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<p>HAZLETON &#8212; Mayor Jeff Cusat confirmed Friday the city has been approved by the state for Act 47 distressed status, a move Cusat pushed for to help pull Hazleton out of a dire financial picture.</p><p>Representatives from the Department of Community and Economic Development held a hearing with council last month, and it appeared at that time the city was on the fast track to enter Act 47.</p><p>&#8220;I don&#8217;t know why anybody is surprised,&#8221; Cusat said Friday of the distressed designation. &#8220;I&#8217;ve been warning of this since 2016 when I first took office.&#8221;</p><p>The mayor said he proposed several things before applying for Act 47, including a loan, funding transfers, and entering the state&#8217;s Early Intervention Program for struggling municipalities &#8212; all so the city could pay its bills.</p><p>But Cusat said council rejected each of those ideas.</p><p>&#8220;Therefore, there was no other option,&#8221; he said.</p><p>Some members of council, meanwhile, have questioned if Act 47 status was really necessary. They also say they have trouble keeping track of spending from the general fund.</p><p>&#8220;Spending in this city is like rearranging deck chairs on the Titanic,&#8221; said Councilwoman Jean Mope at last month&#8217;s hearing. &#8220;We don&#8217;t know where the money is going.&#8221;</p><p>Council has also pointed to Cusat&#8217;s decision against selling delinquent taxes, which could have netted about $500,000.</p><p>With the Act 47 status in place, Cusat says the next step is vying for a 10-year, no-interest loan for $850,000 through the Department of Community and Economic Development. That item will be on council&#8217;s agenda for Tuesday night&#8217;s meeting.</p><p>&#8220;We need emergency funding immediately,&#8221; said the mayor. He noted the $850,000 is what the city has to have just to meet its obligations through the rest of this year.</p><p>Meanwhile, the state will be sending out a Request for Proposals seeking companies interested in performing a financial evaluation of the city, according to Cusat.</p><p>The company that&#8217;s eventually hired will also help Hazleton come up with a financial blueprint for the future.</p><p>Other Luzerne County municipalities have utilized Act 47 benefits to get their financial feet under them before leaving the program as fiscally sound entities. Among those success stories are Plymouth Township, Nanticoke and West Hazleton.</p><p>More recently, Wilkes-Barre entered the state&#8217;s Early Intervention Program, which provides grant money for the hiring of a consultant to prepare a strategic financial plan.</p><style>
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<div class="neFile"><img class="neImage" src="https://www.timesleader.com/wp-content/uploads/2017/09/web1_Cusat_Jeff_toned-1.jpg">
<div class="neCaption">Cusat </div></div><div class="metaInfo"><photo0>https://www.timesleader.com/wp-content/uploads/2017/09/web1_Cusat_Jeff_toned-1.jpg</photo0><caption0>Cusat </caption0><photoCredit0></photoCredit0></div></div>
<div class="metaInfo"><bylineMeta><p>By Times Leader Staff</p></bylineMeta></div>

Hazleton granted Act 47 distressed status