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Opinion: After 30 years, Scranton is no longer ‘distressed’

Some residents of the Lackawanna County city and financial observers might take issue with this headline, but, as far as Pennsylvania is concerned the “distressed” label has been removed after it was imposed on Jan. 10, 1992.

There was an appropriate ceremony last week to mark the auspicious occasion. Among those attending were city officials and Gerald Cross, representing the Pennsylvania Economy League, which is the agency appointed to be the watchdog over the city’s financial woes that became ever more dire as the population plummeted and the tax base contracted over more than a generation of troubles, including numerous allegations of corruption and illegalities in handling city business.

It is stunning to realize that from 1930 when the city hit its high of 143,000 residents, today’s population is just a little more than half of that - 76,000.

As Cross correctly pointed out, 30 years is an inordinately long time for a city to be under the watchful eye and partial control of an outside agency, but he noted that political infighting caused the delay. Of the 16 municipalities that have emerged from the “distressed” designation, only a few have been in that condition for more than 30 years. Cross warned that although the city has shown progress, it cannot let its guard down.

Many of you probably have heard of “The Scarlet Letter,” Nathaniel Hawthorne’s fictional novel where Hester Prynne had to go through life wearing an “A” (for adulteress) around her neck.

Communities that are designated “distressed” have the equivalent of a scarlet letter attached to their names. The distressed city designation is interpreted by many as meaning that a city is near bankruptcy.

This can be an economic and morale killer not only for prospective developers and business-owners but also for residents who live in these communities and for prospective residents who might be considering moving there. This perception that there are major economic problems in these communities can have a devastating effect in hampering a community’s progress.

Scranton’s Mayor Paige Cognetti said that not having the “distressed” label on the city will help in recruiting people and businesses. She said it is an enormous burden off the city’s shoulders.

The Financially Distressed Municipalities Act, also known as Act 47, came into being in 1987 and outlines procedures to stabilize municipalities considered to be financially distressed. The community’s legislative body must vote to seek Act 47’s benefits.

Among other things, it provides for the restructuring of debt of these municipalities. There even is a section of the act that provides for a consolidation with adjoining municipalities if such an action is beneficial to them.

Scranton is the first city to emerge from this designation in four years, the last being Pittsburgh, which had the designation for a little more than 14 years.

There are 14 communities that are still getting help under Act 47. They are: Aliquippa (Beaver County), Braddock (Allegheny County), Chester (Delaware County), Colwyn (Delaware County), Duquesne (Allegheny County), Farrell (Mercer County), Franklin (Cambria County), Greenville (Mercer County), Harrisburg (our state capital in Dauphin County), Johnstown (Cambria County), New Castle (Lawrence County), Rankin (Allegheny County), Reading (Berks County) and Shamokin (Northumberland County)

Fifteen communities have emerged from distressed designation. Among them are several from Northeast Pennsylvania, including Nanticoke (Luzerne County, 2006-2015), Plymouth (Luzerne County, 2004-2016), Shenandoah (Schuylkill County, 1988-1993) and West Hazleton (Luzerne County, 2003-2014).

By Bruce Frassinelli | tneditor@tnonline.com

The foregoing opinions do not necessarily reflect the views of the Editorial Board or Times News LLC.