2011-11-17 / Local & State

Deadline Looms In Harrisburg Financial Woes

HARRISBURG, Pa. (AP) – City leaders in Pennsylvania's cash-strapped capital have until Monday evening to submit a payment plan that could help it avoid a state takeover.

Harrisburg's mayor and City Council have until 5 p.m. to tell the state Department of Community and Economic Development how the city can pay off $300 million in debt tied to a trash incinerator project.

City Council filed for bankruptcy protection last month but Mayor Linda Thompson and state officials contend the council lacked authority to make the filing. A judge has scheduled a hearing on the dispute for next week.

Gov. Tom Corbett signed legislation last month allowing the state to take over Harrisburg's finances. It includes a November 25 deadline for a financial recover plan to be approved by the state. If no plan is submitted the state Commonwealth Court could authorize Corbett to appoint a receiver to handle the city's finances.

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