Posted on 02/04/2010 9:45:28 AM PST by blam
It Begins: Cash Strapped Cities Begin To Crumble
John Carney
Feb. 4, 2010, 10:25 AM
Our nascent economic recovery may come too late to save many American cities from bankruptcy, which in turn will deal heavy losses to municipal bond investors and the companies that insure munis.
The latest fright comes from Harrisburg, the capital of Pennsylvania. The city is considering seeking bankruptcy protection—as well as tax hikes and asset sales—to address $68 million in debt service payments due this year.
Harrisburg does not stand a chance at making its payments. The $68 million in debt service payments is four times what the city expects to raise through property taxes and $4 million more than the city’s entire operating budget.
Ironically, the debt burden that is trashing Harrisburg was incurred to build a waste incinerator.
Bloomberg reports:
[snip]
(Excerpt) Read more at businessinsider.com ...
“Arm up guys.”
I now see another use for my tax return. Thanks.
Isa 13:21 But wild beasts of the desert shall lie there; and their houses shall be full of doleful creatures; and owls shall dwell there, and satyrs shall dance there.
“I live near Detroit, where it “began” a long time ago. The only difference between Detroit and a third world country is that there are no goats roaming the streets.”
As they say in Jamaica... “soon com mon”
They got goats everywhere they are controlled by “eating them”
Funny how they were unable to calculate the operating and debt cost for an incenerator. Shoosh, more northeastern ivy leagued geniuses. Hey festus, lets go buy ourselves an incenerator. A what? An incenerator. You mama already has one, its in the sink.
Strange... all of them have had a Dem government for the past 30 years... /s
Agreed, and I’ll remind you that not only did “The marxists in our govt (pay) close attention to New Orleans after Katrina,” the LA governor prohibited aid and ice and food trucks sitting on the LA border after discussion with the DNC.
Well, there were some customary administrative expenses.
There has to be more to this story. ‘Debt service’ is a fancy way of saying ‘interest on a loan’. Who sold these muni bonds? What is the interest rate? How much was the incinerator? 68 Million for debt service for an incinerator for a town of 47000? This is an insane amount of money to owe for a town this size.
“They can’t sell the American peoples’ infrastructure. They do NOT own it.”
Suggest you remember your Kelo. Nothing sits on that property now.....
No doubt due to oppressive EPA regulations and other assorted pressures from the envior-wacko faith.
Do governmental units ever get to that point of desparation where they say we will cut our spending to the level of our income and just do it? Maybe say we are rolling back our appropriations to the 2003 Budget or something like that.
Actually most cities could start to step out of this trap by ditching the irresponsible pension plans which they are obliged to support for their unionized gubbermint employees.
Word needs to get out that you can’t retire from your job as a sanitation worker or bus driver at full salary and with full-paid healthcare at age 55.
I would like to point out that that bankruptcy was brought about by Robert Citron the only Democrat to hold office in otherwise Conservative/Republican Orange County at the time.
So, if the present administration, Reid and Pelosi’s Senate & House, purposefully tank the economy and backstop all mortgages, then default on America’s debt, it’s a run on America...with the Chinese Communist/Saudi/Soros/Russian cabal calling ‘the note.’
This isn’t going to end well.
Only a few months removed from being declared "recession-proof” by national media, Oklahoma faces the largest state budget deficit in the nation, according to a report given by the National Conference of State Legislatures. Advertisement
The conference’s November update of state budgets says Oklahoma’s 18.5 percent shortfall for the current fiscal year edges out Arizona’s 18 percent, with Illinois, at 16.5 percent, in third.
http://newsok.com/oklahomas-budget-has-countrys-biggest-deficit/article/3426247
>> Typical response: raise taxes.
Typical Democrat response.
Only a few months removed from being declared "recession-proof” by national media, Oklahoma faces the largest state budget deficit in the nation, according to a report given by the National Conference of State Legislatures. Advertisement
The conference’s November update of state budgets says Oklahoma’s 18.5 percent shortfall for the current fiscal year edges out Arizona’s 18 percent, with Illinois, at 16.5 percent, in third.
http://newsok.com/oklahomas-budget-has-countrys-biggest-deficit/article/3426247
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