Back in February of 2010 we first wrote about the tenuous financial condition of the state’s capital city. At the time, there was some real talk about the possibility of a Chapter 9 bankruptcy filing. What followed was an entrance into Act 47 following a DCED finding later that year. In April of 2011 there was mention made of new tax sources and then, in October of that year, the state passed legislation amending Act 47 to create provisions for fiscal emergencies in cities of the third class. The plan that emerged was titled “Harrisburg Strong”.
Now, as February ends the state’s Commonwealth Court has approved a petition by the state to release Harrisburg from the terms of receivership, noting that the “statutory criteria for the existence of a fiscal emergency have been abated”. But that does not mean the City is free from oversight or recovery—implementation of the plan will continue through the terms of Act 47, and, as we have written previously, there is no set timeframe for when that status will end.
