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State-appointed receiver submits recovery plan for Harrisburg - abc27 WHTM

Dauphin Co.

State-appointed receiver submits long-term recovery plan for Harrisburg

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HARRISBURG, Pa. (WHTM) -

On Monday the General William Lynch, the state-appointed Receiver for Harrisburg, submitted his long-term recovery plan for the city. He called it the "Harrisburg Strong Plan."

The bottom line for residents--there will be no new tax increases. The plan includes the doubling of the earned income tax, which was approved by city council last year. But instead of lasting one year, it will be extended at least through the year 2016.

The big money maker in the deal is something everyone has heard about--the sale of the Harrisburg incinerator to the Lancaster county solid waste management authority for somewhere between $126-million and $132-million.

General Lynch says the city will be completely free of incinerator debt, which had well exceeded $300-million.

Another huge component will be the leasing of the city's parking garages for up to $263-million, which will provide the city and creditors with millions of dollars. 

The plan includes concession agreements with two of the city's three public unions--the Fraternal order of Police and AFSCME. The receiver estimates the agreements will save the city up to $2.7-million a year. That includes wage freezes and substantial cuts in healthcare costs.

No agreement has been reached with the firefighters union, but General Lynch says negotiations continue.

Lynch is assuring a balanced budget through 2016 and the funding of $10-million for economic development and investment within the city.

Lynch also said he got substantial concessions from creditors, which he says means the process was a much more favorable route to take than bankruptcy.

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