>> i'm monica malpass on inside story a budget fight between pennsylvania's republican governor and the state house is putting philadelphia schools at risk. let's get the inside story. good morning, i'm monica malpass, welcome to inside story, let's meet our insiders this week, they are ajay raju, and christine flowers. a big cigarette tax has not been

passed, the schools say that's too little too late. the bucket was passed with no increase in taxes and reasonable revenue stream. there are things that they grappled over, although it's fighting within the republican party, the governor has what he wants, he will help the schools, but not help the -- he will help the schools, but not overdue it. >> you look at this, the leader, the expectative of the legislature, the controlling sides of it, and they bicker to the very end. it came across as some sort of retribution, this money goes to harrisburg for what they need for their recovery, in essence he punished harrisburg, because

the leader did not give him what he wanted, what he wants is a legislative win so he can go back to the people and say i got this done in time for the elections. >> the pensions keep eating away at the budget. he did use his line item veto to axe $65 million worth of stuff. would you argue these are the same groups that got the axe the last time around. cutting 65 million out, they can override his veto on that, they could come back and do that, they could let it go until after the november election and put those dollars back, i'm not sure that's anything other than symbolic. but the real issue for philadelphia still is that at the 11th hour we were not able to get the cigarette tax authorization for us to spend our own money. this is about us spending our own money in order to try to

help the schools. for everyday this doesn't happen we're losing $1.6 million. >> in fact mayor nutter called it a vortex of hell that's hard to get out of. it's a downward spiral. >> will it come around in mid august to get the schools come back by september 8? >> i think it will. the cigarette tax will pass. i imagine going to the doctors the doctors will tell you the test will take until august 4 to see if you have anything. the doctor comes back and says good news and bad news, good news you'll live for another five years and bad news you have to come back for another test. that's what's going on with dr. william hite. i meanted to go back, if i may

on -- i wanted to go back, if i may, what corbett did with the legislature was bold enough. what we're talking about is a rainy day fun reserved for the legislature. imagine a famine, everybody in the famine is fighting the famine and what they are asking them to do instead of the 70 we have reserved we want we want you to take that money and invest and by doing that it is forcing the legislature's hand on pension reform. i think it was a political deft move. >> he wants the surplus to pay down the big deficit. >> to speak to what ajay was talking about, and what nia said about the tango, i think in a way he planned this. he came in as the outsider.

he prosecuted legislatures when he was attorney general. this tension between the legislature and the governor works to his advantage in the fall in the election, he is 20 points behind tom wolf it makes him look like a tough guy who is willing to take on people in his own party because the republicans are in the majority. i think, with respect to cigarette tax you were talking about the rainy day fund, and what have you, it's quite up setting at the 11th hour they snatch defeat from the jaws of victory, this this was somethino one should have a problem, even smokers should not have a problem with a vice tax. i say this is as someone who lost a father, grandfather and grandmother to smoking, we know what it does, why don't we take that vice and get something out of it and pump it back into the schools.

>> to the -- at that -- tobac. o lobby did not want this. it will hurt harrisburg. the cigarette tax it was a travesty to wait until the last minute and say we're going to do other things, we need to table this. what you end up doing is jeopardizing the school. the cigarette tax is a patch. it is a band-aid. we have greater needs as far as how are we going to work out the funding situations. le. >> we have a window. dr. hite said 1300 people could be laid off and class size could swell to 40 teachers -- children with one teacher. they may have to cut services

just like last summer. >> the interpreters are gone, the people we need for the everyday functioning of schools are gone. >> i think one of the things that happened right after this, is that the philadelphia democratic delegation and the pennsylvania senate sent a letter directly to the head of the philip morris too back co- company, they are saying you need to back off this. there's action that's happening to try to get ready for the august 4th deadline. we can keep our fingers crossed. i agree with nia the fact that we're here fighting over something that's not going to solve the problem is unfair. >> dr. hite said when you have a sunset provision every year

you have to go back to the table, it's a stopgap measure. >> src, school reform commission is part of the state oversight. the good news we have a long-serving member that's going on to greater good, that's terrific and another new appointee sounds like a really qualified person, as well, marjorie nett who was at the masterman school. is this such a thankless job you've got the cheating scandal in the district, dozens of schools had to close in his three year tenure. these fiscal disasters waiting at every corner. it's a tough job yelling at every meeting there was never a good option. how in the world do smart people with great yuskses make much -- qualifications make much out of that. >> people who go into these

