State Takeover Of Harrisburg City Ending

HARRISBURG (AP) – A judge ordered an end to the state takeover of the city of Harrisburg after two-plus years and hundreds of millions of dollars in deals designed to right their finances. Commonwealth Court Judge Bonnie Leadbetter said Harrisburg’s receivership will end Saturday. The order cited agreement by the Corbett Administration and the city that Harrisburg is no longer in the kind of financial distress that can trigger a takeover. The Legislature authorized the takeover law in an effort to prevent Harrisburg from getting federal bankruptcy protection or tax increases on suburban commuters. Under the recovery plan, city residents are paying higher wage taxes and unions and creditors accepted concessions. Harrisburg also sold its debt-laden trash incinerator and leased its parking garages, lots, and meters.

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