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City of Hazleton out of financial distress

Over the past three decades, more than a half dozen local cities and boroughs have been designated under Pennsylvania's Act 47. That list is now shorter by one.

HAZLETON, Pa. — With a stroke of a pen, the city of Hazleton is out of financial distress. The city entered the Act 47 program in September 2017.

Hazleton Mayor Jeffrey Cusat reflected on the day he let the community know he was asking the state for help. 

"Eventually, I signed it and sent it out. I felt like we hit a low point. I spent weeks making notes on what I thought would benefit the city and came up with questions to ask our future recovery plan coordinators," said Mayor Cusat. 

Act 47 is run by the Pennsylvania Department of Community and Economic Development to help get municipalities back on track financially. 

After the initial review of the city's finances back in 2017, state officials made 89 recommendations. Taking a deep look at issues in every department. 

A process Hazleton City Council President Jim Perry says was difficult.

"It was eye-opening, you know, to check them off, but it was something that hadn't been done in the city in forever, no one ever looked at that as a whole," said Jim Perry. 

Act 47 Coordinator Gerald Cross says exiting the distressed status is a big step, especially for community members. 

"It means that the city is able to provide service and benefits to Citizens at a cost they can afford without burdening the taxpayers further, it really means the city has gotten to a point where it is professionally run," said Gerald Cross. 

Cross says the city of Hazleton is the 22nd municipality to recover from distressed status.

"I think this is just the beginning of a new stage in Hazleton's progress. I really think Hazleton is going to be a good example for cities across Pennsylvania," said Cross. 

The work isn't over, Perry says they're still looking ahead to continue its success. 

"We're going To have debt policies, fund balance policies, so nothing happens in the future, so we can make sure we may not be here, but the next group that comes in, the next administration can follow these policies and make sure we never end up in this situation," said Perry. 

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