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PA, SCRANTON RUNS OUT OF MONEY, Cuts All City Salaries To Min. Wage (Scranton is bankrupt)
Business Insider ^ | 7/10/2012 | Mike "Mish" Shedlock,

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 ...


TOPICS: Front Page News
KEYWORDS: pennsylvania; sourcetitlenoturl
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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.
1 posted on 07/14/2012 11:18:48 AM PDT by dragnet2
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To: All
Inept city management, with public union wages and benefits at the heart of it, killed Scranton.

What a shock!

2 posted on 07/14/2012 11:20:09 AM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2

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.


3 posted on 07/14/2012 11:23:06 AM PDT by Freee-dame
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>> 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?


4 posted on 07/14/2012 11:25:25 AM PDT by Gene Eric (Demoralization is a weapon of the enemy. Don't get it, don't spread it!)
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To: dragnet2
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.

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.

5 posted on 07/14/2012 11:27:40 AM PDT by EGPWS (Trust in God, question everyone else)
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To: dragnet2

Where’s the link to the article?


6 posted on 07/14/2012 11:27:53 AM PDT by econjack
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To: dragnet2

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..


7 posted on 07/14/2012 11:30:29 AM PDT by riri (Plannedopolis-look it up. It's how the elites plan for US to live.)
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To: dragnet2

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?


8 posted on 07/14/2012 11:30:29 AM PDT by rawhide
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To: econjack

http://www.businessinsider.com/scranton-mayor-slashes-all-public-worker-wages-2012-7


9 posted on 07/14/2012 11:34:44 AM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2

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.


10 posted on 07/14/2012 11:35:23 AM PDT by Steely Tom (If the Constitution can be a living document, I guess a corporation can be a person.)
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To: econjack
http://www.businessinsider.com/scranton-mayor-slashes-all-public-worker-wages-2012-7

Maybe you could get the moderator to change the link at top to this.

Thanks!

11 posted on 07/14/2012 11:37:13 AM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2
Nice set-up to squeeze one more season out of The Office?
12 posted on 07/14/2012 11:38:03 AM PDT by x
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To: Steely Tom
Average household income in Scranton is $29K/yr. Average cop salary is almost $70K/yr. Average fireman salary is $65K/yr.

Just amazing...

This economic gang rape of tax payers is going on all over the country...

This is just the tip of the proverbial iceberg.

13 posted on 07/14/2012 11:39:20 AM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: econjack

Where’s 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.

http://www.freerepublic.com/focus/f-news/2904785/posts

Another thread:

http://www.freerepublic.com/focus/f-bloggers/2904832/posts


14 posted on 07/14/2012 11:46:43 AM PDT by deport
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To: dragnet2
"Average cop salary is almost $70K/yr"

Close friend of mine is a scientist for the federal government and after 8 years makes 72k. And I thought that salary was crazy.

15 posted on 07/14/2012 11:50:30 AM PDT by icwhatudo (This is not a choice between Romney&Reagan-Its between Romney & most radical leftist Pres in history)
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To: dragnet2
liberal progressive communism comes at a price... Scranton just received their first bill.

LLS

16 posted on 07/14/2012 11:51:30 AM PDT by LibLieSlayer (Don't Tread On Me)
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To: Steely Tom
Average household income in Scranton is $29K/yr. Average cop salary is almost $70K/yr. Average fireman salary is $65K/yr.

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.


17 posted on 07/14/2012 11:54:05 AM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2
I'm torn between a city being able to enter into bankruptcy and denial of that option entirely. Placing a court in charge of a city government usurps the electoral process - a likely better solution would be to dissolve the city. Any ‘city’ assets can be seized for debt, the local laws expire, and the city boundaries simply revert to unincorporated county territory.

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.

18 posted on 07/14/2012 11:57:29 AM PDT by kingu (Everything starts with slashing the size and scope of the federal government.)
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To: dragnet2

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?


19 posted on 07/14/2012 12:00:22 PM PDT by eak3
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To: dragnet2

Now wonder Michael Scott left


20 posted on 07/14/2012 12:01:47 PM PDT by Diggity
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To: dragnet2

By not declaring bankruptcy he can then funnel what cash they have to favored suppliers and contractors and away from the union thugs, but in BK the employees get first dibs.


