TheBurg tries to bring engaged community reporting to you every month.
We attempt to tell local stories about the 95 percent of what is right in our area, not only the 5 percent that is wrong. Where we point out problems, we try to focus on contextual analysis and concrete suggestions about how to make things better for Harrisburg and the region.
However, one of the major challenges for Harrisburg—similar to the struggles of many small urban areas in Pennsylvania—is that, far too often, the small urban core is highly dependent on policies, economic structures and laws that are beyond the control of city government and its citizens.
Harrisburg, for instance, has less than 10 percent of the population of the larger Metropolitan Statistic Area (MSA) (fewer than 50,000 residents compared to more than 600,000 in the surrounding region). Locally, Lancaster and York cities are similarly around 10 percent (York) and 11 percent (Lancaster) of the population of their surrounding counties. The wider regions can and do thrive economically, while problems get concentrated in the relatively small, poorer urban cores.
These arbitrary political boundaries are part of a legacy derived loosely from a German city-state government model, as opposed to a British (county) system used by other states (and perhaps a subject of a future column). Nonetheless, they have very real and current effects on the day-to-day operation of our city and similar cities throughout the commonwealth.
So, it is no wonder that cities across Pennsylvania have multiple problems at the municipal level. Recently, as many as 26 municipalities across the state have been under Act 47, and many others are similarly distressed. While the state-appointed receiver recently ceded his power back to local government in Harrisburg, the city remains under Act 47.
If we are to hope that Harrisburg returns to long-term fiscal health, municipal leaders need to do the hard work here locally, much of which is underway due to the Harrisburg Strong Plan, but we also need to fight for better statewide and regional policies. In that spirit, here are my “Top 5” issues that I hope to hear more about in the fall legislative and gubernatorial campaigns.
1. Reform the public school funding formula. As I have mentioned in this space before, one of the principal impediments to economic growth in Harrisburg is the tax rate on real estate. At a total of 45 mils (30 mils from the school district alone), a homeowner with a house assessed at $100,000 faces a $4,500 annual tax bill. These rates make it nearly impossible to build new housing in Harrisburg without other incentives. Other states—like Michigan—have faced similar burdens and have shifted away from real estate taxes as the primary funding source for public schools. We should do that in PA.
2. Reform municipal pensions. One of the greatest costs faced by municipal government is the health care and pension costs of retired city workers. These contracts and rules are often beyond the power of local officials to deal with, but are projected to reach nearly 30 percent of the entire city budget in some cities like Allentown as early as 2015. A statewide solution to this issue must be implemented for cities like Harrisburg to thrive.
3. Land banking of vacant properties. Pittsburgh just passed a new “Land Bank” proposal that has the support of its popular new Mayor Bill Peduto. Harrisburg has a long-standing program to acquire and demolish or restore distressed properties, but it suffers from a severe lack of funding. The budget for 2014, for instance, will be largely consumed by one recent structure that fell on its neighbors and required immediate removal. A state program that provides long-term low or no-interest loans (or better, grants) to cities for the purpose of blight removal, land banking and re-use/restoration would go a long way toward addressing blight issues throughout the state.
4. Repair public works. Major public works, such as Riverfront Park’s river walk in Harrisburg, are in need of repair and refurbishment. These public spaces are enjoyed by a wide variety of citizens throughout the area. By involving the county, region and state in the maintenance and care of these important public amenities, the burden easily can be shared by all who enjoy them, not merely the ones who choose to live in the municipality where they are located.
5. Take action on tax-exempt properties. The argument that non-profits should be free riders that do not pay for police and fire protection, road maintenance and the like and, thus, are exempt from city property taxes, is difficult to maintain as cities come under increased stress to pay for these services. If school funding were handled by implementing suggestion No. 1, this change would be far less painful for existing non-profits. Mayor Rick Gray in Lancaster recently addressed this problem as one of his top issues. Harrisburg Mayor Eric Papenfuse has mentioned it as one of his options for closing the city budget gap in Harrisburg in 2014. However, both leaders are largely reduced to trying to persuade civic-minded non-profit leaders to make payments in lieu of taxes (so-called PILOTs). Providing municipalities with the ability to require payments for police and fire would dramatically work to relieve and more equitably share the burden of local government services.
These are just of few of the many issues that could help Pennsylvania revitalize its small towns and cities to the benefit of all of us. Hopefully, we will hear these issues discussed this year.
J. Alex Hartzler is publisher of TheBurg.
