The waste incinerator in Pennsylvania’s capitol has burned through more than
just garbage over the past four decades. It´s also burned through money, the
patience of residents and now the city´s solvency.

Earlier this month, Harrisburg became the first state capital in memory
— perhaps in history — to declare bankruptcy, thanks to the $310
million debt that hangs over the Harrisburg Resource Recovery Facility.

The incinerator has been a money pit in Harrisburg since it was built in
1972, with the biggest chunk of investment coming when the city spent
$125 million to rebuild the facility in 2003.

Finally, on Oct. 12, with $65 million of its debt due, the City Council
voted to declare Chapter 9 bankruptcy instead of adopting a recovery
plan developed by the state and Mayor Linda Thompson.

The decision has touched off a legal battle. The mayor refused to sign
the declaration, calling it illegal, and a week later, the state enacted
a takeover of the city´s finances. Gov. Tom Corbett is now able to
declare a state of fiscal emergency and take money management
responsibilities from the city. Under the law, the governor also can
appoint a receiver to lead the fiscal recovery.

For the full story, see: WTE plant helps to bankrupt Harrisburg, Pa.
Photo credit: Jessica Kourkounis for the New York Times