Early Intervention Explained
By ANNE HOLLIDAY
WESB/WBRR News Director
Just a reminder – Bradford isn't alone in its financial situation.
Harry Krot, Local Government Policy Manager with the state Department of Community and Economic Development, mentioned that during his presentation on the Early Intervention and Act 47 (distressed cities) programs during a Bradford City Council work session Tuesday night.
"It's a sign of the times," that municipalities are in trouble and looking for help, he said.
Before explaining the plans, Krot said Act 47 "is the absolute last resort and we try to avoid that at all costs."
As for the Early Intervention Program, he said, "If not anything else, it provides an outside, objective look at the municipality."
He said the program is "designed to be a pre-emptive step for municipalities if they have a serious financial situation that needs addressed but they're not yet declared formally in distress."
He likened it to a personalized financial plan for a municipality.
The EIP is grant program that requires a 50 percent match from the municipality that would go toward hiring an independent financial consultant who would do an analysis of the municipality.
The consultant would make recommendations and it would be up to the municipality to implement the recommendations, either trying to avert a distress situation or maintain their solvency.
Among the areas a consultant would look at and make recommendations on are staffing, contracts, organizational structure and costs of providing services
"The state doesn't come in and make you implement any of these recommendations," Krot said, adding that the state would encourage the city to follow the recommendations and, if funds were available, they would support the implementation of the efforts.
For example, he said, a recommendation to Jefferson County was to automate their record keeping, and DCED provided additional funding.
He said, boiled down, the EIP says, "based on the facts, this is want we recommend." The municipality is also given a time frame to implement the recommendations and a guide to work toward averting financial distress.
He added that he didn't want to harp on the voluntary aspect of implementing the recommendations, "but it's not going to do any good if the plan is made and the recommendations aren't carried out, at least to some extent."
Krot did say that some of the recommendations may be politically unpopular, but "sometimes those types of decisions need to be made.'
Chris Maras of DCED talked about Erie's success in working on the plan over the last four years.
"Working together as a team, they've really brought the city's finances back," he said. "They're not completely out of the woods. Every township, borough and city across the Commonwealth has financial problems with the downtown over last the few years."
"But they've worked together. It can be done. The bickering is gone," he said of Erie officials. "I'm not saying they don't disagree. It's OK to disagree. Don't make it personal. You don't have to be disagreeable when you disagree. So they worked as a pretty good team."
"I think can be done here," Maras said. "You've got some problems here ... but teamwork is number one and that's what you're going to have to do."
He said one of the keys is setting aside political and personal differences.
"If you can do that, you're going to be very successful in the next few years," he said.
Krot also mentioned that a common thread in the Early Intervention Program is sharing resources such as equipment and code enforcement officers with neighboring municipalities.
Councilman Ross Niedich asked Krot about the increasing number of municipalities applying for the programs.
"Does the state Legislature not see those numbers and figure out, maybe, we need some help?" Niedich asked rhetorically.
He said they always hear about pending legislation that's supposed to help everyone who's in the same boat with declining populations, declining revenues and increased taxes, but then the legislation dies.
He said it's a vicious circle of increasing taxes for people who can't afford them and laying workers off so they're not providing services for people who are paying more taxes.
City Clerk John Peterson added that, for years, they've been hearing that the Legislature was going to release the Johnstown Flood Tax money. This year, a plan that had the full support of all municipal organizations (the county-optional sales tax) died in Harrisburg.
Bradford probably would have had an infusion of $1 million if it went through, Peterson said.
"No more budget crisis. Gone," he said.
"It's incumbent on the folks here to talk to your legislators," Krot said. "Any Third Class city is pretty much in the same boat."
As for Act 47, Krot said as bad as Bradford's financial situation may seem, the city is not in distress.
He suggested that if city council decides to get into either plan, Early Intervention would be the way to go.
Krot said it takes six to eight weeks to get started in the program and another couple of months before the consultant would have a recommendation plan.
