The Washington Post
offers up a profile of Harrisburg, Pa. a city with a debt that exceeds its annual budget. The city owes $68 million -- and soon -- to make payments on bonds floated to refurbish a trash-to-power incinerator, but doesn't have the money. Layoffs and severe cutbacks are being considered, as the most palatable option. Another is bankruptcy or default on the bonds. It's part of a national trend, according to the Post. Municipalities are facing financial burdens due to a slump in tax revenue, rising costs (especially for employee pensions) and a bond-buying spree many went on in the 1990's.
