Recovery plan for troubled Pennsylvania capital rejected

[The Northerner]

HARRISBURG, Pa. (AP) — Council members in Pennsylvania's deeply indebted capital rejected another recovery plan on Wednesday night, risking a backlash by Gov. Tom Corbett as the city creeps closer to running short of money and being unable to meet payroll and a general obligation bond payment.

The 4-3 vote by Harrisburg City Council members was identical to their vote six weeks ago against a recovery plan proposed by a state-appointed task force. This time, the vote was against a plan drafted by Democratic Mayor Linda Thompson that critics said guaranteed years of increasing property taxes and water and sewer rates to make its flawed math add up, while the county, the state and lenders shared little of the burden.

"This is making sure that Wall Street gets paid and Main Street gets the shaft," council member Brad Koplinski said.

The vote sends Harrisburg further into uncharted territory after it entered a state program designed to help financially distressed municipalities and ward off bankruptcy. Corbett, a Republican, had supported the recovery plans, and he has warned that he would sign a bill, if it passes the state Legislature, to force it on Harrisburg.

Read more: http://www.chron.com/news/article/Recovery-plan-for-troubled-Pa-capital-rejected-2149588.php