Pa. governor would sign Harrisburg bankruptcy bill

AP News
Posted: Jun 23, 2011 6:04 PM
Pa. governor would sign Harrisburg bankruptcy bill

Pennsylvania Gov. Tom Corbett says he'd sign a bill that would clamp down on the ability of the state's financially troubled capital city to file for federal bankruptcy protection.

Corbett's comments Thursday came a day after a Senate committee sent the bill to the full Senate. It still needs House approval.

On Tuesday, Harrisburg City Council approved a resolution asking the mayor to prepare paperwork for a bankruptcy filing in case it rejects a state task force's plan to salvage its shaky finances.

The bill's sponsor, Sen. Jeffrey Piccola, says Harrisburg is improperly using the threat of bankruptcy as leverage against lenders, and that it can address its problems with the state's help. Opponents of the bill say it is an unwarranted imposition of state government over local authority.