren't Long Enough"The first HUD secretary has a scholarly mind, anactivist spirit-and a sharp critique of the nation'scurrent urban policies.HOw many young peoplearmed with shining idealshave gone into governmentservice, only to be left frustrated and embittered by the experience? Seeking to be effective, manyhave found that working in a bureaucracy can force compromiseafter compromise, chippingaway at energy and initiativeuntil the question arises:When all is said and done,how much real differencedoes one person make?The life of Robert C.Weaver provides an inspiring answer. It is easiest tothink of him as the first secretary of Housing an d UrbanDevelopment (HUD), an architect of the Great Societyfederal programs an d lawsthat have provided shelte r forpoor people and outlaweddiscrimination in housing.But that doesn't begin to coverthe sweep of the man's career, which spans more than50 years.New Deal Advisor

national board of the National Association for the Advancement of Colored People (NAACP) during some ofits most tumultuousyears in the 1960s,an d served briefly as president ofBaruch College before being calledback to Washington.

and urban problems were writtenwhile he was serving in government.("I have a reputation for being anegghead, and I'm afraid 1 am," hesays.)Today, at 83, Robert Weaver sit s inhis book-filled study, hands behindhis head, stares at the ceiling andthinks out loud about the web of problems facing the cities. "I t seems to methat jobs are the sine qua non as far asyoung black Americans are concerned," he says. "One of the reasonsyou have so many single mothers,women who have been deserted andparents who never marry, is thatthey've got nobody to marry-what thehell's the use of marrying a guy whocan't support himself, le t alone support a family? It gets so darn complicated, because once that happens, you get the drug culturecoming in, an d one of the reasons people succumb is thatit's the one place where theycan make some decentmoney."As always, this is not simply academic speculation, forWeaver is still actively engaged in turning his ideas intopublic policy: He sits on theboards of directors of the Municipal Assistance Corp., Mt.Sinai Hospital and the NAACPLegal Defense Fund. "I keep

busy," he says. "The daysaren't long enough."Fighting Man

Weaver was one of the fewAfrican-Americans to enterHarvard in the 1920s; hegraduated with honors an dstayed at Harvard to earn aPhD in economics. Uponearning the degree, he becamean advisor to some of the legendary cabinet members inPresident FranklinRoosevelt's New Deal government at the height of theModel citizen: Robert Weaver was the architect of the Model Citiesprogram-and a group set up to challenge such plans.

Despite a professorial personal style, Weaver is still afighter, especially on the issue of ending discriminationin housing . As a principalarchitect of the 1968 FairHousing Act, he publicly tookon the organized real estateindustry, blasting developersfor creating suburbanenclavesthat were exclusive, expensive an d all white. WhileWeaver's laws, polIcies,speeches and articles didn'tend exclusion, they did set upthe legal and political basisGreat Depression. After the war,Weaver taught at Northwestern, Columbia an d New York University. In1955 he was named rent administrator for the state of New York; by 1960,as vice-chair of the New York CityHousing Redevelopment Board, hewas administering the city's urbanrenewal programs. He chaired the

a/MARCH 1991/CITY UMITS

What makes Weaver a rarity is thathis scholarly mind and activist spiritseem to have been sharpened ratherthan dulled by grappling with theday-to-day battles of politics and government. It stands as a challenge totoday's short-sighted policy makersthat most of Weaver's four books an d175 articles on housing, labor markets

for the federal government to activelychallenge entrenched patterns of segregation in home ownership.Weaver's activism and achievementis no surprise when you consider hisexceptional background. His grandfather bought the family out of slaveryan d went on to earn a degree from theHarvard Dental School in the 1860s,


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the first blackman to do so. Weaver'sfather, a postal worker, raised thefamily in a suburb of Washington, DCand Weaver attended Washington'sDunbar High School, a black privateschool that became famous as atraining ground for future blackleaders. He ended up at Harvard witha similar crowd ofAfrican-Americansnow renowned as inte llectual giants.As a college student in the 1920s,Weaver looked up to the few blackgraduate students on Harvard's campus at the time-youngmen like RalphBunche, who went on to become adiplomatan d Nobel Prizewinner, andPercy Julian, who found fame as ascientist. For talented young blackme n and women of this generation,whatever their various pursuits, therewas a central and widely recognizedtradition of working hard for the uplift of African-Americans. Weaver~ c c e p ~ e d the challenge and built itmto hIS career.Model Cities ArchitectOne ofWeaver's unique qualities ishis ability to simultaneously play theroles of insider and advocate. As HUDsecretary, for instance, he created theModel Cities program, which broughtmillions of federal dollars for comprehensive redevelopment programsto the inner cities. At the same time,he set up the National CommitteeAgainst Discrimination in Housing, anon-government advocacy group designed, among other things, to challenge an d critique federal programslike Model Cities-a built-in way ofkeeping the program responsive tothe needs of the poor. Over the years,Weaver has trained more than onegeneration of young scholars to weavethis active, combative sense of socialjustice into their government andacademic careers."The first an d foremost thing aboutRobert Weaver is that he never deviated from the goal" of equality forblack Americans says Walter Stafford,a professor at New York University'sWagner School of Public Service. "Imet him in the early 1970s, whilewriting my dissertation on HUD; Iwas in awe of he man, frankly, havingread his works. Since then, everytime I tried to stray from the battle, hecalled me to task. I have learned notto deviate or be at all hesitant aboutsupporting affirmative action. "Another scholar influenced byWeaver is Kenneth B. Clark, whosework on the psychological effects of

racism were used by the SupremeCourt to strike down segregatedschools. "I got to know him lWeaverlwhen I was an undergraduate," saysClark, recalling Weaver's concern forintegrity an d race relations. "Heseemed to be very positive and ratio-

Selling publichousing to the

people who live init is "a lot ofhooey."

nal on the problems of racial stabilityan d instability and I admired hisbalance."These words are echoed by anotherprominent African-American academic, Charles Hamilton, who teachespolitical science at Columbia University. "I studied his role as a publicofficial in the '60s in W a ~ h i n g t o n , " says Hamilton. "I was very impressedby how he simply would not yield topolitical pressure. It would be difficult to maintain balance an d integritybut he did. He was beyond reproach."No Easy AnswersWeaver's influence and critical vision have not dimme d with age. Onalmost any given urban policy issue,he still kneads an d prods at the question, defining the problem as broadlyas poss ible before suggesting possiblesolutions. His thoughts are those of ama n who has long since discoveredthat there are no easy answers.Commenting on the city's currentfiscal crisis, he says, "Being a mayorof a large urban center these days isalmost an impossible task. The citiesreally have no economic base nowadequate to carry an d sustain themselves." The standard local government response to economic declineoffering tax breaks as incentives tokeep housing developers an d largecorporations within the city l imitsis short-sighted, says Weaver. "It'slike being in a poker game and constantly raising the ante. But the citiesare in such dire straits that they haveto do almost anything."

