Proposed Law could abolish elections in PA. cities and towns that have many low-income residents

[JPZenger]

For many years, PA has had a system of providing expert advice and other technical assistance to cities and towns with severe financial problems. This is known as Act 47 and used to be called the Distressed Municipalities Act. Some relatively small grants are also available to help increase efficiencies.

Now, members of the legislature are complaining that these distressed cities and towns have not magically fixed all of their financial problems. Most of these municipalities (such as Chester, Harrisburg, Scranton and many small towns outside of Pittsburgh) have high percentages of low income residents and large amounts of tax exempt land.

There are two sets of bills to revise the law. One bill that has been amended by House Dems would give the municipalities additional tools to help fix their problems.

The alternative bill (which is led by a Republican Senator from a mostly rural county) would set up a "death penalty" for distressed cities and towns. That bill would provide the authority to dissolve municipal governments, end local elections, and turn over all governmental services to an appointed czar. This approach is modeled after a law that is in effect in Michigan.

Philadelphia has already lost its ability to elect school board members. Instead, for the last decade, the school district has been run by people appointed by the State Government. How's that workin out for ya?

The state also took control of the Chester-Upland School District for 10 years, without much success, before it was turned back over to an elected school board.

The Philadelphia Parking Authority was also taken over by the state government, with the main effect being that Repubs received most of the patronage jobs instead of Dems.

http://articles.philly.com/2010-05-17/news/24960372_1_notaries-signatures-committee-races

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http://www.legis.state.pa.us/CFDOCS/Legis/PN/Public/btCheck.cfm?txtType=PDF&sessYr=2013&sessInd=0&billBody=S&billTyp=B&billNbr=1157&pn=1560


http://www.theatlanticcities.com/jobs-and-economy/2014/05/latest-pennsylvania-town-declare-it-cant-pay-its-bills/9024/

Excerpts:

"Reuters reports that under the proposed bill, once a city met its cap, a "death penalty" would take place, resulting in the municipality being "disincorporated and converted into 'municipal service districts' run indefinitely by court-appointed administrators, not local elected officials." One of the bill's prime sponsors, Republican John H. Eichelberger from Hollidaysburg, tells the news wire that such an event "would almost never happen." Proponents of the bill are hoping to have something ready for Governor Tom Corbett to sign by next month.'
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http://www.mcall.com/news/nationworld/pennsylvania/mc-pa-shamokin-act47-20140503,0,3283641.story
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http://www.pennlive.com/midstate/index.ssf/2014/04/act_47_pennsylvania_distressed.html"

Excerpts:

""We do not see anything in these bills that will change the fate of distressed municipalities," said Amy Sturges, of the PA Municipal League and the State Association of Township Commissioners.

"We are concerned that the five year limitation and the alternative steps of disincorporation and receivership will force municipalities out of Act 47 prematurely and eventually the cycle will begin again."

Elam Herr, of the PA State Association of Township Supervisors, was more blunt: "If we can't address the labor issues, if we can't address … the mandates, if we can't address the tax exempt properties, we go nowhere."

Neil Grover, Harrisburg's solicitor, said cities that have a large percentage of tax exempt properties should be able to use a different taxing menu than other municipalities that can rely on property taxes. Grover would also like to see municipalities be given the option of charging nonprofits a "host fee" in a way that wouldn't force municipalities to treat a "$1 billion hospital the same as a soup kitchen."

[Curmudgeoness]

1. A border city of mine was the first Act 47 city.

My city is very close to becoming one as well. What we need is room to grow, which we can't get. Also we need dilapidated properties torn down, but we don't have the money. We have had to take down about half of our street lights to save money. There are not enough police to keep residents safe. Property taxes are so high, especially for the prices of the houses----you can buy a house for $10,000 if you aren't worried about the age and condition and neighborhood, but are willing to pay a ton on property taxes. No one wants the houses when people can't pay the taxes, so slumlords buy them up. I have heard that over half of all houses are rentals. All the industry that built these cities is gone.

These are the issues that you cannot magically erase, even with a competent manager sent by the state. That will not help.