Harrisburg, the capital of Pennsylvania, files for bankruptcy
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The US city of Harrisburg - capital of the state of Pennsylvania - has filed for bankruptcy, making it the first state capital to do so.
Harrisburg faces debts of $300m (£190m) and has struggled to pay for services.
The move comes as the state legislature considers a takeover of the city and the implementation of a "rescue plan".
Last year, municipal bond analysts expected many bankruptcies from cities under debt pressure, but few localities have actually taken the step.
The city council voted 4-3 on Wednesday to file for bankruptcy under a rarely used code for towns and cities.
Filing for bankruptcy is opposed by the city's mayor and state officials.
http://www.bbc.co.uk/news/world-us-canad
A final vote on a state takeover plan of the city is expected next week.
A photo of a railway bridge over the Susquehanna River in Harrisburg 12 October 2011 is the picture I wanted to illustrate this story.
However, Linda Thompson, the mayor of Harrisburg, shown instead, is pictured above. Mayor Thompson opposes the decision to file for bankruptcy.
Harrisburg faces debts of $300m (£190m) and has struggled to pay for services.
The move comes as the state legislature considers a takeover of the city and the implementation of a "rescue plan".
Last year, municipal bond analysts expected many bankruptcies from cities under debt pressure, but few localities have actually taken the step.
The city council voted 4-3 on Wednesday to file for bankruptcy under a rarely used code for towns and cities.
Filing for bankruptcy is opposed by the city's mayor and state officials.
http://www.bbc.co.uk/news/world-us-canad
A final vote on a state takeover plan of the city is expected next week.
A photo of a railway bridge over the Susquehanna River in Harrisburg 12 October 2011 is the picture I wanted to illustrate this story.
However, Linda Thompson, the mayor of Harrisburg, shown instead, is pictured above. Mayor Thompson opposes the decision to file for bankruptcy.
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ampersand
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It's not surprising that a large American city is looking to find protection under bankruptcy laws.
It's problematic whether the State of Pennsylvania can effectively rescue them, but that's the structure of this process.
What will be interesting (in a horrifying way,) is if more U.S. cities admit to being bankrupt, and look to their equally damaged state treasuries to be rescued.California recently dumped a huge portion of its overcrowded state prison population back into the counties.
Some prisoners will be released, but most tracked in programs too expensive for the now beggared counties to pay for.Dominoes, falling one-by-one around the floor of the game room...click-clack-click...
- 8 months ago
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ampersand
