Pittsburgh – February 12, 2018 − After 14 years of financial recovery, Department of Community and Economic Development (DCED) and local officials today signed Pittsburgh’s official release from this status.
“This has been a long road for the City, but I commend the Mayor, City Council, and the members of this community that spearheaded the efforts that led to recovery,” said Senate Democratic Leader Jay Costa, Jr. “Many cities fall into Act 47 status and never meet the conditions of recovery, but that’s not Pittsburgh’s story. This is a strong city that continually fights its way back from hardship; from the loss of the steel industry to its recent financial distress. Pittsburgh has never given up, and today’s news proves it again.”
Act 47 status is bestowed on cities facing incredible financial and structural burdens, and allows the state to offer assistance through the recovery process. A recovery coordinator is assigned, and a plan is set that dictates terms of recovery. Once those terms are met, DCED and the legislature begin the dissolution process.
DCED has determined that Pittsburgh met its conditions, outlined here:
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- Operational deficits were eliminated as evidenced by audited financial statements. The City has achieved operating surpluses nine out of the last twelve years.
- Debt has been retired, reduced, or reissued in a manner that has adequately refinanced all outstanding principle and interest.
- Pittsburgh has negotiated and resolved all claims or judgements that would have placed the municipality imminent jeopardy of default.
- Reasonably projected revenues of the municipality are sufficient to fund ongoing necessary expenditures, including pensions and debt obligations.
“The Administration has taken the steps that it needs to for Pittsburgh’s recovery to be official, and I have introduced Senate Bill 1047 which would dissolve the Intergovernmental Cooperation Authority,” said Senator Costa. “The ICA is no longer needed, and must be removed by legislative action; I’m proud to introduce the bill and be a part of this exciting final step in Pittsburgh’s recovery.”
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