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What is a home rule charter, and why is Lancaster City considering one?

  • Gabriela Martínez/WITF
Lancaster City Hall is seen in this photo taken Aug. 5, 2019.

 Ian Sterling for WITF

Lancaster City Hall is seen in this photo taken Aug. 5, 2019.

On May 16, Lancaster City residents will have the choice of answering yes or no to this question on their ballots:

“Shall a government study commission of nine members be elected to study the existing form of government of the municipality to consider the advisability of the adoption of a home rule charter and, if advisable, to draft and recommend a home rule charter?”

Lancaster City has been trying to advance a home rule charter since January, when Mayor Danene Sorace announced the efforts in her State of the City address. 

It’s on the May 16 ballot. Voters will also select the nine candidates to lead the study commission, should the measure to study home rule be approved. There are 17 candidates running.

In preparation for the vote, the city has put out information to educate the public about the function of a home rule charter.

Darlene Byrd, one of the candidates running to be on the study commission, has tried to do outreach in her neighborhood. 

“From me going around and talking to people, very few people still understand what it’s about,” Byrd said.

 Here is some basic information about home rule charters and what they do.

What is home rule?

Home rule is a system of local government that transfers authority over municipal government matters from the state law to a local charter that is approved by voters. A charter is a written document that delineates how that municipal or county government is structured and performs its functions, according to a handbook from the Governor’s Center for Local Government Services.

Local governments in all Pennsylvania counties and municipalities have the right to establish home rule charters under Act 62 of 1972.

According to state law, a “home rule charter may exercise any powers and perform any function not denied by the Constitution of Pennsylvania.”

It is also bound by the United States Constitution.

Home rule governments can control the rates of multiple tax revenue streams usually controlled by the Pennsylvania General Assembly. They can also enact their own environmental laws and  elect a district attorney, among other things.

Pennsylvania has 2,628 municipalities, including 67 counties, 959 boroughs, 56 cities and 1,546 townships. There are 89 home rule jurisdictions, according to the Department of Community and Economic Development. 

How do counties and municipalities adopt home rule charters?

Adopting a home rule charter is generally an 18-month-long process, according to DCED.

Before drafting and adopting a home rule charter, people vote on appointing a commission to study one. City Council decides whether to include the question on the ballot. 

Members of the study commission must be residents of their community and registered voters, but they do not need special qualifications to serve. The goal, according to a handbook from the Governor’s Center for Local Government Services, is usually to have members that represent different parts of the municipality.

“Study commissioners are asked to ‘represent’ all citizens in the community. Since each voter cannot take the time to study the complete governmental operation of their municipality, the study commission plays an important representative role,” according to the handbook.

The commission has six months to study the implementation of a home rule charter, Sorace said. It examines the existing structure of the municipal government to determine which practices under a home rule charter could help.

The commission then decides whether the municipality should adopt a charter. If they decide to pursue home rule, they would then draft a charter that would be voted on in a general election the same year the study commission is appointed, according to information on Lancaster City’s website.

Why do municipalities pursue home rule? 

Generally, municipalities pursue home rule because of a desire for more self government. However, home rule is often seen as a tool to alleviate financial distress. For municipalities that are in financial recovery under Act 47, establishing a home rule can help the officials replace the enhanced Act 47 tax authority that ends once the municipality exits the program, according to the DCED.

Are there drawbacks?

There are some potential disadvantages when a municipality runs on a home rule charter. For example, with no state tax-limit, local leaders can increase taxes as much as they want, which could be concerning for residents who do not favor tax increases, WHYY has reported.

According to Ballotpedia, other disadvantages could include instability, if the charter changes frequently in elections. It could give more power with little state oversight to local political and interest groups. With more localized governments, it could become harder for jurisdictions to work jointly on solutions for regional issues. 

Byrd said there is no way of knowing whether a charter would be the best option for Lancaster until a study is completed.

“One of the scary things about it is if we pass a charter, we have to fund that charter, whether it works or not,” Byrd said. “Once we find out something’s not working. That would be one of the questions I would be looking into: how long would that take for us to say, ‘Hey, we got to make an amendment.’”

Why is Lancaster pursuing home rule?

The city’s website, officials and community leaders say a home rule charter would give the city another tool to raise tax revenue and decrease the reliance on property taxes.

Right now, Lancaster city council can adjust only the rate of property taxes. As a home rule charter, the city would have authority over earned income tax, local services and real estate transfer rates, which are set by the state.

Sorace said the city needs to find alternative ways to fund its police and fire department, which is 60% of the city budget. Sorace said property taxes account for $33 million in the budget, and that does not even cover police and fire, which are $42 million. Property taxes comprise 46% of the city’s budget, while earned income tax covers 24%, Sorace said.

 

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