As a lifelong liberal Democrat,Weaver naturally takes exception tomuch of the conservative approach tohousing and urban affairs, especiallythe free-market programs developedduring the Reagan-Bush years."Reagan set us back a good 10 years.Even the Nixon administration looksgood compared to him," says WeaverAs for the Bush administration,Weaver has especially sharp wordsfor Jack Kemp, the current secretary ofHUD.One ofKemp's ideas, selling publichousing to the people who live in it, is"a lot of hooey," says Weaver: "Howare you going to sell public housing topeople who don't have jobs?" Asecond Kemp brainchild involveshaving government help create smallbusinesses in and around housingprojects, thereby turning poor peopleinto job-creating entrepreneurs. This,says, Weaver, is "unadulteratedbullshit," given the dimension ofurban unemployment. "I'm perfectlywilling to encourage black enterprise,"he says, "But i f you want to solve theunemployment problem, black enterprise is not going to solve it."While ideologically committed,Weaver is far from dogmatic: To him,questions are much more importantthan answers. "What we need to do isa lot of different things; try to see whatworks and what doesn't work." Andmost importantly, says Weaver, weneed to maintain a sense of hope forthe cities. "The excuse for not payingattention to these urban problems isthat they're insoluble. But I don'tthink they are insoluble. I don't knowanybody who's got the solution, but Ido think they are solvable and weought to get to it ."And for those in government, saysWeaver, it is important-at all levels,no matter what the frustrations an dcompromises-to think. As he put itin 1965, whileserving as administ ratorof the Housing an d Home FinanceAgency under President Kennedy:"Action without program, problemsolving without problem analysis,dayby-day decisions without a philosophy are a travesty of public administration. They are inexcusable anddangerous in the modern world wherepublic policy is so vital to the wellbeing of all citizens." 0Errol T. Louis is national programofficer at the National Federation ofCommunity Development CreditUnions.



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By Lois Weiss

Arson AlertCurrent economic conditions are a flashback to the1970s. Does this mean we're in for anotherdevastating wave of arson?Eonomic recession. Real estatedownturn. Rise in oil prices.Fire station closings. Today'sheadlines are a haunting echo ofthose from the 1970s, when a complexcombination of factors created atinderbox for widespread arson an dabandonment in neighborhoodsacross the city. Many of these factorsare now recurringand local fire expertssay they 're on thelookout for signs ofa new wave of arson."We have moreforeclosures, landlords are walkingaway, we are startingto see the kinds ofsituations that led towhat we had in the' 70s in the SouthBronxan d Brooklynand Manhattan,"says BarbaraShulman, coordinator of the ' city'sArson Strike Force."We're worried.This is somethingwe thought was behind us ."

number of arson investigators. So far,there is not yet statistical evidencethat citywide arson has increased inthe past year.But community groups such as ThePeople's Firehouse in north Brooklynsay they've noticed a change in recentmonths. John Ernst, director of arsonprograms, says, "We've seen an in-

lords who purchased property oncredit during the real estate upswingof the 1980s are now saddled withhefty mortgages an d mountains ofdebt. Those who expected to reselltheir buildings for a quick profit arenow in a bind.For these and other reasons, JohnStickevers, the city's chief fire marshal,says, "There will be an increase inincendiary fires. How drastic it's going to be we don 't know." But when itcomes to arson-for-profit, for ownersas well as commercial tenants, he says,"those numbers will go up."Lessons From the PastDuring New York's last economicrecession, one of most dramatic an ddangerous resultswas a steep increase

in fires and arson.In 1971, there were7,002 arson fires invacant buildings;that number increased to 11,663 by1976. Between 1971an d 1978 there wereapprox ima te ly3,300 arson fires inoccupied buildingseach year. Between1977 and 1981 thatnumber went up toabout 4,500 eachyear. (In recentyears, the number of

...: arson fires in occupied buildings hasgone back down to:5 about 3,000 eachyear.)Common sensewould tell us thatwhen times ge ttough economically,there are going to besome people out

15 More than a de-IIIIiIIllllt:ilL ....________ -.Jo: cade after the in-Burning future?: A declining economy and overcrowded neighborhoods could sparkanother devastating wave of arson. crease in arson, thereare various interpretations of howthere who are going to try to burnthings to get some money," adds JoeMcGee, a spokesperson for the city'sFire Department.

Many ChangesDespite these warnings, manythings have changed since the 1970s,and officials are hopeful that newlegislation, insurance laws and various government programs will helpdeter a massive recurrence of arson.Statistics show that the number ofarson fires has declined significantlyin the last decade-but this could bemisleading because of changes in theway arson is recorded an d cuts in thea/MARCH 1991/CITY UMITS

crease in the last six months to a yearin fires, especial ly in vacant buildingsand especially in industrial buildings.Fires in residential buildings weregoing down until about a year ago,butnow they're starting to go up again."Ernst says it's not clear whether thesefires were caused by arson. "There'sa blatant neglect of property maintenance which is resulting in fires . It's aform of arson-by blatant neglect."This neglect is exacerbated by arise in costs at the same time propertyvalues have stagnated. Real estatetaxes, water and sewer charges an dfuel oil costs have all risen in the pastyear. At the same time, many land-

and why fires spread from one building to anotherand then to entire blocksand complete neighborhoods, particularly in the South Bronx and central Brooklyn.One clear cause was the economicsituation at the time . According toGeoffrey H. Moore, director of theCenter for International BusinessCycle Research at Columbia University, joblessness rose from 4.5 percentto 8.8 percent in the 1973-1975 downturn and then went up to 10.6 percentby 1982. Mortgage rates during theearly 1970s hovered at about 9 percent,and then went up rapidly, reaching 12 percent by the end of 1979 and


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peaking during the last quarter of1981at about 18 percent.For tenants and building owners,these economic indicators hit homehard, especially when coupled with arise in the price of fuel due to the oi lcrisis. Tenants without jobs weren'talways able to pay their rent. Withrental profits on the wane, landlordssometimes failed to make repairs, meetmortgage payments or pay taxes to thecity, and the number of foreclosureswent up. Many landlords decided totake the route of arson-for-profit as away to get quick cash from their insurance company. An d some tenants,already surrounded by burning buildings, contributed to the fires becausethey knew that being burned out oftheir apartment guaranteed them aplace in public housing.

