From the TIMES-TRIBUNE:
…A dour economy with high unemployment could force more municipalities with declining revenues and rising levels of debt to file for bankruptcy, said Michael A. Pagano, dean of the College of Urban Planning and Public Affairs at University of Illinois-Chicago.
“Cities are bracing for what is the worst fiscal situation that they have faced in recent memory,” Mr. Pagano said. “We’re going to see a lot of municipalities losing their tax base” in the state and nationwide.
Harrisburg’s $670 million debt load and Pittsburgh’s skyrocketing retired employee costs are contributing to these cities’ dance on the financial edge and making bankruptcy appear to be the only solution, said Eric Montarti, a Chapter 9 bankruptcy expert of the Pittsburgh-based Allegheny Institute for Public Policy…
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