http://finance.yahoo.com/taxes/article/108866/muni-threat-cities-weigh-chapter-9
one of the main reasons appears to be the cities debt used to build build an incinerator. back in the late 80's waste management made broward co fl sign a contract for two incinerators that made me think the county gov must have worked for wm. i don't remember the actual numbers, but it was a set in stone you will provide the two facilities with x tons of garbage per day at x dollars per ton for the next x amount of years (25yrs i think). if they couldn't provide the garbage they still had to pay the full price. so much for a waste reduction incentive. just one of the reasons i don't like incinerators.
It's not the incinerator, though that deal was badly run from the start.
Mayor Linda Thompson is basically flat out insane. And it doesn't help that downtown Harrisburg is now a dead zone. Couple years ago, it was enjoying a pretty decent come-back and business was picking up. Bars, clubs, etc were opening. Now. All gone. Most decent business is leaving, and the majority of professionals too. Can't say I blame them much.