Township Association Applauds Corbett
for Signing Bid-Limit Legislation into Law
Townships in Pennsylvania will finally see a change in long-outdated bid limit laws thanks to a bill signed today by Gov. Tom Corbett.
Act 84 of 2011, effective January 1, will increase the minimum dollar amount that requires townships to advertise and seek bids for purchases and contracts. By upping the current threshold from $10,000 to $18,500, the law means that fewer local purchases will fall under the state’s cumbersome and bureaucratic bidding procedures. It will also mean that more local tax dollars will be invested where they would do the most good: in local services and projects.
“PSATS applauds the governor’s swift action in signing this legislation,” PSATS Executive Director David M. Sanko says. “For more than a decade, the Pennsylvania State Association of Township Supervisors has been urging lawmakers to pass common-sense legislation that would save municipalities statewide hundreds of thousands of tax dollars a year – money that could be put to better use in Pennsylvania’s communities.
“The last time the bidding provisions were amended was in 1990, and they have been frozen in time since then, not allowing for inflation and thus eroding the purchasing power of township government. Increasing the bidding threshold will make procurement more cost-effective and, as a result, will provide more choices that are advantageous to townships and their taxpayers.”
In addition to increasing the current municipal bid threshold, Act 84 will require townships to seek telephone quotes for purchases and contracts between $10,000 and $18,500. Any purchase a township makes that costs less than $10,000 will not be subject to the state’s bidding and advertising requirements. Also, the minimum bid amounts will be adjusted annually based on changes in the Consumer Price Index.
The Pennsylvania State Association of Township Supervisors represents Pennsylvania’s 1,455 townships of the second class and for the past 90 years has been committed to preserving and strengthening township government and securing greater visibility and involvement for townships in the state and federal political arenas. Townships of the second class represent more residents — 5.5 million Pennsylvanians — than any other type of political subdivision in the commonwealth.
Provided by the Pa. State Association of Township Supervisors
Act 84 of 2011, effective January 1, will increase the minimum dollar amount that requires townships to advertise and seek bids for purchases and contracts. By upping the current threshold from $10,000 to $18,500, the law means that fewer local purchases will fall under the state’s cumbersome and bureaucratic bidding procedures. It will also mean that more local tax dollars will be invested where they would do the most good: in local services and projects.
“PSATS applauds the governor’s swift action in signing this legislation,” PSATS Executive Director David M. Sanko says. “For more than a decade, the Pennsylvania State Association of Township Supervisors has been urging lawmakers to pass common-sense legislation that would save municipalities statewide hundreds of thousands of tax dollars a year – money that could be put to better use in Pennsylvania’s communities. “The last time the bidding provisions were amended was in 1990, and they have been frozen in time since then, not allowing for inflation and thus eroding the purchasing power of township government. Increasing the bidding threshold will make procurement more cost-effective and, as a result, will provide more choices that are advantageous to townships and their taxpayers.”
In addition to increasing the current municipal bid threshold, Act 84 will require townships to seek telephone quotes for purchases and contracts between $10,000 and $18,500. Any purchase a township makes that costs less than $10,000 will not be subject to the state’s bidding and advertising requirements. Also, the minimum bid amounts will be adjusted annually based on changes in the Consumer Price Index.
The Pennsylvania State Association of Township Supervisors represents Pennsylvania’s 1,455 townships of the second class and for the past 90 years has been committed to preserving and strengthening township government and securing greater visibility and involvement for townships in the state and federal political arenas. Townships of the second class represent more residents — 5.5 million Pennsylvanians — than any other type of political subdivision in the commonwealth.
Provided by the Pa. State Association of Township Supervisors
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