Farrell’s Budget Anticipates Act 47 Exit

Farrell’s Budget Anticipates Act 47 Exit

Back in March we wrote about the City of Farrell, which in November of 1987 became the first municipality to enter fiscal distress status under Act 47, also passed that year.  We noted that due to changes to the Act 47 statute municipalities now have a time limit to be under the conditions of the Act.  Prior to 2014, when the changes became law, there were six rescissions from distressed status, with none between 2007 and 2014.   Since then seven municipalities have exited Act 47.

The budget for the 2018 fiscal year that begins January 1st contains no increase in the property tax rate, and “a planned date of exit [from Act 47} of May 22, 2018“.   That will depend on the Act 47 coordinator for the municipality, who has to recommend an exit or a three year extension, which is permitted under the law.  One revenue that would be gone is the tax on non-resident earned income, which raises $350k a year according to the article.  But because of changes made during its time in Act 47 the decrease in revenue should be manageable, according to the coordinator.