Financially ailing Harrisburg, the capital of Pennsylvania, filed for municipal bankruptcy today (Oct. 12). According to Reuters, the city now faces a showdown with the state over control of the city.
Municipal bankruptcies are rare: Orange County filed for Chapter 9 in 1994 and Vallejo, California filed in 2009. Central City, Rhode Island, filed earlier this year. Last month, Alabama's Jefferson County dodged bankruptcy by settling with creditors.
The city council vote to file was 4-3. The mayor opposed the move. Police and firefighters are expected to battle municipal bondholders. Some challenge the legality of the filing. Pennsylvania's state senate will vote on a bill next week calling for an eventual state takeover of Harrisburg, according to Reuters.