21 posted on 07/14/2012 12:02:39 PM PDT by junta ("Peace is a racket", testimony from crime boss Barrack Hussein Obama.)
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To: Diggity

The list grows.

____________________________________________

Bankrupt Alabama county too slow on workout plan

Alabama’s Jefferson County is nowhere near developing workout proposals for ending its historic $4,23 billion bankruptcy according to a creditor.

http://www.timeslive.co.za/world/2012/07/11/bankrupt-alabama-county-too-slow-on-workout-plan


22 posted on 07/14/2012 12:04:37 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2

Those cops got a special contract.

They’re getting paid by the pound...


23 posted on 07/14/2012 12:06:01 PM PDT by moovova (Ladies & Gentlemen...Pandora has left the box.)
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To: icwhatudo
"Average cop salary is almost $70K/yr"

Close friend of mine is a scientist for the federal government and after 8 years makes 72k. And I thought that salary was crazy.

Oh, it doesn't end there... On top of this generous salary is six weeks of vacation, 14 public holidays, 1 personal day, 3 weeks of sick leave (payable even if unused in many cases), an extremely generous benefits package of gold plated health benefits and platinum retirement benefits.

But that's not all! On top of this you have job security, a discipline system that costs hundreds of thousands to run each year - without actually disciplining anyone, benefits managers, employee advocates, servants to clean up after them, as well as generous gifts to feed them as well from coffee service to employee events.

When all is said and done, a cop might take home 70k in salary, but it costs the taxpayers nearly half a million a year. And when he leaves service, that figure drops usually only by half.

It is embezzlement of public funds on the grandest scale ever.

I almost wish the judge would grant the council their wish, immediately order that every janitor and cleaning service is fired, and issue toilet brushes in court to the parties involved.

24 posted on 07/14/2012 12:06:24 PM PDT by kingu (Everything starts with slashing the size and scope of the federal government.)
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To: Freee-dame

Maybe the RNC could buy a clue and use this against the rats somehow.


25 posted on 07/14/2012 12:19:30 PM PDT by soycd
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To: kingu
It is embezzlement of public funds on the grandest scale ever.

There are now more unionized government employees than in the private sector.

Public servants?

You bet, they just serve themselves!

26 posted on 07/14/2012 12:22:48 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2

I discovered that Mayor Chris Doherty is a member of the democrat party. No sympathy.


27 posted on 07/14/2012 12:27:32 PM PDT by soycd
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To: dragnet2

Gee...ain’t that a shame...

A Democrat-controlled city...Democrat-controlled unions...bankrupted by Democrats...

Now the union boys get to feel the same pain as everyone else.

Sucks don’t it?

Cry me a river.


28 posted on 07/14/2012 12:33:52 PM PDT by NFHale (The Second Amendment - By Any Means Necessary.)
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To: dragnet2

Spokesman Michael Scott making the announcement...

http://www.youtube.com/watch?v=HuGIgf-ICHM


29 posted on 07/14/2012 12:35:45 PM PDT by Hazwaste (Democrats are like slinkies. Only good for pushing down stairs.)
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To: Hazwaste
What need to be done, regarding the hundreds of thousands currently retired on lottery style government public employee pensions, is cut them in half, including their generous tax paid health benefits, and then dissolve all government unions.

Across the board.

30 posted on 07/14/2012 12:51:59 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2

There’s no problem here that can’t be solved by replacing the current crop of politicians with conservatives. It will be a lot cheaper than the alternatives, none of which will work.


31 posted on 07/14/2012 12:54:27 PM PDT by pallis
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To: dragnet2

here is the link =

http://www.businessinsider.com/scranton-mayor-slashes-all-public-worker-wages-2012-7


32 posted on 07/14/2012 12:57:30 PM PDT by doug from upland (Just in case, it has been reserved: www.TheBitchIsBack2012.com)
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To: doug from upland

See #9


33 posted on 07/14/2012 1:21:06 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: dragnet2
The federal government would be broke if it didn't have the ability to just create money. Someday the dollar will no longer be the world's reserve currency and when that happens you don't want to be in any urban areas in this country.
34 posted on 07/14/2012 1:25:29 PM PDT by pterional
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To: dragnet2

Cities and counties going bankrupt.

Just damn. I didn’t expect to see this in my lifetime.


35 posted on 07/14/2012 1:26:50 PM PDT by Missy Fallon
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To: dragnet2

I grew up there. It was an armpit in the 60’s and 70’s. Still is only worse. When the coal mines shut down it went into the crapper.


