Fresh Start for the City through Harrisburg Strong
By Rob Teplitz
Harrisburg’s financial challenges have made national and international headlines over the past few years. It’s been a trying time for citizens who live, work and play here. The crisis also has cast a shadow over the capital of our great commonwealth.
Since taking office in January, one of my top priorities has been to lift that shadow—and our hopes—for a more prosperous city and region. Working with local city leaders, I believe we’re starting to see a clearer, brighter future ahead.
Specifically, the announcement of the Harrisburg Strong Plan marks a big step toward moving central Pennsylvania forward.
I want to thank local and state officials for their ongoing efforts to develop and implement plans to address these critical issues, especially city receiver Maj. Gen. William Lynch and his predecessor, David Unkovic.
Although having state-appointed “outsiders” to solve local problems is hardly ideal, I have seen up close the genuine concern that Lynch has for our community. He has worked tirelessly with local leaders to draft a comprehensive plan to solve long-standing, fundamental problems that simply cannot be left unresolved any longer.
The Harrisburg Strong plan addresses both the crushing debt from the incinerator project and the annual structural deficit in the city’s budget. The plan meets the criteria that I laid out last year—participation of all stakeholders in the process, shared sacrifice in the final outcome and the least amount of pain possible all around.
Not every element of the plan is perfect, but the plan as a whole is quite good. I am also pleased to note that, although everything had to be left on the table for leverage during the negotiations, the plan does not include bankruptcy, a commuter tax or a county sales tax.
There’s still much work to be done, and I will continue to play an active role.
Harrisburg deserves ongoing state support for providing fire and emergency services to the Capitol complex. For the first time, the 2013-14 state budget included full funding—$5 million—to the city for these services. Rep. Patty Kim and I are drafting legislation to permanently require full funding from the state, so that the city is not dependent on the vagaries of the annual budget process. Notably, the Harrisburg Strong plan relies on this funding in future years.
Additionally, those involved in the incinerator project must be held accountable for their actions. My Senate colleagues and I have been calling for a criminal investigation since last year, and I’m pleased that the state attorney general has publicly confirmed that one has begun. The Harrisburg Strong plan also appropriately includes the pursuit of civil claims against those responsible.
Finally, there’s a clear need to improve state oversight of municipal financing deals across the state. My Senate colleagues and I have introduced a bipartisan legislative package that makes critical reforms to prevent another fiscal catastrophe here and in other cities.
While there will be much work ahead, the Harrisburg Strong Plan will put Harrisburg on the right path toward fiscal solvency, which will benefit our entire region.
Harrisburg didn’t get into this mess overnight, and it won’t get out of it overnight either. We must continue to take steps at the local and state levels to prevent another financial fiasco here and elsewhere across Pennsylvania.
But thanks to a team effort and new leadership, we can start to see a clearing of this financial mess. It is critical that we stay united and keep moving forward together.
State Sen. Rob Teplitz (D) represents the 15th Senatorial District in Dauphin and York counties.
Harrisburg: Ready for a Renaissance
By Patty Kim
I remember sitting across from Harrisburg receiver Gen. William Lynch in a meeting last year as he told us that bankruptcy should not be the goal to get the city out of its financial problems.
Although I agreed with him, I told him that we are essentially going through the bankruptcy process. From what I learned while I was on City Council and from interviewing bankruptcy experts, before filing, we needed to do two things: make every effort to pay down the debt and negotiate in good faith with our creditors.
I knew that the receiver and his team would develop a plan that would contain these two parts and that the plan would either get us to financial stability or put us in a great position in bankruptcy court. Thankfully, we see a path to financial stability that avoids bankruptcy with the receiver’s “Harrisburg Strong Plan.”
I believe the plan will set us in the right direction to get out from under the incinerator debt while sustaining us for the future. After studying this plan, I noticed a major difference from the previous plans that I reviewed during my time on council. Not only does it address the massive debt situation, but it provides tools for the city to recover. In addition to leasing the parking garages, selling the incinerator and restructuring general obligation debt, the plan sets funds aside for infrastructure needs and economic development.
Previous plans suggested we sell everything off, which would leave Harrisburg “high and dry” with very little to work with going forward. I appreciate the receiver and his team for thinking through the present and future needs of our city, including the Verizon Tower lease and finally resolving the “CIT” loan.
Unfortunately, parts of the plan continue to burden the city’s taxpayers. The extension of the earned income tax will hurt the working poor, and the tipping fee for city residents is still very high compared to what county residents pay. I knew the plan would impact all of us, but, because of the increased burden on city residents, it’s important that the commonwealth follows through on its commitments.
Thanks to a combined effort by the receiver, Sen. Teplitz and myself, $5 million was allocated in the 2013-14 state budget ensuring Harrisburg will finally get sufficient compensation for the fire protection services it provides to the Capitol complex and other state buildings. For years, the city only received around $1 million annually, which was cut to less than $500,000 for two years before being increased to $2.5 million last fiscal year. Sen. Teplitz and I have legislation that will ensure the commonwealth follows through on its commitment to Harrisburg. The Harrisburg Strong Plan asks a lot from city residents for years to come. We expect our colleagues in the legislature and administration to recognize that and support the very same sustained commitment from the commonwealth.
Officials at all levels of government must be on the same page and working in the same direction for the good of the city. If we all work together using the receiver’s plan as our guide, I believe that Harrisburg can emerge from this process a much stronger city ready for a renaissance.
State Rep. Patty Kim (D) represents the 103rd legislative district in Dauphin County.
