The state law forbidding Harrisburg from filing for bankruptcy expires July 1, and a majority of Harrisburg’s City Council is convinced that bankruptcy is the only viable debt resolution the city has left, the Harrisburg Patriot-News reported yesterday. Harrisburg's state-sponsored debt-recovery plan almost guarantees the city will be saddled with leftover incinerator debt after Harrisburg’s assets are sold and leased, especially since the state does not plan to negotiate with creditors until its assets are gone, council members contend. And when the revenue Harrisburg pulls in from its assets disappears, they said, the city will continue to be plagued by annual budget deficits. This year's budget gap is expected to be $6.8 million.
