HARRISBURG, Pa. (WHTM) -
Harrisburg City Council has voted down Mayor Linda Thompson's version of the Act 47 financial recovery plan.
By a vote of 4-3, Council rejected the plan at Wednesday night's special meeting, with all council members voting as they did July 19 for the plan submitted by a state-appointed consultant.
Supporters of the plan said it was not perfect, but that something had to be done to start turning the city around financially. Councilwoman Patty Kim once again voted yes and said that rejection would not make it go away.
"If we reject it, the same plan will be called the state's management recovery plan, and I guarantee you if we go into bankruptcy it will be called Harrisburg's bankruptcy recovery plan," Kim said. "We need to embrace it now."
Also voting 'yes' on the Mayor's proposal were Kelly Summerford and Gloria Martin-Roberts.
Eugenia Smith, Susan Brown Wilson, Brad Koplinski and Wanda Williams voted 'no'. Opponents said the plan put too much burden on the taxpayers and didn't resolve all debt issues.
"To some, this plan may look pretty good on the front end," Williams said, "but it's going to lead to greater budget shortfalls and tax increases in the short- and long-term."
"The mayor told the governor she wanted a plan that eliminated all the stranded debt," Koplinski said. "I don't see that. It's a plan, yes, but it's an unreliable one."
Martin-Roberts said the city could very well be looking at a state takeover.
"I'm finished December 31st," she said. "I'm not going to be the one sitting up here having to deal with a three-member commission that the voters, you, you and you did not put in office."
Thompson addressed the media following the vote, saying she is not sure where to go from here, as there is no "Plan B." She said she will hit the phones tomorrow with stakeholders in an attempt to maintain cash flow in the short term.
The mayor said she fears the city will not be able to pay its $3.3 million general obligation bond payment, which is due September 14. She also said the city may not make employee payroll in the immediate future.
Many residents who attended the meeting told abc27 they now fear a state takeover is imminent. Sen. Jeff Piccola (R-Dauphin/York) has a bill in committee allowing state intervention, and Gov. Tom Corbett has already said he'll sign it if the council did not pass Thompson's plan.
