Quantcast

Judge orders an end to Pa. takeover of capital - abc27 WHTM

Judge orders an end to Pa. takeover of capital

Posted: Updated:

HARRISBURG, Pa. (AP) - A judge is ordering an end to the state's unprecedented takeover of Pennsylvania's capital after two-plus years and hundreds of millions of dollars in deals designed to right Harrisburg's finances.

Commonwealth Court Judge Bonnie Brigance Leadbetter said Harrisburg's receivership will end Saturday. Leadbetter's Tuesday order cited agreement by Gov. Tom Corbett's administration and the city that Harrisburg is no longer in the kind of financial distress that can trigger a takeover.

The Republican-controlled Legislature authorized the takeover law in 2011 in an effort to prevent Harrisburg from getting federal bankruptcy protection or tax increases on suburban commuters.

Under the state's recovery plan, city residents are paying higher wage taxes, unions and creditors accepted concessions. Harrisburg also has sold its debt-laden trash incinerator and leased its parking garages, lots and meters.

Copyright 2014 The Associated Press. All rights reserved. This material may not be published, broadcast, rewritten or redistributed.

Powered by WorldNow