Harrisburg is reportedly close to executing a deal on its finances, its incinerator, and some publicly owned assets that might allow an avoidance of Chapter 9 municipal bankruptcy. We wrote about Harrisburg’s predicament as an entrant into Act 47 and the mention of bankruptcy at several points (here, here, here, and here for example) but it looks like the City has a willing buyer for its incinerator and a private manager for its parking garages and some convincing to do for parties it is in debt to. Plenty of additional cuts and a tax increase (which would require approval of the court to continue) are part of the mix.
The state obviously prefers to avoid a bankruptcy filing, particularly in the state capital, and that is why there were changes to the Act 47 statute that were made to prevent such an occurrence in Harrisburg.
