Money on Demand

Money on Demand

History is repeating itself in the City of Harrisburg, and at an alarming rate: we wrote recently that the Commonwealth had agreed to expedite payments so that the capital city would not miss a bond payment. Just last week the City got additional help from the Harrisburg School District, the Harrisburg Authority, and the Parking Authority in order to meet payroll this week.

"It ameliorates the immediate crisis" was what the Mayor’s press secretary said. Note that he said immediate, which implies there are still long term problems. The City still is trying to secure a line of credit to pay its bills through the end of 2010. This follows on the heels of the Mayor’s official application to DCED to place the City in Act 47 distressed status. If approved Harrisburg will be the state’s 20th municipality in Act 47, and the first new entrant into distressed status in almost a year (Reading went into Act 47 status in November of 2009).

If placed in Act 47, Harrisburg would be given priority for aid and could even get emergency financial aid from the state, much like the quick cash that has been extended in the recent weeks.