The increase in arson can also beseen within the context of otherchanges. As the city hovered on theverge ofbankruptcy, massive cuts weremade to vital neighborhood servicessuch as sanitation, transportationand fire houses. These cuts were no tdistributed equally. Instead, someneighborhoods, where middle-classwhites were fleeing, were targeted foran unofficial policy known as"planned shrinkage" which resultedin a dramatic decrease in services toareas such as the South Bronx.These and other factors created asituationwhere widespread arson took

hold of entire neighborhoods. Theburning didn't stop until the beginning of the 1980s.Changes ImplementedA wide variety of programs andpolicies have been implementedsince

then to try an d prevent a repeat of thearson wave. Some of the most important changes come from the insuranceindustry, which has increased investigations of arson an d followed ne wlaws to check with the city beforepaying out claims. If a building hasunpaid taxes, the insurance companyno w gives the city time to claim thesetaxes, an d these charges are takenfrom the insurance pay-out, reducingthe amount that goes to the owner,and, ultimately, reducing the incentive for arson-for-profit.Alexander Pirnie, president of theNew York Board of Fire Underwriters, says that in New York there arespecial efforts to spot arson. "Arsonmay be more recognized here becausethere are more investigations," he says,adding that he doesn't think arsonfires have gone up-"yet." It's possible, he notes, that some of the otheravenues for relief from financial problems are more readily available in the1990s. "There is less of a stigma todayto bankruptcy," he explains, sayingthat owners who may have thoughtabout arson-for-profit in the past maynow opt for bankruptcy.

These changes help prevent arsonfor-profit by owners, but some fireexperts say the same phenomena isnow rising among commercial tenants. Jeffrey Glucksman, a Bronx assistant district attorney, says his office now sees a substantial number ofcommercial tenants who are burningtheir rental space. "The po t of gold isthe insurance,"he says, adding, "Theyhave fire insurance an d insurance forcontents an d business interruptioninsurance. We're usually talking sizeable amounts of money."To try an d stop these an d otherarson fires, the city operates an ArsonStrike Force, led by Barbara Shulman.The Brooklyn borough president'soffice funds four neighborhood groupswho do anti-arson work: The People'sFirehouse, Los Sures, St. NicholasNeighborhood Preservation Corporation an d the Ridgewood-BushwickSenior Citizens Council. The People'sFirehouse collects and interprets firestatistics while the other groups primarily do tenant organizing to improve building maintenance. Amongother efforts, th e Fire Departmentfunds a Juvenile Firesetters Intervention program, the youth bureau fundsa fire prevention program in CrownHeights an d the city's hospitals arerequired to report all cases of burninjury.While these efforts may help stemfires and arson, cuts in the number of

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fire marsha ls, who investigate arson,and changes in the ways fires arereported raise serious questions aboutthe city's ability to detect and deterthe problem. In 1985, there weremore than 288 fire marshals; the current figure is 199 an d budget cutscould decrease staffing to 17 8 by 1993."We're down to as low as we canpossibly go with out cutting ou t moreinvestigations," says Stickevers, thecity's chief fire marshal. "If the cityfeels they need someone else morethan they need the fire marshals thenthe number of investigations will godown and you'll have more peoplesetting fires because they can get awaywith it."Some fire exper ts say that statisticsshowing a decrease in arson in recentyears may be misleading. For onething, 90 percent of all fires in vacantbuildings used to be automaticallydefined as arson; under a new system59 percent of those fires are now defined as arson. Additionally, marshals are no longer automaticallycalled to investigate" all hands" firesfires that bring together fire officersfrom a variety of fire houses.The marshals do make investigations into fires that cause a multiplealarm, cause a death, are located in areligious institution, a school or othernotable public institutions. In othercases, it's up to the fire chief on thescene to contact the fire marshals."Through apathy or empathy, we arenot getting notified [as often as weshould be]," says Stickevers.Shulman, the city's arson strikeforce coordinator, notes that the mayoraims to set up a commission to studythe city's fire prevention needs an dthe passage of the new "Safe Streets,Safe City" plan includes funding foranother 57 fire marsha ls, bu t she saysit is not clear when the money an djobs will come through.Looking AheadSome fire experts say extra marshalson their own will not ensure thatarson doesn't recur. Roderick Wallace,a disaster specialist from the state'sOffice of Mental Health, says thatneighborhoods with a mix of povertyand overcrowding are ripe for widespread fire and arson during economichard times. Like criminologists whosay that when minor criminal acts areignored it creates a climate wheremajor crimes can be committed,Wallace says that the city's currentlow level of fire staffing sends a dan-

10/MARCH 1991/CITY UMITS

gerous message to communities."When a fire happens, it freaks outthe whole block," says Wallace. "It'slike a plane crash or a disaster. I f firecompanies can't come quickly, thenthe fire leaves visible damage. Inthese times, the landlord might no t beable to repair the building, so it becomes vacant. Then landlords oneither side will stop building maintenance. They then soon have a wholewall of burned-out buildings, and thatbreaks the social networks on theblock."The salve for this situation is con-

stant and adequate levels of community service-fire stations as well assanitation, transportation, health carean d other needed services. HarrieCohen, founder of the now-defuncNeighborhood Anti-Arson StrikeForce, surmises, "It's all really aboupreserving housing stock and neighborhoods and protecting people. Buthow we do that in a time of tightbudgets and limited resources is veryhard to say." 0Lois Weiss is a contributing editor forReal Estate Weekly.

Department of HousingPreservation &DevelopmentREQUEST APPLICATIONSFOR NON PROFIT ORGANIZATIONS

TO PROVIDE HOUSING SERVICESIN OCCUPIED CITY OWNED BUILDINGSHPD's Community Management Program (CMP) seeksexperienced community based non profit organizations to

provide housing management, construction management,tenant development, and disposition services in occupied Cityowned buildings.HPD expectsCMP contracts to begin in July, 1991, run forthree years, and range from $500,000 to $3.5 Million per yeardepending on the availability of funds. HPD does not plan toissue an RFP for these service again until 1994.The request for Proposals (RFP) may be picked up Mondayto Friday 9:00 AM-5:oo PM, February 6-March 15, 1991 at:150 William Street, 5th Floor, Room 5607A New York,New York 10038.RFP's must be picked up in person. There is a $10.00 feeto recieve the RFP and $25.00 fee to file an apllicat ion. Bothfees must be paid by cerified check or money order madepayable to NYC Department of Housing Preservation and

Development.A Pre-proposal conference will be held at 125 Worth Street2nd Floor Auditorium, Manhattan on Friday March 1, 1991 at2:00PM.The submission deadline is 5:00 PM Monday, March 18,1991 .Department of Housing Preservation & Development" .,.. Community Management Programi jV _ '.. 150 William Street, 5th FI. New York, N.V. 10038f .. \\ For futher information, call Ken Rhodes or'3 . ' Jeffrey Hochman at (212) 240-5514\ ~ ! DAVID N. DINKINS, Mayor"..., _.. '


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Case i n ~ o i n t : Williamsburg CourtThis 59 unit low ncome housing development, sponsored by the St. NkholasNeighborhood Preservatio[l Corporation,is located in Brooklyn's Williamsburgsection.They needed $300,OPO t ~ c o m p l e t e their $7 million plus fina'hCi'ng package.Could Brooklyn Union's Area Develop-ment Fund help? ",'Sure we could-with a little help fromour friends, the l o ~ n c o m e HousingFund .and B a n k ~ r s Trust Company. Theyeach pledged $100,000 t(5 matchBrooklyn Union's Investment.We've found that the Area Development Fund is a working blueprint fo rchange in the ecolJomic and social n f ~ of New York. If your company wouldlike to help as has Pfizer, Bankers TrustCompany and so many others, talk toJan Childress at (718) 403-2583. You'llfind him working fo r a stronger New Yorkat Brooklyn Union Gas, naturally.OBrooklyn Union Gas,~ a t u r a H y



12/24

The Bottom LineCrafting New York's annual budget is more than a clever balancing act -it reflects the heart and soul of the city's public policies.