Pictured, Harry Krot (right) speaks with Mayor Tom Riel and City Solicitor Mark Hollenbeck.
http://www.newpa.com/get-local-gov-support/directory/index.aspx
WESB/WBRR News Director
Just a reminder – Bradford isn't alone in its financial situation.Harry Krot, Local Government Policy Manager with the state Department of Community and Economic Development, mentioned that during his presentation on the Early Intervention and Act 47 (distressed cities) programs during a Bradford City Council work session Tuesday night.
"It's a sign of the times," that municipalities are in trouble and looking for help, he said.
Before explaining the plans, Krot said Act 47 "is the absolute last resort and we try to avoid that at all costs."
As for the Early Intervention Program, he said, "If not anything else, it provides an outside, objective look at the municipality."
He said the program is "designed to be a pre-emptive step for municipalities if they have a serious financial situation that needs addressed but they're not yet declared formally in distress."
He likened it to a personalized financial plan for a municipality.
The EIP is grant program that requires a 50 percent match from the municipality that would go toward hiring an independent financial consultant who would do an analysis of the municipality.
The consultant would make recommendations and it would be up to the municipality to implement the recommendations, either trying to avert a distress situation or maintain their solvency.
Among the areas a consultant would look at and make recommendations on are staffing, contracts, organizational structure and costs of providing services
"The state doesn't come in and make you implement any of these recommendations," Krot said, adding that the state would encourage the city to follow the recommendations and, if funds were available, they would support the implementation of the efforts.
For example, he said, a recommendation to Jefferson County was to automate their record keeping, and DCED provided additional funding.
He said, boiled down, the EIP says, "based on the facts, this is want we recommend." The municipality is also given a time frame to implement the recommendations and a guide to work toward averting financial distress.
He added that he didn't want to harp on the voluntary aspect of implementing the recommendations, "but it's not going to do any good if the plan is made and the recommendations aren't carried out, at least to some extent."
Krot did say that some of the recommendations may be politically unpopular, but "sometimes those types of decisions need to be made.'
Chris Maras of DCED talked about Erie's success in working on the plan over the last four years.
"Working together as a team, they've really brought the city's finances back," he said. "They're not completely out of the woods. Every township, borough and city across the Commonwealth has financial problems with the downtown over last the few years."
"But they've worked together. It can be done. The bickering is gone," he said of Erie officials. "I'm not saying they don't disagree. It's OK to disagree. Don't make it personal. You don't have to be disagreeable when you disagree. So they worked as a pretty good team."
"I think can be done here," Maras said. "You've got some problems here ... but teamwork is number one and that's what you're going to have to do."
He said one of the keys is setting aside political and personal differences.
"If you can do that, you're going to be very successful in the next few years," he said.
Krot also mentioned that a common thread in the Early Intervention Program is sharing resources such as equipment and code enforcement officers with neighboring municipalities.
Councilman Ross Niedich asked Krot about the increasing number of municipalities applying for the programs.
"Does the state Legislature not see those numbers and figure out, maybe, we need some help?" Niedich asked rhetorically.
He said they always hear about pending legislation that's supposed to help everyone who's in the same boat with declining populations, declining revenues and increased taxes, but then the legislation dies.
He said it's a vicious circle of increasing taxes for people who can't afford them and laying workers off so they're not providing services for people who are paying more taxes.
City Clerk John Peterson added that, for years, they've been hearing that the Legislature was going to release the Johnstown Flood Tax money. This year, a plan that had the full support of all municipal organizations (the county-optional sales tax) died in Harrisburg.
Bradford probably would have had an infusion of $1 million if it went through, Peterson said.
"No more budget crisis. Gone," he said.
"It's incumbent on the folks here to talk to your legislators," Krot said. "Any Third Class city is pretty much in the same boat."
As for Act 47, Krot said as bad as Bradford's financial situation may seem, the city is not in distress.
He suggested that if city council decides to get into either plan, Early Intervention would be the way to go.
Krot said it takes six to eight weeks to get started in the program and another couple of months before the consultant would have a recommendation plan.
Pictured, Harry Krot (right) speaks with Mayor Tom Riel and City Solicitor Mark Hollenbeck.
http://www.newpa.com/get-local-gov-support/directory/index.aspx
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