ACT 47 saves elected asses, not cities or residents. It amounts to tax increases from every possible angle. While our outstanding debts remain static, our fiscal budgets may be balanced going forward. So, where's the elusive win/win part?
Read up, kiddies...
Purpose: Offer ailing municipalities more options and state help in dealing with financial crises.
First steps: After municipalities are accepted into the program, Department of Community and Economic Development had 30 days to name a state-paid coordinator/consultant who has six months to create a recovery plan and offer fiscal advice.
Next steps: Mayor and City Council must approve the plan or come up with an alternate plan that the coordinator and the state must approve.
Benefits
- Free coordinator/consultant.
- Emergency loan if needed.
- Seek court approval to raise taxes above the normal limits. In Reading's case, the cap on property tax increases is 5 percent a year.
- Levy otherwise banned taxes, such as a wage tax on nonresidents working in the city. The city has said a 0.5 percent nonresident wage tax could raise $5 million.
- Priority for state incentives to entice new businesses.
- Recovery plan does not break existing labor contracts, but new pacts - even those decided by an arbitrator - must abide by the recovery plan.
you know, shut up & pay your taxes.
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