Harrisburg commuter tax nixed in newest Act 47 exit plan.

The state agency charged with guiding Harrisburg out of financial recovery has denied a city proposal to levy a commuter tax, according to a report delivered to city hall late today.

Harrisburg’s newest Act 47 exit plan, which was prepared by a coordinator in the state Department of Community and Economic Development, calls instead for maintaining the city’s current Local Services Tax (LST) and Earned Income Tax (EIT) rates through 2020, as the city seeks special taxing provisions from the state legislature.

As did a prior draft of the exit plan, the report released today acknowledges Harrisburg’s financial progress under the five-year Strong Plan and the necessity of legislative change for the city’s long-term fiscal health.

But the Act 47 law requires Harrisburg officials to approve an exit plan by September, when its financial distress designation expires.

Harrisburg’s Act 47 coordinator must craft an exit plan based on current state law, which would require Harrisburg to relinquish some of its taxing authority when it exits Act 47 in three years. The city currently collects $11.8 million in annual revenue from its heightened LST and EIT rates.

The first draft of the exit plan called for increasing property taxes by more than 100 percent over the next three years to compensate for the loss of those tax revenues. Harrisburg residents and city officials roundly rejected the proposal, and DCED revised the plan based on their feedback.

Harrisburg mayor Eric Papenfuse said last week that he was asking DCED to consider a commuter tax, which would let the city grow its fund balance and pay down debt without increasing the tax burden on residents.

According to the report, however, a DCED analysis determined that the commuter tax would not yield substantially more revenue than the LST that the city currently levies. Papenfuse previously estimated that the commuter tax would reap “millions” more dollars for the city.

“The Coordinator will keep an open mind as to the potential for a Commuter Tax but cannot now support an increase unless it has an overall beneficial financial impact for the City,” the report states.

The report encourages Harrisburg officials to continue lobbying for the right to levy its current tax rates indefinitely.

To that end, it offers a four-year budget strategy that would give Harrisburg time to continue its lobbying effort. It would allow the city to maintain its status quo tax rates and expenditures through 2020.

If the city does not secure a legislative victory by 2021, DCED would revise the budget projections in the exit plan and would ask the city to change its revenue structure and cut spending.

If state laws have not changed by 2021, the coordinator recommends that Harrisburg lower its earned income tax to 1.5 percent, reduce its spending, and begin using its fund balance to reduce any budget deficits.

In 2022, the city would have to reduce its EIT to 1 percent and its LST to $52 per year.

The plan also outlines initiatives that the city can undertake to curb spending and increase revenues while it implements the four-year budget strategy.

They include asking more tax-exempt organizations to make Payments in Lieu of Taxes (PILOTs), performing a cost analysis of its union and non-union represented personnel expenditures, and limiting enhancements in its future collective bargaining agreements.

DCED also recommends that the city study its split-rate property tax structure and consider moving to a single-rate system. The report says that the split-rate system benefits homesteads at the expense of landowners.

“As revitalization and property improvements continue within the City, the City’s split rate millage is not fully capitalizing on the growth -the county and school district are,” the report reads.

In a statement released through a spokesperson on Thursday, Papenfuse did not comment on the specific contents of the exit plan, instead speaking broadly about the city’s longterm financial recovery.

“My goal remains for a path to exit Act 47 in a way that secures the City’s financial future – sooner rather than later,” he said.  “Anything short of this will not be acceptable to the hard-working people of Harrisburg, who have categorically rejected any plan that burdens them with more taxes.”

City solicitor Neil Grover declined to comment on Wednesday night, saying he needed more time to review the document with city officials.

Council Vice President and Budget and Finance chair Ben Allatt said that revised plan was a marked improvement over the first draft that called for property tax hikes.

“We’re headed in a much better direction than the initial exit plan,” Allatt said on Thursday morning. “I think the strategy is to not force the city to make all these crazy decisions in a 30-day period without the state acting. Because the fact is that if we want to resolve our longterm financial situation, then we need to compel the state to act.”

DCED must now hold a public hearing on the revised exit plan. Allatt hopes to schedule it for the week of August 27, when council returns from its annual summer recess.

Have questions about Harrisburg’s financial recovery? Check out TheBurg’s guide to Act 47.

This post was updated on Thursday, Aug. 9 with comments from city officials. 

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All your questions about Harrisburg’s Act 47 status, answered.


If the city of Harrisburg were a person, it would be in court-ordered financial rehab.

That’s one way of looking at the city’s Act 47 label, which denotes its membership in a club of cash-strapped municipalities. Right now, Harrisburg and 14 other cities, townships and boroughs are considered “financially distressed” by the state of Pennsylvania.

Harrisburg has been in Act 47, a state-run financial oversight program, since 2010. Eight years later, the city is facing two options: stay in the program under a three-year exit plan or persuade state lawmakers to let it leave immediately.

The new crossroads has put Act 47 back in the headlines in Harrisburg. Here’s a primer on Harrisburg’s financial fall and recovery, covering everything from incinerator debt to commuter taxes and home rule charters. We’ll update it as Harrisburg moves through the Act 47 exit process.

What is Act 47?

