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3/13/2014

Governor Corbett: DCED Secretary Determines Pittsburgh to Continue in Act 47; Calls for Amended Recovery Plan to Develop Exit Strategy

News for Immediate Release

March 13, 2013

Governor Corbett: DCED Secretary Determines Pittsburgh to Continue in Act 47; Calls for Amended Recovery Plan to Develop Exit Strategy

Harrisburg – Governor Corbett today joined Pittsburgh Mayor Bill Peduto to announce that Department of Community and Economic Development Secretary C. Alan Walker has determined that the City of Pittsburgh’s status as a distressed municipality be continued under Act 47.

“Pittsburgh continues to take considerable steps forward in stabilizing the city’s financial position; however, many conditions that originally led to the distress determination have not been alleviated,” Gov. Corbett said. “Legacy costs remain a concern and jeopardize the city’s ability to maintain a sustainable budget without ensuring the mechanisms are not only in place– but are working.”

Gov. Corbett stressed the need for a long-term plan and the development of an amended recovery plan for the city to address legacy costs of debt, pensions, post-retirement benefits and workers compensation. There is also a need to develop a financially viable long-term capital plan while maintaining positive operating budgets well into the future.

“While cities around the nation struggle, the people of Pittsburgh should be proud of the progress the city has made to reinvent itself,” Gov. Corbett added. “This is personal for me.  The Pittsburgh region is where I grew up, where I went to grade school and high school, and where I built my career. A united effort and a strong amended recovery plan will ensure the city is positioned to flourish for generations to come.”

Sec. Walker determined that the City of Pittsburgh has not met the criteria for a rescission of its Act 47 status as provided for in both Section 253 and the Policy Statement of the Act.

Sec. Walker made the decision after reviewing data and the record from a public hearing held on November 8, 2012 in Pittsburgh and the consideration of subsequent events over the last year. He noted that much of the testimony centered on the necessity to sustain Pittsburgh’s long-term recovery and the need to continue to address the City’s legacy costs. 

“This assessment, along with Mayor Peduto’s request to remain in Act 47 with the goal of pursuing a guided path out of Act 47, is why I’ve asked the Recovery Coordinator to develop a plan in cooperation with city officials and the ICA, and for enactment by the Mayor and City Council,” Walker said.

The Municipalities Financial Recovery Act, Act 47 of 1987, was enacted to provide a broad-based program of fiscal management oversight, technical assistance, planning and financial aid to municipalities experiencing severe fiscal distress.  For more information on Act 47, visit www.newPA.com or call 1-866-466-3972.

Media contact:

Valerie Caras, Governor’s Office; 717-783-1116

Steve Kratz, DCED; 717-783-1132

 

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