HARRISBURG - Saying that addressing the problems of distressed cities will be a 2013 state budget priority, Democratic senators outlined a raft of proposals Tuesday to tackle issues ranging from providing assistance to urban homebuyers to revamping the Act 47 fiscal recovery program.
Scranton, Wilkes-Barre and Hazleton have been wrestling with serious budget issues and the proposals will help these struggling cities in Northeast Pennsylvania, said Sens. John Blake, D-22, Archbald, and John Yudichak, D-14, Nanticoke.
And distressed cities like Scranton, which has been under Act 47 distressed status for more than 20 years, are at the heart of regional economies, said Mr. Blake.
"As they go, so go the regional economies," he said.
Mr. Blake and Mr. Yudichak joined colleagues at a press conference to outline the proposals grouped around broad categories: downtown economic development, rebuilding the local tax base, urban blight, Act 47 and municipal debt, education and workforce development, local government streamlining and public safety. Also on hand was Austin Burke, president of the Greater Scranton Chamber of Commerce and member of the Commonwealth Financing Authority.
Mr. Yudichak said many of these proposals advance the goal of regional cooperation among Luzerne County's municipalities, which he has long advocated.
The caucus has announced initiatives on several issues this month seeking to capitalize on the election pickup of three seats in the Senate, narrowing the Republican margin of control to 27-23.
The proposals outlined under the "Growth, Progress and Sustainability" umbrella will be introduced as bills next month when the 2013-14 legislative session officially starts.
Some emerging ideas include providing school district property tax rebates with either state or local dollars to first-time homebuyers who purchase a primary residence in a school district located in a mid-sized city and earmarking some table game revenues to reduce property taxes in urban communities as a way to promote home ownership and rebuild the tax base.
Act 47 is a target of proposals, with a more rigid review process that includes fiscal "stress tests" and earlier disclosure of negative signs, such as underfunded pension obligations and mandating that municipalities identify what economic strengths they have to rebuild with.
One Act 47 proposal includes giving distressed municipalities other than Pittsburgh the option of creating an Intergovernmental Cooperation Authority to work with the Act 47 recovery plan manager.
Mr. Blake said the local members of an ICA could play a helpful role brokering between a mayor and city council on fiscal issues.
The plan includes developing safeguards for municipal borrowing under the Local Government Debt Unit Act, the subject of Senate committee hearings this fall that Mr. Blake has participated in.
The caucus also proposes requiring cooperation between cities and school districts on comprehensive fiscal recovery plans and consolidating school district transportation services at the Intermediate Unit level.
Members suggest imposing a surcharge on traffic violations to pay for a state grant program for municipalities that have part-time police officers.
Senators said they are mindful that state finances remain tight with competition for scarce dollars.
"This is not a conversation about new taxes," said Senate Democratic Appropriations Chairman Vincent Hughes, D-7, Philadelphia. "It is a conversation about budget priorities."
Contact the writer: rswift@timesshamrock.com