36 posted on 07/14/2012 1:27:53 PM PDT by aliquando (A Scout is T, L, H, F, C, K, O, C, T, B, C, and R.)
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To: dragnet2

A lot of Pa was ahead of the curve when it comes to reliefers.
I’ve always said, I love Pa if it were’nt for all the “Pennsylvanians”.
:)


37 posted on 07/14/2012 1:45:16 PM PDT by Leep (Enemy of the StatistI)
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To: Freee-dame

Biden was back on July 4th. He took over the show with a campaign speech and promptly left...before the fireworks.


38 posted on 07/14/2012 1:51:51 PM PDT by Rokurota
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To: dragnet2

Sounds like the union members need to get off their fat duffs and plant more money trees since they obviously believe that’s where their fat juicy pensions come from.


39 posted on 07/14/2012 2:01:41 PM PDT by Ron H. (Obama, America's public enemy #1.)
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To: dragnet2

So, when will be we be forced to open our wallets to these bankrupt corrupt cities?


40 posted on 07/14/2012 2:12:20 PM PDT by bgill
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41 posted on 07/14/2012 2:56:14 PM PDT by RedMDer (https://support.woundedwarriorproject.org/default.aspx?tsid=93destr)
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To: dragnet2

Sent all the money to NOnama did they?


42 posted on 07/14/2012 3:27:36 PM PDT by TribalPrincess2U (0bama's Welfare, Food Stamps, Division and Disability 'Legacy')
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To: dragnet2
The mayor wants an immediate tax hike of 29% and 78% over three years.

Oh, perfect! I was afraid the mayor might do something stupid. Thank God he's thinking right, because this makes me want to move there right now!

43 posted on 07/14/2012 3:35:15 PM PDT by econjack
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To: South Hawthorne; brityank; Physicist; WhyisaTexasgirlinPA; GOPJ; abner; baseballmom; Mo1; Ciexyz; ..

PA Ping!

If you want on/off the PA Ping List, please freepmail me. Thanks!


44 posted on 07/14/2012 4:27:08 PM PDT by randita
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To: LibLieSlayer

Scranton = democrat for years. Coal mining main industry for years. Coal is soft variety and not marketable now. Sad place along with Wilkes Berre. Pray for these good people.


45 posted on 07/14/2012 4:50:41 PM PDT by codder too
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To: bgill
So, when will be we be forced to open our wallets to these bankrupt corrupt cities?

Most wallets are empty.

I wish um luck.

46 posted on 07/14/2012 8:02:09 PM PDT by dragnet2 (Diversion and evasion are tools of deceit)
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To: NFHale

Whatever happened to coal-mining in the Scranton area? Mines played out? EPA clamping down on mining? Godzilla trampled the city? Democrats running and ruining Pennsylvania?

Obama: “Yes I did” fuck you over, you stupid UMW union members and now I’m putting all of you out of work. The EPA hates you.

However, remember in November to vote for me, again, dupes. Your old leader, Comrade Trumka is the head of the AFL-CIO and is a good buddy of mine. He’s got a great paying job because of me and likes to eat well. He wants to keep his job even if you don’t have one. I like Trumka. He thinks like me.

Scranton: The next new song from Billy Joel.

Them liberals sure can sing.


47 posted on 07/14/2012 9:35:26 PM PDT by MadMax, the Grinning Reaper
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To: dragnet2

Publiv Employee Unions are always the first to blame when an inept city goes under.

Perhaps if the city had been managed properly they would have seen the bankruptcy coming and cut those employees to a bare minimum BEFORE the bankruptcy.

No they just wait until its too late and then lay the blame off on Public Employees.Remember those Public Employees did not set their salaries, those who are responsible for the bankruptcy did. Because they didn’t have the balls to make the hard decisions.


48 posted on 07/15/2012 4:36:09 AM PDT by Venturer
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To: Steely Tom
U of Scranton is a nice place unfortunately it is in the middle of a shit hole.
49 posted on 07/15/2012 4:44:30 AM PDT by angcat (Without Valor there is no hope.)
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To: codder too

I have done so and have added them to my daily list. Thanks pal.

LLS


50 posted on 07/15/2012 7:24:05 AM PDT by LibLieSlayer (Don't Tread On Me)
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