| In 1987, the Pennsylvania Legislature enacted the Financially Distressed Municipalities Act, commonly known as Act 47, which was meant to address financial distress by providing assistance to municipalities that were suffering from declining economies, financial mismanagement, and administrative inefficiencies (PA Legislature, 1987). Since 1987, 27 municipalities in Pennsylvania have been declared financially distressed pursuant to Act 47 (PA Department of Community and Economic Development, 2012). Currently, 21 municipalities operate under the financial distress declaration while only six of the 27 have had the declaration rescinded (PA Department of Community and Economic Development, 2012).;This research examines four (the boroughs of East Pittsburgh, Homestead, North Braddock, and Wilkinsburg) of the six municipalities that have had a financial distress declaration rescinded by the Secretary of the Pennsylvania Department of Community and Economic Development using a mixed method case study approach.;The purpose of this research is to determine whether patterns and trends exist among the four cases and to determine how, based upon the patterns and trends, each of the case municipalities were able to have their financial distress declaration rescinded. Subsequently, the ultimate purpose of this research is to apply the answers to how, to other financially distressed municipalities across the Pennsylvania Commonwealth. In addition, identified patterns and trends during the pre-distress study period may also be applied to other Pennsylvania municipalities and may act as an early warning system for municipal financial distress in Pennsylvania. |
