10-12-2011, 12:00 PM
Pennsylvania's capital city voted to file for Chapter 9 bankruptcy protection on Tuesday as it faced a state takeover, according to media reports.
The City Council voted 4-3 to seek bankruptcy protection for Harrisburg, which has a debt burden five times its general-fund budget "because of an overhaul and expansion of a trash-to-energy incinerator that doesnââ¬â¢t generate enough revenue," Bloomberg Businessweek reported.
The bankruptcy means the city will lose state aid, but that is better than the proposed recovery plans, Councilwoman Susan Brown-Wilson said, according to Bloomberg.
Patty Kim, who voted against bankrupcy protection, said the city cannot afford the high cost of litigation that will likely ensue.
ââ¬ÅThe problem still exists that we still donââ¬â¢t have money, and we still havenââ¬â¢t moved one foot forward,ââ¬Â Kim said.
The City Council voted 4-3 to seek bankruptcy protection for Harrisburg, which has a debt burden five times its general-fund budget "because of an overhaul and expansion of a trash-to-energy incinerator that doesnââ¬â¢t generate enough revenue," Bloomberg Businessweek reported.
The bankruptcy means the city will lose state aid, but that is better than the proposed recovery plans, Councilwoman Susan Brown-Wilson said, according to Bloomberg.
Patty Kim, who voted against bankrupcy protection, said the city cannot afford the high cost of litigation that will likely ensue.
ââ¬ÅThe problem still exists that we still donââ¬â¢t have money, and we still havenââ¬â¢t moved one foot forward,ââ¬Â Kim said.