May 27th through June 2nd

• The City of Harrisburg and bankruptcy. The end of June 2012 marks the end of PA’s moratorium on Third Class Cities like Harrisburg from filing Chapter 9 Municipal Bankruptcy. While last year Mayor Linda Thompson didn’t join the battle against the State in its passing of the law, this year she says she’s prepared to oppose any extension to it. As of now, it’s unclear where the State stands on the issue. A question to Senator Dominic Pileggi resulted in the response, “It is an item being discussed.” Harrisburg City Council Majority held a press conference to declare not only do they reiterate their stance that bankruptcy is where the City must go in order to recover from its complicated fiscal crisis, but also to announce a petition supporting the City’s right to bankruptcy.
• The Mayor’s Press Release: today’s the day Harrisburg–“Harrisburg Officials on Bankruptcy in the City of Harrisburg”
• Reuters–“Harrisburg mayor: will fight for bankruptcy right”
• CBS 21–“Harrisburg City Council reacts to Mayor’s latest statement on bankruptcy”
• Fox 43–“Harrisburg City Council Asking To Stop The Ban On Bankruptcy”
• Roxbury News–“Senator Pileggi on the Bankruptcy of the City of Harrisburg”
• The Burg News–“Harrisburg Council Seeks to End Bankruptcy Ban”

• The debt of the Harrisburg School District. With a deadline to pass a balanced budget fast approaching and a projected $15 million deficit on the table, the stakes, emotions, and battles are high and heated.
• today’s the day Harrisburg–“Harrisburg School Board Director Calls for More Cuts to the Administration”
• CBS 21–“Harrisburg School Board passes preliminary budget, cuts to be drastic”
• The Patriot News–“Harrisburg schools brace for budget with ‘devastating’ cuts”

• Victory. Before Mayor Stephen Reed left office, he negotiated a police pension enhancement, which he is also a beneficiary. It was never approved by City Council, yet the local Fraternal Order of the Police has been battling for the money ever since the summer of 2009. Ruled on by the  PA Supreme Court, the fight is now ended with the City the winner to the tune of an estimated $2.6 million savings. The Patriot News–“Beleaguered Harrisburg finally wins one court battle”

• A spotlight on those artifacts again. The Pittsburg Post-Bazette–“Going once … Old West auction put on hold”

• The next municipal bankruptcy in the nation? As the City of Harrisburg preps to fight for its right to file bankruptcy, a California town gets prepped to file the papers.
• The Bond Buyer–“Stockton Will Weigh Giving City Manager Power to Declare Bankruptcy”
• The Wall Street Journal–“In California, Stockton Faces Municipal Bankruptcy Vote”
• Businessweek–“California Law Said Unlikely to Avert Stockton Bankruptcy”

• And another town averts bankruptcy. Providence, Rhode Island seems to be successfully negotiating itself away from filing for Chapter 9.
• The New York Times–“Providence Sets Deal to Curb Pensions, Prevent Bankruptcy”
• The Providence Journal–“Doherty praises Taveras, retirees, employees for tentative agreement”