With the latest on the capital city in crisis, Harrisburg is scheduled to run out of money in early December. But city leaders say they will find a way to pay city workers.
On the surface, it appears that a crisis is being averted, the city will find the money to make payroll. But in reality, Harrisburg is running out of quick fixes to its money problems and every time it finds a creative way to pay its bills it just goes deeper into the hole.
By early next month, the City of Harrisburg will run out of money; meaning city workers won't get paid and bills will be skipped. But much like every other time the city has hit the financial wall, a quick fix will be used as a temporary solution.
"If we are not going to have sufficient enough funds by the end of the year to make payroll, we have to come up with solutions,” explained Harrisburg Mayor Linda Thompson. “Though they are painful and they are a quick fix, the fact of the matter is we don't have the long term plan put together, because it takes time."
This time, the mayor wants to sell $2.8 million dollars worth of outstanding tax liens. The city will only get about 80 cents on the dollar, so in the long term Harrisburg is losing a lot of money.
But that quick influx of cash will plug the hole until the end of the year. In the meantime, a long term plan is being negotiated which includes selling the incinerator, leasing the parking garages and getting concessions from city creditors.
"We're really getting close to turning the corner here,” believes Harrisburg Receiver William Lynch. “What we can't have is doing nothing anymore. We just can't do that. I don't believe I'm overly optimistic. I'm an optimist by nature I think things are better. There's a better feel to it. It's very hard to quantify."
"There's clarity now,” agreed Mayor Thompson. “So far as that matters, we're in a much better position right now because we have a plan. It's court mandated and we're working that plan every day we go by."
As far as a timeline for when a long-term plan will be put into place for the city, the mayor and receiver said second quarter of 2013 is reasonable. But until that long term plan is finished the city will continue to go deeper into the financial hole.
On the surface, it appears that a crisis is being averted, the city will find the money to make payroll. But in reality, Harrisburg is running out of quick fixes to its money problems and every time it finds a creative way to pay its bills it just goes deeper into the hole.
By early next month, the City of Harrisburg will run out of money; meaning city workers won't get paid and bills will be skipped. But much like every other time the city has hit the financial wall, a quick fix will be used as a temporary solution.
"If we are not going to have sufficient enough funds by the end of the year to make payroll, we have to come up with solutions,” explained Harrisburg Mayor Linda Thompson. “Though they are painful and they are a quick fix, the fact of the matter is we don't have the long term plan put together, because it takes time."
This time, the mayor wants to sell $2.8 million dollars worth of outstanding tax liens. The city will only get about 80 cents on the dollar, so in the long term Harrisburg is losing a lot of money.
But that quick influx of cash will plug the hole until the end of the year. In the meantime, a long term plan is being negotiated which includes selling the incinerator, leasing the parking garages and getting concessions from city creditors.
"We're really getting close to turning the corner here,” believes Harrisburg Receiver William Lynch. “What we can't have is doing nothing anymore. We just can't do that. I don't believe I'm overly optimistic. I'm an optimist by nature I think things are better. There's a better feel to it. It's very hard to quantify."
"There's clarity now,” agreed Mayor Thompson. “So far as that matters, we're in a much better position right now because we have a plan. It's court mandated and we're working that plan every day we go by."
As far as a timeline for when a long-term plan will be put into place for the city, the mayor and receiver said second quarter of 2013 is reasonable. But until that long term plan is finished the city will continue to go deeper into the financial hole.