BY DOUG TURETSKY

Sometime around four in the morning on January 16,bleary-eyed budget officials were putting the finishing touches on Mayor David Dinkins' preliminary budget for the coming year. In just five hours,the mayor would bebriefing the ci y commissioners on thebudget proposal, and there wouldn't even be time to printenough copies of the 410-page document to go around.But the commissioners wouldn't need a playbook toknow the score: most of them had been told to cut theiragency budgets by 17.5 percent, proposed cuts that ultimately comprised a huge chunk of the budget document.Dinkins did his bestto put a positive spin on his preliminarybudget proposal, but there was no escaping from the badnews.Since the release of the $29.3 billion preliminary budget, there have been no shortage of reports on proposedservice cuts an d new or increased taxes proposed by themayor. But there has been little attention paid to how thebudget process works. This is important for several reasons,not the least ofwhich is that the budget is far more than justan expression of numbers-it represents the heart an dsoul of the city's public policies.12/MARCH 1991/CITY UMns

Played against a backdrop of a tumbling economy andthe city's legal requirement to have a balanced budgetunderstanding how decisions are made to cu t programs oraise taxes is crucial. Add to that the recent charterevisions, which eliminated the Board of Estimate an dmade the City Council the sole power balance to themayor, an d you've got a budget process that is, to somedegree, up for grabs. Like two fighters at the opening bellthe Dinkins administration and the newly empoweredcouncil are probing each others' abilities. And at the sametime, communities-local activists, community-basedorganizations and just plain folks concerned by the loss ofservices-are struggling to find how and where they canmake their voices heard.Moving TargetOne of the reasons it's so hard to get a handle on thecity's budget is that it's a moving target. Even after thenewspaper headlines announce the passage of the "final"budget, changes occur as the fiscal year that begins on July1 progresses. These modifications, as they are known inbudget parlance, can fundamental ly effect the city's fundingof specific programs well after advocates-and councilmembers-thought they had secured another year's worth


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of public dollars. "The budget is really a year-long document. I t goes through modifications all year, where youcan lose what you've gained," says the Housing JusticeCampaign's Chris Quinn, wh o has been monitoring thebudget process.Still, there's a six-month period stretching from January to June when the city's budget for the upcoming fiscalyear takes its basic shape. I t begins in January, when themayor releases the preliminary plan, heats up in Aprilwhen he issues the executive budget and culminates inJune with the City Council's alterations and final vote.Along the way, community boards, borough presidentsan d the general public get a shot atinfluencing the budget documentpassed by the council.

preliminary budget did take shape with one clear d i r ~ tive: satisfy the city's fiscal monitors. The Dinkins adm.mistration has several groups to keep at bay-the ratmagencies who strongly influence how much it costs thcity to borrow money on the bond market, the stateFinancial Control Board, which takes over the cityfinances if city officials are unable to balance the budgand the Municipal Assistance Corporation. None ofthegroups give a hoot about the city's ability to meet the neeof its communities.So when Budget Director Michael sent letters to thcommissioners of each of the city's agencies, all he askfor were budget cuts. How each agenmet its requisite slash-generally abo

17.5 percent-was up to the c o m m iThat's a rather neat rendition of ahighly charged process that includesmeetings, hearings, recommendationsan d written responses, not to mentioncrafty politics and occasional deception. And it all occurs with one eye

cocked to tax revenue reports from thecomptroller an d finance commissioner. When revenues slide, the cutting and slashing begins-along withjockeying to save programs. Only thosewith the largest or loudest constituencies survive relatively unscathed.

New Yorkersare struggling to

sioners. This may have given eachthem some flexibility for deciding whwas sacrosanct within their own agecies, but it also meant the individudecisions, without clear policy coodination, could take a heavy cumultive toll on some communities. Asome neighborhoods, for examplfacing a triple whammy of fire, sanittion and parks departments cuts?

make their voicesheard in the

budget process. In fact, many say that may be exactwhat's happening. One city commsioner, requesting anonymity, warn"You've got a lot of people makicuts. We don't know what the impaThe crafting of the preliminary budget released in January began with ameeting among three key administration officials: Officeof Management and Budget (OMB) Director Philip Michael,First Deputy Mayor Norman Steisel and the mayor'sDirector of Operations Harvey Robins. They set thefoundation for the next meeting that would include themayor and his broader cabinet-Finance CommissionerCarol O'Cleireacain, Corporation Counsel Victor Kovneran d the mayor's counsel George Daniels. Together, thesesix officials crafted the basic direction for the preliminarybudget.The Office of Management an d Budget, as its nameimplies, advises the mayor on how to balance the budgetand keeps tabs on the fiscal performance of the city'smultitude of agencies. The Office of Operations looks forways to make city government more efficient, reducingbureaucratic waste and duplication. The finance department is responsible for collecting the city's taxes and otherrevenues.Primary OoncernsWhat's important here in understanding the development of he budget document is that none of these agenciesor their officials are primarily concerned with the city'ssocial policies. Steisel an d Robins, for example, are essentially managers and O'Cleireacainan d Michael are themayor's numbers crunchers. With this lineup, looking atthe budget in terms of its effects on people took a back seat.Just a week before releasing the budget, the mayor, inhis State of the City speech, emphasized his concern for abright future for the city's children. Looking at the preliminary budget, with its $320 million cuts to schools,slashing of child health clinics and reduction of libraryhours, it's difficult to see a policy reflecting that commitment to youth.Despite the absence of such guiding principles, the

of all pur cuts will be on community-based organizationlocal people, communities." The commissioner worrithat no one at City Hall is doing an analysis of the totimpact of all these service an d program cuts.Undercut

Even the mayor's own "Safe Streets, Safe City" prgram, which recently won the tax hike approvals needfrom the state legislature to pay for it, is undermined. Tmayor won praise for putting together an anti-cr ime packathat included some social services as well as more copBut the preliminary budget, which slashes funds fprograms ranging from drug treatment to adult literaservices, seems to undercut the mayor's belief that prventing crime takes more than just locking up "perps."There are other examples of what JeffPlaut, coordinatof the Citywide Welfare Advocacy Network, describes a "Kafkaesque" budget. Even as the city's welfare reforplan increases demands on many public assistance rcipients to join the workforce, the city plans to delay,considerable savings, the provision of day care for thefamilies. (See article, page 17.) And while the mayor hsaid he wants to return government to the communilevel, the budget proposal eliminates community cosultant contract s for providing housing an d tenant righassistance and slashes 70 percent of the funds fromfamily ylanning program, forcing the closing of six of i11 loca clinics.To be sure, not all the cuts in the preliminary budgwill wreak social havoc. Robins' Office of Operations hsqueezed outbureaucratic perks like some 70 0 cars drivat the behest of public officials and saved more thanmillion by transferring the management of several senicenters from the Human Resources Administration to thmore efficient Department for the Aging.

