Could Municipalities Close up Shop?
Encounter financial problems, enter fiscal distress (or oversight or receivership), and remain there for an undetermined amount of time. Could there be an option for dissolution of municipalities in Pennsylvania, something that is currently not permitted? As part of the legislation that might make reforms to Act 47, with time limits on a municipality’s stay, there could be a possibility for a municipality to dissolve and have its services administered by its county. Presumably communities not in Act 47 could not up and decide to dissolve themselves (of course, they could consolidate or merge with another community or communities under current law).
It does appear that there was language involving “consolidation or merger of economically nonviable municipalities” in Act 47, but that language was repealed in 1994. That might have involved a neighboring town taking on a fiscally distressed municipality, which probably was not an idea welcome with open arms.