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SCRANTON RUNS OUT OF MONEY, Cuts All City Salaries To Minimum Wage(down to $5K)
Business Insider ^ | 07/10/12 | Mike "Mish" Shedlock

Posted on 07/10/2012 5:23:34 AM PDT by TigerLikesRooster

SCRANTON RUNS OUT OF MONEY, Cuts All City Salaries To Minimum Wage

Mike "Mish" Shedlock, Global Economic Trend Analysis|Jul. 10, 2012, 7:11 AM

Scranton, Pennsylvania's, the state's sixth-most-populous city (population of 76,089 in 2010 census), is down to its last $5,000 and has no way to pay salaries.

The mayor wants an immediate tax hike of 29% and 78% over three years. In every sense of the word, Scranton is bankrupt.

NPR reports Scranton's Public Workers Now Paid Minimum Wage

(Excerpt) Read more at businessinsider.com ...


TOPICS: Business/Economy; Government; News/Current Events
KEYWORDS: budget; economy; scranton
The better title should have been "Scranton runs out of YOUR money.."
1 posted on 07/10/2012 5:23:40 AM PDT by TigerLikesRooster
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To: TigerLikesRooster; PAR35; AndyJackson; Thane_Banquo; nicksaunt; MadLibDisease; happygrl; ...

P!


2 posted on 07/10/2012 5:25:19 AM PDT by TigerLikesRooster (The way to crush the bourgeois is to grind them between the millstones of taxation and inflation)
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To: TigerLikesRooster

Like the city workers are going to show up if that’s the case.

The unions must be screaming at the top of their lungs over this, I mean how can they extort money from people making minimum wage now??


3 posted on 07/10/2012 5:29:50 AM PDT by Abathar (Proudly posting without reading the article carefully since 2004)
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To: Abathar

Just a beginning, I would say every D held stronghold is teetering, except where the effite white SWPL types have set up shop, and those won’t last long.


4 posted on 07/10/2012 5:34:47 AM PDT by junta ("Peace is a racket", testimony from crime boss Barrack Hussein Obama.)
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To: TigerLikesRooster

“The US Bankruptcy Court for the Middle District of Pennsylvania has dismissed the bankruptcy petition filed on behalf of the City of Harrisburg, Pennsylvania, finding that the city failed to meet eligibility requirements under the Bankruptcy Code to be a chapter 9 debtor.”

Interesting.


5 posted on 07/10/2012 5:36:39 AM PDT by patton (DateDiff)
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To: TigerLikesRooster

Let’s see how quickly the liberal, democrat-voting back-office, do-nothing workers seek other jobs rather than living according to their marxist ideal. Unfortuately for them, due to their marxist ideal being realized at the highest levels, there are no other jobs to be had. And since they have no worthwhile skills to speak of (bad customer service, expertise at delay, confusion, bureaucracy and break-taking), they wouldn’t be hired anyway.


6 posted on 07/10/2012 5:36:39 AM PDT by cotton1706
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To: TigerLikesRooster
Scranton median household income (2009): $38,774

I wonder what the median "City Salary" is?

Oh yeah, guess what political party mayor "we need an immediate 29-78% tax hike" belongs to.

7 posted on 07/10/2012 5:40:28 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: TigerLikesRooster

Wait wait wait . . . you mean providing employees with lavish compensation packages and supplying services at far above market rates without the tangible means to pay for either of these things isn’t sustainable?


8 posted on 07/10/2012 5:41:55 AM PDT by Hemingway's Ghost (Spirit of '75)
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To: TigerLikesRooster

This city has been run by Dems tied to the mob for as long as I was on this earth. Born 1954


9 posted on 07/10/2012 5:42:25 AM PDT by bmwcyle (Corollary - Electing the same person over and over and expecting a different outcome is insanity)
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To: TigerLikesRooster

Oh, and another thin, wait till they see the union dues deduction on top of the pay cut.

Government workers will now have to go deal with the inefficiencies of their fellow government workers running the welfare offices. Hope they like the lines from the other side of the counter and enjoy feeling the frustration of the bureaucracy they excel at!


10 posted on 07/10/2012 5:42:52 AM PDT by cotton1706
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To: TigerLikesRooster

This guy did very thorough homework on the problem.

http://golackawanna.com/stories/SCRANTON-FACES-TOUGH-DECISIONS,158542?search_filter=lewis&town_id=7&sub_type=stories


11 posted on 07/10/2012 5:51:42 AM PDT by whatexit
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To: TigerLikesRooster

Hey I know! They could go house to house and beg for donations and if that doesn’t work they can demand them.


12 posted on 07/10/2012 5:52:55 AM PDT by No One Special
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To: Abathar

The expression ‘blood from a stone’ comes to mind.


