Pennsylvania

Harrisburg Mayor Linda Thompson warned that without a fiscal recovery plan in place, Pennsylvania's capital city would be unable to pay its nearly 500 workers in mid-September.

For the second time in two months, the Internal Revenue Service has disclosed it is broadening an audit of student loan securities, focusing on the position that student loans should not be reallocated to different bond issues.

Moody’s Investors Service confirmed the Aa1 long-term letter-of-credit-backed rating of Philadelphia’s Series 2009B general obligation multi-modal refunding bonds, affecting $100 million of debt.

Pittsburgh’s City Council has tabled a $91.7 million bond proposal aimed at saving about $3.6 million.

How to shape the development of natural gas extraction in Pennsylvania is now up to Gov. Tom Corbett, regulatory agencies and lawmakers, following the release of the full report of the governor’s Marcellus Shale Advisory Commission.

One city is a capital in a large state often considered a battleground in presidential elections. The other occupies a blighted square mile in the nation's smallest state.

The Philadelphia Housing Authority has selected a former Pennsylvania general counsel and former bond lawyer to lead the rebuilding of its general counsel office.

HARRISBURG, Pa. - The rejection by Harrisburg’s City Council of a financial recovery plan by a state-sponsored panel has Pennsylvania's capital city scrambling.

As discussion intensifies about drilling for natural gas in the Marcellus Shale region spanning four eastern states, a major talking point is suitable compensation for the counties and municipalities where drilling takes place.

Harrisburg's City Council will hold a special legislative session at 6 p.m. Tuesday to accept or reject a proposed financial recovery plan for Pennsylvania's capital city, which is saddled with $220 million of bonds outstanding on its incinerator.

While the final version of Harrisburg's financial recovery plan, released Friday, made no changes that addresses the incinerator-related debt that triggered its financial crisis, it made several adjustments regarding the structural deficit of Pennsylvania's capital city.

Fitch Ratings has placed on watch the BB-minus rating on $747.7 million of Series 2007A revenue bonds issued by the Allegheny County Hospital Development Authority on behalf of the West Penn Allegheny Health System of Pittsburgh.

Novak Consulting Group will release its finalized financial recovery plan for Harrisburg at 10 a.m. Friday. It will post the plan, with adjusted recommendations for Pennsylvania's troubled capital city, at that time on the websites of Cincinnati-based Novak Consulting and the state Department of Community and Economic Development.

Gov. Tom Corbett late Thursday night signed a bill to prevent Harrisburg and other distressed small-to-medium-sized cities in Pennsylvania from filing for bankruptcy protection - at least for the next year - under the threat of losing all state aid.

Pennsylvania Gov. Tom Corbett got the on-time budget he wanted — by minutes.

Pennsylvania's House of Representatives on Wednesday was expected to send to Gov. Tom Corbett a $27.15 billion budget for fiscal 2012 that marked a 3% cut in spending.

Pennsylvania's Senate late Tuesday approved a bill that would force a state takeover of Harrisburg and other financially strapped cities if they don't approve a recovery plan, and prohibit them from filing for bankruptcy protection.

The Pennsylvania Higher Educational Facilities Authority plans to sell $118.4 million of Series AM fixed-rate, tax-exempt revenue bonds through competitive bid on Wednesday.

As Tuesday's public hearing nears on the proposed fiscal recovery plan for Harrisburg, many agree that regardless of whether Pennsylvania's distressed capital city files for Chapter 9 bankruptcy protection, getting all parties to look beyond their own interests is a major task.

Moody's Investors Service last week downgraded $1.1 billion of Catholic Health East debt to A2 from A1 due to cash-flow margins that fall below similar A-rated health care credits.