Governor Josh Shapiro and his Administration are continuing their commitment to strengthening PA’s communities, the Lawrence County city is the 28th PA municipality to recover from distressed status

Harrisburg, PA – Today, Department of Community and Economic Development (DCED) Secretary Rick Siger announced the approval of New Castle’s exit from distressed status under the Municipalities Financial Recovery Program, known as Act 47. Governor Josh Shapiro and his Administration know the importance of strengthening our communities to make the Commonwealth a better place to live, work, and prosper.

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

“Congratulations to the local officials, community leaders, key partners, and residents who have worked so hard to make this day possible for New Castle,” said Secretary Siger. “The city’s commitment to making the tough, but necessary, decisions to get on the path to financial prosperity is commendable. The Shapiro Administration is committed to helping our municipalities become stronger and healthier and we look forward to seeing New Castle prosper in the years to come.”

DCED Deputy Secretary of Community Affairs and Development Rick Vilello was on hand in New Castle today to present City Administrator Chris Frye with the signed determination letter.

“It’s truly my honor to be here today as New Castle emerges from distressed status after almost 16 years,” said Deputy Secretary Vilello. “The Commonwealth has provided crucial support to the city over the years and will continue to partner with New Castle as they move forward and begin writing their next chapter.”

“With profound gratitude and a sense of accomplishment, I am excited about the city of New Castle’s successful exit from Act 47,” said Chris Frye, New Castle City Administrator. “This milestone represents the culmination of tireless efforts and unwavering commitment from our entire team. We are deeply grateful for the support and collaboration of our stakeholders throughout this journey. As we move forward, we remain steadfast in our dedication to building a strong and sustainable future. This is a new chapter, filled with exciting possibilities, and we are ready to seize them with enthusiasm and determination.”

New Castle was designated as distressed on January 5, 2007, under Act 47. The determination was made because the town had run multi-year deficits and missed a payment to its pension fund. Gordon Mann was appointed the Act 47 Coordinator for the city in 2007.

“New Castle’s elected officials, appointed leaders, and employees have made a lot of difficult decisions over the last 16 years to put city government back on the path to financial stability,” said Mann. “As a result, the city government is in better position to deliver the types of services that New Castle residents rely upon every day. Hopefully, the current and future leaders will continue to apply the hard lessons learned during oversight and build on the last 16 years of progress.”

New Castle has made significant strides to improve its management practices and fiscal situation. The city has made timely debt service payments for years, paying off debt ahead of schedule when possible, and should be able to continue to do so after leaving Act 47. The city has no outstanding claims or judgments that would place the municipality in jeopardy of financial default. The Act 47 Coordinator also projects that New Castle should generate sufficient revenues to support expenditures through 2024.

New Castle is the 28th municipality to recover from distressed status under Act 47. Prior to New Castle, Aliquippa, Beaver County, was the most recent community to recover, exiting Act 47 status on December 1, 2023. For a full list of the municipalities that have recovered from distressed status under the program, please click on the Act 47 Financial Distress page of the DCED website.

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

MEDIA CONTACT:
Governor’s Office, ra-gvgovpress@pa.gov, 717.783.1116

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