Pa. Gov. Corbett moves toward Harrisburg takeover

HARRISBURG, Pa. -- Gov. Tom Corbett is taking steps toward assuming control of the finances in Pennsylvania's troubled capital under a state law freshly signed on Thursday aimed at giving him unprecedented power to force Harrisburg to pay off its staggering debt.

The steps by the Republican governor are, for now, running alongside a City Council petition - filed in defiance of Corbett - seeking federal bankruptcy protection in hopes of forcing creditors to forgive a substantial portion of Harrisburg's debt.

Corbett expects as early as next week to declare Harrisburg to be in a state of fiscal emergency, which ultimately could result in the appointment of a receiver who would have the power to sell city assets, approve contracts and file for federal bankruptcy protection, but not raise taxes.

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