Harrisburg’s Cash Dwindles Again

Harrisburg, Pa., could miss another general obligation bond payment in mid-September in order to make payroll and could run out of cash altogether by the end of next month, a state official said Wednesday.  Fred Reddig of the state Department of Community and Economic Development updated state-appointed receiver William Lynch at a City Hall meeting of the Municipal Financial Recovery Advisory Committee, the Patriot-News of Harrisburg reported.  Harrisburg has more than $310 million in bond debt that it cannot pay, largely due to an incinerator project.  This week the Commonwealth Court of Pennsylvania will rule on a request by Lynch to force the City Council of the state’s capital city to triple its earned-income tax, to 1.5% from 0.5%. Redding said Lynch’s office will soon decide whether to skip $3.4 million worth of GO payments due Sept. 15, according to the newspaper.

Bond Buyer


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