Tags: US | Harrisburg | Financial | Woes

Pa. Capital City's Debt Mounts Amid Political Feud

Wednesday, 08 Sep 2010 08:19 AM

Pennsylvania's financially troubled capital city is trying to avoid layoffs as it misses more debt payments amid political bickering over how to repair the damage.

Observers say a feud between Harrisburg's mayor and city council is stalling plans to pay off a costly trash incinerator renovation and resolve a budget deficit.

Now, the city is taking the rare step of skipping a general obligation bond payment due Sept. 15 as an alternative to laying off city employees, firefighters and police officers.

Normally, the default rate is very low on the bonds that help municipalities pay up front for roads, buildings and other projects.

Gov. Ed Rendell has declined to bail out Harrisburg. Meanwhile, council members are debating a bankruptcy filing, while the city could face a lawsuit seeking a court order to pay up.

© Copyright 2017 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

 
1Like our page
2Share
Economy
Pennsylvania's financially troubled capital city is trying to avoid layoffs as it misses more debt payments amid political bickering over how to repair the damage.Observers say a feud between Harrisburg's mayor and city council is stalling plans to pay off a costly trash...
US,Harrisburg,Financial,Woes
134
2010-19-08
Wednesday, 08 Sep 2010 08:19 AM
Newsmax Inc.
 

Newsmax, Moneynews, Newsmax Health, and Independent. American. are registered trademarks of Newsmax Media, Inc. Newsmax TV, and Newsmax World are trademarks of Newsmax Media, Inc.

NEWSMAX.COM
MONEYNEWS.COM
© Newsmax Media, Inc.
All Rights Reserved