(Reuters) - A lack of cash has cast a pall over the holiday season in the city of Harrisburg, Pennsylvania, this year.
Because of its financial woes, the state capital -- which filed for bankruptcy last week -- will not be able to host a holiday parade this year, Brenda Alton, the director of the city's Department of Parks, Recreation & Enrichment, said on Thursday.
Harrisburg faces a state takeover after Governor Tom Corbett signed legislation on Thursday that could allow him to place the city in receivership.
"Lack of sponsorship support at this time prevents public events like the parade from occurring," Alton said in a statement. "Each event has to pay for itself."
Harrisburg's mayor, Linda Thompson, supported the decision to can the parade.
"Policy was put in place a year ago to insure that all special events are zero tax dollar events," Thompson said. "The holiday parade did not meet that criterion this year."
"I am optimistic that perhaps next year we can raise the funds to hold a 2012 parade," she added
(Reporting by Chip Barnett; Editing by Greg McCune)