Saturday, October 29, 2011

Our Laughingstock State Capital

Harrisburg politicians spent and mismanaged the city into bankruptcy. Steve Malanga explains how.
Under seven-term Mayor Stephen Reed, who governed from 1982 to 2010, Harrisburg had a long love affair with borrowed money, using it to spur projects of dubious value. The city invested millions of dollars in a stadium in the late 1980s to attract a minor league baseball team. When the Harrisburg Senators threatened to leave in 1995, the city bought the team with borrowed money. In 2009, even as the fiscal clouds darkened, it sank another $45 million, including $18 million in new debt, into upgrading the stadium. The team was attracting 2,488 fans per game.

Then there are those historical artifacts. Mr. Reed, once described by a local newspaper as a man who "never met a municipal bond he didn't like," wanted to borrow to open a network of museums. He spent some $39 million on a National Civil War Museum that opened in 2001. It has struggled for years to attract crowds. Undeterred, the mayor borrowed some $8 million to buy artifacts—including a Gatling gun, a Wells Fargo coach and a document signed by Wyatt Earp—for a proposed Wild West museum, though most of the purchases were made without the knowledge and consent of the city council. Plans for a Wild West museum and a National Sports Hall of Fame, financed by a $30 million bond offering, mercifully fell through.
Read it all... and then throw up.

1 Comments:

Blogger Dannytheman said...

I have met Mayor Reed on past occasions, he could sell Ice to Eskimos. He was a truly smooth operator. His staff loved/worshiped him.
I always say when people love a town to much, they can get in trouble. In this case he loved it so much he bankrupted it. His heart was in the right place, but he was playing with other peoples money!

October 30, 2011 at 1:29 PM 

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