A bill to greatly reduce the scope of a state redevelopment program that has helped pay for stadium projects in Northeast Pennsylvania will be introduced soon by a House Republican leader.
Majority Leader Mike Turzai, R-28, Pittsburgh, is circulating a memo outlining an overhaul of the Redevelopment Assistance Capital Program. Turzai’s proposal calls for cutting back RACP’s borrowing capacity, changing its emphasis to larger highway, water and sewer projects that have an economic impact, weeding out a “wish list” of authorized projects and removing the power of lame duck governors to approve projects.
RACP is a major conduit to finance community development projects in Northeast Pennsylvania, most recently the $20 million grant that Gov. Tom Corbett approved to help finance the planned makeover of PNC Field in Moosic.
The program drew controversy in 2010 when lawmakers approved $600 million in new borrowing for the program and former Gov. Ed Rendell gave the green light for two RACP projects bearing the names of veteran Pennsylvania federal lawmakers, former U.S. Sen. Arlen Specter and the late U.S. Rep. Jack Murtha.
The grant to PNC Field was avidly sought by public officials in Northeast Pennsylvania, but it was criticized by Turzai, then a leader of the House minority GOP caucus.
Turzai said he’s working with the Corbett administration to develop the reform legislation. In a briefing last month, Budget Secretary Charles Zogby said the administration is considering ideas to make RACP more accountable and geared to economic development.
“This legislation incorporates common-sense changes to bring this program (and the resulting debt load) to a more responsible and manageable level,” said Turzai in the memo seeking co-sponsors.
He is taking aim at a program that has a debt ceiling of $4 billion and lists 8,000 potential projects as a result of successive capital budget bills approved by lawmakers. Key bill provisions include:
- A freeze on new projects until the debt ceiling falls below $3 billion and subsequent steps to reduce the debt ceiling to half that amount.
- Sets an expiration date for projects on the wish list and two-year limit for action on new projects.
- Public meeting requirements and more notification for RACP projects being considered for approval.
- No project approvals between a gubernatorial election date and inaugural date.
Those looking to overhaul RACP should be keep in mind that the program requires a local $1 match for every state dollar spent and the state only provides money as a reimbursement, said Sen. John Blake, D-22, Archbald, a top official in the state Department of Community and Economic Development during the Rendell administration.
“The bar is very high for any recipient of those dollars,” said Blake, pointing to audit requirements before any reimbursement is made.
Blake said he would be willing to look at any proposals to sharpen the focus on what types of projects are funded. But he emphasized the importance of keeping a program that has been very important to Northeast Pennsylvania’s economy.
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