Welcome to the main event!
In this corner, leaders of cities, long accustomed to controlling their destinies! And in the other corner, state governments, anxious to protect the rest of the state from the city’s crisis! It’s a battle playing out in two major communities – Michigan’s largest city and the capital of Pennsylvania – and has the potential to rewrite the book on state/local relations.
Let’s review how we got here. Read more »
The fiscal crisis club has a new member: the City of Harrisburg, Pennsylvania. Faced with staggering debt payments it simply can’t afford, the capital city is weighing its options. And none of them are particularly pleasant. Does the city file for bankruptcy? Does it make use of Pennsylvania’s Act 47 fiscal emergency program and avail itself of state oversight? Does it raise the property tax levy to an unimaginable level to resolve its structural budget gap?
The unfortunate reality is that Harrisburg isn’t alone. Hardly. Local governments across the country, many of which were struggling long before the economy collapsed, have witnessed their fiscal wherewithal stripped to the bones in the past year. Just Google “city fiscal emergency” and watch the lights dim as you click the search button. Los Angeles has proposed closing all non-public safety operations two days per week. The word “receivership” has been uttered in Detroit and Toledo. And layoffs and programmatic cuts are pending in cities from coast to coast.
Monthly blog by senior staff on public policy + updates.
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