Pennsylvania Governor Tom Corbett signed legislation Thursday that allows for the takeover of the capital city of Harrisburg, according to the governor’s spokeswoman Kelli Roberts.
The bill empowers the governor to declare a state of fiscal emergency in Harrisburg and petition for the appointment of a receiver.
The receiver would be charged with drafting and implementing a long-term recovery plan.
“I remain a strong proponent for municipal governments tackling their own problems and coming together to develop a fiscal recovery plan when necessary,” Corbett said in a statement.
“But when that fails to happen, the state has to take action to ensure public safety.
In a bid to resolve its debt crisis, the Harrisburg City Council voted 4-3 on Oct. 11 to file for a Chapter 9 municipal bankruptcy.
The action immediately generated conflict between the City Council and the mayor, Linda Thompson, and the state legislature and the governor.
All dispute the legality of the Council’s action in filing for bankruptcy.
If you enjoy the content at iBankCoin, please follow us on Twitter
