Radio Smart Talk for Friday, July 29:

The next date on the calendar circled in red by the city of Harrisburg is Tuesday, August 2.  That's the deadline for Mayor Linda Thompson to submit an alternative to the state-sponsored Act 47 fiscal recovery plan that city council rejected last week.

Act 47 allows municipalities in financial distress to straighten out their budgets without declaring bankruptcy by restructuring debts, renegotiating employee contracts, and imposing new taxes.

The Act 47 report recommended the city sell city-owned assets and the city's trash-burning incinerator that carries a $310 million debt.  It didn't include provisions that would allow the city to impose a commuter tax on those who work in Harrisburg.  The council members who voted against the plan support a commuter tax.

Legislation pending on the state level would not permit the city to file for Chapter 9 bankruptsy if the Act 47 plan is rejected.

Harrisburg's financial situation is dire -- the city can not afford the multi-million dollar debt on the incinerator or to pay off a structural deficit in it's budget.   

Joining us on Friday's Radio Smart Talk will be Neil Grover, the founder of Debt Watch Harrisburg and a former member of the Harrisburg Authority.

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