jobs are not looking for thank yous, they consider it an important job for pennsylvania and philadelphia. we fix education, forget about long term, we have major impact on safety and real estate value. >> cutting the prison population. >> look at the talent of folks who have signed on for no pay. i don't think they are looking for thank yous, they are driven by something. dr. prichert is was talking about how often he would lean for judgment and clarity of thought. we have zahree placement another -- we have as a replacement another talent focused on the problem. they are walking in with the

buckets of chlorine it is not enough. >> it is comforting that we have a valued educator highly decorated educator coming into the situation. one of the reigning criticisms was we don't anybody on the ground who is making these policy. this is probably the purest form of public service in this city. if you look at the gravity of the decision that has to be made and the impact. your decisions and everything you do touches so many lives and without pay and without a lot of thanks and after people get beat up night after night, they take a lot. it's a deserved thank you to the doctor for everything he has done. >> let's talk been interesting outside group from san francisco that's going to be analyzing

political adds and flow of money in politics they picked of all areas, philadelphia and pennsylvania. why, the question is of all the places in the country to pick their answer it's the 4th largest market, we have two closest house races. they felt like because of the size of the city and the hot politics that are happening here they wanted to analyze it and see where does the money come from and where is it going and what do people want for political dollars spent. we can within 24 hour track a political ad who bought it, where it was placed on television or in the newspapers enwhat was gained from -- and what was gained from that. how do you think this will impact people opening their eyes and the way politics works. >> it's fantastic it will come out of the behind the closed doors. people will have access to the

information in computer bases, libraries, this is something, it's like the constitution center. it's a form of bringing this to the people that they understand, especially in light of citizens united. we are going to see how important money is in elections. and i think another reason that they focused on philadelphia and yea philadelphia! which is great, we are such a diverse area, the area not the city. the five county area the demographics are so diverse and south jersey. >> it's its own microcosm. >> if you bombarded all the data which usually happens in a closely contested race none stop. this gives you another storage place on your own pace you can get the information you want to

retrieve. pew said three user get their information from the social media. i think this would be helpful to get the right kind of information when they want it. >> will people take the information and be inspired or horrified by it and do anything? >> that's the real question, ultimately it doesn't become too much information and people don't get a chance to distill it and figure out how to effectively use it. i think opening up makes sense our own station here and others are going to have put the information in digital form that's what's making this project work is that the information that the television stations have who's buying adds is in digitsal form is allowing us to see things clearly and quickly. >> this is a great opportunity for citizen journalist, we don't

have the staffing that we had people that are blogging and responsible bloggers and others can go into the treasure trove and pull out the information and share it on social media can, you'll have a lot of journalists following it.

if he were a lobbyist... if they were political contributors...

maybe tom corbett would listen to them, instead of cutting funding for their schools. oil and gas companies gave corbett 1.7 million dollars in political contributions. and he gave them a sweetheart deal on taxes that's costing pennsylvania billions. corbett's mismanagement has caused a huge budget deficit. and his painful education cuts are forcing teacher layoffs and increasing class sizes. now corbett wants to give the oil and gas industry even more handouts. and what's he getting from them? corbett's keeping that secret. so pennsylvanians are challenging tom corbett to come clean. release the records of your meetings with donors... that you've been hiding. disclose all the contributions, letters and emails from oil and gas lobbyists who influence you. we've got a right to know who tom corbett's listening to. because it sure isn't us. >> welcome back to inside

story, a tragedy in one neighborhood in southwest philadelphia happens 0 to be an immigrant neighborhood of elm wood. they had a fire in 2008 where people died and recently another fire where four children died. there was an outcry and protests that firefighters did not respond quick enough, even though they did became win minutes, five minutes. what do you think stirred up this outburst in the city. >> first there was a lot of misinformation rumors started running through the community quickly that it took 30 minutes for the engines to get to the community which is not the case. we don't know what happened even though we have the time line. i think, unfortunately, i don't blame the people in the community itself on that street for all the protests and the violence. i blame people from the outside

who i think are manipulating the situation and taking the situation to a higher level with their protest unjustified against the police department to call the firemen who came to that community murderers as several of the protesters are not from that community did. >> for their own personal gain. >> and it happens all the time. you have a great deal of sympathy, you grieve, you don't use that situation to turn it gains the city for political reasons. i always have a problem with the liberian ambassador coming into the community as a photo opportunity and he was going to be reporting back to the president green leaf. i don't think that was appropriate. >> another situation where children are caught in the cross

