Official: Harrisburg, Pa., could run out of money by October

HARRISBURG, Pa. (AP) — A state official assisting in establishing a financial-recovery plan for the city of Harrisburg says the cash-strapped capital could run out of money to meet payroll by the end of September.

Fred Reddig, a Department of Community and Economic Development official, told financial custodian William Lynch and a city advisory board today that Harrisburg may have to skip a $3.4 million debt payment next month if it wants to keep cutting paychecks.

The Patriot-News of Harrisburg reports the next general payment is scheduled for Sept. 15.

Reddig reports the city faces a $12.6 million budget deficit for the year.

The state took over Harrisburg’s finances last year as the city struggles under more than $300 million in debt tied to a trash incinerator renovation project.