The PA League of Cities and Municipalities Annual Convention in Bethelehm, June 23-25 drew hundreds of municipal leaders to the Hotel Bethlehem and Moravian College to share ideas and explore solutions.
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FIVE CITY HEALTHY COMMUNITY UPDATE-ONE YEAR LATER
The speakes were:
- Mayor C. Kim Bracey and Michael J. O-Rourke, Business Admininstrator from the City of York.
- Mayor John B. Callahan, City of Bethlehem
- Mayor J. Richard Gray, Ciy of Lancaster
- Mayor Thomas McMahn, City of Reading
- Mayor Salvatore J. Panto, Jr. City of Easton
The five key issues that emerged were:
Adopting An Agenda for Change
Cities are facing financial stress from all quarters. An agenda for change is required. This agenda requires municipal leaders to; direct political discussions, make needed reforms. keep focused on the facts, reject the assumption that says" the public cannot face the truth," and now is the timre to address these issues.
Engage in Systematic Financial Reform
Healthcare, pension reform and arbitration reform are all essesntial to getting our cities back on track, fiscally.
Healthcare-Our municipal employees will have to start sharing the costs of health care more. either in co-pays, the level of coverage, deductables or other options. There are only a certian amount of dollars availalbe to allocate to healthcare. Municipal employees will need to be involved in making these decisions within a clear financial framework and fiscal reality.
Pension Reform-Our pension systems are under-funded and not in touch with the long term viability of meeting these obligations. These long-term imbalances need to be addresses. The state legislataure must do most of the heaby lifting on this issue. The key reform is to make new entrants into the system contribute more. For a more in-depth analysis of the issue, see this article and presentation by the Commonwealth Foundation.
Arbitration Reform-Act 111, which covers arbitration is costly, inefficceint and unfair. Why are three arbitrators required? Why not one neurtal state appointed one? The outcomes or arbitration need to consider the fiscal reality of the parties involved, not just other cities or entities that may or may not be comparable.
Address Municipal Fragmentation
There are many ideas that can help here, the most essentail is that of sharing municipal services. A fund to help pay for the joint delivery of services is also being considered by cities nationally. More essential is to convert to a County based management system. Pennsylvania cannot afford all the municipalities, school districts and other entities it currently has. The legislature needs to provide the legislation to begin to address this issue.
Tax credits for historic preservation and tax and building codes that encourage renovation of existing buildings is essential also.
General Assemby to Address Property/Income Taxes
The first issue, is to "do no harm." Without the State Legislature involved and actively engaged in these issues, nothing meaningful will happen. Perhaps a Polistical Action Commitee (PAC) is required to help get their attention. More importantly, municipal leaders showing up and speaking with one voice will focus these elected officials to get the reform agenda done.
Sharing Services Regionally
County and other officials need to recognize that healthy cities are essential to regional development. Currently, too many cities subsidize the suburbs due to the tax structure. whereby workers are taxed where they live, not where they work. The demographics of people living and working wtihin cities is no longer valid. Addressing this issue on a regional basis and working out equitable sharing of costs and taxes is the only solution.
