Thinking. About Business.
Harrisburg Fidelity
When immovable realities meet irresistible passions
By David E. Black
“I do solemnly swear (or affirm) that I will support, obey, and defend the Constitution of the United States and the
Constitution of this Commonwealth and that I will discharge the duties of my office with fidelity.”
That is the oath of office that most office holders from the governor to a township auditor take in Pennsylvania before
assuming an office they have been elected to in a recent election. It’s pretty straight forward, but let’s take a look at the
word fidelity. Fidelity means loyalty to an allegiance, promise, or vow. In the case of the oath of office, it means I promise
to do my job, which generally includes to the best of my ability.
You might realize where I’m going with all of this: the city of Harrisburg. I have written and used the phrase “the success
of any issue in government depends on what non-related issue it becomes related to.” There are a lot of non-related issues
in Harrisburg. However, the one issue that relates to all things Harrisburg is the fiscal distress of the city, which includes
the incinerator megadebt and the annual operational fiscal imbalance.
What we have seen of late from the majority of city council is a lack of willingness to take any realistic steps toward solution
of the problem. The mayor is not by any means blameless in all of this; however, she did have the foresight to petition for
Act 47 (be it many months after taking office), and she did endorse the state’s Act 47 team’s report. She further understood
that it was a living document that was a framework to a solution.
The politics of the city of Harrisburg are mind-numbing. The Gang of Four, as the majority of city council is now referred
to, has opposed everything the mayor—and for that matter the state’s Act 47 team—has recommended. The gang hired
and then ignored the advice of its own legal counsel, the Wall Street firm of Craveth, Swaine and Moore. The gang received
an extensive report, which included the recommendation to work through the Act 47 process. It was the least expensive
option, and bankruptcy was a last-ditch alternative only.
So what did city council do? The members of the Gang of Four took it upon themselves to file for bankruptcy on behalf
of the city. They did this without the mayor’s blessing or signature and, in fact, didn’t even consult the mayor, similar to
Congress enacting legislation without the president’s signature.
Now the mayor again is not blameless in all of this. Good elected leaders do their level best to build bridges among
coalitions in order to move a positive agenda forward. This mayor has driven more than a few wedges between her agenda
and the agendas of others over her nearly 2 years in office now.
The other thing that all parties involved in this, including the city controller and the nearly announced candidate for mayor
in 2013 Dan Miller, have forgotten is to focus on the city they all ran to serve. They have become so focused on being right
and having the right solution (in their minds) that they have become polarized in their actions and personalized the debate.
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Thinking. About Business.
This isn’t about being right; this is about rational people agreeing on a course of action to solve a problem. This isn’t about
litigation, which is all the bankruptcy filing has accomplished (see full employment for attorneys); this is about solving the
problems of the city of Harrisburg. It can’t be that difficult. Or is it?
What if these people are doing their jobs to the best of their ability? What if their abilities do not include the ability to
compromise to find solutions to difficult problems?
Part of what we are experiencing in the city of Harrisburg from a macro perspective is the impact of the changing of
the guard—the leadership vacuum created by the defeat and departure of former mayor Stephen Reed. For 28 years up
through the third of January 2010, Stephen R. Reed defined the city of Harrisburg; he was the city of Harrisburg, and like
him and his actions in office, he was a strong leader. He staked out his positions, aggressively pursued his positions, and
up until his final few years as mayor, generally achieved his goals.
Most of the people in city government today were opponents of Stephen Reed and his policies, so when they had no
one else to blame or fight with, they began fighting among themselves. It is not to be critical, but it’s what they know in
governance; that is the culture of city politics. Those of us who have been involved in government know that it is much
easier to be against something than it is to be for something, especially if the “for something” position calls for raising taxes
and perhaps selling assets.
It’s time for someone, or better yet several someones, to step up and be a leader. The whole bankruptcy filing is about
getting leverage on the bond insurance company and bond holders. Guess what—you’ve had it all along. They want paid,
and you aren’t paying. That’s leverage at least for now.
A good negotiating tactic is to show some good faith, like striking a deal on the sale of the now functional incinerator. There
is a least one, perhaps two very interested parties. Work with the general authority and ink a deal pending disposition
of the debt. Then negotiate. You know from the Act 47 plan that the bond insurer and others are willing to offer some
concessions already. Imagine what might happen if you show a little good-faith effort.
Remember the word fidelity and the oath you took to discharge the duties of your office to the best of your ability with
fidelity. Forget about being right; just do your jobs.
David E. Black ([email protected]) is president & CEO of the Harrisburg Regional Chamber & Capital Region Economic Development
Corporation.
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