Corbett declares emergency to take over Harrisburg
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Gov. Tom Corbett has brought the hammer down on the city of Harrisburg.
On Monday, he declared a fiscal emergency in the capital city to "ensure that vital municipal services are maintained," he said.
The power to declare an emergency was contained in state takeover legislation approved last week by the Legislature and then signed into law by the governor.
Mr. Corbett will direct the secretary of the state Department of Community and Economic Development to develop an "emergency action plan" for the city within 10 days. This will make sure that safety services as well as water and sewer services, trash collection and payroll, pension and debt payments are continued.
Under the just-approved takeover bill, city officials have 30 days to enact a financial recovery plan that was developed this summer by Department of Community and Economic Development. So far, they have refused to approve it -- the first of 20 distressed cities in the state to do so.
Instead, a city council majority is seeking federal bankruptcy protection from about $600 million in city debts or bond obligations. Mr. Corbett contends the request for bankruptcy is illegal, but a federal bankruptcy judge is to decide on the city's petition Nov. 23.
If the bankruptcy is approved, city council contends, the state takeover can't move forward.
First Published October 25, 2011 12:00 am
