Rankin Borough, PA – Today, Department of Community and Economic Development (DCED) Secretary Rick Siger announced the approval of Rankin Borough’s exit from distressed municipality status under the Municipalities Financial Recovery Program, known as Act 47. Secretary Siger joined Allegheny County Executive Rich Fitzgerald, Rankin Mayor Joelisa McDonald, Rankin Council President William H. Price III, Councilman Bill Pfoff and other officials this afternoon to commemorate the occasion.

The Shapiro Administration, focused on boosting Pennsylvania’s economy, knows the importance of strengthening our communities to make the Commonwealth a better place to live, work, and prosper. In his 2023-2024 budget, Governor Shapiro has proposed a 1.25 million increase to provide financial planning assistance to local governments to avoid financial distress and Act 47 status through the Strategic Management Planning Program. Avoiding financial distress and preparing for potential economic downturns are essential to ensuring a community maintains sustainability for generations.

“Today is truly a day to celebrate Rankin Borough and congratulate all of those who worked together to put it on sound financial footing,” said Secretary Siger. “It’s been 34 years since Rankin Borough entered Act 47, and I’d like to acknowledge the local officials, community leaders, businesses, and the residents of Rankin Borough for working together to make this day a reality. DCED is committed to working with its people and businesses to ensure Rankin prospers in the years to come.”

Secretary Siger signed a formal determination letter finding that termination of the borough’s distressed status was appropriate under Section 255.1 of Act 47. The decision was made due to Rankin Borough’s ability to effectively utilize the tools offered through the program to significantly improve its financial position and management infrastructure since entering Act 47.

“The commitment my community has made to allow us to reach this point of being able to exit out of Act 47 is very commendable,” said Mayor McDonald. “It speaks volumes to not only where we are headed, but also how far we have come. It is monumental for places like Rankin to be in a position full of hope and possibilities all while being fiscally responsible. We owe it to our future generations to keep the momentum going.”

Rankin Borough was designated as distressed on January 9, 1989 under Act 47. The determination was made because property values and employment opportunities had declined with the closing of many steel mills, causing strains on the borough’s budget that lead to multi-year deficits and depleted cash reserves. Susan Hockenberry of SGHock, LLC was subsequently appointed the Act 47 Coordinator for the borough.

“Congratulations to Rankin Borough’s elected officials, past and present, and its residents, businesses and organizations which call the municipality home on today’s announcement,” said County Executive Fitzgerald. “Today’s milestone could not have been reached if it were not for the many individuals and organizations who have worked together for so long to get to this point. We recognize the importance of local governments to their residents, but they’re also an important building block in our larger communities and economy. We are excited to see Rankin continue to meet the diverse needs of its community while also putting its finances on solid footing. We look forward to working together with you as you embrace other opportunities to continue this positive momentum.”

Rankin Borough has made significant strides to improve its management practices and fiscal situation. The borough experienced four years of surpluses during the years 2018-2021. During that time, the borough has steadily increased its fund balance, which has exceeded 25 percent of annual expenditures and revenues in each of the last five years. Rankin has also consistently made its loan payments through the duration of the exit plan and has stated that there are currently no pending lawsuits or claims against the borough. Lastly, the Act 47 Coordinator projects that the borough will sustain its healthy fund balance throughout the 2023-2027 projection period. The projected revenues of the borough are sufficient to fund ongoing expenditures, including pension and debt obligations and the continuation or negotiation of collective bargaining agreements and the provision of municipal services.

“Rankin Borough’s celebration of exiting Act 47 has been a labor of love for our community,” said Council President Price. “I commend the current and past council members, mayors, and our staff and residents. Their commitment and persistence to stay on course to reach this moment is a wonderful reflection of each and every one of us. This fiscal independence just proves that when you stay focused, committed and work together — all things are possible. This is the beginning of endless possibilities for Rankin.”

Rankin Borough is the 23rd municipality to recover from distressed status under act 47. Prior to Rankin Borough, Hazleton, Luzerne County, was the most recent community to recover, exiting Act 47 status on May 4, 2023. For a full list of the municipalities who have recovered from distressed status under the program, please click on the Act 47 Financial Distress page of the DCED website.

“Rankin Borough has worked diligently to maintain its community despite the deindustrialization at the end of the last century,” said Susan G. Hockenberry, Rankin Borough Act 47 Coordinator. “Looking ahead, the borough should maintain its commitment to fiscal prudence and utilize growth in the tax base to complete needed capital improvements. Working together as municipal officials, as a community, and as a part of a region, will make the difference for Rankin in the future.”

Governor Shapiro and his Administration are committed to strengthening communities and growing Pennsylvania’s economy so that it works for everyone. For more information about his commitment to workers, businesses, and our economy, visit the Governor’s website.

For more information about Act 47 or the Department of Community and Economic Development, visit DCED website, and be sure to stay up-to-date with all of our agency news on Facebook, Twitter, and LinkedIn.

MEDIA CONTACT:
Penny Ickes, dcedpress@pa.gov

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