State receiver maps Harrisburg's financial future

Published On: Feb 06 2012 02:32:18 PM EST  Updated On: Feb 06 2012 06:37:58 PM EST

Harrisburg's financial recovery plan released

HARRISBURG, Pa. -

The state official who is in charge of figuring out how Harrisburg city government will cope with its enormous financial shortfall is laying out his plan by warning of "significant and difficult" steps ahead.

Receiver David Unkovic's recovery plan released Monday said he still needs to figure out the value of assets the city can sell or lease.

Unkovic said he'll file for bankruptcy if he can't get the various "stakeholders" to voluntarily agree to pitch in.

A federal judge in November dismissed a bankruptcy petition filed by Harrisburg's City Council, saying that it violated state law.

Unkovic said lawyers are looking over a forensic audit regarding an expensive trash incinerator renovation that's left the city on the hook for hundreds of millions of dollars in debt.

Unkovic also said the Legislature needs to examine the use of interest-rate swaps by the state's municipalities and authorities.

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