Act 47 is an oversight program that creates special regulations for municipalities with poor finances. The state’s Department of Community and Economic Development (DCED) administers the Act 47 program. To enter the program, a city must seek an Act 47 designation from the DCED secretary.

How does Act 47 work?

The most important aspect of Act 47 is that it lets cities pass higher taxes, usually as they’re forced to cut spending.

Pennsylvania’s state constitution and tax codes regulate tax rates and increases for all municipalities in the commonwealth. When a city is in Act 47, those tax laws no longer apply. The Act 47 law sets its own tax rates that allow cities to put a higher tax burden on residents. Cities in Act 47 are allowed to appeal to the state’s Commonwealth Court to approve tax hikes within the limits of the law.

These “revenue enhancements” are meant to be temporary, lasting only as long as a city stays in Act 47. The hope is that a municipality can use the additional tax revenue to build up savings or pay down debts ahead of its Act 47 exit.

What does an Act 47 coordinator do?

Every Act 47 city gets assigned a DCED coordinator – essentially, a caseworker who reports back to the state. A coordinator will draft the municipality’s recovery and exit plans, amend it based on public comment, and submit it to municipal officials for final approval. She also signs off on the city’s yearly budgets. Harrisburg’s current Act 47 coordinator is Marita Kelley.

Why can’t Harrisburg just balance its budget?

As the seat of state government, Harrisburg is home to lots of jobs and tax-exempt land. Thirty thousand commuters come into the city for work daily. Forty-eight percent of the property in Harrisburg is owned by the commonwealth, nonprofit agencies, hospitals or universities—none of which have to pay taxes.

What’s more, 32 percent of the city’s 49,000 residents live in poverty, according to U.S. Census data. Harrisburg’s tax base is small, but, as an employment hub, its financial burdens are huge. Harrisburg’s roads and emergency services personnel serve the local population as well as commuters.

“This city has always had a revenue problem,” Councilman Ben Allatt recently said. “It’s a math equation, and, at the end of the day, the math doesn’t add up.”

The city also has a history of irresponsible financial management, which stresses its budget to this day. Former Mayor Stephen Reed borrowed hundreds of millions of dollars to fund projects that were meant to generate revenue for the city, including the National Civil War Museum, a retrofit for the Harrisburg incinerator and a never-realized Wild West museum. Harrisburg was in more than $300 million of debt when residents voted Reed out of office in 2009.

The city unloaded some debt when it sold the incinerator and leased its parking assets in 2013. But it’s still funneling 15 percent of its annual budget into debt payments.

How long can a city stay in Act 47?

When Harrisburg entered Act 47 in 2010, the law didn’t impose any deadlines on cities in financial recovery. But that changed when the state legislature amended the Act 47 law in 2015. Now, every city in Act 47 can adopt a five-year recovery and obtain a one-time, three-year extension before it must exit.

Municipal officials and policy experts say the eight-year timeframe isn’t enough for cities to recover from deep financial distress. But lawmakers who supported the reform said that too many cities were taking advantage of the high taxes that Act 47 allowed them to pass.

What changed for Harrisburg under Act 47?

In the past eight years, Harrisburg has reduced its staff, leased its parking assets to a private company, and sold the debt-ridden Harrisburg incinerator. It’s also deferred maintenance on its roads and other critical infrastructure.

Meanwhile, the city has increased taxes on residents and non-residents who work in the city. Council doubled the city’s personal income tax (earned income tax or EIT) in 2012 and tripled its local services tax (LST) from $52 to $156 in 2016. The local services tax is paid by anyone who works in the city – residents and commuters alike.

Together, these tax hikes have brought in an additional $11.8 million of annual revenue for Harrisburg. Mayor Eric Papenfuse has said that they’re absolutely essential to the city’s long-term financial health.

With this combination of tax hikes and spending cuts, Harrisburg has been able to run surpluses each of the four years that Papenfuse has been in office. The city is using its growing fund balance (along with a slew of state grants) to pay for infrastructure improvements for the first time in years.

What happens when a city exits Act 47?

Cities that exit Act 47 usually have to lower their tax rates. The only way to avoid that is to pass its own unique home rule charter. A home rule municipality is free to set its own rules and tax regulations, but it has to be approved by a majority of the town’s voting population.

When does Harrisburg have to exit?

Under state law, Harrisburg can only stay in Act 47 through 2021.

Why has Harrisburg been lobbying state lawmakers?

Local officials have long said that the city can’t afford to leave Act 47 and revert to tax rates set forth in the state constitution. City officials have asked lawmakers to set special taxing provisions allowing Harrisburg to keep its current LST and EIT rates.

In June, House Speaker Mike Turzai blocked Harrisburg’s tax measure from coming up for vote, leaving the city in limbo as its Act 47 deadline nears.

Isn’t the legislature in recess? Where does Harrisburg stand?

Lawmakers will return from summer recess on Sept. 12.

State Rep. Patty Kim, whose district includes Harrisburg, and Rep. Greg Rothman, who represents much of Cumberland County, are co-sponsoring a House bill that would let Harrisburg keep its LST and EIT. If the bill passes, nothing will change for Harrisburg – it would continue to levy its status quo tax rates indefinitely. It would also exit Act 47.

