Legislators move toward taking over Harrisburg finances
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HARRISBURG -- The state House plans to take the first step today toward a state takeover of the city of Harrisburg's deficit-ridden finances.
Rep. Glen Grell, R-Cumberland, told reporters he will offer an amendment to a takeover bill sponsored by Sen. Jeffrey Piccola, R-Dauphin. Mr. Grell's amendment would give the governor power to appoint a "receiver" to run nine key elements of city government for up to four years, with approval from Commonwealth Court.
The two suburban Harrisburg Republicans said Harrisburg city council left them no choice but to act, after three times rejecting a recovery plan made under Act 47 of 1987. It's the first time a distressed city had rejected a state recovery plan.
Harrisburg's annual budget is running a deficit, and it faces $300 million in debts for a faulty municipal incinerator, plus $90 million in general obligation bonds.
Mr. Grell said the amended bill, Senate Bill 1151, could pass the House as early as Monday and go to the Senate, where approval is also expected in October. Gov. Tom Corbett has said he will sign it.
Under the bill, Mr. Corbett could declare a "state of fiscal emergency" in the city and would have 30 days to name a "receiver." Once approved by the court, this official would control city public safety services (police, fire, emergency medical) plus water, sewer and trash service, plus city payroll, pension payments and debt service payments. The state Department of Community and Economic Development would also be involved in city oversight.
Mr. Piccola said he didn't like to intervene in city matters but said city officials left him no choice. "Council has refused, time and again, to do anything to lead Harrisburg out of the financial chaos it finds itself in," he said.
The receiver would be barred from imposing a commuter tax on the wages of suburbanites who work in the city. Mr. Grell said they already pay a $52 a year tax to the city, which raises $2 million year. He said his constituents aren't at fault for the fiscal mess the city is in. The receiver could, with court approval, increase city property taxes or sell or lease city assets, such as the parking garages, to raise cash.
First Published September 27, 2011 2:42 pm
