Friday, October 14, 2011
(graphic: Jonathan Scott, Clean Water Action)
Harrisburg, Pennsylvania’s financial woes have the city teetering and local leaders battling each other over how to address the situation.
The City Council on Wednesday voted 4-3 to file for bankruptcy, due to the staggering debt of $400 million owed to banks. (Harrisburg has a population of about 50,000.) A city incinerator project turned into a money-pit for Harrisburg, and now costs four times the city’s entire annual budget.
Despite the dire fiscal conditions, Mayor Linda Thompson and Pennsylvania Governor Tom Corbett oppose the bankruptcy move. Corbett insists the filing is illegal under state law, while Thompson seeks a less draconian solution to resolving the debt.
Council member Brad Koplinski has criticized the mayor’s plan, claiming it demands too little from creditors. “Everyone on Wall Street would have been paid, and the taxpayers would be left holding the bag,” Koplinski told The New York Times.
The State Senate is about to take up a bill, already passed by the House that would allow Gov. Corbett to appoint a manager to take control of Harrisburg’s finances.
-Noel Brinkerhoff
City Council in Harrisburg Files Petition of Bankruptcy (by Sabrina Tavernise, New York Times)
Harrisburg, Pennsylvania’s Capital, Files for Bankruptcy (by Michael Fletcher, Washington Post)
Michigan City Declares Bankruptcy; Another Asks for Donations (by Noel Brinkerhoff, AllGov)
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