An incinerator brings Pennsylvania's capital close to fiscal ruin THE city is beautiful. Some of its architecture is spectacular; the dome of the state capitol resembles a Vatican basilica. The Susquehanna river flows impressively alongside Front Street. But Pennsylvania's capital has hellish financial problems. Because of a crippling $3oom debt connected to the city-owned rubbish incinerator, Harrisburg faces bankruptcy-and may well be taken over by the state.For over a year the mayor and the seven-member city council have wrangled over the debt. The city council has already rejected at least three fiscal plans from the mayor. Then, on October 12th, the council filed for Chapter 9 in a federal bankruptcy court, which means that some of the city's debts may be forgiven. (It is not entirely clear that the council has the power to do this and a judge will decide on the legality of the filing on November 23rd.) Some of the councillors believe that bankruptcy will give them more control, especially over the fate of the city's assets. But state legislators, fed up with the city's failure to enact a fiscal plan and worried lest it impose an unwelcome commuter tax, have intervened. The two chambers overwhelmingly passed a bipartisan-supported measure authorising Tom Corbett, Pennsylvania's governor, to declare a fiscal emergency and appoint a receiver. Under state law, such a receiver can implement a fiscal-recovery plan when a city needs one but fails to produce it. Assistance is then provided to financially distressed cities; 19 other cities in Pennsylvania, including Pittsburgh and Scranton, already operate under it. The programme has proved helpful, though difficult to get out of.
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