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In reply to the discussion: PA City Defies Court Order; Reduces Police Officers, Firefighters’ Pay To Minimum Wage [View all]SlipperySlope
(2,751 posts)I tried reading more about this, the information I'm finding is spotty.
Keep in mind that a city like Scranton has a constant inflow of revenue (from taxes and fees).
So what I'm reading was that the total payroll they sent out on Friday was $311,000 which left only $5k in their bank account. They were trying to meet a deadline for the payroll processors. But by the end of the day Friday the bank account had grown to $83,000 due to funds flowing in (still very far from enough to meet the entire payroll). I have no idea how much they will have available in two weeks.
There is plenty of blame to go around. A lot here on DU want to blame the mayor - but the mayor is a Democrat who asked the City Councel to increase taxes by 78% so the city can pay it's bills - and the City Council turned him down.
Another problem is that the city is far behind on making payments to the employee's health insurance provider. The insurance carrier has temporarily extended coverage to July 17th.
It sounds like the entire city budget is just being run hand-to-mouth.