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FOR IMMEDIATE RELEASE |
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CONTACT: Amy
Giancoli Hartman |
State Rep. Edward
Wojnaroski Sr. |
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Wojnaroski introduces bill to help financially distressed municipalities
HARRISBURG, May 11 -- State Rep. Edward Wojnaroski Sr., D-Cambria, has introduced legislation designed to help municipalities in financial distress.
His bill, among other things, would impose a statute of limitations on how long municipalities could be on the financially distressed list under Act 47.
"Currently there are 17 communities on the Act 47 financially distressed list, including Franklin and Johnstown," Wojnaroski said. "While Act 47 is designed to help the municipalities improve their financial situation and get out from under their fiscal problems, I believe there are some issues with current law that cause the communities to remain on the Act 47 list much longer than necessary.
"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."
Of the 23 communities labeled distressed since the law was enacted 20 years ago, only six have been removed from the list.
Wojnaroski's bill (H.B. 1222) would limit the length of time any municipality could remain on the distressed list to 36 months after a recovery plan is implemented. After the three years, a municipality could choose to end the distressed status. If so, it would have to wait another three years before it could apply for a distressed designation again.
A second change in the legislation would restore the ability for municipalities to bargain collectively.
"This would allow the bargaining process to reach different conclusions than what is provided in the recovery plan, as long as the agreement reflects consideration of the recovery plan and is generally consistent with the goals of the plan," Wojnaroski said.
The third key change would make Act 47 resemble the Pennsylvania Intergovernmental Cooperation Authority Act for Philadelphia as it relates to collective bargaining agreements.
"Basically, in addition to restoring the ability to bargain
collectively, it would allow for an agreement to be reached that doesn't comply
with the recovery plan, provided the municipality could revise the plan and
demonstrate that sufficient revenue can be generated to pay for the agreement
costs," Wojnaroski said.
"As is stands now, Act 47 hurts our unions and our ability to negotiate with unions. 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 for review.
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