Incinerator project burns up Pa. capital’s cash as some officials raise scary word: Bankruptcy

Incinerator project burns up Pa. capital’s cash

HARRISBURG, Pa. — Seven years ago, leaders of Pennsylvania’s capital city thought they could transform their polluting and debt-laden trash incinerator into a clean, efficient moneymaker.

But costs exploded and massive loan payments due this year threaten to drag Harrisburg into bankruptcy.

Harrisburg now faces debt payments on the incinerator this year of $68 million, larger than the city’s operating budget.

Mayor Linda Thompson says bankruptcy is last on her list of options.

Instead, she is working on a plan to deal with the entire $280 million incinerator debt and is pressing for concessions from lenders, county taxpayers and others.

City Controller Dan Miller disagrees and says filing for Chapter 9 bankruptcy could buy time to construct a manageable payment plan and settle the nerves of city residents and business owners.