Local Problem and Solution in Harrisburg

Name Instructor Course Date Local Problem and Solution in Harrisburg Problem The change in the Harrisburg’s economic situation mirrors that of other areas where investment projects with little tangible returns have drained resources. Additionally, the decline of the city has been exacerbated by the lack of viable jobs being created, meaning that the revenue base is not enough to meet budget shortfalls. Government policies can facilitate or hinder growth efforts, and it may be necessary to identify effective regulations to attract more businesses and investors in the area (Martin, Levey & Cawley 22S). Effective governance includes fiscal responsibility to use the resources available efficiently, and this extends to identifying investment projects that have highest returns with low cost and are appropriate for Harrisburg’s residents. Even though, renegotiating  the debt plans  is crucial to reducing exposure to default, the more the area attracts businesses and investors the more likely that the conducive environment will attract more businesses and  reduce economic distress in the area. Dependence on a few industries is counterproductive since when these industries become uncompetitive there is a high loss of jobs.  The challenge with declaring bankruptcy is that the city ha slow rating and will find it more difficult to get more money. However, getting more resources from the state is easier than the investors and creditors concerned about the repayment of money lent. Now that the city already declared bankruptcy there is still a challenge to meet financial obligations as they fall due. The delivery of other services also depends on the ability of the city to pay workers and contractors. Providing the basic public services requires that efforts are made to look for more resources to cover for costs. At the same time, there is scale back of these services, but this may also compromise public safety and sanitation. Since bankruptcy in Harrisburg, Pa was related to financial necessity and rebuilding of the incinerator plant, failed to consider the costs and benefits to the residents. Solution              The case for declaring bankruptcy was to offer protection against state takeover and being placed in a position to repay creditors when the city was already suffering financial distress (Fletcher). Even as this was the preferred option at the time, there is a need to improve the financial outlook as the city will still require municipal bonds to support municipal projects. Even though various cities across the US have increasingly struggled with rising debt pile, the inability to grow revenue streams and support for an incinerator plant with no tangible benefits has been a concern to city officials and the public. With an ever expanding population, managing the city of Harrisburg to support long-term growth is a top priority.  The fiscal management of affairs and the local economies influence the viability of the city. Increasing the state funding will plug in the fall in revenue streams, but where there is presence of corporations and businesses in the area this affects the city&...