13 posted on 07/10/2012 5:53:42 AM PDT by SMARTY ("The man who has no inner-life is a slave to his surroundings. "Henri Frederic Amiel)
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To: cotton1706

I like that argument. They want income equality for all.. The GOP should be shouting how successfully Scranton is seeking income equality, from the rooftops! I find this highly unlikely from the neutered GOP. Did I say neutered? I doubt they ever had a pair in the first place.


14 posted on 07/10/2012 5:54:04 AM PDT by momincombatboots (Back to West by G-d Virginia. 2016 starts today! Walker, Issa, Rubio,)
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To: TigerLikesRooster

Start building or refurbishing commercial real estate just outside Scranton city limits, demand is going to skyrocket!


15 posted on 07/10/2012 5:56:35 AM PDT by mikey_hates_everything
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To: momincombatboots
It always comes down to old union contracts.

You name the town or city, its still the same problem.

16 posted on 07/10/2012 5:58:06 AM PDT by AGreatPer (Any Republican. Just NO Obama.)
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To: cotton1706
...their fellow government workers running the welfare offices.

Hehehehe, what makes you think there will be anyone there for them to talk to? Remember, they are guvment workers, too!

17 posted on 07/10/2012 6:00:37 AM PDT by TexasRedeye
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To: TigerLikesRooster

“The mayor wants an immediate tax hike of 29% and 78% over three years”

I couldn’t imagine being in this mayors position and having the nerve to say something like that.

I’d be too busy assuming everyone I passed on the street was going to punch me in the face.

And deservedly so...


18 posted on 07/10/2012 6:01:58 AM PDT by Psycho_Bunny (Future generations will curse what we've done to them.)
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To: TigerLikesRooster

Hope the Dunder-Mifflin office survives.


19 posted on 07/10/2012 6:03:11 AM PDT by 2 Kool 2 Be 4-Gotten
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To: TigerLikesRooster

Oblameo will basically print money to bail all these dem strongholds out.

Every dollar he prints will make every dollar you have, worth less.


20 posted on 07/10/2012 6:06:22 AM PDT by Bobalu (It is not obama we are fighting, it is the media.)
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To: TigerLikesRooster
I get a strange sense of euphoria whenever I hear these kinds of stories where these union thugs have reached the end and there is not enough of other peoples money to continue their thievery. Sometimes I start to feel bad....naaa...just kidding it really brightens my day!!!
21 posted on 07/10/2012 6:08:10 AM PDT by ontap
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To: Bobalu
Every dollar he prints will make every dollar you have, worth less.

...until they are worthless.

22 posted on 07/10/2012 6:09:05 AM PDT by Roccus
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To: TexasRedeye

That’s exactly my point. They’ll be on break, or on vacation, or on family&medical leave or some such. Should be fun to watch.

I just read another story about this, they want the court to order the council to enact the tax increases, or implement some other plan, in violation of separation of powers. Were I a councilor, I would like to see a court force me to vote yea against my will, or for that matter, force an executive to pick up a pen and sign a piece of legislation.

This is aristocracy attempting to sieze power, plain and simple, which will lead to oligarchy and tyranny.


23 posted on 07/10/2012 6:09:43 AM PDT by cotton1706
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To: TigerLikesRooster

See. If they could just increase the taxes of all the billionaires in Scranton everything would be fine. And the trillionaires who live in Scranton too, of course.


24 posted on 07/10/2012 6:11:38 AM PDT by phugg
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To: whatexit
Thanks for the link:

Obviously, governmental accounting is substantially different than financial accounting, but at the end of the day, you’re still looking at the same basic concepts. You’re still looking for a positive net cash flow. What I’m finding is that the city has not had positive net cash flow for quite a long time, and we’ve been borrowing and borrowing and borrowing and now we’re just in over our heads,” Lewis said.

In the financial world, one borrow's to make a future cash flow in excess of the debt service, usually by applying work, productivity, etc.

In the governmental world, one borrows to buy votes and skim in the present

25 posted on 07/10/2012 6:12:45 AM PDT by P.O.E. (Pray for America)
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To: TigerLikesRooster

How is this going to work:

http://www.freerepublic.com/focus/f-news/2904637/posts


26 posted on 07/10/2012 6:17:30 AM PDT by Truth29
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To: whatexit

Interesting article/analysis. So they pay the beginning firemen and police about 3 times what the average citizen there esarns. Great idea, no? These LIB asshats who run these cities are fully out-of-control. Detroit Jr is emerging. Anyone with a brain needs to leave the crummy city.


