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New rules suggested for municipalities to get 'distressed' status
Monday, May 14, 2007

HARRISBURG -- Pittsburgh and 16 other financially distressed municipalities need better help for a chance at faster recovery, said state Rep. Edward Wojnaroski Sr., D-Cambria.

That's why he has introduced a bill aimed at limiting how long municipalities could be on the state's financially distressed list under Act 47.

Passed in 1987, Act 47 provides grants, loans and technical assistance to help the state's most troubled municipalities pay for crucial services.

Since then, 23 municipalities have been named to the list and only five of those improved their financial situations enough to be removed from the list.

"I believe there are some issues with current law that cause the communities to remain on the Act 47 list much longer than necessary," Mr. Wojnaroski said yesterday. "Act 47 should be set up to encourage successful resolution and independence, not keep municipalities beholden to the state and the recovery coordinators appointed to help them."

His bill would limit the length of time on the list to 36 months after a recovery plan is implemented.

Municipalities would have to wait another three years before they could apply for a distressed designation again.

Mr. Wojnaroski also proposes restoring the requirement for municipalities to bargain collectively, as long as the outcome is consistent with goals of the recovery plan or the municipality proves it can generate enough revenue to fund the contracts. Financially distressed communities can claim poverty and avoid collective bargaining.

"As it stands now, Act 47 hurts our unions and our ability to negotiate with unions," Mr. Wojnaroski said.

"Restoring the ability for distressed municipalities to bargain collectively will go a long way toward rescinding the distressed-municipality designation and getting local governments back on their feet."

The bill has been referred to the House Local Government Committee.

First published on May 13, 2007 at 10:50 pm
Tracie Mauriello can be reached at tmauriello@post-gazette.com or 717-787-2141.
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