September 25, 2014
READING, Sept. 24, 2014 – Representing one of Pennsylvania’s 20 communities that are financially distressed, state Sen. Judy Schwank has voted to change the law that governs the commonwealth’s municipal recovery program.
Schwank’s vote Wednesday helped to send the Act 47 proposal, House Bill 1773, to the governor for his consideration.
“I voted to make comprehensive changes to Act 47 because I don’t want Reading to be stuck in an otherwise positive program for decades, as have some other communities,” Schwank (D-Ruscombmanor Township) said today.
“Reading has a recovery plan, thanks to Act 47. If it continues to follow the prescription, it should be well on its way to a brighter economic future. While I am confident it will enjoy better times, we must make sure the city – or any local municipality – has the tools it needs to get back to self-sufficiency in a reasonable period of time,” she said.
Reading’s Act 47 recovery plan, approved Nov. 12, 2009, is designed to improve the city’s management and accountability, advance its oversight of housing codes and funding sources, and rethink how it pays for and delivers city services.
HB 1773, if signed into law, would limit municipalities’ participation in the program to five years and give the Department of Community and Economic Development more authority in enforcing a recovery plan.
Municipalities in the program when the law goes into effect are allowed one three-year extension after their first five-year program expires.
Also, HB1773 delivers fairer taxing options that local governments can consider to quickentheir exit from Act 47 financial distress.
Of the 20 municipalities under Act 47, the commonwealth has watched Farrell (1987), Mercer County; Aliquippa (1987), Beaver County; Braddock (1988), Clairton (1988) and Rankin (1989), Allegheny County; and Franklin (1988), Cambria County, the longest.
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More information on Sen. Schwank is available on her website, Facebook and Twitter.
January 15, 2014
HARRISBURG, Jan. 15, 2014 – To improve performance and brighten the economic future for more of Pennsylvania’s struggling cities, state Sens. Judy Schwank (D-Berks) and John Blake (D-Lackawanna) today introduced legislation to expand a new program designed to drive significant economic development and bring people back to cities.
The City Revitalization and Improvement Zone program became law last summer when a more limited version of the proposal was incorporated into the commonwealth’s tax code.
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Forty-five of the state’s 53 third-class cities, including Scranton and Harrisburg, were immediately precluded from consideration under that version. Reading was one of eight cities that remained eligible for the program but was shut out of participation after the Pennsylvania Department of Community and Economic Development selected Lancaster and Bethlehem for inaugural CRIZ involvement.
“We are happy that Lancaster and Bethlehem were selected and are on their way to reaping the benefits of the CRIZ program. However, there are too many cities like Scranton, Reading and Erie that need and can use this, and they should have that ability now,” Schwank said during a Capitol Rotunda press conference.
Blake called the City Revitalization and Improvement Zone program a “critical tool” that cities need to stir strong community revitalization and spark significant economic development.
“The state must be a better partner with our cities in fostering investment, stabilizing our local tax bases, and sparking economic growth and infrastructure investment. The CRIZ program can serve to revitalize Scranton, Reading and our other small cities without adverse impact on the state General Fund,” Blake said.
Under their proposal, DCED would award 15 City Revitalization and Improvement Zones between now and 2016. Bethlehem and Lancaster would be included in that total but spots would open for other communities based on population and other criteria.
After 2016, the state would add two cities every year to CRIZ, regardless of population. This is the current requirement under state law.
There would also be five pilot programs for boroughs and townships of at least 7,000 people, compared to just one under the current language. Additionally, Act 47 communities would receive priority status if they applied for CRIZ participation.
The CRIZ program was modeled after a Neighborhood Improvement Zone initiative that has proven to be an economic development marvel in downtown Allentown.
“Giving more cities the power of a CRIZ designation will bring new investment in local economies because it will target the problems that caused their financial suffering and eliminated the features that once made them vibrant,” Blake said. “CRIZ will redevelop eligible vacant, blighted and abandoned properties into commercial, exhibition, hospitality, conference, retail community or other mixed-use purpose facilities that residents will be proud of for years to come.”
“Reading, Scranton and other cities will still have to step up to the plate to qualify for CRIZ designations if this bill is adopted,” Schwank said. “Hopefully, we will give them that opportunity in time to help them.”
Properly managed, the senators said City Revitalization and Improvement Zones will not burden the commonwealth’s budget.
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October 20, 2011
Harrisburg, October 20, 2011 – Testimony before a joint legislative hearing today strongly supports the call for changing the authority and restrictions in Pennsylvania law relating to municipal government, state Senator Judy Schwank (D-Berks) said after the hearing.
“It’s obvious that our current laws no longer give communities the tools they need to look after their well-being. In too many cases, we already are seeing towns and cities entering into slow death spirals,” said Schwank, a former Berks County commissioner and past-Chairperson of the State Planning Board.
Witnesses appearing before the panel on Thursday painted stark pictures of the fiscal problems facing communities across the state, including many that now or in the foreseeable future will be unable to provide basic services because of declining tax bases and increasing demands as their populations shrink and age.
“We have to turn this around and begin to seriously deal with these issues as a state. The problems are enormously complex, and some of the answers have the potential to be tremendously challenging politically,” she said. “If we don’t begin to act, everything else we do to encourage economic development and jobs across Pennsylvania will have unreasonably limited meaning and impact.
“It’s not enough, as one of the witnesses pointed out, to get troubled communities to the point where bills are paid. They still have to be places where people want to live.”
Schwank made her comments following the first of two scheduled joint hearings by the Senate and House committees on Local Government, the Senate Community, Economic and Recreational Development Committee and the House Urban Affairs Committee into the effectiveness of the Municipalities Financial Recovery law, popularly known as Act 47 for financially-distressed communities.
Since Act 47 became law in 1987, more than two dozen communities including Harrisburg and Reading — a city which Senator Schwank represents — have sought its protection. Only six municipalities have completed recovery under Act 47; 11 municipalities remained under Act 47 for more than a decade.
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