What will happen if the legislature doesn’t act?

If it stays in Act 47, Harrisburg will have to adopt a three-year recovery plan prepared by its Act 47 coordinator.

The state-sponsored recovery plan can only make recommendations based on current state law. As a result, Kelley and her team at DCED are limited in what they can recommend to the city. When they published a draft recovery plan in July that called for doubling property taxes in Harrisburg, residents, business owners and local officials universally panned it. Harrisburg’s elected officials said they would reject any exit plan that increased the tax burden on city residents.

Kelley’s team went back to the drawing board with hundreds of public comments and released the revised exit plan on Wednesday, Aug 8.

What does the new exit plan say?

It proposes a four-year budgeting strategy that would let Harrisburg keep its current tax rates through 2020, as long as the city actively continues its lobbying strategy.

If Harrisburg can’t compel the legislature to act by 2020, it will have to adjust its budget to prepare for an Act 47 exit in 2021. Kelley recommends dialing down the Earned Income Tax rate starting in 2020, and then, the following year, cutting the LST down to a $52 annual rate — the maximum amount allowed under current state law. The city would have to cut spending and use its fund balance to bridge any deficits.

In short, the plan maintains the city’s status quo for two more years. Harrisburg residents wouldn’t incur any property tax increases, nor would commuters face a new tax on their incomes. But the plan also acknowledges the very real possibility that state lawmakers won’t act Harrisburg’s favor.

TheBurg obtained a full copy of the exit plan through DCED. As of Thursday, Aug. 9, hard copies of the exit plan are posted in the City Clerk’s office. They should be online through the city and DCED later today.

Harrisburg Recovery Coordinator Exit Plan — Revised by Lizzy Hardison on Scribd

Why did the city want to levy a commuter tax?

Last week, Papenfuse said that he proposed what would essentially be a commuter tax. It would cost commuters a lot more than the current LST, but it wouldn’t increase the tax burden on Harrisburg city residents.

Under the mayor’s proposal, everyone who works in Harrisburg would pay a 2-percent income tax. Many commuters already pay an income tax to the municipality where they live. But most boroughs and townships in the region have a rate below 2 percent. They would pay their standard EIT to their home municipality, then pay the balance of their 2 percent rate to Harrisburg.

Update, August 8: DCED’s revised exit plan does not call for a commuter tax. Instead, it would allow Harrisburg to keep levying its current LST and EIT through 2020.

Is a commuter tax even legal?

Even if Kelley had recommended a commuter tax in her exit plan, it would have ultimately been up to a Commonwealth Court judge to decide if the city can levy it.

The Act 47 law says that a city can’t pass a tax hike on non-residents that it doesn’t levy on residents. But since Harrisburg residents already pay a 2 percent earned income tax, the hike that Papenfuse proposed would bring non-residents up to the same rate. So, non-residents would see a tax hike, but their tax rate would not exceed that of Harrisburg residents.

I’m a commuter – why does Papenfuse want me to pay Harrisburg’s bills?

When the mayor proposed the commuter tax, it wasn’t because he thought it would be the best option for Harrisburg. He said last week that was using it as a bargaining chip with state lawmakers, who would be subject to the tax themselves.

Papenfuse would rather keep the status quo – a $156 annual LST and a 2 percent EIT for residents. He hoped that lawmakers, faced with a potential tax hike, would approve the bill that would let Harrisburg levy these taxes indefinitely. Now that the revised exit plan would let Harrisburg keep its LST and EIT, lawmakers aren’t facing the same urgency to approve new taxing provisions.

In general, though, the mayor and other city officials have long said that commuters who use Harrisburg’s roads and emergency services should pay for them. He’s open to lowering the LST in the future, if the city’s tax base grows.

What happens if Harrisburg rejects the coordinator’s exit plan?

Nobody really knows the answer to this question.

Papenfuse said last week that the city is in “uncharted territory” with regards to its exit plan. If it rejects Kelley’s final plan, it could be the first city in the history of Act 47 to do so.

The Act 47 law says that the DCED secretary should ask the governor to declare a “financial emergency” in any city that bucks the end of the Act 47 process. The governor could theoretically decline to do so.

If a mayor isn’t happy with an Act 47 recovery plan, they’re allowed to write their own amended version, just as former Mayor Linda Thompson did in 2011.

But the law doesn’t make the same allowances for exit plans. In fact, it doesn’t consider at all what would happen if city officials disagree with their coordinator about the best course of action.

Can we pass a home rule charter?

Papenfuse wants to start proceedings for a home rule charter if the city stays in Act 47. But it’s a lengthy process, and he’s not confident the final charter would get the majority vote it would need to pass.

A home rule charter would let Harrisburg keep its current EIT rate. But since the charter only would apply to residents, the city can’t set any special tax rates for non-residents. As a result, home rule would not allow the city to keep its current LST rate, which generates $4 million annually. In short, it’s not a silver bullet like it is for other, smaller municipalities.

What will happen next?

The best-case scenario, according to Harrisburg officials, is that the state legislature will pass a law allowing the city to keep doing exactly what it’s doing now: assess a $156 yearly local services tax on everyone who works in Harrisburg and a 2 percent earned income tax on residents.

