Muniland News Tsunami

The muniland news filters are being hit by a tsunami this afternoon:

Patriot/News: Harrisburg debt insurer rejects City Council proposal with city days away from state takeover

Bloomberg/WashPo: Jefferson County, Ala., wins initial bankruptcy hearing approval from court

Reuters: The Sharks Circling Harrisburg

Trib: Allegheny sewer project at estimated $6 billion

Bond Buyer: Jefferson County Finally Files for Bankruptcy

SF Examiner: Accounting rules hurt public pension reform

Guardian(UK): Fears grow over US pension crisis as Rhode Island’s debts are laid bare

and it flows with all that a bit. PG: Citing a lack of support, Onorato yanks proposed UPMC bond

Quick.. find all the other Hospital Authorities in Pennsylvania in this:

Decline Denial Duquesne

In the 1980’s it was Homestead that staked out the emotional heart of the Rust Belt miasma.  Outside of Detroit in recent years Braddock has cornered the PR market for as Jim R. would put it: “Rust Belt Porn”.   Yet then and now the city of Duquesne has declined as much and suffered as much, just with much less notice.

So now the news comes with the outcome both inconceivable and inevitable that the state is likely to shut down the Duquesne school system completely.   The city’s school district has already abdicated secondary education with its high school students shipped to nearby West Mifflin or East Allegheny. This is all more epilogue than news sadly.  Still feels like a story from the worse off parts of the third world. In security studies if you anonymized the name it would in part be indisinguishable from case studies in failed states and feral cities.

But that news story highlights again how little we understand our own problems.. how myth overtakes reality.  The section and quotes that caught my attention was the almost de rigueur logic on the impact of the steel industry. It goes by formula exactly like this:

Chepanoske points not to any person or government entity but to the loss of jobs and subsequent sharp population decline.

Census figures show Duquesne was home to 11,410 people in the 1970s when steel mills provided good-paying jobs. Today 5,565 people live there.

“When the mills were running full blast, things were really good,” Chepanoske said. “It started to deteriorate in the 1980s when people moved away.”

In other words.. it’s nobody’s fault.  Steel left.  Blame ’steel’.  Whatever that means.  That seminal year 1970 is the only horizon that matters it seems.

Did the decline of manufacturing cause Duquesne’s decline? Did it accelerate the population decline even?  When was the last time things were really ‘good’ in Duquesne?  Here is the city’s population over the century.  Can you identify any meaningful break in trend in the 1980s?  But if the problems are caused by the loss of steel jobs, and the decline in steel jobs are somehow beyond our control, then ergo..  this just isn’t anyone’s fault.

Is Duquesne’s plight unconnected to manufacturing? Of course not.  But the heyday of Duquesne came long ago at this point.  The workers in the mills along the rivers started abandoning those towns long before there was any conception steel was ever going away. The first hand memories people have of a growing or even stable Duquesne can only be among those receiving Social Security.  If we misunderstand our problems we can’t ever fix them and attributing the plight of many of the barely existing.

I have not even gotten into the joke that Duquesne with barely 5K population in 2010 is still a ‘City’ according to the laws of Pennsylvania.  Upper Darby Township in Delaware County, PA clocked in at over 82K residents in 2010. Makes sense somehow.  Goes back to what the real problems are in Pennsylvania.   Saddest part of the Duquesne story is that they just didn’t have any large bond payments to default upon.  If only they had been so irresponsinle as to build a garbage incinerator, the Commonwealth apparachiki might have paid some real heed.

If you want to obsess on on the stylized Duquesne history, don’t recereate the wheel.  Just jump over to DuquesneHunky. It would do the neighboring Tube City Almanac proud.  I actually can’t believe it’s author is not Jason’s alter ego.

The Harrisburg Miasma = Pennsylvania's Miasma

The thing that gets me about the fiscal mess in Harrisburg these days.  The city is so broke it is seeking bankruptcy. Even if that does not go forward, why are they in this situation?  Is the city itself that mismanaged?  Even if you want to think so, the actual fiscal miasma they are dealing with is from a debt owed by something called the “Harrisburg Authority” for building of all things a garbage incinerator.  The full story was written up by the Patriot News earlier in the year.

The real story here, IMHO, is not really about anything specific to Harrisburg, but what this all says about public governance in Pennsylvania.  How many folks really paid attention to whatever public debate there was over the garbage incinerator that has created their current predicament?   All the public authorities and special districts in Pennsylvania create an impossible to decipher mosiac of governance that leads to these problems.   Pennsylvania is by far the most fragmented state in the nation when it comes to local governance.  Most focus on municipalities when they think about that, but it goes far beyond boroughs and townships and cities…  few people really think about the secondary costs of all the ‘other’ governments we have out there.   Why is there a generic “Harrisburg Authority” in existence if not to obscure the public governance.  There is even an Equipment Leasing Authority here in the City of Pittsburgh that is nominally an independent public authority according to the laws of Pennsylvania.

How bad is it? A version of a graphic I made in the past is below.. when you lay out all the official and distinct governments in Pennsylvania this is what you get. Each government is scaled by the number of employees it has. You never know what will jump up and bite you. Somewhere in there is the “Harrisburg Authority”.  From obscurity to what is becoming national news and beyond.

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Good Luck With That: Harrisburg Enters Act 47

Lots of news all around on this.  Try either Bond Buyer:   Harrisburg Enters Pennsylvania’s Act 47 Program

or Bloomberg: Harrisburg, Pennsylvania, Declared ‘Distressed’

Kind of a metaphysical question what defines ‘distress’ for a municipality.  In the census data dump yesterday Braddock, PA is showing a 35% housing vacancy rate. That would be distress and a big jump from the 28% that the 2000 data was showing,  as inconceivable as that was.  So Act 47 has done wonders for Braddock.  I really have to wonder if that is not the highest incidence of housing vacancy for a municipality anywhere in the nation.  Other than Centralia of course, but they at least have this excuse that the state has ordered the town fully evacuated.