Harrisburg Finances In Trouble

Harrisburg lacks cash to make payroll next week
From The Associated Press, October 22

HARRISBURG, PA – Pennsylvania's capital city is trying to figure out how it'll make $1.2 million in payroll expenses next week.

A spokesman for Harrisburg Mayor Linda Thompson says the city is negotiating with lenders financing necessary for next week's payroll obligations.

Harrisburg had about $492,000 in cash on hand Thursday, well short of the amount needed to pay city workers next week. City treasury workers say the money will have to be on-hand Tuesday to get checks out on time.

Leaders of the unions representing police, fire and other employees have told The Patriot-News of Harrisburg that workers will remain on the job. But union lawyers say they would file complaints under the Fair Labor Standards Act if workers aren't paid.

The debit-ridden capital is seeking distressed city status under a state oversight program for struggling munic ipalities.