But lawmakers won’t have a say until September, and the Act 47 law sets a firm timeline on exit plan proceedings. So, Harrisburg is pursuing both paths at once.

The city will meet with a Commonwealth Court judge next week to see if it can delay the deadlines in the Act 47 law. That could defer a vote on the exit plan. Meanwhile, its lobbying effort will continue in the statehouse, even as City Council considers the exit plan and potentially votes on it.

This post was updated on August 9 with new information about Harrisburg’s revised exit plan.

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State awards $1 million grant for downtown Harrisburg office building

This site on S. 2nd Street near Market Square is slated for a new office building.

A new downtown Harrisburg office building is a bit closer to reality today, as the 2nd Street project has received a $1 million state grant.

Gov. Tom Wolf’s office today announced that Second Street Associates, a partnership headed up by Harristown Development, will receive the funds through the state’s Redevelopment Assistance Capital Program (RACP), which aids projects deemed economically, culturally or historically important.

The money will go towards constructing a new, six-story office building at 21 S. 2nd Street, with retail on the ground floor, along with the rehabilitation of the historic, six-story structure next door at 17 S. 2nd St., which houses the SkarlatosZonarich law firm. The two buildings then would be joined inside to form a single, interconnected structure (artist’s rendering below).

“I am proud to support the construction of this new office and retail tower in downtown Harrisburg,” Wolf said in a statement. “This investment supports the efforts of the region to create more jobs, bolster shopping and retail opportunities, and will strengthen the city’s tax base and local economy.”

Last year, Harristown Development bought and then razed the dilapidated, three-story, 19th-century structure that once housed the Coronet Restaurant. The building had been empty since a fire destroyed the restaurant several decades ago.

Harristown had requested $3 million for the building project. Most RACP applicants are denied funding and, when granted, awards typically are significantly lower than amounts requested.

So far, in the 2018 round of funding, the only other RACP award in Dauphin County has gone to the city of Harrisburg, a $2 million grant to begin the Paxton Creek reclamation project. In 2017, the Harrisburg Midtown Arts Center (HMAC) received $1 million to complete its build out, the Salvation Army Harrisburg received $500,000 for its new building on Rudy Road and Hershey Towne Square received $750,000 towards a three-story parking garage.

Brad Jones, the CEO of Harristown Development, could not be reached immediately for comment.

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Faces & Places: Livability, design merge with “Art Is Architecture.”

A part of the exhibit, “Art Is Architecture,” now on display in downtown Harrisburg.

If you have a keen eye, you may have spotted something curious while driving by the corner of N. 2nd and Pine streets in downtown Harrisburg.

There, you’ll see a few large faces, alongside several beautifully rendered building interiors, in the windows of a rather nondescript, mid-century office building.

And you may have wondered: “What is this about?”

Well, it’s about architecture. And art.

Up on the building’s seventh floor, Chris Dawson Architect has its offices, and the firm’s namesake owner decided to use the empty storefront below to house a temporary art exhibit called “Architecture Is Art.”

“We hope to make people think about architecture a little differently, that there is an artistic side to it,” Dawson said. “When it’s done well, it really elevates the places where we live.”

As part of the exhibit inside, you’ll find numerous 2-D and 3-D representations of projects that Dawson’s firm has undertaken in its nine-year history, along with explanations of the work and related exhibits.

Some of the work might be familiar to you, such as Harristown’s F@TT apartment building, which sits atop the El Sol restaurant in downtown’s SoMa neighborhood, or the recently restored King Mansion on Front Street, space now occupied by K&W Engineers.

Chris Dawson stands before a stylized map of the Harrisburg area.

Dawson said that a confluence of factors led to him to turn the space into a short-term, summertime gallery. The storefront has been empty since Capitol Copy departed more than a year ago, and he wanted a fun project for his four summer interns. Meanwhile, his company soon will mark its 10th anniversary, creating an occasion to reflect back on its work over its first decade in business.

But, mostly, he wanted visitors to see that architecture can be not only functional, but aesthetically pleasing, positively affecting those who live, work or visit it. So, he approached the building’s landlord, Select Capital, which endorsed the idea.

The building’s exterior previews the exhibit inside.

Dawson said that he also wanted to show off Harrisburg and the ways that great design can be incorporated into the city’s historic built environment.

“I think that Harrisburg is the most beautiful of the cities in our region,” he said. “I’m not saying there aren’t scars or things that need to be addressed, but Harrisburg is a gem architecturally. That’s why we’re here.”

Dawson’s firm might be here for the long-term, but the exhibit won’t be. After a soft opening last Friday, it will only be up through next week, giving visitors a limited window to see how, in recent years, some Harrisburg buildings have been able to combine the historic, the functional and the beautiful.

“We believe that good design is for everybody,” Dawson said. “We’d like to get people to think more about the importance of architecture.”

“Art Is Architecture” is located at 300 N. 2nd St., Harrisburg, ground floor. The exhibit runs over the next two weeks, Tuesday through Friday, 4 p.m. to 7 p.m., closing following 3rd in the Burg, Aug. 17. Watch this video for a brief exhibit preview.

