giveNow_Button
News Regional & State News Hearing on Harrisburg's debt comes as state takeover looms
Thursday, 22 September 2011 17:18

Hearing on Harrisburg's debt comes as state takeover looms

Written by  Mary Wilson

(Harrisburg) -- A hearing held in Harrisburg could decide whether the debt-beleaguered city must forfeit its revenues to its creditors and raise taxes to pay its bills. It comes as lawmakers consider a takeover of the state’s capital city. A Dauphin County Court judge will decide if Harrisburg must send future revenues to the groups who hold its millions of dollars of debt. Hanging in the balance are the salaries of the city’s employees – police, firemen and non-uniform workers. Neil Grover, a lawyer and a citizens’ advocate with the group Debt Watch Harrisburg, says the city’s creditors are clearly entitled to some relief. "But, a judge just can’t close down a city under the state constitution and that’s effectively what he would do. So he has a very tough job," he says. He has to weigh the needs of taxpayers versus the needs of bondholders. Both are there essentially as innocent parties." Harrisburg Mayor Linda Thompson says she’s hoping the court decision allows the city more time to pay down its debts. A state Senate proposal to grant the commonwealth authority to take over the city’s finances awaits state House approval. The House reconvenes for the fall session next week.

Add comment


Security code
Refresh

Stay Connected to witf

Ticket Giveaway Button
ListenLIVE_Button
WatchNow_Button

Support for witf is provided by:

Become a witf sponsor today »

Latest News from NPR

Support for witf is provided by:

Become a witf sponsor today »