As Pennsylvania's deeply indebted capital of Harrisburg weighs the state's rescue plan, lawmakers are at odds over whether chapter 9 municipal bankruptcy should still be on the table.
A team of state-appointed advisors has recommended against bankruptcy, calling instead for the rescue plan that would sell an incinerator at the root of fiscal problems, renegotiate labor deals, cut jobs, sell other assets and sell new debt.
The Harrisburg City Council, which has until July 23 to adopt the rescue plan, requested on Wednesday that Mayor Linda Thompson prepare for bankruptcy as an option of last resort.
The Pennsylvania legislature is considering a bill that would create a management board with full power to implement the Act 47 rescue plan if the council does not approve it.
1 comment:
Another Liberal Democrat success story.
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