RACP Cut Of $600 Million OK’d By House — The Pennsylvania House has passed a measure to put new controls in place to curtail levels of public debt for projects funded by the Redevelopment Assistance Capital Program (RACP), reports State Rep. Jim Cox (R-129).
RACP is a Commonwealth grant program administered by the Office of the Budget for the acquisition and construction of regional economic, cultural, civic and historical improvement projects with a focus on job creation. Created in 1999 with an initial debt ceiling of $1.2 billion, the RACP debt ceiling has been raised six times since then, pushing it up to $4.05 billion.
House Bill 493 decreases the RACP debt ceiling from its current $4.05 billion to $3.45 billion, an immediate reduction of $600 million.
In addition, the bill puts in place important transparency measures. Eligible projects must meet specific criteria, including generating substantial increases in or maintaining current levels of economic activity, having substantial regional economic impacts, including at least 50 percent of non-state funding participation and having a total project cost of at least $1 million.
The bill now heads to the Senate.
RACP Cut Of $600 Million OK’d By House
