The Intergovernmental Cooperation Authority for Harrisburg (ICA) Supports General Assembly’s Action on the Extraordinary Taxing Authority for the City of Harrisburg

Harrisburg, Pennsylvania – The Intergovernmental Cooperation Authority for Harrisburg (ICA) today expressed support for legislation now on Governor Wolf’s desk that extends enhanced taxing authority for the City of Harrisburg that was set to expire in 2025. The enhanced taxing authority currently means about $12.4 million in revenue annually for the City.

Speaking on behalf of the ICA, Chair Audry Carter commented: “The ICA thanks the General Assembly for its extraordinary support of the City of Harrisburg’s fiscal recovery. In fulfillment of our mandate, we look forward to continuing to work with all stakeholders on initiatives to strengthen the City’s finances, pursue operational excellence, and promote economic development.”

The legislation, amendments to the State Fiscal Code, adopted as part of the Commonwealth’s mid- year budget revisions, include provisions to resolve a looming deadline for the temporary taxing authority given to the City of Harrisburg as part of the exit strategy from its Act 47 fiscal distress status.

The provisions extend Harrisburg’s ability to levy an enhanced Local Services Tax (LST) on all people who work in the city for 15 years; the first 10 years at $3-per-week, or $156 and for the five years after that, not to exceed $2-per-week, or $104. After that, it would revert to the same $1-per- week rate that generally applies to municipalities statewide. It also permits the city to retain its 2 percent Earned Income Tax (EIT) on city residents in perpetuity, which is double the rate permitted in other Third Class Cities throughout the Commonwealth.

The authorizations for both the LST and EIT were previously set to expire in 2025.

ICA Manager Jeffrey Stonehill added, “We look forward to our continued work with all stakeholders for the continued progress in the financial recovery of the City of Harrisburg.”

About the ICA

The Intergovernmental Cooperation Authority for Harrisburg (ICA) is a public authority and instrumentality of the Commonwealth of Pennsylvania. The ICA was created for the general purpose of fostering the fiscal integrity of the City of Harrisburg, pursuant to the Intergovernmental Cooperation Authorities Act for Cities of the Third Class (Act of October 24, 2018, P.L. 751, No. 124).

The Intergovernmental Cooperation Authority for Harrisburg (ICA) was created by an act of the General Assembly. The Authority, composed of members experienced in finance and management, advises the City of Harrisburg, the General Assembly, and the Governor concerning solutions to fiscal problems the City of Harrisburg may face.

The powers and duties of the Authority are exercised by a governing board, composed of five appointed members. All five members are residents of the city and/or have their primary place of business or employment in the city. In addition, there are two ex officio, non-voting members of the board representing the city and the Secretary of the Budget.
The governing board of the ICA retains an Authority Manager and Independent General Counsel to assist them in their mission.

If you have any questions about the ICA, please contact Authority Manager Jeffrey Stonehill at hbgica@gmail.com.