The question on whether Harrisburg will file for bankruptcy dominated the discussion today during the annual State of the City address.
It appears that after two years of battling, City Council, The State and Mayor now seem to agree that Bankruptcy might be the best option.
This morning, the mayor called what Harrisburg is going through the greatest economic disaster in this city's history. And while she doesn't want to see bankruptcy happen, it now has to be on the table.
"Well, I've learned a lesson from very long ago is basic training, which was to never volunteer." said Harrisburg Receiver Major General William Lynch sharing in a light-hearted moment about a serious topic. Harrisburg is on the verge of bankruptcy but he said the wheels are turning to avoid that fate.
This morning at the State of the City address, the Receiver mentioned that negotiations are underway to sell the incinerator to the Lancaster County Solid Waste Management Authority and lease the parking garages to a company called Harrisburg First. Once that is finished the city will negotiate with creditors and try to wipe out all the debt. But in the meantime the mayor had this message.
Mayor Linda Thompson said, "In the mist of our storm and we are still open for business. It's about growing our economy and putting people back to work."
The mayor called 2012 the year of fiscal clarity because the age of hiding budget deficits and secretly moving around money is over. The Receiver added that we now need to look ahead.
The state ban on Harrisburg filing for bankruptcy expires at the end of November. The Receiver has said he does not want the state to extend the ban so the city can use bankruptcy as a "club under the table."
"Our focus is on the future. The difficulty part is that you can conclude this ranges from criminal to inept and has left us with a present that is unfair. This is a bad situation. But we need to get on with the future."