Pa. May Pull Back On Funding For Redevelopment Projects

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HARRISBURG — Pennsylvania’s most sweeping economic development programs could see a limited spending cap and permanent guidelines under a recently passed proposal.

The state’s Redevelopment Assistance Capital Program (often called “R-Cap”) provides grants with borrowed money for private projects pursued by municipalities and local agencies.

That could include hospital expansions, parking garages or community centers — any project with a cultural, civic or historical connection that could create jobs and be tied to economic development.

But the program is often criticized as a questionable source of ballooning debt.

RACP’s debt ceiling is $4.05 billion, about 10 times what it was when it was created in 1986.

Read more:  http://www.pottsmerc.com/article/20130224/NEWS03/130229703/pa-may-pull-back-on-funding-for-redevelopment-projects#full_story

Corbett Expected To Seek Tax Hike For Transporation

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HARRISBURG – Gov. Tom Corbett is preparing to unveil a transportation plan funded primarily by nearly $2 billion a year in new taxes on gas stations, sources familiar with the plan told The Associated Press on Wednesday.

The Republican governor, who pledged not to raise taxes when he ran for office, will announce the fine points of the long-awaited initiative next week, the sources told the AP on the condition they not be identified.

Read more:  http://readingeagle.com/Article.aspx?id=444192

Bipartisan Effort Shapes Action On City Distress Issues

HARRISBURG – While the city of Scranton struggles daily with cash-flow problems, key state lawmakers see any unveiling of comprehensive legislative proposals to help fiscally distressed cities as being months away.

A rollout of bills is anticipated early next year with the start of the new legislative session, said Sen. John Eichelberger, R-30, Hollidaysburg, chairman of the Senate Local Government Committee.

A bipartisan group in the Senate and House is working on a host of related issues, including an overhaul of the Act 47 program for fiscally distressed municipalities, municipal pension benefits, collective bargaining for public employees and the role of nonprofit institutions clustered in cities.

Since four legislative committees held joint hearings last fall on the future of Act 47, lawmakers involved in the effort to find solutions to the problems cities face with eroding tax bases and increased demand for services have emphasized its bipartisan nature.

Read more: http://thetimes-tribune.com/news/bipartisan-effort-shapes-action-on-city-distress-issues-1.1357868