Linda Thompson, the Harrisburg mayor who asked Pennsylvania to designate the state’s capital city as fiscally distressed in 2010, lost her re-election bid in the Democratic Party primary to a local bookstore owner.
Pennsylvania’s capital city must sell a debt-laden trash incinerator, lease its parking system and consider a tax on commuters if those measures aren’t enough to restore fiscal stability, Harrisburg Mayor Linda Thompson said.
Harrisburg’s City Council has left residents of Pennsylvania’s capital wondering what will become of their struggling community, one so broke it may miss payroll, skip bond payments and face a state takeover.
Harrisburg Mayor Linda Thompson requested enrollment in Pennsylvania’s recovery and oversight program for distressed municipalities, saying the capital city stands “on the precipice of a full-blown financial crisis.”
Harrisburg Mayor Linda Thompson told the City Council that if they reject her fiscal rescue plan for Pennsylvania’s capital, she’ll make a $3.3 million bond payment next month and won’t have funds to cover municipal paychecks.
Harrisburg, the Pennsylvania capital, may try within weeks to impose losses on creditors to solve a fiscal crisis that threatens its solvency and has landed it in state receivership. Such a move might prompt other distressed U.S. municipalities to pursue similar remedies.