 

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Harrisburg Police Bureau, community groups band together for National Night Out.

The historic Shipoke neighborhood will be the site of National Night Out festivities tonight. (File photo)

Who says there’s nothing to do on Tuesday nights?

The Harrisburg Police Bureau is partnering with neighborhood organizations tonight to host National Night Out, a series of free events at locations throughout the city.

National Night Out is an annual campaign that promotes police partnerships in communities across the country. This is the Harrisburg Police Bureau’s first NNO event in recent years, according to Harrisburg community policing coordinator Blake Lynch.

Members of the bureau will host the flagship event at Sunshine Park, also known as Morrison Park, at 12th & Herr streets from 5 to 8 p.m. The free, outdoor event will feature more than 50 vendors, including the Pennsylvania State Police, the Harrisburg Fire Bureau and EMS personnel, Lynch said.

Participants can enjoy free games, live entertainment and police K-9 and helicopter demonstrations. Free food and drinks will be on hand, with police officers serving complimentary Kona Ice and Farm Show milkshakes from the Pennsylvania Dairymen’s Association.

Neighborhood associations are putting on their own, simultaneous events at locations across the city. Law enforcement officials will be present at each one, along with community nonprofits, businesses and food vendors.

The South Allison Hill Homeowners & Residents Association (SAHHRA) will host its 35th annual NNO Celebration from 6 p.m. to 8 p.m. at the Heart of the Community Garden on Derry and Kittatinny streets.

“National Night Out gives our community a chance to stand together to promote awareness, safety, and neighborhood unity and celebrate our community’s accomplishments over the past year: a lower crime rate, cleaner neighborhoods, and redevelopment of blighted properties,” said SAHHRA president Shirley Blanton.

Friend of Midtown will host an event in the Broad Street Market courtyard from 6 p.m. to 8 p.m, and the Shipoke Neighborhood Association will hold a gathering at the Riverfront Park Gazebo starting at 6:30 p.m.

All NNO events are free and open to the public.

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For the Kids: Artcan holds back-to-school book bag, supply drive

When it comes to seeking change or shaping society, the answer is almost always, “Start with the kids.”

Artcan, a local nonprofit organization for artists, embodied this message and created its first Book Bag and Supply Drive.

With the help of Harrisburg’s Parks and Recreation Department, Artcan plans to distribute book bags and supplies at the Hall Manor pool on Wednesday. The book bags, which benefit students K-12 within the Harrisburg School District, will be filled with pencils, paper, folders, crayons and other supplies needed for student to survive those first months of school.

“We wanted to create a charity that can directly impact children and really tap into the young people of the community and to just be connected to them,” said Artcan co-founder Shane Gallup. “And start to build something with them with an offering.”

Gallup and his long-time friend, Lawrence Williams, came up with the idea of Artcan last year. The purpose for the organization is to discuss social injustice through art, whether it’s paintings, dance, music, photography or any other forms of art.

Williams, a photographer whose work has been shown in local galleries, and Gallup, who painted a mural for the 2017 Harrisburg Mural Festival, started officially putting out work under Artcan last March.

They participated in gallery showings at the District Bar & Lounge and the Art Association of Harrisburg. Still, they felt they needed a deeper connection with the community.

“We want charity to be an integral part of [Artcan’s] involvement,” Gallup said. “We wanted this organization to serve the community.”

According to Williams, Artcan chose the supply drive because it hits close to home. As the youngest of five, Williams often saw his parents struggle to prepare them for going back to school.

“We see that visual all the time—kids going to school without books,” Williams said. “They [struggle to] accomplish anything or get ahead.”

Though born in California, Gallup was raised in Harrisburg and witnessed firsthand the politicizing that goes on inside the district, which harms student performance, he said.

“I think with what’s happening in the school district—or what’s not happening—it’s super important that the people organize themselves and reach out and show these kids what they’re worth because it’s not always going to come from the school or the establishment,” Gallup said.

All items are donated from the drive through Artcan by the community and Artcan members. Through a raffle, 20 students will receive book bags customized by one of the Artcan artists.

The supply drive will be Artcan’s first charity event, but, if the drive is a success, they hope to host it again around December.

“Come out and support the book bag drive,” Williams said. “As we reach a bigger audience, we also give back bigger and bigger.”


The Book Bag and Supply Drive is Aug. 8 at the Hall Manor Pool 100 Hall Manor Pl., Harrisburg, at 2 p.m. to 5 p.m. Donations can be dropped off at the Southside Boys & Girls Club or given to Williams or Gallup. You can contact them at
[email protected], on Facebook or Instagram @artcanhbg.

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Harrisburg school board taps former director Lola Lawson to fill vacant seat.

Lola Lawson took the oath of office following her appointment to the Harrisburg school board on Monday.

He had a standing ovation, an endorsement from a union president, and the support of former students – but it wasn’t enough to land Cornelius Chachere a seat on the Harrisburg school board.

Harrisburg’s eight-member board on Monday night passed over Chachere, a nonprofit executive, and two other candidates to appoint Lola Lawson, a former board director, to serve a term through 2019.

