Skip to comments.PA, SCRANTON RUNS OUT OF MONEY, Cuts All City Salaries To Min. Wage (Scranton is bankrupt)
Posted on 07/14/2012 11:18:37 AM PDT by dragnet2
Scranton, Pennsylvania's, the state's sixth-most-populous city is down to its last $5,000 and has no way to pay salaries.
In every sense of the word, Scranton is bankrupt.
Doherty says his city has run out of money.
After paying workers Friday, the city had only about $5,000 left in the bank.
The firefighters' union, along with the police and public works unions, have taken the city to court.
The unions plan to be back in court first thing Monday morning to ask the judge to hold Doherty in contempt.
Doherty wants to raise taxes by 29 percent immediately and by as much as 78 percent over the next three years, while the council wants the city to borrow money. The Scranton Times-Tribune reported there's no way for the city to take out a loan because it is unable to show it is capable of paying it back.
City Effectively Bankrupt
It should be perfectly obvious to every soul on the planet that Scranton is bankrupt.
Inept city management, with public union wages and benefits at the heart of it, killed Scranton.
The city is bankrupt. Period. Will the state once again deny the obvious?
(Excerpt) Read more at businessinsider.com ...
What a shock!
Isn’t Scranton where Joe Biden reminded us over and over about his supposedly blue collar roots during the 2008 campaign? No wonder he’s distancing himself from that message this time.
>> The firefighters’ union, along with the police and public works unions, have taken the city to court.
Wouldn’t it be cheaper to make sure every citizen is armed with a shotgun, and a few locals could volunteer to man the engines and hoses?
I'm sure taxpayers are breaking the door down and begging Scranton to do this.
After all, taxpayers are compassionate for rich government workers unions.
Where’s the link to the article?
This is the only pleasure I will get out of the collapse. Watching all these government workers who think they can retire at 40 and collect pensions get NADA. I work with a lady whose father collects two full pensions from two different public NYC unions he worked for..
Imagine, the city mayor wants you to pay them in taxes, almost twice what you are paying them now in 3 years, just so the unions can keep getting their exhorbant benefits/pensions/pay raises.
What happens in a few years when this tax increase is insufficent?
There was a story about this a few days ago.
Average household income in Scranton is $29K/yr.
Average cop salary is almost $70K/yr. Average fireman salary is $65K/yr.
The city has lost half it’s population in the last 40 years, but it’s government is the same size if not bigger.
Maybe you could get the moderator to change the link at top to this.
This economic gang rape of tax payers is going on all over the country...
This is just the tip of the proverbial iceberg.
Wheres the link to the article?
Here’s a link to a thread from back on the day the article was published if anyone is interested in the comments thereon.
Close friend of mine is a scientist for the federal government and after 8 years makes 72k. And I thought that salary was crazy.
I read an article recently where some arrogant control freak from government said:
"We have to pay our people top dollar to attract the best and most qualified"
If I could of spit in his face, I would have.
The problems with both options is that it denies the public a voice in the process. A more optimal system would kick in well before this point. When a structural deficit comes into a city budget, an election kicks in - a referendum where the council must present a budget that is in balance, against opposing options presented by others. If no one steps forward to oppose, then it will be the city council vs the city being dissolved.
In this case, as well as the case of San Bernardino, Stockton and others, we're well beyond that point. “No taxation without representation” was a founding cry of this country. I dread the day when lawyers are the only ones who are permitted to speak in opposition to taxes.
So this article gives some info on what happens when a city files a Chapter 9 bankruptcy. http://www.slate.com/articles/news_and_politics/explainer/2005/10/what_happens_when_a_city_goes_bankrupt.html
My question is what is the downside to doing this. The cities assets can’t be liquidated, they can still borrow money. All they have to do to get the chap 9 approved is show they cant pay their debts and that they want to eventually pay them off.
What really happens when a city does this?
Now wonder Michael Scott left
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