The new capital of Pennsylvania is .... Pennsylvania

Governor Moves to Take Fiscal Control of Pennsylvania Capital


The fate of Pennsylvania’s financially troubled capital, Harrisburg, took another twist in a long road on Thursday, when Gov. Tom Corbett signed a bill permitting him to place the city into receivership.

By signing Senate Bill 1151 into law, Mr. Corbett opened the way for him to declare a fiscal emergency in Harrisburg. The move was an attempt by the governor to wrest control of the city’s finances away from local government, which has been stuck in a standoff for months. The City Council has repeatedly rejected efforts by Mayor Linda Thompson to impose a financial recovery plan, and last week, it filed a Chapter 9 petition in federal bankruptcy court, a move that Ms. Thompson and Mr. Corbett immediately declared illegal.

Kelli Roberts, a spokeswoman for the governor, said Mr. Corbett planned to file a petition in state court to place the city into receivership but probably not this week.

The city’s troubles stem from a failed trash incinerator project that has saddled it with $310 million in debt, more than quadruple its annual budget.

Members of the City Council who have opposed Ms. Thompson’s plans have also fought the bill, saying it robs Harrisburg of self-rule.

Comment: Normally when one thinks of government mismanagement Detroit, Chicago, Illinois, and California come to mind.

1 comment:

  1. Update: Pennsylvania Increases Its Hold Over Harrisburg


    Pennsylvania Gov. Tom Corbett tightened the state's grip on its cash-starved capital Monday, declaring a fiscal emergency in Harrisburg that he says is needed to ensure basic city services continue.

    The Republican governor's move gives the head of the state Department of Community and Economic Development access to the city's troubled finances. The official, C. Alan Walker, has 10 days to come up with an emergency action plan designed to protect crucial city functions, including police and fire protection.

    "During a fiscal emergency, the city's authorities and elected officials will continue to carry out the duties of their respective offices as long as no decision or action conflicts with the emergency action plan," Mr. Corbett said in a statement. ...

    For months, the city council and Mayor Linda Thompson, a Democrat, have been unable to agree on a plan to get the city of 47,000 people out from under more than $300 million in debt, most of which is tied to a troubled trash-incinerator project. The city is projected to be insolvent within 180 days, according to the governor's office.


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