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November 14, 2012

Altoona officials get 'distressed city' plan

ALTOONA — Officials in Altoona want to raise property and earned income taxes while freezing employee wages as the way toward fiscal solvency.

A recovery plan presented Tuesday by the city’s Act 47 consultant doesn’t include layoffs but recommends reducing the city workforce slightly through attrition.

The Altoona Mirror reports the plan would hike earned income tax rates a quarter of a percentage point for residents, plus a smaller increase for commuters. Wage freezes would apply immediately to non-union workers and start for union workers when their contracts expire in 2014.

The plan is up for public comment starting Nov. 28.

The city of 46,000 got permission earlier this year to enter the Act 47 program, which gives struggling municipalities guidance and the ability to change contracts and levy new taxes.

 

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