CITY UMITS/MARCH 1991/


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CityBall Scissorhand.8: David Dinkins, Norman Steisel and Philip Michael (left to right)have crafted a preliminmy budget based on massive service reductions and layoffs.

Cuts an d service reductions only tell part of the budgetstory. The city's tax plans also reflect significant choices.Why, some ask, does the preliminary plan call for cuttingcommercial rent taxes for businesses-worth a total ofabout $245 million-when the city is desperate forrevenues? And although the preliminary budget calls fora rise in property taxes, it doesn't eliminate the inequitythat taxes single-family homeowners at a much lower ratethan apartment buildings, where the tax is passed on torenters.To some critics, the mayor's tax package, like theservice cuts, caters to the concerns of the city's fiscalwatchdogs. "I thinksometimes Standard &Poor's is runningthe city," says Penelope Pi-Sunyer of Alterbudget, acommunity an d labor coalition that presents alternativebudget proposals. "I understand the mayor has to listen tothose voices, but I think he can do a better job of listening[to other interests]," says Pi-Sunyer.

BattlePlanFor those who think the budget cuts-or tax packageis less than benign, the battle to change the mayor's nextfiscal plan, the executive budget, is just beginning. Theproblem, some say, is they don't know where to start.Under the Koch administration the director of OMBwas the fulcrum of the budget process. Many decisions,including those that could be defined as policy rather thanmanagement, flowed out of OMB. These days, relationsbetween city commissioners an d OMB are much lessacrimonious, and although the 450-employee agency remains at the center of the process, decision-making nowappears more diffuse. "I've spent the last three monthsrunning around trying to figure out where the pressurepoints are," says Eileen Marcus, a public policy advocatewith United Jewish Appeal and former OMB staffer.In the past, borough presidents played a key role inshapingthe budget package an d community residents andbusinesses leaders often lobbied them. But with the demise of the Board of Estimate, the borough chiefs lost their14/MARCH 1991/CITY UMITS

votes and much of their influence. Now they're relegatedto holding hearings on the preliminary an d executivebudgets an d making recommendations to the mayor an dcouncil. The borough chiefs are also trying to carve out arole as a kind of leader of their borough delegation to thecity council. But to date they've been on the margins. Asa budget staffmember for one borough president explains,his office has regular contact with Norman Steisel andPhilip Michael, bu t little pull. "Did we have a give an dtake over the setting of priorities? Absolutely no t."CouncilBising?According to the scheme laid out in the revised CityCharter, the City Council should become the major focusfor public discussion on the budget. Changes in the charterpromised a more participatory process, but to many whohave watched the council assume its new role, this hasn'tbeen the case."We were disappointed in the council's role last year.There didn't seem to be much public discussion," saysJeannette D. Kahlenberg, executive director of he CitizensUnion Foundation, a good-government group. And thislack of discussion wasn't just limited to the public's voice."We thought there would be more give an d take amongcouncil members," adds Kahlenberg.Some council members are themselves disturbed by thecouncil's own budget process, which they say is tightlycontrolled by Speaker Peter Vallone and the council'sbudget staff. Last year some members were particularlyangered when the finance staff distributed copies ofproposed modifications but were told they could not takethe papers back to their offices to study.A staffer for one council member complains that lastJune there were less than two days of hearings on theexecutive budget where members got to question agencyheads, an d just a halfday for the public to make comments.According to some critics, the council's actions on lastyear's budget amounted to fooling in the margins, witheach member disbursing about $45,000 to favored causes.


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But as peripheral as these hearings may have seemed,public comment an d pressure can make a difference.Much of these "add ons" distributed by the council members were in reaction to complaints voiced at the publichearing.The council is still testing its relationship with theDinkins administration, particularly with OMB. FrankNew ofthe mayor's Office of City Legislative Affairs saysthe council finance staff has frequent meetings and discussions with their counterparts at OMB. But according toone council staffer, the two groups maintain a carefuldistance in order to build their own institutional strength.Michael will occasionally brief the council staff, but thefinance staffer says they usually learn more from readingthe New York Times the next day.The council will hold public hearings this month on thepreliminary budget and again following the release of theexecutive budget. Many are hoping the council will notonly allow more time for public comment, but playastronger role in shaping budget priorities. In his own Stateof the City speech Vallone intimated just that, calling fora number of programmatic shifts including fundamentalchanges at the Human Resources Administration. "It's notjust a question of budgeting. It's a question of policy. It'sa question of what this city should provide and canprovide. It's not just a matter of cutting but of crafting,"Vallone said.UnconvincedSome remain unconvinced of Vallone's determination.Despite clear signs the council is increasingly asserting itsnew powers as a counterbalance to the mayor, some thinkthe council's leadership doesn't really want full budgetresponsibility. Pointing to the council's failure to vote on

the mayor's November budget modifications, an aide one council member called the lack of action "totalgutless."Even if the council did take a stronger role, some criticharge the public's voice would still be blocked out. December budget modification hearing was punctuatby housing advocates chanting, "Peter Vallone you canhide, we know you're on Wall Street's side." The activiswere incensed that the council leadership had onscheduled hearings for the city's fiscal monitors-not thpublic.There's no question that forging New York City's anual budget is a daunting task. Not only must the mayand council meet public expectations for city servicethey must cope with shrinking revenues as well as staand federal budgets that promise slashes in aid. And thmust do it with a budget that is only partially in thecontrol.At first blush, the city's $29 billion budget appeahuge. Butas former finance commissioner Anthony Shorrrecently pointed out, about $9 billion of that is monfrom the state and federal governments for mandateprograms. The city is required to spend another $2 billito match federal welfare and Medicaid grants. Some $billiongoes for debt service on the money the city borrowPensions, leases and fuel bills slice an additionalbillion from the pie. That only leaves about $12 billion f"discretionary" spending.The fact of these diminishing dollars underscores hoimportant it is for the mayor and council to have frank anpublic discussions about their priorities for the city. Butfar, these type of discussions have not been a part of thbudget process. Instead, it's been a battle of numbers wilittle room for human consequences. 0

