HARRISBURG - Creating an umbrella state business development authority to provide financing for business park infrastructure is one way to address the high jobless rate in Northeast Pennsylvania, the state's top economic development official said Monday.
Sen. John Yudichak, D-14, Nanticoke, asked during a Senate Appropriations Committee budget hearing what the state is doing to help the region cope with three years of heavy unemployment.
"It's a chronic condition," Mr. Yudichak said.
Alan Walker, secretary of the Department of Community and Economic Development, said legislative approval of Gov. Tom Corbett's proposal to consolidate eight state business loan programs under the PA Business Development Authority would leverage hundreds of millions of dollars to help finance loans to businesses and tackle water, sewer and road infrastructure needs in business parks.
Development at the Humboldt Industrial Park in the Hazleton area is being hampered by lack of money to extend Route 424 into the park, Mr. Yudichak said.
Mr. Walker fielded questions from Sen. John Blake, D-22, Archbald, and others about helping financially distressed cities like Scranton exit the Act 47 program.
Mr. Blake and Sen. Judy Schwank, D-11, Reading, expressed concerns about the proposal in the governor's fiscal 2013-14 budget to reduce funding from $12 million to $7.1 million for the Municipalities Financial Recovery Loan Fund that helps Act 47 municipalities.
Mr. Walker said the loan fund was beefed up considerably last year because it had been depleted, and the current emphasis is on starting an early warning system to identify municipalities on the verge of becoming distressed.
Keeping municipalities from entering the Act 47 program can save the state a lot of money, he said.
Democratic senators urged consideration of an agenda they outlined in December to help distressed cities through such steps as providing school district property tax rebates to first-time homebuyers and introducing fiscal "stress tests."
Mr. Blake said lawmakers have yet to hear the administration's voice on issues involving struggling cities.
Contact the writer: rswift@timesshamrock.com