Harrisburg, Pa., Files for Bankruptcy

Harrisburg, Pa., is in the middle of a civil war. Though no blood has been lost, the mayor and city council are at odds when the city needs them to come together the most. In December 2010, the city decided to seek status as a distressed city under Pennsylvania law. As part of that status, the city was to receive a report from a committee on what could be done to avoid bankruptcy and get back on track financially.

The city council voted down the suggested plan so the ball was in Mayor Linda Thompson’s court to devise a plan that would help the city. The city council has voted that plan down twice and has now hired its own lawyer to file a petition for bankruptcy, which was done on Wednesday.

Several legislators and the governor of Pennsylvania are seeking to take over the city and to challenge the bankruptcy filing. The legislation is awaiting passage in the Senate and Gov. Tom Corbett’s signature before steps can officially be taken.

Dauphin County has already filed an opposition to the petition on the grounds that the federal requirements for filing bankruptcy have not been met. Primarily, the opposition is based on the fact that the state must approve of the bankruptcy filing. Neither of these criteria has been met. The state has filed in opposition to the petition as well. The basis of the state’s opposition is that the legislature had passed a law prohibiting the filing by distressed cities within one year of obtaining that status. At a minimum, the city will no longer be receiving state funds.

If the school district can’t afford pencils and books, or to transport existing pencils and books from a now defunct school to the working schools, perhaps city council and the mayor should be get together and have a meaningful conversation about where the city is and what can be done to fix it. It would be nice to know that the mayor and City Council were on the same page when it comes to the basic plan to get the city on the right path.

As someone who does not live in the city, but will feel the repercussions of the path the city takes, I feel very uncomfortable. No matter what happens, it seems, at this point it will turn into a legal battle that will serve no purpose but to delay the inevitable. The city does not have the resources to pay an attorney $300 an hour for what will almost certainly end up not only in the Pennsylvania Supreme Court, but may also end up in federal courts. It would be a wonderful moment if city council could get together with the mayor and hash out their differences so that the individuals could do what is best for the city. It seems though, that the ship sailed on that possibility a long time ago.


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