Hazleton celebrates exit from distressed municipality status

HAZLETON – State and local officials gathered Thursday at Hazleton City Hall to celebrate the city’s exit from the Act 47 distressed municipalities program.

Newly-confirmed Department of Community and Economic Development (DCED) Secretary Rick Siger said that, when Hazleton entered the program in 2017, “the city’s economic future was in question.”

He said the city was in a “challenging situation” with structural deficits and other economic issues.

“As I understand it, Hazleton has never been a place to shy away from such challenges, and thanks to the grit and determination of local officials, of community leaders, of our Act 47 team, business, residents, this place is on its way back up,” Siger said.

Act 47, the state said, was enacted to provide a broad-based program of fiscal management oversight, technical assistance, planning, and financial aid to municipalities experiencing severe fiscal distress.

The state said Hazleton made significant strides to improve its management practices and fiscal situation and experienced an excess of revenues over expenditures for the years 2018-2021 and, based on the adopted 2022 budget and the Act 47 Coordinator’s end of year estimate, is estimated to incur a surplus of $573,683 in 2022.

Hazleton’s debt is manageable, and able to be included in the annual budget, the state said.

Mayor Jeff Cusat described having to enter the program as a “low point” for the city, but said the city has emerged in a better position than he could have imagined.

“I’m glad that I signed that paper,” Cusat said. “This was the most beneficial thing the city has ever done.”

City Council President Jim Perry said Thursday was “a great day for the residents of the City of Hazleton.”

“We’re exiting Act 47 in the best financial position this city has seen in decades,” Perry said. “The benefits our city has received as a result of this process are far reaching and will have a positive impact on our residents far into the future.”

State Senator David G. Argall (R-29) noted that Hazleton is not the first Luzerne County municipality to exit the program, joining West Hazleton, Nanticoke, and Plymouth Township. Shenandoah and Mahanoy City in Schuylkill County also entered and exited the program.

“If my memory serves me correctly… I believe it was my Schuylkill County predecessor who was the author of Act 47 when Shenandoah was teetering on the edge of bankruptcy,” Argall said. “There were concerns in the beginning that it would be like the Hotel California, that you could check in but never leave.”

“Today, I think we’ve seen that Senator Rhoades’s dream has become a reality and that there is a way through the process, that it does help you but you’re not stuck in there forever,” Argall added.

State Representative Dane Watro (R-116) said that Hazleton “defied all odds.”

“You came through. It’s the Hazleton way,” Watro said to Mayor Cusat.

“Hazleton is an example of how providing municipalities with more flexible revenue options, like an enhanced earned income tax, and updating antiquated county property assessment can help communities overcome distress and become sustainable,” said Gerald Cross, Pennsylvania Economy League Senior Fellow. “However, none of this would have been possible without extensive cooperation between the mayor and Hazleton City Council. Having municipal leadership working together for the common good is critical to success.”     

Hazleton is the 22nd municipality to recover from distressed status under Act 47. Prior to Hazleton, Johnstown, Cambria County, was the most recent community to recover, exiting Act 47 status on April 26, 2023.

Locally, only Shamokin in Northumberland County remains in Act 47 status.

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Kaylee Lindenmuth

Kaylee Lindenmuth is a Shenandoah native with a passion for journalism and the community she calls home.

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