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Harrisburg Leaders Debate Plans as Pennsylvania Takeover Looms

Harrisburg City Council members proposed taxes they can’t enact and debt forgiveness to repair municipal finances as they searched for agreement to head off a state takeover, which would be a first for Pennsylvania.

Ideas raised at a meeting yesterday of the council, Mayor Linda Thompson and a state official included earlier proposals such as commuter and sales taxes, as well as concessions from Dauphin County and bond insurer Assured Guaranty Municipal Corp. The mayor and her council opponents agreed on a starting point for talks to come up with a fiscal rescue plan that has eluded them for months, leading Governor Tom Corbett on Oct. 24 to put in motion the process that may lead to a state takeover.