Editor’s note: More bad economic news! Altoona joins Reading and Harrisburg as the latest Pennsylvania city to have major financial problems!
The state on Thursday accepted Altoona into its Distressed Municipalities Program.
City officials hope “going distressed” will help avoid insolvency by relaxing restrictions on property and income taxes and by helping adjust operations in a framework that has virtually strangled all third-class cities in Pennsylvania.
“Altoona needs more than a short-term or week-by-week fix from its creditors and obligations,” stated Department of Community and Economic Development Secretary C. Alan Walker in a news release. “It needs a comprehensive recovery plan that will lay the groundwork for long-term financial solvency.”
Walker will have 30 days to appoint an Act 47 coordinator for Altoona, and the coordinator will then have 90 days to propose a recovery plan.