Harrisburg prepares to file bankruptcy

After defaulting on its incinerator bonds and preparing to sell off pieces of itself, Harrisburg, PA, is preparing to file bankruptcy.

Laura Vecsey wrote in Pennlive 16 June 2011, Harrisburg City Council looks to introduce resolution that would allow bankruptcy paperwork to be prepared:

Harrisburg City Council member Brad Koplinski is seeking to introduce a resolution that will allow the council to prepare paper work that might become necessary should a majority of the council decide to file for Chapter 9 bankruptcy.

Koplinski said the urgency of being prepared escalated Thursday when state Sen. Jeffrey Piccola introduced legislation that called for a state takeover of Harrisburg should the distressed city fail to adopt the Act 47 plan it was presented Monday.

It seems Harrisburg applied for Act 47, which is apparently a state bankruptcy protection plan last October, but now:
“I thought it was a knee-jerk reaction to file for Act 47 after (City Council) moved to hire attorneys to counsel us on Chapter 9, but I respect the mayor’s decision to apply. But she applied under certain rules, and now there’s a complete change being considered that takes away the ability of the mayor and the city to be able to act as a sovereign municipality,” he said.
Take out too much debt on a project with no business plan and lose control over your municipality. It could never happen here, right? We would never buy into a scheme that’s already losing customers facilities are closing in other states, would we?