Municipality Looks at Act 47, Chapter 9

The City of Jeanette-population 9,654 at the 2010 Census-is in big financial trouble. One member of Council called it "desperate". Big pension payments are due, in fact, they are overdue, to the police pension plan. That plan had 13 active members and was 59% funded in 2011 according to PERC. The plans for fire personnel and non-uniformed workers are not in much better shape. A separate legal judgment may result in a special add-on tax to pay legal fees. Layoffs are possible.

In order to counteract the seemingly irresistible forces pushing upon it, the City may go the route of Act 47 or municipal bankruptcy. It appears from the article that the City has already gone to the state for help as it was noted "the state Department of Community and Economic Development has recommended steps the city could take to initiate a financial turnaround, but council has disregarded the recommendations, putting the city deeper and deeper into debt." That likely means Jeanette was in the early intervention program for municipalities as a way to avoid Act 47 or bankruptcy.

Either course will involve a decision by DCED. As we noted this past summer, changes to Act 47 put the power of approving a Chapter 9 filing into the hands of the DCED Secretary.