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"Increased tax revenues for Harrisburg won't be collected in time to avoid a $12 million year-end deficit.The city could run out of money before Jan. 1.State officials overseeing Harrisburg's recovery said the city could run out of cash before the end of the year. That means bills wouldn't be paid and city workers could go without paychecks for a short time.A spokesman for Mayor Linda Thompson said it isn't as bad as it looks.The 1 percent hike in the earned income tax approved by city council will raise a little over $5 million for the city.By the end of the year the city won't have the money to pay its debts and obligations and city workers at the same time.City Controller Dan Miller said Harrisburg has already skipped two debt payments amounting to $6 million and may skip another due in December.He said he believes the city will have over $5 million to pay some obligations and employees through the rest of the year.City Spokesman Bob Philbin said taxes are still being collected along with other revenue. He said money could be tight by the end of December, but he doesn't think it will affect the city payroll.While the city and state work to pay down Harrisburg's $40 million, Miller said he believes bankruptcy is still the answer to keep the city from sinking further into debt.There have been a few other times the city was very close to running out of cash. But again city officials believe they will be able to pay some obligations and employees through the end of the year."^^<http://www.w3.org/2001/XMLSchema#string>
<http://www.wgal.com/article/new-taxes-won-t-avoid-2012-deficit-for-harrisburg/6222983>