About DCED
The Department of Community and Economic Development (DCED) works every day to ensure Pennsylvania is a premier state to do business, where we adopt and innovate the next generation of breakthroughs in a diverse mix of industry clusters, where we cultivate a resilient economy, and where we invest in our people and our communities to build a stronger Pennsylvania that works for all the residents, workers, businesses, and entrepreneurs that call our Commonwealth home.
Clairton in ACT 47 from 1988-2015
What is ACT 47?
Act 47, also known as the Financially Distressed Municipalities Act or Municipalities Financial Recovery Act, is a Pennsylvania statute that helps municipalities in financial distress. Enacted in 1987, it empowers the Pennsylvania Department of Community and Economic Development (DCED) to declare certain municipalities as financially distressed and provide support for recovery.
*Key Provisions:*
- *Debt Restructuring*: Act 47 allows for restructuring of debt for financially distressed municipalities.
- *Access to Funding*: It limits the ability of financially distressed municipalities to obtain government funding, but also provides access to specific resources like zero-interest loans and grants.
- *Consolidation or Merger*: The act enables consolidation or merger of contiguous municipalities to relieve financial distress.
- *Recovery Plans*: A recovery coordinator is assigned to develop a fiscal recovery plan for municipalities.
*Goals and Outcomes:*
- *Stabilize Finances*: Act 47 aims to stabilize finances and rid towns of poor management practices.
- *Avoid Bankruptcy*: The program hopes to avert Chapter 9 bankruptcies.
- *Support Recovery*: It provides support for municipalities to recover from financial distress, but some critics argue that it doesn't address underlying structural issues.
*Municipalities Under Act 47:*
Some notable municipalities that have been under Act 47 include:
- *Pittsburgh*: exited in 2015 after entering in 1988
- *Clairton*: exited, exact year not specified
- *Chester*: currently under state receivership and has filed for bankruptcy
- *Harrisburg*: has a long fiscal history and relationship with the state government
- *Johnstown*: exited in 2023 after 30 years
- *Reading*: exited in 2022 after 13 years
Overall, Act 47 provides a framework for Pennsylvania municipalities to address financial distress, but its effectiveness and limitations continue to be discussed among policymakers and experts.
*Key Provisions:*
- *Debt Restructuring*: Act 47 allows for restructuring of debt for financially distressed municipalities.
- *Access to Funding*: It limits the ability of financially distressed municipalities to obtain government funding, but also provides access to specific resources like zero-interest loans and grants.
- *Consolidation or Merger*: The act enables consolidation or merger of contiguous municipalities to relieve financial distress.
- *Recovery Plans*: A recovery coordinator is assigned to develop a fiscal recovery plan for municipalities.
*Goals and Outcomes:*
- *Stabilize Finances*: Act 47 aims to stabilize finances and rid towns of poor management practices.
- *Avoid Bankruptcy*: The program hopes to avert Chapter 9 bankruptcies.
- *Support Recovery*: It provides support for municipalities to recover from financial distress, but some critics argue that it doesn't address underlying structural issues.
*Municipalities Under Act 47:*
Some notable municipalities that have been under Act 47 include:
- *Pittsburgh*: exited in 2015 after entering in 1988
- *Clairton*: exited, exact year not specified
- *Chester*: currently under state receivership and has filed for bankruptcy
- *Harrisburg*: has a long fiscal history and relationship with the state government
- *Johnstown*: exited in 2023 after 30 years
- *Reading*: exited in 2022 after 13 years
Overall, Act 47 provides a framework for Pennsylvania municipalities to address financial distress, but its effectiveness and limitations continue to be discussed among policymakers and experts.
Files from Clairton's ACT 47 1988-2015
| dced_determination_order_city_of_clairton_executed.pdf |
| clairton-recovery-plan-07-09.pdf |
| clairton_city_act_47_evaluation_and_rescission_report_-_2015.pdf |
