Patriot Action Network By Patrick Rizzo The potent brew of a weak recovery, falling revenues and high debt has claimed another municipal victim.
This time, itâ€™s Harrisburg, Pa., the state capital with a population of 46,000, whose city council voted late Tuesday to file for Chapter 9 municipal bankruptcy protection, according to The Patriot News.
The Associated Press said Wednesday that Harrisburg had indeed filed the petition, which cited â€œoverwhelming debt,â€ adding that the city was in â€œimminent jeopardyâ€ from creditor claims.
The City of Harrisburg was facing a state takeover amid its financial problems. Reuters reported that it â€faces a $300 million debt crisis tied to a project to revamp its incinerator and has been plagued with cash flow problems.â€
Read More: http://pennsylvania.patriotactionnetwork.com/2011/10/13/pennsylvania-state-capital-files-for-bankruptcy-protection/