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News Regional & State News witf's Top Five Stories of 2011: Harrisburg's financial woes
Wednesday, 28 December 2011 12:58

witf's Top Five Stories of 2011: Harrisburg's financial woes

Written by  Craig Layne, Morning Edition Host/Reporter

(Harrisburg) -- The capital city's financial struggles made headlines around the world throughout the year. Uncertainty ruled Harrisburg for months as it teetered between state control of its financies and a bankruptcy filing - making the city's tale one of witf's top five stories of 2011.

Protesters took to Harrisburg's streets this summer - speaking out against the legislation that would eventually allow the state to seize control of the city's purse strings. Some say it's unconstitutional - and a group of citizens is suing the state in federal court, saying the so-called Act 47 process for financially troubled communities violates their civil rights. While the takeover has, for now, trumped municipal bankruptcy, city council members like Brad Koplinski believe the Chapter 9 filing was the right way to go. "Folks have said we're either brilliant or crazy, and not sure which. But that allows for negotiations and conversations to be had when they normally weren't occuring. So this can still be an opportunity here," Koplinski said of the filing. A federal bankruptcy judge later ruled that the filing was illegal - and then quashed an appeal.

Harrisburg's financial future is now the responsibility of David Unkovic, an attorney appointed by Governor Corbett to create and execute a financial recovery plan for the city. Unkovic says he can do the job, though he has asked the state for an extra month to draw up a plan. "This problem is solveable. It's a bad problem, and it's taken a long time to get to where it is now. It is ultimately a problem that can be solved financially," Unkovic said. Some question Unkovic's earlier work for several of the major players in Harrisburg's debt crisis as a conflict of interest. Meantime, the city is cutting expenses like personnel while Unkovic creates a blueprint to pay down the more than $300 million owed on Harrisburg's trash incinerator. He says the final plan will likely include the sale or lease of city assets - it's due to state regulators by February 6.

 

Check out witf's other top five stories of 2011:

The fight over higher education funding

Wild weather

The never-ending natural gas drilling impact fee debate

Harrisburg's financial woes

The Jerry Sandusky scandal



 

Last modified on Wednesday, 04 January 2012 09:28
Craig Layne, Morning Edition Host/Reporter

Craig Layne, Morning Edition Host/Reporter

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