All Bonded UpNew York's budget is really two budgets. In additionto the executive budget, which covers the city's annualoperating costs and comes from taxes and state andfederal grants, there's a separate capital budget windingits way through the approval process.The capital budget, revised every two years, is thecity's funding stream for expensive projects that areconsidered vital to the city's infrastructure: housing,transportation facilities an d garbage-burning incinerators, for example. These projects are funded throughthe capital budget because they are too expensive to bepaid for out of the city's annual income. The capitalbudget works something like a mortgage, with the cityborrowing money through the sale of bonds and thenpaying back the costs-complete with hefty interestpayments-over time. Debt service costs will $2.7billion next year.Only the state of California and the federal government have bigger capital programs than New York City.A surprisingly diverse group of critics-from bothcommunity/labor and business perspectives-are saying it's time for the city to pare back. Charles Brecher ofthe Citizens Budget Commission, a business-f inancedgroup, argues that interest costs should not exceed

more than two percent ofall the city's personal income.Cutting back the city's capital plan, which calls forborrowing more than $5 billion in the upcoming fiscalyear, would mean some tough choices in terms of whatto eliminate. Few New Yorkers would want to see suchprojects as the city's lO-year capital housing plan orsubway rehabilitation program slashed.But some critics argue the biggest beneficiaries of thecity's huge capital program are the Wall Street investment houses and bond buyers who earn millions ofdollars each year from financing the program. Andwhile much has been made in recent months of thecity's shaky bond rating an d its effect on interest costs,there's another reason why the cost of borrowing is onthe rise: There's a limited number of investors outtherean d the market is flooded with bonds from the city andother government entities. To lure the investors' dollars, it's taking the promise of higherand higher interestpayments.So far, few people appear to be paying attention tohow the city spends these costly dollars. At a recentCityPlanning Commission public hearing on the capitalbudget, less than a handful of people testified. 0 DougTuretsky



16/24

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IIw'w,,'a I I By Mary KeefeOpportunity KnocksNew York City is set for a cash infusion from the feds forday care. Can the child care agency cope?Hstoric federal legislation providing subsidies for day carecould bring as much as $76million to New York City thisyear-but the local agency that administers child care has no plan forspending the money and is renownedas an inefficient and inflexible bureaucracy.Part of the Human Resources Administration, the Agency for ChildDevelopment (ACD) runs all publiclyfunded day care andHead Start programsin the city. Childcare advocates fromthe city an d the statean d even officialsfrom the agency itself say ACD is farfrom ready to meetthe challenge of distributing the newfederal money.

that work in the field, to the needs offamilies an d what other states havedone . That would represent a changein philosophyand attitude," adds ToniPorter, director of a family supportan d education program at Bank StreetCollege.In response to these needs, themayor and the City Council recentlycreated a temporary commission toinvestigate the status of the city's daycare an d early childhood education

agency is doing a "needs assessmesurvey" to see where the federal moneshould be spent. When pressedexplain how the city could not bprepared for the federal windfall, shducks the question, saying, "On thone hand, we have these enormobudget cuts going on. On the othhand we have this one place where whave enormous amounts of monecoming in. All of this means we havto come up with a system differefrom what we had. The challenbefore us is enormous. We are gointo be pushed to our limits."Federal FundingPassed in Washington last year, th$2.5 billion day-care bill is the resuof pressure from day-care advocat

"W e the city ..need to develop a vision and strategicplan for providingearly childhood experiences and custodial care," admitsMary Nakashian, theHuman ResourcesAdministration official who overseesACD and a numberof other sub-agencies. "I would saythat the immediatechallenge is to planNo toying around: Millions ofnew federal child-care dollars are on tap for New Yorkbut officials seem unprepared for the bounty.

across the countrNew York state is sto receive $40-$5million a year fthree years from Child Care and Dvelopment BlocGrant and about $2million a year for fiyears from anothchild care pot. Feeral funds for fiscyear 1991 were heup until this cominSeptember; 199funds will be avaable in October. HeaStart, the highly rgarded early chilhood education prgram, will also get$26 million statwide increase. fo1991. New York Ciis expected to gabout half of the sta

for a changed system as we keep theexisting system going so that no onegets lost."Brick WallsDay-care providers and advocatesaren't holding their breath for radicalchanges in the agency. "You ru n intoall these brick walls when you aredealing with them," says FreddieHamil on, director of he Child Development Support Corporation inBedford-Stuyvesant. "They truly can't-see options for doing what they needto do. It has become an unwieldybureaucracy. ""ACD has to be sensitive to people

programs. Led by Antony Ward, director of Child Care Inc., a nonprofitadvocacy and research group, the 15-member commission was establishedin January and will be holding hearings next month.The commission willbe working against the clock to makerecommendations that can be implemented by the time the city receivesthe new federal money this fall. ACD'sannual budget is currently about $250million and the federal money wouldincrease it by about 30 percent.In the meantime, the Agency forChild Development is still in the midstof a months-long search for a newdirector. Nakashian adds that the

money.I f recent historyany indication, ACD's ability to effcientlyspend the new money is high

questionable. Last year the agencwas eligible for millions of federdollars to provide 1,260 day-care slofor the new welfare reform programFull implementation was meanttake effect this year; so far, HRA is twyears behind schedule. At the samtime, the agency is st ruggling to dewith a reorganization within ProjeGiant Step that will ultimately leadthe elimination of2,900 half-day, prkindergarten spaces. The funds frothe new legislation, which cannot bused to replace day-care dollars cfrom the city's budget, could creaern UMRS/MARCH 1991/1


18/24

approximately 5,000 ne w child-careslots, according to one advocate.Part of the reason that ACD hassuch trouble expanding is the patchwork of complex an d rigid programswithin the system. One of the mostflexible ways of providing day care isusing a voucher system, which allowsparents to purchase private day care,but so far the city voucher program isminiscule.Scarce SpaceAnother problem is finding spacefor ne w slots in a city where real estateis scarce an d expensive. One solution-giving lucrative, 20-year leasesto developers-was a subject of controversy in the 1970s an d is again nowthat the leases are up for renewal. The150 centers involved, often in majordisrepair, accommodate 60 percent ofACD's group day-care spaces. (SeeCity Limits, November 1990.)Child care advocates place much ofthe blame for ACD's rigidity on theKoch administration. Through theKoch years, they say, the agency developed a reputation for being moreconcerned about control than responding to needs or expanding services. These opinions are borne outby studies, which show that while theneed for daycare has increased greatly,the agency has responded mostly byincreasing internal bureaucracy.All ACD programs are run throughcontracts with sponsoring organizations at 400 locations. Parents of morethan 60,000 children rely on these

programs. About halfare low-incomeworking parents, halfof the others arein job-training programs or lookingfor work an d the rest are strugglingwith major health or social problems.Approximately45 DOD of he childrenare in day care, more than 15,000 arein Head Start an d Giant Step programs. These numbers may seem largebu t they fall way short of meetingdemand-a Child Care Inc. studyfound that only 11 percent of citychildren under 12 who are eligible forand in need of publicly funded daycare get it. (Thousands of familieswho can'tafford private care and can'tget into public care can be forced intodesperate choices-traveling greatdistances; using substandard, unlicensed care; leaving kids home alone;or abandoning jobs for welfare.)The Longest WaitFamilies can wait months to gettheir day-care applications approved.But even before that they have to get tothe top of the waiting list. Now atabout 13,000, the agency waiting listgrew 169 percent between 1986 and1989, according to the city's AnnualReport on Social Indicators. Waits canbe unbearable for families who needinfant or toddler space or for thosewho live in overcrowded neighborhoods. The ACD day-care space allocation doesn't adapt to populationchanges, so in growing areas likeWashington Heights, Kingsbridge andFlatbush, it's almost impossible tofind a city day-care space.

