Harrisburg Could Run Out Of Cash By October
HARRISBURG, Pa. (AP) – A state official assisting in establishing a financial recovery plan for the City of Harrisburg says the cashstrapped capital could run out of money to meet payroll by the end of September.
Department of Community and Economic Development official Fred Reddig told financial custodian William Lynch and a city advisory board on Wednesday that Harrisburg may have to skip a $3.4 million debt payment next month if it wants to keep cutting paychecks.
The Patriot-News of Harrisburg reports the next general payment is scheduled for Sept. 15.
Reddig reports the city faces a $12.6 million budget deficit for the year.
The state took over Harrisburg's finances last year as the city struggles under more than $300 million in debt tied to a trash incinerator renovation project.