Act 47 a Lifeline for Some Municipalities Across the State, Including Three in Delco

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Image via the Philadelphia Inquirer.

Act 47 has provided a lifeline for a number of municipalities across the state, including a few here in Delaware County, but exiting it by the deadline is a significant challenge, writes Michaelle Bond for the Philadelphia Inquirer.

The Municipalities Financial Recovery Act allows municipalities to increase taxes beyond the limits set by the state. Most municipalities who activate Act 47 share several common traits, like imprudent budgeting and neglected finance departments.

While it started without a deadline, Act 47 now has a five-year expiration date with the possibility of a three-year extension. According to Gordon Mann, director of Public Financial Management, that’s not enough.

“The problems for a lot of these communities won’t go away in eight years, because they’ve been decades in the making,” said Mann.

However, many municipalities that have left the program are currently not at risk of re-entering.

Millbourne left Act 47 four years ago, in large part because it had made its police part-time. Colwyn, which entered Act 47 three years ago, is on track to leave in 2019.

Chester, meanwhile, is hoping to get an extension approved ahead of its deadline in two months.

Read more about Act 47 in the Philadelphia Inquirer by clicking here.

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