As the need for day care mushrooms-a need that is intensifyingsince the new welfare reform rulespromise child care to all participantsthe number of day care slots has remained about the same for at least 10years, despite increased funding.What has grown is the ACD bureaucracy. Between 1984 an d 1988spending for city day care increasedby 44 percent. Expenditure for ACDadministration rose by 66 percent bu tthe number of day-care slots remainedbelow 1981 levels, according to "Atthe Expense of Children," a study bythe Bank Street College of Education.Advocates an d day-care professionals have plenty of ideas for improving the city's day care situation.They propose a more flexible systemwith more parental choice, a completeoverhaul of he city's confusing jumbleoflicensing proceduresan d pay scalesand an increase in the voucher program. Other options include expanding family day care, a system wherethe city licenses people to care forchildren in the providers' homes. Akey issue is increasing salaries forunderpaid day-care workers.In short, what is required is nothing less than a major reorganization.The stakes are high-much higher thanthe loss of millions in federal dollars.As Porter from Bank Street puts it ,"The lives of so many children wouldbe profoundly influenced by the kindsof good early childhood services thiscity could deliver. The paybackwouldbe enormous." 0

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By Stephen Strahs

MakingWorkThese are tough times. Headlinesscream threats of mass layoffsan d severe government cutbacks.The 1980s boom has clearly turnedto bust, although for large numbers ofpeople in the metropolitan region theboom was really just a whisper.

New York City'S "go-go decade"left deep-rooted structural problems.Some industries like financial services and real estate thrived, but amajority of economic sectors continued their dismal decline. Poverty roseduring most of the decade and laborparticipation rates held at about thesame level as the 1970s. Basically, theuneven patterns of physical development and capital investment so evident here-spurred by major publicexpenditures-contributed to the polarization of the region economicallyand socially.In the New York City area, a majorchunk of our public developmentdollars is controlled by public authorities and public benefit corporations that operate"off the books." Thepremier public development agencyhere-and in the nation-is the PortAuthority of New York an d NewJersey. (See City Limits, January 1991.)While the Port Authority is suffering something of its own version of afiscal crisis, it still has enormous resources. In fact, it may be the region'sonly institution capable of taking thelead in rechanneling investment inthese dismal times. With the abandonment of the cities by the federalgovernment, there is little choice butto turn to whatever local agencies andresources exist to do the job.The Port Authority's billions of

City View is a forum for opinionand does not necessarily reflectthe views ofCity Limits.

dollars in assets are spread over a vastrange of projects an d programs, fromairports and trains to office buildings,hotels and plans for upscale waterfront complexes to small businesstraining seminars, all part of a vaguemandate to promote economic health.The agency even has $150 million inhand for as yet unspecifiedregional economic development projects.Unfortunately, the authority has fallen into the typicalpublic development rut,riding cyclical growth trendsbased on a fundamentallyflawed assumption: willynilly growth is the ticket to asound economic future.

Sensible PrioritiesThe port agency needs a strategicplanning framework that supportssensible priorities such as economicdiversity, targeting neglected strengthsan d linking human capital to financial investments. The agency's $5.4billion capital plan-the basis of itsrequest for a bridge and tunnel tollhike-needs revamping. Someprojects, after years of fruitless planning, should be scrapped. The generalized public works "pump priming"mentality, which results in far too fewconstruction jobs reaching lower income communities, should be replaced by clear development goals.Meaningful economic developmentmeans strengthening the region's smalland medium-sized businesses-thereal core of the local economic baseand taking the megadevelopmentprojects off the public dole. It meansclosing critical market gaps such asaccess to trained workers and financial capital for retooling, pr'oduct development, future expansion andmanagement an d employeebuyoutsthe sure keys to linking decent employment opportunities to a vigorousprivate economy.The idea is to harness the regionaleconomy's underlying strengths sothat it works for , say, machinists andhomecare providers as well as lawyers and account executives.To realize some of hese opportunities, the Tri-State Economic JusticeNetwork, an association of community, labor and religious organizationsfrom the city an d northern New Jer-

sey, is calling for the creation ofdevelopment bank to be capitalizby the Port Authority. The bankwouoffer financial and technical assistanto stimulate neglected bu t viable areof the economy, including manufaturing, alternative technologies ansmaller enterprises that can retain ancreate jobs that match the regionblue-collar workforce. A recent higpriced consultant report prepared fthe Port Authority offers guideposfor that direction.Regional OpportunityA separate division of the bank, thCenter for Regional Economic Oportunity, would offer or facilitaterange of management and technicservices for businesses and their employees. These might include assising in technology transfer and statof-the-art training for workers, creaing industry networks to assist grouof small enterprises, recruit ing worers for private businesses from community-based groups and job-traininprograms as well as meeting tranportation and child-care needs.One example of how this can wocomes from another Port Authoriconsultant, who noted that the avition industrycontinues to have troubrecruiting workers an d that financiincentives and training programavailable to firms go unused. Threpresents a lost opportunity to sytematically link thousands of joopenings to disadvantaged workerThe report recommends that the PoAuthority play a brokering rolhelping, for example, its airport teants develop child-care alternativeA broad-based coalition can prefor changes an d work with agencilike the Port Authority to turn sucopportunities into economic realitiand build a better future for the entiregion. 0

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20/24

By Eric Weinstock

"My Soul Ain't Working""The Place I Call Home: Voices andFaces of Homeless Teens," by LoisStavsky and I.E. Mozeson, ShapolskyPublishers, Inc., 1990 , $14.95, photo-graphs, hardcover.Tonight, after you've turned offthe lights, before you go to bed,open a window.Duck your head outside,close your eyes and clear your head ofall thoughts. Listen. Just listen.Ignore the sounds of he traffic downbelow you an d the television set nextdoor. Ignore the far away wailing ofsirens .. wait. Wait until you can hearthe neon buzzings of the city. Concentrate.You can hear voices now, low atfirst, soon rising slightly to a murmur,then a babble which buffets you likethe wind off the water.This is what you will hear:The sobs of a young girl whohas just been raped by her stepfather while her mother works thelate shift at a local hospital.The whisperings of a crackdealer, saying, "dimes, dimes,dimes".The rasping breath of a young

boy, his left lung punctured by aknife, his torn T-shirt covered withblood. His sneakers whisk byadorning the feet of the hood whostabbed him.The maniacal laughter of awoman echoing off the ceiling ofa homeless shelter.The scrunch of a pillow whilea fifth grader struggles to wrap itaround her ears.The grim silence of a teenagehooker as her john curses andmoans above her. The mv virusinside her is also silent.The slam of a car door as ahomeless family beds down forthe night in an abandoned vehicleunder the FDR.Automatic weapons fire followedby an eerie silence and thenthe anguished cry of a motherwho finds a crib filled with blood.I f you cannot hear these soundsfrom the snug confines of your apartment or house, then you can hearthem in "The Place I Call Home: Facesand Voices of Homeless Teens," abook that creates a visceral response


in even the most unsympatheticreader. People who are used to dealing with urban poverty and the homeless from the abstract perspective ofstatistics and percentages will findthemselves ill-prepared for the gutwrenching experiences related by theteenagers interviewed in this book.Terrible TimesLois Stavsky, an English teacher,works in a dropout prevention program in the Lower East Side. Herstudentsbegan interviewing local areateenagers they knew who lived inshelters, group homes and welfare

