|Posted:||December 7, 2020 03:19 PM|
|From:||Senator David J. Arnold, Jr.|
|To:||All Senate members|
|Subject:||RACP Debt Ceiling: $100 Million Decrease|
|In the near future I plan on introducing legislation that would lower the debt ceiling for the Redevelopment Assistance Capital Program (RACP). Currently, $50 million per year is being deducted from the debt ceiling of $3.25 billion (2019), ending when that amount equals $3.15 billion in 2021. My legislation would continue this trend of lowering the debt ceiling by $100 million per year, starting in 2022, until the ceiling reached $2.65 billion in 2026.
RACP started in 1986 with a $400 million debt ceiling. The General Assembly increased this amount 10 times between 1986 and 2010, ultimately hitting its peak of $4.05 billion. Since then, the debt ceiling has slowly been reduced (Act 77 of 2013 & Act 45 of 2017). This legislation would continue that trend.
What is RACP?
RACP projects are primarily economic development projects, authorized in the Redevelopment Assistance section of a Capital Budget Itemization Act, have a regional or multi-jurisdictional impact, and generate substantial increases or maintain current levels of employment, tax revenues or other measures of economic activity. Included are projects with cultural, historic, recreational or civic significance.
RACP projects are state-funded projects that cannot obtain primary funding under other state programs. Projects that can normally obtain funding from PENNDOT, PENNVEST, the Department of Community and Economic Development, or other state agencies are generally restricted from participating in the Redevelopment Assistance Capital Program.
Introduced as SB90