Something very important happened in our political system recently in Harrisburg.
Led by Receiver Bill Lynch, officials across the political spectrum came together to solve a very difficult fiscal problem for the city. In doing so, they demonstrated that our political system still works and that seemingly intractable problems can be solved through hard work, persistence and a willingness to trust and cooperate – the essence of leadership. This is the best that we can ask from any of our elected and unelected public officials.
Hard as it may be to believe on the surface, Democratic Mayor Thompson worked cooperatively with Republican Gov. Corbett and a bi-partisan team of Dauphin County commissioners to put together a negotiated plan to solve the Harrisburg debt crisis while avoiding the crushing prospect of bankruptcy. All of those leaders deserve our thanks and appreciation.
Is the plan perfect? Of course not. By its very nature, a negotiated solution will leave every party wanting, as is the case with this plan. All parties are taking a “haircut,” so to speak, to make the deal work. No doubt there is shared pain required by the city’s residents. The extension of the 1 percent increase in the EIT will cost the median family making $30,000 a year an extra $300 annually. However, if a tax increase had to happen, which under any scenario it certainly would, this is the fairest tax and far preferable to any increase in already-high real estate taxes.
But look what also happened: the bond insurance company (AGM) took an $89 million haircut, as well they should. And the commonwealth will have to contribute $5 million a year to the city budget (a dramatic increase over every year prior and one that they will be under tremendous pressure to continue) and has helped to guarantee the parking revenue and price for the sale of the incinerator. Yes, parking rates will go up about 15 percent (or $23 per month for a space in a public garage), but even this is a good thing from the perspective of Harrisburg citizens. This is one of the few ways that we have to raise money from people who do not actually live in our town (in other words, a commuter tax). A few more people may carpool or take the bus instead—for the sake of the environment I hope so—but the rest will pay their small part.
Despite this favorable progress, not all city leaders are willing to demonstrate the spirit of good faith, cooperation and optimism required to get things like this done. An example is the call by Controller Dan Miller for an “independent” review— whatever that means. A review has already been conducted at the local, county and state levels, with further review coming from a commonwealth judge. What is Miller now suggesting? That the officials involved are not to be trusted in representing and negotiating for each party’s best interests? Or that they are to be trusted, but it is still not the outcome he wants? In which case, he needs to explain how an independent review and the costs and delays associated with it will somehow result in a better outcome for the city’s residents. And he needs to tells us who exactly will pay for that review. What exactly would this independent reviewer have the authority to do?
As much as Miller wishes it were so, we are not Detroit, and we are not going bankrupt if this plan is carried through. The only thing that further delay and dithering will do (after four long years) is cost us more money while preserving Miller’s central campaign theme of bankruptcy. But anyone who knows anything about business knows that all the parties have to agree to a deal, and, if one backs out, the entire deal falls apart. While Miller may want that in order to somehow prove he was “right,” the rest of us should reject it wholeheartedly. His attempt at a delay in disguised hope that the deal will fall apart in the meantime is exactly what is wrong with our political system. And it shows why Harrisburg voters rejected Miller’s failed candidacy for mayor in the recent Democratic primary. I suspect that Republican and independent voters who tend to understand business and how a deal comes together will see through this personally motivated charade, joining with the Democrats to vote for change.
Let’s move Harrisburg forward and not waste one more day or one more dollar of our citizens’ hard-earned money on personally motivated delay and obfuscation. There are many more issues the city has to deal with, including finding ways to attract more residents and businesses so that we can turn our city around and begin to grow our population base. Issues of safety, economic competitiveness, infrastructure and schools are high on the list of our problems to solve, but we can solve them if we finally get this crisis behind us.
Nearly 100,000 people lived in Harrisburg a half-century ago, almost twice as many as today. However, if we get back to work and focus on growth and opportunity for jobs, housing and investment, I believe that Harrisburg has the potential to rediscover its former glory and rightful spot as a leading capital city. This plan will help us become Harrisburg Strong.
Alex Hartzler is publisher of TheBurg.