This bookcreates a visceral.response In eventhe most

unsympatheticreader.hotels as part of a project onhomelessness. The interviews becamethe basis for this book, an oral prehistory of these terrible times.Since the subjects are being interviewed by their peers rather than by areporter, the resulting transcripts arebrutally honest. The results are farfrom pretty.John Ruiz (age 17) spends his daysan d nights mugging and robbingpeople with his partner. He ends upslashing his victims sometimes, bu tdoes not feel any guilt: "It's like mysoul ain't working." Arcadio Santiago(15) committed his first purse snatching in order to bu y a pair of fancysneakers. DianaPineida (16) describesherself as a devoted daughter until,"my social life became real importantto me ... [I] started hanging out latewith my friends. When I was fourteen,I became pregnant." Tito Reyes (17) isenrolled in high school, but, "mostdays I'm just hanging out selling drugs.Me and my girl an d our kid-we need

the money."Although many of the interviewsubjects have problems far beyondthe provision of shelter, many of hembecame homeless for economic reasons."It's been three years since we hadto leave our apartment on the UpperWest Side. I'm not too sure why weleft. I think it's because my motherwas evicted when she couldn't affordto pay the rent," says one teen. Another notes, "About three years ago,the landlord died. The building wassold, and my mother couldn't affordthe new rent."

Desperate for ReformIn addition to the need to increasethe supply of affordable housing inNew York City there is a desperateneed to reform the institutions thatare supposed to be providing theseteenagers and their families with care.The teens describe prisons and shelters overrun with drugs, which areeven peddled by the prison and security guards hired to eliminate themThey tell stories aboutbadly run grouphomes in which children are beatenup and molested and social serviceagencies unable to handle burgeoningscaseload of dysfunctional families.Some of the teenagers have foundpeople to help them and nurturinggroup home environments, bu t moststill lead desperate lives. Lives inwhich prison is less a threat than ahomecoming.Several of these teens have beenabused so badly that they attemptedsuicide. Usually their nearly-successful attempts have been instrumental in getting them separatedfromtheir abusive families and neighborhoods.Since the book includes many teenswho lack a family as well as a home,"The Place I Call Home," transcendsthe relatively simple issue ofhomelessness. The bleakness of hesepages is nearly absolute, with only thedimmest hopes for the future shiningthrough. Some of these teens hope toemulate the people who have provided them with help by becomingcounselors or lawyers. I can think ofno better qualified applicants. 0Eric Weinstock is the director of theHousing Research Projectof he Com-m unityTraining andResource Centerand an adjunct instructorofeconom-ics at Brooklyn College.


21/24

Port Authority MisadventuresTo the Editor:Your recent article questioningactivities of the Port Authority set meto looking for early files related to the"World Trade" Center. I did my bestto forestall that misadventure, whichI consider their worst.Nowbearingthe highest assessmentin the city, at about $1.25 billion, Ithink their "payments in lieu of axes"are still around $30 million instead ofthe $115 million annually the assessment warrants. (The difference is lostrevenue that the city sore ly misses.)Originally-purpor ted benefits fromthe project never reached fruition.Instead of re-establishing New Yorkas the only pre-eminent trading port,all piers in Manhattan are closed an donl y one remains in Brooklyn. Insteadof the commissioners' cruises to foreign countries bringing documentaryconsulates and trade subsidiaries ofmajor corporations to the Center, thereare none. Instead of the the 4,000small importer an d exporter officesthat were meant to be the dominant

occupancy, only a meager proportionhas ever been attracted.When will be learn the futility andwastefulness of attempts to reinventthe economy?Seymour B. DurstManhattan

Editor's note: City Limitswelcomes letters from ourreaders. We ask that you try tokeep your letters to 300 wordsin length.

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22/24

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23/24

WORKSHOP

COMMUNITY ASSISTANT. Constituent services provider for Washington Heights/Inwood area of 28th Sen District. Exc opportunityfor entry level applicant to gain exp in community organizing,housing advocacy, tenant/landlord relations, entitlements, sr citizen & youth service, crime prevention & other issues. Excopportunity for advancement or career mobility. Salary commensurate w/ exp, exc medical/dental benefits. Fluency in Spanishreqd. Good written/verbal skills. Computer exp helpful, will train.Resumes: Office of State Sen Franz S. Leichter, Att: RaymondSaltini, 656 W 181 Street, NYC 10033. (212) 781-6593.

COMMUNITY ORGANIZERJDEVELOPMENT SPECIALIST. St. SimeonHousing Corp seeks executive director to develop affordablehousing in parish area & work to organize parishioners & neighborhood residents around local issues. Responsibilities include supervising HPD/Enterprise funds for renov of 3 vacant buildings,overseeing construction, rent up & mgmt, fundraising, loan packaging, social service devlpt & overall organizational devlpt.Community organizing & community-based devlpt exp prefd.Resume: Fr Jones, 1020 Carroll Place, Bronx, NY 10456. Salarymid to upper 20s.

EXECUTIVE ASSISTANT. For director of highly regarded East Villagenonprofit. If you are mature, discrete, personable, well organized& comfortable w/ the written word, please apply. Computer literacya must. Attitude more important than expo Salary in low 20s. Casualoffice but spurts of hectic activity, including occasional child underfoot. EOE. Write: Steve Coe, Community Access , 95 Avenue A,NYC 10009.

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24/24

SY.INOIS

Life inside a city-owned crack den...public agencies cuttingdeals for private developers ...landlords who collect the rentand let their buildings rot. Each month, CITYLIMITSprobes the misguided public policies and inefficient bu-reaucracies besetting NewYork. But we don't think it'sgood enough just to highlight the muck. CITYLIMITSlooksfor answers. Weuncover the stories of activists and localorganizers fighting to save their neighborhoods. That's whyCITYLIMITSrecently wonjournalism awards-one fromthe National Association of Real Estate Editors for investi-gative reporting and another from NewYork's CitizensHousing and Planning Council. Isn't it time you subscribed?

p - - - - - - - - - - - - - - - - - - . II YES! Start my subscription to CITYLIMITS. II D $15/one year (10 issues) II D $25/two years II Business/Government/Libraries ID $35/one year D $50/two yearsII D Payment enclosed. Add one issue IIto my subscription-free!I Name II II Address : City State _ Zip :. _ - - - - - - - - - - - - - - - - _ .

City Limits Magazine, March 1991 Issue

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Transcript of City Limits Magazine, March 1991 Issue