hairs if you will is in,.com -- texas where 60 to 90,000 are coming to u.s. uncompanied get into america and hope you get to stay. it's swelled, the ranks of the people living along the bothered are in warehouses, many of them who won't get a hearing for years if ever, because it's become a border crisis did you have a problem with the president flying down for fundraising opportunities and not going to the border to see it first has not himself. >> i think one he addressed the issue not at the border. him going to the border would have not have changed the situation one way or the other. what i have a problem is, the politics behind this. we've been talking about comprehensive immigration reform for how many years, and all of a sudden one could say this is obama's fault. i can dig that the president has

culpability with this, as does the congress. the ugliness that has arisen from a lot of communities saying they are coming to take from us, blah blah not understanding the graition of a family, misinformation is being circulated if you're child gets there, everything will be all right. these are parents with passion and aspiration saying i'm going to take this risk. >> they are coming from central american county that are in dire circumstances they are saying starvation is better than where they are. some children are dieing in the desert. >> families over there now know based on on what the smugglers and others tell them, blend in, all you have to do is cross. for people who are desperate

looking for the land of opportunity they will take that risk to come here. that creates the border risk. what do the politics need to do to fix it. >> we have to look at this not just as immigration problem but a national security problem. there are other risks from a terrorism standpoint. >> what nia said this is not just on president obama's watch this is based on on the labor force act an antitrafficking law passed under president bush. if you want to lay blame let's lay blame in the last administration which makes it difficult to repatriotal -- repatriate these children. >> the drug problem is why parents want to get them out of central america because drug cartels are stealing their children and putting them into the drug trailed. we have a demand issue in the

united states and it is being fueled by the fact that these folks are managing that demand. we can't take that conversation out of the issue when we look at what's happening with the kids. >> let's bring it down to philadelphia. homeownership has dropped from 2000 to 2012 by 7%. people are looking at several things, the housing bubble burst and the economy crashing in 08. obviously many of the young people coming up, don't a, want to take the risk and b, they have big student loans and don't want anymore loans, they don't want to create anywhere debt. where do you think it's going? >> i may be in the minority of this one. the false promise of america that everybody has to have a white picket fence and a home.

it trams into one natured lack of mobility with -- neighborhood, lack of of mobility with jobs. students are renting highrise apartments that gives themselves freedom to be mobile, because now the economy is bit more mobile. more millennials are moving into philadelphia than any other city in the country. this is a pattern shift in how people spend their money, whether to buy or rent. >> i think that's true. i think people are saying there needs to be a better balance. philadelphia is still the 35th largest city in the country for homeownership. even though the numbers dropped we're high as we look at the rest of the county. and reports came out not just on the high end side, but on the low income side to say we need a better mix between rental and homeownership. >> you can't separate it out from the rising poverty rates we

see in the city. if you don't have a job, you can't buy a home. so some people unfortunately have been demonized, section 8 is taking overly parts -- over the city. people are leaving, it's a different city now. >> inside stories of th

>> time for inside stories of the week. >> monica, i want to go to the smoking topic, $263 million a day, direct healthcare cost we lose in the country. 1200 people per day dieing from smoking related issues. we helped the kids by raising $2 per pack and we're lowering healthcare costs.

>> we have a good number of kids working in the city of philadelphia. over 7,000, the university of british columbia came out with a report this week that said this matters for the summer and the long term. kids who get summer jobs ultimately earn more money in the long run and get better jobs. >> monica, today we play the world cup final. germany against argentina. i do not think this is a coincidence, we have two of the men closest to god, german pope benedict and pope francis argentinian. i wonder if god will call for a tie. >> we are going to increase children's awareness to get involved in the tech world free.

>> shack says it's okay he said it's going to take a few years, but everybody hold their breath. inside story will be back next sunday, thanks to all our insiders thanks for watching, we'll see you then. >> i'm nydia han along with eva pilgrim. >> coming up next on "action news," a authorities in north jersey have just released new details in the shooting death of a police officer this morning. >> new at noon, more than half a dozen people were injured in a two car crash in abington a short term ago. a live look on south street where soccer block party is setting up.

fans are getting ready for the world cup final. those stories and the the exclusive accuweather seven-day