It Begins: Cash Strapped Cities Begin To Crumble

The Business Insider ^ | 2-4-2010 | John Carney

[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]

[4yearlurker]

Fat Eddie Rendell has raised every tax,fee and toll (some twice) since he has taken office and even came up with some new taxes here in PA. The local libraries have all cut their hours,I had a hard time finding state tax forms this year,and every transaction I make and every bill I pay the state of PA. has their fat union hand out. If Rendell could run for a third term he would get elected no problem. Because after all”he's doing a good job.” The state senate in Harrisburg has their own tax payer funded barber shop,and Rendell’s catering bill is about 80 thousand a month. Truly sickening.

[Gene Eric]

I bet much of the impending disaster is based on Obama’s economic policy decisions.

Who would invest in a company that’s designed to bloat up while delivering poor quality at high prices - big government, liberal policies, and high taxes?

[GeronL]

what economic recovery are they talking about? They have been talking about this “economic recovery” for half a year and there isn’t one.

[philetus]

there are no goats roaming the streets"

Not until one escapes.

"Urban farmer uniquely brings life to Detroit"

http://detnews.com/article/20090823/OPINION03/908230313/Urban-farmer-uniquely-brings-life-to-Detroit

[Celtic Conservative]

how about Saytrs and night owls dancing in the streets?

We got thugs and druggies, close enough?

CC

[tcrlaf]

Indianapolis went through this EXACT SAME THING about two decades ago. And, it was supposed to power the city for DECADES, making the coal plant obsolete!!!

After a TON of lawsuits and payouts, it’s now a Trash Sorting Center, with a HUGE debt service!!

GREEN SHOOTS!!!!

[exnavy]

Lots of feral dogs and BLACK BEAR.

[Celtic Conservative]

Theres been talk of using condemned houses and vacant land as "greenbelt" parks. There's also talk of cleaning some of it up and turning it into farmland ,the idea being some tax revenue is better than none at all.

CC

[SatinDoll]

Libs turning on each other...

OMG. That could spark an inferno and is my ultimate fear.

Here’s how:

Obama fumbling, arrogant, unpopular and incompetent looks to be causing a Republican landslide in Nov. 2010.

He is a huge liability for the people who propelled him into office.

He becomes more valuable as a martyr to the cause and black population of this nation. (Remember, human life has no value to these people.)

The progressives and the media will blame those ‘hateful, right-wing racists’ for the act if anything fatal happens to Obama.

This would stoke a conflagration in most major cities in this nation and bring about the major crisis Rahm Emmanuel has so glibly mentioned.

Stand fast, keep your eyes open and hope this never happens. And remember - Obama alive is more valuable for Republicans than for Democrats.

[LomanBill]

>>Goats might be better than what is roaming the streets.



Couldn't afford to feed a Goat myself - but they are fun to see and listen to - Classic American Muscle.

[Celtic Conservative]

Lots of feral dogs and BLACK BEAR.

I'm suprised there are any dogs roaming the streets that haven't been snatched up. Dogfighting is a HUGE problem in the big "D", big enough that organized crime has a hand in it.

CC

[ConservativeMind]

About Harrisburg, it’s obvious they just aren’t spending and taxing enough to get themselves out of their mess.

[Texas resident]

The movie “I am legend” comes to mind.
I’ve got the guns and a dog. Next on the list is sheet metal.

[Col Frank Slade]

LA too.

[NVDave]

Used to own some paper out of Harrisburg, PA.

It matured two years ago. I wasn’t at all interested in buying any more. Now, the only muni paper I’ll buy is from the Dakotas, Montana, Wyoming and Alaska.

These states tend to run a pretty fiscally sound operation, especially NoDak.

[wbarmy]

That is true, but none of those groups would want to land a single soldier into the buzz-saw that would be America at that time. The way this country has “armed up” since Obama won the election, nobody would want to try and “clean up” over here.

[Irisshlass]

People need to look at Detroit on Youtube to see what is coming to their town.

[norraad]

So with that option off the table, what do you suppose their up to?

[HamiltonJay]

Its fitting this is happening in Harrisburg, the CAPITAL of the state.

[Soothesayer9]

http://www.thedailycrux.com/content/3247/Government_Stupidity