State: Harrisburg may not have enough money to cut checks next month

Written by The Associated Press | Aug 22, 2012 9:18 PM

(Harrisburg) — A state official assisting in establishing a financial recovery plan for the City of Harrisburg says the cash-strapped capital could run out of money to meet payroll by the end of September.

Department of Community and Economic Development official Fred Reddig told financial custodian William Lynch and a city advisory board on Wednesday that Harrisburg may have to skip a $3.4 million debt payment next month if it wants to keep cutting paychecks.

The Patriot-News of Harrisburg reports the next general payment is scheduled for September 15th.

Reddig reports the city faces a $12.6 million budget deficit for the year.

The state took over Harrisburg's finances last year as the city struggles under more than $300 million in debt tied to a trash incinerator renovation project.

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