Distressed status puts a certain layer of protection around a city. Meaning that when it's time to bargain with local unions, there are limitations to how much salary and benefits can increase for municipal workers. If there is no distressed status, there are no limits.

In a few months, contract negotiations begin for Johnstown police, sewage-plant employees, and the Public Works Department. This comes as the state reviews Act 47 or the city's distressed status. A status council members say they aren't ready to be released from.

Johnstown's City Manager Jeff Silka says, "It does place some financial constraints on the collective bargaining units so that the city doesn't extend itself further than it financially can."

Constraints like employee raises at a fixed cost and it's difficult for workers to strike. Without distressed status, like any union, if workers aren't happy they're free to walk off the job. The president of Pennsylvania's AFLCIO is concerned city officials are too comfortable under Act 47.

Bill George, President of Pennsylvania's AFLCIO says, "Elected officials have a tendency to say, hey, this is pretty good. We can stay under this distressed status even though we're solvent and we have money, but we don't have to deal with any unions or the collective bargaining, or their families."

However the city says that isn't so. They just want a little more time to get solid footing.

Silka says, "We're right on the verge right now of seeing the comeback of economic generators in the city."

Meaning the high tech park that will be built downtown, but Silka says it could take two to three years to reap the benefits. If the city is released from Act 47, the union workers have a request.

George says, "I think when you deal in collective bargaining and you deal in good faith between two parties, then you should come out of this if you're solvent and pay the people what they're entitled to."

There's no word on when the state will make its decision on the city's distressed status, but union negotiations are expected to start by summer.