New Castle declared financially distressed
NEW CASTLE, Pa. — The state will oversee city finances now that New Castle has been declared financially distressed under Pennsylvania’s Municipalities Recovery Act 47.
Dennis Yablonsky, secretary of Pennsylvania’s department of community and economic development, notified city officials Friday of his decision.
Yablonsky, in a written statement, said he made the designation after reviewing evidence gathered from a review of city finances, as well as the record from a Dec. 6 public hearing.
Yablonsky stressed this is not a state takeover, but a strong oversight of the city by state appointed officials.
New Castle fell into the guidelines for financial distress because it has operated with a deficit since 2000 and failed to meet its minimum obligations to fund pension plans for city employees in 2005 and 2006, Yablonksy said.