Rendell comes to aid of financially troubled capital city that warned of skipping bond payment

Rendell comes to aid of troubled capital city

HARRISBURG, Pa. — A top aide to Gov. Ed Rendell says the state is trying to help Pennsylvania’s capital city avoid a rare default on a general obligation bond.

Rendell’s chief of staff Steve Crawford said Friday the administration is trying to expedite payments to Harrisburg that would be due to the city in later months. Rendell is to appear at a Sunday news conference with the city’s mayor, Linda Thompson.

Harrisburg last week upset the nation’s municipal bond sector when it announced it would skip a $3.3 million general obligation bond payment due Wednesday. Such a default could further damage the city’s ability to borrow.

Thompson framed the step as an alternative to lay offs and cutting essential services.