Scranton Councilman Worries New Union Contract Ties Hands In Exiting Act 47

Scranton could have a difficult time shedding its distressed city status because of the pay raises and other perks in the revised police contract, a city councilman warned.

The city has until 2020 to successfully exit the state’s Act 47 financially distressed municipalities program. The new seven-year police contract approved by a split city council Thursday and signed by Mayor Bill Courtright Friday will hinder the city because the contract locks in pay raises and benefits beyond 2020, said Councilman Bill Gaughan.

He questioned whether the contract extension would “tie the city’s hands” by eliminating the possibility of negotiating in 2017 savings in a new police contract, while at the same time locking in raises and benefits a year beyond the Act 47 deadline of 2020.

Mr. Courtright disagreed that the contract extension will make it more difficult for the city to successfully exit Act 47.

Read more: http://thetimes-tribune.com/news/city-councilman-worries-new-union-contract-ties-hands-in-exiting-act-47-1.1825840

Local Services Tax Could Triple Under Act 47 Plan

HARRISBURG — People who work in Scranton and other distressed municipalities could see a $52 annual tax triple under a new Senate amendment.

Lawmakers want to steer Act 47 municipalities to levy a higher local services tax as an alternative to a commuter tax.

The distressed cities legislation cleared a first Senate hurdle Wednesday with a comprehensive amendment added by the Local Government Committee.

The committee’s action is the latest step in an effort to overhaul the Act 47 program for fiscally distressed municipalities. Scranton, Nanticoke, West Hazleton and Plymouth Twp. have Act 47 status. Shamokin is seeking to enter the program.

Read more: http://thetimes-tribune.com/news/tax-could-triple-under-act-47-plan-1.1705643