The city of Reading has been accepted into the Act 47 Program.  The head of Pennsylvania's Department of Community and Economic Development announced the decision about the city's application this morning.  WFMZ's Melissa Fullerton has the story.

[ 9/4/09 REPORT: City Applies For Act 47 ]  >> REPORTER:  The Secretary of the Pennsylvania Department of Community and Economic Development addressed city, county, state and business leaders this morning at the Berkshire Country Club.   He granted the city the Act 47 it's been seeking, but cautioned that this is not an easy fix for the city's problems.

>> GEORGE CORNELIUS: The city of Reading is now officially the 19th Pennsylvania community under active state supervision. 

>> REPORTER:  Secretary George Cornelius says he granted Act 47 status to Reading because the city met the criteria.  Still, he addressed the crowd with some reluctance and said the core of the problem lies in the make up of the relationship between cities and the state. 

>> CORNELIUS:  Act 47 isn't the cure.   It's merely a means to keep a municipality afloat to a later day when hopefully we as a commonwealth will find the political will to address some of the underlying structural issues. 

>> REPORTER:  Secretary Cornelius stressed that Act 47 is not a state take over.  Instead it will afford Reading the right to raise taxes beyond the current law.  It also makes the city eligible for emergency grant money.  But what Cornelius says makes Reading unique is its un-proportional poverty compared with the rest of the state.  And he says the city's key to financial recovery is also its biggest challenge. 

>> CORNELIUS:  I'm convinced the only way Reading can be sustainable from a fiscal and economic standpoints, over the long term is if it rebuilds its middle class.

>> REPORTER:  The next step in this process will be appointing a financial coordinator for the city.  That will happen within the next 30 days and then the city will begin work on a financial recovery plan.  

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