NEW YORK (Reuters) - Pennsylvania Governor Tom Corbett on Monday declared a fiscal emergency for the state capital of Harrisburg in a move to "ensure that vital municipal services are maintained."
The city, which has more than $300 million in debt linked to a revamp of its incinerator, declared bankruptcy earlier this month. Last week, Corbett, who opposed the bankruptcy filing, approved a bill that creates a framework for a state takeover of Harrisburg's finances.
The declaration of a fiscal emergency puts the state one step closer to a takeover.
(Reporting by Edith Honan)