Harrisburg: The national museum of bad government ideas

How Harrisburg Borrowed Itself Into Bankruptcy

Excerpt:

The Harrisburg case raises fundamental questions about the way cities and states increasingly use debt to finance speculative development that private investors or lenders won't touch. From minor league stadiums to arenas, museums, downtown redevelopment and waste plants with unproven technologies, billions have been spent on schemes of questionable value. Some projects are backed by unrealistic economic projections, which leave taxpayers on the hook for bond payments or operating subsidies. These deals are one reason why state and local debt outstanding has ballooned from $1.3 trillion to $2.5 trillion in the last decade, according to the U.S. Federal Reserve.

Perhaps the country does need a national museum of bad government ideas. Harrisburg would be a good place for it.

Comment: There is no real "Museum of Bad Government Ideas"! Image above is the famous Frank Lloyd Wright Ennis House which provided the exterior facade for the House on Haunted Hill, a 1959 B movie

The new capital of Pennsylvania is .... Pennsylvania

Governor Moves to Take Fiscal Control of Pennsylvania Capital

Excerpt:

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.