Lawson replaced board director Tyrell Spradley, who resigned his seat in July without explanation. Spradley was just appointed to the board in February.

Members of the 70-person audience reacted immediately to the appointment, exasperated by what they perceived as an opaque selection process that favors friends of the district administration.

Lawson was the second board veteran appointed to the body in the past month. Former board director Patricia Whitehead-Myers was appointed to a vacant seat last month.

Lawson has almost a decade of experience as a board director, but Chachere, who has worked as a substitute teacher at Harrisburg High School’s John Harris Campus, was the apparent crowd favorite. He garnered applause during his questioning before the board, and more than half the room gave him a standing ovation when his interview concluded.

But the board still voted 5-3 to appoint Lawson. After votes were tallied, young district alumni led a chant calling for justice, and one resident brandished a poster board sign saying, “We Call BS.”

Even though Chachere had wide public support, many residents said they were not surprised by the vote.

“Clearly this is the outcome of collusion,” said Charla Plaines, co-founder of the citizen-led school reform group C.A.T.C.H. (Concerned About the Children of Harrisburg.) “It does not reflect the will of the public. Once again, this board has proven it has no desire to do the right thing.”

One board member joined the residents voicing frustration over the appointment process. Before the board began interviewing candidates, director Brian Carter accused his colleagues of accepting bribes before filling a vacant seat last month.

“There were several conversations where board members were trying to bribe other board members to vote for certain candidates,” Carter said, without identifying any of his colleagues by name.

Carter declined to comment on his accusation during a recess, but reiterated his claim at the end of the meeting. He said that board members tried to persuade their colleagues to vote for Whitehead-Myers and Lawson.

But board solicitor Samuel Cooper said that political lobbying is not necessarily bribery.

“Unless there’s some transfer of money or promise of future gain, there’s no bribery,” Cooper said.

Along with Whitehead-Myers, Lawson was among the first members of the re-formed school board that wrested the district back from mayoral control in 2010. Former Mayor Stephen Reed had taken direct oversight of the school district in 2000, the first arrangement of its kind in the commonwealth.

Mayor Linda Thompson assumed Reed’s role briefly following her election in 2010 before community members reconstituted the elected board of directors.

Lawson declined to seek re-election for her seat in 2013 but was appointed back to a vacant seat the same year.

In her interview before the board tonight, Lawson touted a long history of public service, which she said started with her first sit-in demonstration at age 14.

“My heart is in the right place,” Lawson said. “I’m a strong, independent thinker. You can’t sway me… but I’m still willing to collaborate with people.”

Lawson was president of the board that terminated superintendent Gerald Kohn in 2010 and replaced him with Knight-Burney. Kohn later filed a wrongful termination suit against the district that ended in a $2.4 million settlement in his favor.

Lawson and Whitehead-Myers also voted with three of her colleagues to strip former school board president Roy Christ of his leadership title in 2011.

A retired broadcast personality and media consultant, Lawson served alongside current board directors Whitehead-Myers, Ellis Roy, Melvin Wilson and vice president Danielle Robinson until 2016, when she declined to seek re-election for her appointed seat. They all voted for their former colleague on Monday, along with director Lionel Gonzalez.

Board president Judd Pittman and directors Carrie Fowler and Brian Carter voted for Chachere.

Claude Phipps, a former business executive, and James Thompson, an architect and former board director, also applied for the vacant seat but did not receive nominations.

Phipps, Thompson and Chachere all applied for the vacant seat that Whitehead-Myers took in July. At the July 28 selection meeting, teacher union president Jody Barksdale urged the board to appoint Chachere.

Community members continued to advocate for Chachere in the public comment period at the end of tonight’s meeting.

“When you look at this man, how could you sensibly make the decision that you did?” said Joelle Ewing. “It looks suspicious, like you don’t want anyone who will go against the grain. I don’t understand it.”

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Raise the Curtain: Gamut cuts ribbon for new education center, second stage

Gamut co-founders Clark and Melissa Nicholson, center, surrounded by students, cheer following today’s ribbon cutting.

After years of campaigning and construction, Gamut Theatre Group held the grand opening and ribbon cutting today for its new Education Center.

Located at the back of the theater in downtown Harrisburg, the center features the new Alexander Grass Second Stage, two renovated classrooms and technical teaching shops for students to learn about costume construction, scenery design, sound, lighting and more.

“What this space does is it provides a way for us to really focus in a geographical way in this building on our children’s theater, which is what we started with,” said Clark Nicholson, Gamut’s co-founder and artistic director. “We wanted it to have a home, and we have it today.”

The 10,000-square-foot center features a wooden stage in the center of the room surrounded by seats and pews, with a balcony one on side. The walls feature a mural by local artist Jacintha Clark, who painted cotton candy-colored clouds merging with a night sky filled with golden stars on the ceiling. Behind the seats on the first floor are two rooms for costumes and props. Upstairs are three rooms: one for teaching, another for lounging and a third full of knick-knacks, books, paintings and more.

Gamut Theatre’s Alexander Grass Second Stage

The new space will house the Popcorn Hat Players Children’s Theatre, as well as the Stage Door Series Ensemble and Gamut Theatre Academy, all year round. Before, students floated among various places in the theater, but this new space will be their permanent home.

