HARRISBURG, Pa. (AP) — A Pennsylvania judge will hear arguments on a plan to rescue the finances of the state's capital from the brink of bankruptcy.
The Thursday hearing in Commonwealth Court is on a plan assembled by the state-appointed financial custodian of Harrisburg. Court approval is required for the plan to take effect under a 2011 law that allowed an unprecedented state takeover of the troubled city.
Harrisburg receiver William Lynch submitted the plan last month in a bid to relieve hundreds of millions of dollars of debt and erase the city's persistent budget shortfalls.
The plan involves selling the city's municipal trash incinerator, whose $350 million debt the city is unable to repay. It also involves transferring the city's parking garages and lots to a state economic development agency.