Surprise, Surprise. Rendell Bails Out Harrisburg

Think of it as the ant and the grasshopper in Bizzaro World .

Or Pennsylvania.

Either works.

Gov. Ed Rendell announced , Sunday,  that Pennsylvania taxpayers will give the City of Harrisburg a  $4.3 million aid package so it can meet bond obligation payments, pay bills, and hire a financial advisor.

Rendell said it was “not a bailout” — no! no! no! no! not a bailout — because more than $3.5 million of the money would be expedited payments already budgeted to the city this year.

The beleaguered Democrat-controlled state capital was scheduled to miss a
$3.29 million bond payment on Sept. 15 to bond holders of Series 1997D
and Series 1997F capital appreciation bonds.

This borrowing is
not related
to $288 million in renovations of the Harrisburg
incinerator plant for which Harrisburg
City is on the hook for $68.7 million.


Regarding  austerity measures, the city is closing fire stations and selling equipment.

The Rendell not-a-bailout-plan-no-no-no also includes $850,000 in taxpayer funds from discretionary grant and loan programs to allow Harrisburg to hire Scott Balice Strategies, a financial management company to create a comprehensive plan for the city.

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