“The core of this mission is the classic story, these universal truths and these stories that have been around for hundreds of years. We give kids access to those,” said Jeff Luttermoser, dean of the Gamut Theatre Summer Academy. “They are going to be the keepers of those stories and the following generation. So, it’s so important that we do that work, and we get to do that here.”

The center was created with the help of partners such as Harristown Enterprises, the city of Harrisburg and the Alexander Grass Foundation. Arts patron Lois Grass was the advisor for the Gamut Theatre Capital Campaign, which raised $2.3 million for the project.

This is the second phase of construction for Gamut, which purchased the former First Church of God in 2013 and has been busy at work since raising money and turning the historic building into theater space. The first phase, completed in 2015, focused on the lobby, mainstage and other core components.

“We’re not just going to have a bigger building and touch more kids lives,” said Brad Winnick, Gamut Theatre’s board vice president. “But now we’re going to actually increase the breadth and depth of what we do.”

The first performance on the new stage will be this Thursday, Aug. 9, through Aug. 19, when Gamut will present “Hijacked!” a choose-your-own play performance starting at 7:30 p.m.

“The most exciting thing to me, as a parent, is that every one of these kids is going to grow up and be adults who may be on stage,” said Winnick. “They are going to be the people that keep that arts community that Gamut is a part of in this city–and whatever communities they live in–alive.”

Gamut Theater is located on 15 N 4th St., Harrisburg. For more information visit www.gamuttheatre.org

 

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Papenfuse eyes three-year commuter tax as Harrisburg prepares for Act 47 exit.

Harrisburg’s mayor is seeking state permission to levy an augmented commuter tax for the next three years, he said on Thursday, as the city enters its final chapter of Act 47 and prepares for a future with smaller revenue streams.

Mayor Eric Papenfuse has vowed that he will not adopt the measures outlined in a July report from the city’s Act 47 coordinator, which recommended doubling property taxes to prepare for Harrisburg’s Act 47 exit in 2021.

He’s now asking the state-appointed coordinator to consider an alternative: a 2 percent non-resident Earned Income Tax (EIT) on everyone who works in the city.

The tax would replace the city’s augmented Local Services Tax (LST), which is $156 per year for all Harrisburg workers. But Papenfuse said it would generate millions of dollars in additional revenue during Harrisburg’s final three years in Act 47, a state oversight program for financially distressed municipalities.

“We know how many commuters work in the city, and while we don’t know exactly where they live, we can get that data,” Papenfuse told TheBurg. “But it would be much more.”

The proposal is bound to inflame Harrisburg’s 30,000 commuters. But Papenfuse hopes that exercising one of the last options available to Harrisburg under the Act 47 law will spur state lawmakers into action.

A bill expected to go before the house in September would allow Harrisburg to keep its current LST rate and exit Act 47 for good. If legislators are faced with a massive tax hike on their own income, through a higher EIT, Papenfuse hopes they’ll be more likely to support the legislation.

“My hope is that the region would see that it’s much more onerous than a local services tax,” he said. “I stand by what I’ve said before: I don’t see viable long-term future for Harrisburg without the legislature assisting us. We need the ability to have our revenues match our expenditures, and we’re not trying to spend on anything other than core government functions.”

Under the mayor’s proposal, the city’s LST would revert to its pre-Act 47 rate of $52 per year. Meanwhile, everyone who works in Harrisburg would start paying a 2 percent tax on their income.

Since Harrisburg residents already pay that rate, their EIT burden would not change. But commuters who work in Harrisburg would pay the difference between their hometown’s EIT rate and the city’s 2 percent rate, with the balance going into Harrisburg’s coffers.

For example, a commuter who lives in Susquehanna Township may earn a $50,000 salary working in Harrisburg. She currently pays the $156 local services tax in Harrisburg, as well as Susquehanna Township’s 1 percent EIT rate—$500 per year based on her income.

Under the new tax, her EIT bill would double to $1,000, with $500 going to the city of Harrisburg. She would pay $52 per year in local service taxes.

Papenfuse knows that the tax hike would sting. His goal isn’t to squeeze commuters, he said, but to spare Harrisburg the massive property tax hikes proposed in last month’s draft Act 47 exit plan.

“Do we really think legislators care that Harrisburg residents would have to pay double property taxes?” Papenfuse said, letting the question go unanswered. “Will they care if they themselves pay an increased EIT? Maybe.”

Harrisburg has one of the highest EIT rates in the region. Only a handful of municipalities—including Camp Hill, Swatara Township, Dauphin Township and Lower Paxton—levy the same 2 percent rate, according to a DCED database.

Excluding those municipalities, EIT rates range from 1.4 to 1.65 percent in Cumberland County and 1 to 1.7 percent in Dauphin.

The tax would expire when Harrisburg exits Act 47 in three years. But, with the revenue it would generate over that time, Harrisburg could pay down general obligation debt and trim its expenditures from 2021 onward, Papenfuse said.

In the meantime, the city would continue to lobby for its enhanced LST privileges. Papenfuse also hopes to initiate the proceedings for a Home Rule charter, which would preserve the city’s resident EIT rate.

