Comments on: Harrisburg is insolvent http://blogs.reuters.com/muniland/2011/10/20/harrisburg-is-insolvent/ Bridges, budgets, bonds Mon, 24 Nov 2014 00:29:08 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: ee85715 http://blogs.reuters.com/muniland/2011/10/20/harrisburg-is-insolvent/comment-page-1/#comment-496 Fri, 21 Oct 2011 15:18:44 +0000 http://blogs.reuters.com/muniland/?p=4674#comment-496 crazy stuff, and very interesting. what stops the legislature from simply revoking the municipal charter? why cities can seek federal bankruptcy court protection boggles the mind.

would be nice to know how much property tax is foregone due to state ownership of real estate. i would imagine what’s lost in property tax is indirectly recovered through the jobs offered by state gov.

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By: Cate_Long http://blogs.reuters.com/muniland/2011/10/20/harrisburg-is-insolvent/comment-page-1/#comment-495 Thu, 20 Oct 2011 18:30:45 +0000 http://blogs.reuters.com/muniland/?p=4674#comment-495 Comment emailed from City Council attorney Mark Schwartz after PA Governor Corbett signed the Harrisburg takeover legislation.

“This Governor has no money for anyone but his friends. Yesterday he give a small investment bank $11.5 million of state money (probably less than its bonus pool) Today he signs a clearly unconstitutional and illegal takeover bill that will pay milliions to other friends that he might name as receiver.

It would have been nice if there had been some legal analysis but then again, remember his general counsel was the head of a law firm that represents the bond insurance company that got paid a premium to insure the bonds. This is about his protecting an insurer over the health welfare and safety of City residents. Its about throwing a blanket over prior financings that his cronies have benefitted from. The Governor is putting himself in an untenable and conflicting position as the executive of the state and also standing in the shoes of a municipality. Moreover, instead of addressing the problem and authoring local tax reform legislation to allow municipalities to get away from relying on the regressive real estate tax, he is trying to plug a hole in a bursting dam where without relief, a host of Pa municipalities will be in the same situation as Harrisburg.

The Governor was told it would take an additional 1% sales tax and the problem would be remedied. This is the same as the solution that rescued Philadelphia a decade ago. Without any solution he said no. People hate government because it is all about process and not substance. Same in Pa.

Not one cent for Harrisburg but $11.5 million for an investment bank. In a word, forget unconstitutional, its just plain perverse.

Happily, the bankruptcy court jurisdiction makes the signed legislation DOA (dead on arrival).”

See story :http://www.philly.com/philly/columnists  /joseph-distefano/20111020_PhillyDeals_ _Would_Janney_have_really_left_city_with out_deal_.html?viewAll=y&c=y

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