Receiver William Lynch’s financial recovery plan, which he calls the “Harrisburg Strong Plan,” has garnered official comment from many politicians and government officials over the past day. Here’s a sample of reactions to the plan.
Mayor Linda Thompson:
The sale of the incinerator, and lease of parking assets for 40 years are the major pieces of the Harrisburg Recovery Plan submitted to the Commonwealth Court of Pennsylvania this afternoon. The revenue generated from the Recovery Plan, will allow for funds to bring the city current on vendor payments, close the structural deficit balancing the budget while simultaneously meeting creditor obligations and preserving Harrisburg’s economic future.
“If confirmed by Commonwealth Court,” Mayor Thompson said, “we believe Harrisburg will become a model for other financially distressed municipalities in Pennsylvania and across the county.”
The mayor added that “this plan shows that a consensual path is preferable to an on going dispute that brings protracted delays, substantial costs and uncertain results.”
The mayor reiterated that the core of the plan provides Pennsylvania’s capital city with:
1. A balanced budget through 2016.
2. Elimination of the incinerator debt.
3. $5 Million to bring the City current on vendor payments
and close the City’s shortfall for this year.
4. $10 Million over the next few years to foster economic development.
5. $10 Million in funding to upgrade and repair infrastructure and public safety.
6. A task force consisting of a diverse group of elected officials, civic, business, academic and community groups that will create an economic development and infrastructure improvement plan for no fewer than five years.
7. The creation of a health care trust fund that will help address rising costs for public employees with an initial $6 Million investment.
8. A meaningful reduction of labor costs through cooperative agreements with Harrisburg’s public
unions with contracts through 2016.
9. A reworking of the City’s general obligation debts allowing for repayment over a greater period of time and creating an environment where the City will have market access sooner and under more favorable borrowing terms as part of normal operations.
10. As soon as possible, return the City’s financial future to its elected officials, bringing the Receivership to a conclusion.
The $16 million in funding in the plan produces a health care trust; economic development and improvement of infrastructure that will provide Harrisburg the opportunity for a viable economic future and true economic recovery.
City Council:
Today, after years of fighting for a fair & justifiable solution for the citizens of Harrisburg, our City takes a big step forward with a detailed Recovery Plan being filed with the Commonwealth Court of Pennsylvania. If approved, this plan crafted by Receiver William Lynch & his team, would take the necessary steps that pave the way to achieving fiscal stability for Harrisburg. It aims to reorganize debts, leverage assets, balance the budget, and most importantly, release the city from the crushing debt of the incinerator.
In many ways, the proposed plan accomplishes the many things we have fought so hard for, such as: shared pain and responsibility for the fiscal burdens of the incinerator; a robust process to identify and value our city’s assets and liabilities; a debt solution that brings all major stakeholders to the table; and most importantly, a plan to realistically deal with Harrisburg’s chronic structural deficit.
City Council has stood firm on various issues and fought for a fair solution for our city; one where the taxpayers would not be alone in shouldering the enormous costs of past mistakes. In that respect, today’s plan goes further than any prior plan that has come before this body.
In the coming weeks, through the legislative process, City Council will be addressing many aspects of the complex plan, including: issues related to the incinerator; parking, water and sewer services; and union agreements, among others. Our ultimate goal is to fulfill the responsibilities entrusted to us by the voters of this city. We hope and expect the public to be actively involved, rightfully questioning whether the plan fairly and adequately addresses their needs. To help in the process, Council has asked to employ the services of a financial advisor to review and advise on the economic aspects of the Plan and the contracts that follow.
Council recognizes the hard truth that by its very nature, a Recovery Plan cannot be expected to satisfy everyone completely. We respectfully ask others to do the same. Every stakeholder can and will find things to like and dislike about the plan; it’s the nature of the beast.
In the course of searching for solutions to the vexing issues facing our city, this Council has strived to keep an open mind and has been willing to work with those who also have wanted to find real resolutions to our problems. Now, as we work together with other stakeholders to move Harrisburg past this fiscal crisis, we will continue to work diligently for the betterment of the citizens of Harrisburg, as is our duty, entrusted upon us taking the oath of office during these challenging and troubling times.
Democratic candidate for mayor Eric Papenfuse:
Eric Papenfuse, Democratic Candidate for Mayor of Harrisburg, said Tuesday the economic recovery plan announced late Monday provides significant hope that Pennsylvania’s capital will overcome its financial crisis and avoid the scourge of bankruptcy.
“The plan that Receiver William Lynch has announced gives Harrisburg residents a second chance to rebuild our city and provide a brighter future for our children,” Papenfuse said. “It is a positive step and shows that Harrisburg will once again be a great capital. We thank city leaders who decided to work through Harrisburg’s problems and not cave in to bankruptcy and defeat.”
Papenfuse cautioned that the plan is not perfect and there are further steps that need to be taken before it is implemented. “But these developments show what can be done when people work together in a spirit of compromise, sacrifice and service.”
Harrisburg now needs committed leadership that can make the most of the fresh start that Harrisburg has been given, Papenfuse said. “We need a mayor who will seize this opportunity, work to attract business and investment in the city, fight to improve our schools and make our city beautiful and prosperous again. This is my platform and I’m ready to lead Harrisburg into a new era of pride and prosperity.”
Republican candidate for mayor and City Controller Dan Miller (in a letter addressed to City Council):
I applaud Harrisburg City Council’s decision to seek help from competent financial advisors to help review the receiver’s plan. The decisions this Council is being asked to make will affect the City for decades to come. So, it’s critical that there is a full understanding of the short and long term impact of the plan and all the fine points it entails. There is no need to rush to judgment! A careful and deliberative process is required and I am both hopeful and confident that Council will pursue one.
The plan is complex and comprehensive. I intend to make further comments and observations over the course of time to help inform and protect the interests of the citizens of Harrisburg.