If the state-appointed recovery coordinator Marita Kelley complies with his request, the commuter tax will be included in the final exit plan she presents to city council.

A DCED spokesperson declined to comment on the contents of the final exit plan today. She said that DCED was in the process of revising the plan based on the feedback received during the public comment period.

Papenfuse said Kelley’s team was “willing to consider” the proposal. City officials submitted the commuter tax proposal to DCED as part of a formal comment on the exit plan.

Council vice president Ben Allatt said he’d support any exit plan that doesn’t increase the tax burden on Harrisburg residents. But he’s not sure a hefty commuter tax would aid Harrisburg’s long-term lobbying efforts.

“As a negotiating tactic, it could backfire,” Allatt said. “I worry about any move that would alienate us from the legislature.”

DCED’s exit plan could land before city council as early as Wednesday, Aug. 8. If council does not approve it, the state DCED secretary will ask Pennsylvania’s governor to declare a fiscal emergency in Harrisburg, which could put the city back into receivership.

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State archives building advances toward 2019 groundbreaking.

The future site of the State Archives building at N. 6th and Harris streets in Midtown Harrisburg.

Vacant lots on Harrisburg’s 6th Street will soon get a new building filled with some very old décor.

The state Department of General Services got the first stamp of approval for its new State Archives facility, a four-story, state-of-the-art structure that will also create a permanent home for Harrisburg’s record collections.

DGS representatives presented the preliminary land use proposal to the Harrisburg Planning Commission on Wednesday night. They plan to develop 2½ vacant acres on N. 6th Street between Harris and Hamilton streets with a modern, glass-and-brick structure, a public plaza and a below-ground parking area.

Although project leaders shared preliminary renderings at Wednesday’s public meeting, they refused to allow TheBurg to photograph them.

With unanimous approval from the commission, DGS will now seek approval from Harrisburg City Council.

DGS first announced plans to build the archives at 1681 N. 6th Street in 2016. The state hopes to put the project out to bid in spring 2019 and break ground in the summer, according to Daniel Vodzak, an architect at the Lemoyne-based firm Vitetta. He expects construction will last two years.

Much like the federal courthouse that broke ground last month, the long-awaited archives building is expected to spur development on Harrisburg’s struggling 6th Street corridor.

Harrisburg officials and history enthusiasts are also relieved that the city’s archives will have a safe, accessible home after languishing for years in substandard storage.

“This is a great win for the city,” Mayor Eric Papenfuse said. “We have all of these fragile, aging and decaying documents, and we want to put them in a place where they can be preserved.”

Harrisburg’s archives, which include death and tax records, city directories, historical photos and other memorabilia dating back to the early 19th century, are currently stored in a mansion in Reservoir Park. They were housed in a Parking Authority office in Strawberry Square until the city privatized its parking assets in 2014.

When state officials announced their plans to build a new archive facility, Papenfuse lobbied for them to carve out space for Harrisburg’s collection.

He later convinced the Wolf administration to scrap plans to build the archive facility in Susquehanna Township and helped them select a parcel of vacant lots on 6th Street mostly owned by Susquehanna Township-based Vartan Group.

“This idea of putting the archives in a research park where they’re less accessible to the public didn’t sit well with me,” said Papenfuse, whose father served as the Maryland state archivist for 30 years.

Members of the public can’t access Harrisburg’s archives in the current location in Reservoir Park. The aging facility also isn’t climate-controlled, leaving the documents vulnerable to mold, moisture and temperature fluctuation.

“A lot of people don’t know the archives even exist,” said Calobe Jackson, Jr., a historian and lifelong Harrisburg resident.

Jackson hopes the new facility will encourage more residents to explore the city’s history.

“It’s necessary to increase the size, and I think combining the city archive with the state will be great for everyone,” Jackson told the Planning Commission last night.

The proposed archive building will feature a “self-service zone” where visitors can access digitized archives from the state and the city’s collections. Patrons can also view original records and artifacts in a separate, climate-controlled viewing room.

Preliminary renderings call for a modern, glass-box building with a concrete frame and brick siding. A solar shade atop the building will filter out sun, since UV light can degrade paper records.

The temperature and humidity in the facility must be precisely calibrated to preserve the aging paper records. The main storage facility will be windowless, but the reading rooms, processing rooms and staff offices will have natural light thanks to UV-resistant glass windows.

The extensive HVAC apparatus will be housed in an enclosed equipment courtyard outside. The campus will also feature a landscaped public plaza along 6th and Harris streets.

Harrisburg will retain ownership of its records when it transfers them to the new archives facility, but the memorandum of understanding it signed with the state historical office waives storage and management fees.

The city does not currently employ an archivist. Plans to hire one stalled when the city declared a hiring freeze earlier this summer.

But with an expected three years before the project is complete, Harrisburg will have plenty of time to prepare its archives for transfer, Papenfuse said.

The state archives are currently housed in a tower at 3rd and Forster streets on the grounds of the Pennsylvania State Museum. Andrea Lowery, executive director of the Pennsylvania Historic and Museum Commission, said that the state is conducting a feasibility study to decide how to reuse the structure.

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