Legislation to End the ICA Introduced

Legislation to End the ICA Introduced

As we noted earlier this week Pittsburgh was removed from Act 47 distressed status.  One of the points in that blog dealt with the City’s second financial overseer, the Intergovernmental Cooperation Authority (ICA).  Amendments in 2016 to the ICA statute (Act 11 of 2004) changed the language on the term of existence of the ICA to be the later of the Act 47 rescission or June 30, 2019.

But issues with the ICA’s appropriation–it did not get one from the state in 2017-18 and was absent from the 2018-19 budget proposal–led to a resolution by the ICA board to ask for a change to the state legislation to allow for dissolution once Act 47 was rescinded and to request $37,000 from the City for expenses.

Legislation was introduced yesterday in the Senate to alter the Act’s language in Section 204, “Term of Existence”.  This proposal would allow for immediate certification by the Secretary of the Department of Community and Economic Development that the ICA is “…no longer needed” upon Act 47 termination, which happened February 12th.  The reference to June 30, 2019 would be removed by the amendment. The local share assessment from slots revenue at the Rivers Casino would continue to be distributed as described by the amendment under Act 99 of 2016, in which money would flow directly to the City to be used “… to increase the level of funding to the municipal pension funds of an assisted city”.