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Report: 2 in 5 Pennsylvanians Financially Insecure

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State-by-state data is shedding new light on the problem of financial insecurity.  While 13% of Pennsylvanians live in poverty as defined by their incomes, more than 37% live in what’s known as liquid asset poverty.

“We need to encourage residents to build savings and prepare for the unforeseen,” says Lyn Kugel of PathWays PA, “so that fewer residents are one incident away from financial devastation.”

While the numbers are alarming, Pennsylvania’s liquid asset poverty rate still falls below the national average.  This is just one data point that can be found in the Corporation for Enterprise Development’s Assets & Opportunity Scorecard.

Overall, the scorecard ranks Pennsylvania 15th among states, based on five key areas including personal finances.

CFED and local advocates like Kugel say a number of things can be done to encourage asset building in Pennsylvania, including the adoption of a state-level Earned Income Tax Credit (EITC) and the elimination of asset limits on things like foods stamps, which they say is a disincentive for savings.

Governor Signs Bill That Could Allow State Takeover of Harrisburg Finances

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The clock is ticking again on Harrisburg’s financial future.   Governor Corbett signed a bill Thursday morning giving him power to take control of the city’s finances if necessary.

Governor Corbett signed Senate Bill 1151 without fanfare and a spokeswoman declined to do an interview about his next step.  But she did tell us the Governor will declare a state of fiscal emergency for Harrisburg soon and won’t wait for a bankruptcy filing to play out in court. The state expects city council’s petition for municipal bankruptcy to be dismissed.  Harrisburg’s mayor is also challenging it, and a judge has set a hearing date for late November.

Once the Governor declares a state of fiscal emergency, the secretary of the Department of Community and Economic Development would be granted emergency powers to draw up an Emergency Action plan in the distressed city to coordinate vital services and ensure public safety.  That could include police and fire, wastewater and water, trash collection, payroll, pension and debt payments.  The Governor could also petition Commonwealth Court to place the city in receivership. However, the city would still be given a final chance to draw up its own recovery plan that’s acceptable to the state.

Harrisburg Mayor Linda Thompson is asking City Council to come together in support of a financial recovery plan that averts a state takeover.  She says the taxpayers and voters of the city voted them in office to do their business. She’s telling council “Why would you work so hard to become elected officials and allow the Governor to take over your city?”