Pennsylvania declares fiscal emergency in Harrisburg

Reuters News
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Posted: Oct 25, 2011 2:24 PM
Pennsylvania declares fiscal emergency in Harrisburg

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)