A state-appointed board to supervise Harrisburg’s funds rejected the town’s 5-year spending plan this week, citing alleged deficits and a scarcity of detailed data.
The Intergovernmental Cooperation Authority voted 4-0 in opposition to the proposal at its assembly Wednesday.
The board was created by the General Assembly in late 2018 when legislators agreed to permit the town to maintain its expanded taxing authority even after it exits Act 47.
Beneath state regulation, the town is required to submit a five-year plan for the board’s assessment throughout yearly. The plan is meant to “get rid of projected deficits, implement sound budgetary practices, and supply procedures to keep away from a fiscal emergency situation sooner or later,” in accordance with a information launch issued by the board Friday afternoon.
The regulation, referred to as Act 124, additionally mandates that the board reply in writing to the town to precise any points with the proposal. However Harrisburg Mayor Eric Papenfuse stated he nonetheless had not acquired any official correspondence from the board.
“I’m assured the town submitted a plan in compliance with Act 124,” Papenfuse stated. “The truth that this was communicated by press launch and never the method specified by Act 124 raises purple flags, however I’m assured as soon as we obtain the correspondence we’ll have the ability to deal with the considerations.”
The connection between Papenfuse and the some members of the board have been fraught for the reason that starting. The city filed a lawsuit against the board earlier this 12 months alleging its members wouldn’t enable the town finance director to attend month-to-month board conferences. The 2 sides additionally clashed over a proposed financial growth symposium deliberate by the board with out enter from the town.
The authority cited 5 alleged causes for rejecting the town’s five-year plan. The board members stated:
- The Neighborhood Providers Fund, which accounts for income and bills of the town’s trash assortment companies, demonstrated annual deficits and “factors to a development of this fund stability approaching depletion.”
- A schedule of projected capital commitments for the Neighborhood Providers Fund was not included.
- Monetary data from an Inter-municipal Sanitation Settlement with the Borough of Steelton seems “faulty” as a result of it didn’t element attainable further prices comparable to journey time concerned in assortment, depreciation prices on the vans, gas prices, and so on.
- The plan lacked supporting data for capital enchancment tasks, together with particulars, descriptions, and all sources of funding.
- The plan lacked supporting data for brand new initiatives, together with “a big improve in headcount from 462 to 512 FTEs and a brand new Neighborhood Providers Division.”
Papenfuse disagreed with the factors outlined within the information launch and stated the Neighborhood Providers Fund is balanced as required by regulation and that the settlement with Steelton isn’t faulty.
He stated the 2021 price range and proposed new initiatives have been authorised by Metropolis Council after weeks of price range hearings and public enter. The town has 15 days to submit revisions.