Harrisburg, The City, Mulls Bankruptcy
The City of Harrisburg is consider filing for bankruptcy, Bloomsburg.Com is reporting.
Pennsylvania's capital, population 47,000, is facing $68.7 million in debt service payments in connection with the construction of a waste incinerator, according to a report by the consulting firm Management Partners. That's $4 million more than its entire proposed operating budget.
The city guaranteed the $288 million debt for incinerator which is owned by the Harrisburg Authority.
The city is also considering tax and fee increases, and selling downtown assets.
This would be the first such default in Pennsylvania.
The city missed $3.5 million in debt obligations last year.
The city is controlled by Democrats.
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