Harrisburg, Pennsylvania: Incorporated as a town in 1812.

In this time of economic calamity, why should only individual citizens be broke when entire towns can manage it collectively?

I came across this Economist story about Harrisburg, Pennsylvania, the Keystone State’s pretty and pretty much bankrupt capital city. The article, “A Burning Issue,” details how a huge investement in an incinerator system that doesn’t work properly and a bungling city council have left the quaint town of 47,000 on the brink of filing for bankruptcy protection, even though new Mayor Linda Thompson doesn’t want to consider it. An excerpt:

“‘It’s a long way to Heaven. It’s closer to Harrisburg,’ sings Josh Ritter, a contemporary singer-songwriter. But these days Harrisburg, Pennsylvania’s picturesque state capital, home to 47,000 people, would make a poor alternative to heaven. Mainly because of a crippling $288m loan guarantee for a trouble-plagued rubbish incinerator, the city is in a hellish financial state.

Its budget deficit over the next five years is projected to be $164m, including $68.7m of debt service due this year. Moody’s downgraded its bond rating last month. Some people, including Dan Miller, the city controller, are recommending that Harrisburg should seek protection in the bankruptcy courts. ‘It’s too late to do anything else,’ he says.”