27 posted on 07/10/2012 6:18:53 AM PDT by hal ogen (First Amendment or Reeducation Camp?)
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To: whatexit

Interesting article/analysis. So they pay the beginning firemen and police about 3 times what the average citizen there earns. Great idea, no? These LIB asshats who run these cities are fully out-of-control. Detroit Jr is emerging. Anyone with a brain needs to leave the crummy city.


28 posted on 07/10/2012 6:19:01 AM PDT by hal ogen (First Amendment or Reeducation Camp?)
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To: TigerLikesRooster

Didn’t Bill Scranton, Sr., move to FL long ago? Did he desert a sinking ship?


29 posted on 07/10/2012 6:21:07 AM PDT by Theodore R. (Past is prologue: The American people again let us down in this election cycle.)
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To: cotton1706

...Were I a councilor, I would like to see a court force me to vote yea against my will, or for that matter, force an executive to pick up a pen and sign a piece of legislation.

They can’t. - What they CAN do, unfortunately, is incarcerate you, one and all, for contempt.
Your attorney would have to file a writ of HC in the Superior Court to have you released.

It would be *most* interesting to see how that would play out, given the immunity that public officials have from the consequence of their legislative actions while in office.

Were such detention ultimately upheld, it would grant the Judiciary unlimited power to arrest any public official and also usurp the elected official’s right to set fiscal policy.

Now THAT would stir up the old pot!


30 posted on 07/10/2012 6:22:30 AM PDT by bill1952 (Choice is an illusion created between those with power - and those without)
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To: TigerLikesRooster

“The mayor wants an immediate tax hike of 29% and 78% over three years.”

Yeah, that’s the ticket.


31 posted on 07/10/2012 6:25:51 AM PDT by headstamp 2 (Liberalism: Carrying adolescent values and behavior into adult life.)
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To: TigerLikesRooster

If the city workers complain and want to strike, then give them a 5% raise followed by a 5% earnings tax to show them how things really work.


32 posted on 07/10/2012 6:27:08 AM PDT by Uncle Chip
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To: TigerLikesRooster
From the article:
You’re talking about a police department that spends tens of millions of dollars on salaries for 140 employees. You look at it and it’s not supportable…You’re dealing with a city where the average person makes $28 to 29,000 a year. You’re paying $66 to 70,000 to police and firefighters to start. You can’t support that. You can’t sustain that,” he said.

“It’s really as simple as the fact that we have a municipal government and a compensation structure scaled for a city about twice the size. If we had twice the tax revenue, we wouldn’t be having this conversation. The city shrunk, but the government never shrunk.”


33 posted on 07/10/2012 6:42:42 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: TigerLikesRooster
The mayor wants an immediate tax hike of 29% and 78% over three years

Better yet, Hizzoner should order a layoff of city employees of 29% and 78% over three years. That should pretty much fix the problem.

34 posted on 07/10/2012 6:52:45 AM PDT by Gritty (What we've got is war,... a war between the taxpayers and the tax-eaters - Wes Pruden)
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To: TigerLikesRooster

35 posted on 07/10/2012 6:53:35 AM PDT by VeniVidiVici (Congrats to Ted Kennedy! He's been sober for two years now!!)
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To: TigerLikesRooster
Scranton, Pennsylvania's, the state's sixth-most-populous city (population of 76,089 in 2010 census)

Used to be #3 and about double that population before the Democrats began destroying civilization.


36 posted on 07/10/2012 6:57:38 AM PDT by Buckeye McFrog
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To: hal ogen

Welcome to the world of the Libtards. Blame everyone but themselves. Destroying city after city, the liberal leftist way.


37 posted on 07/10/2012 7:33:04 AM PDT by Busko
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To: Busko

They destroy, but the people don’t see.


38 posted on 07/10/2012 7:39:02 AM PDT by Theodore R. (Past is prologue: The American people again let us down in this election cycle.)
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To: TigerLikesRooster

I believe I read another FR posting on Monday that indicated the public unions had gone to court and the ruling was that Scranton could NOT cut pay to minimum wages. ........Essentially, that means the city will be bankrupt (and would have been even after paying minimum wages), so they will file for that, IMO.


39 posted on 07/10/2012 7:45:09 AM PDT by octex
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To: octex

The firefighter union did win a decision on this. The dem scum Mayor said “make me”.

Keep in mind that the cut to minimum wage is temporary, the mayor has said all back pay will be paid once he get’s the money.

Scranton is a city where about 4 in 5 residents are on food stamps. (my estimate)

Scranton needs to declare bankruptcy, desperately, but neither the mayor nor council are willing to even talk about it.

There’s a guy name of Gary Lewis mentioned in an article above that’s been making the case for BR. He may run for council next year.

He maybe Scranton’s only hope.


40 posted on 07/10/2012 7:52:05 AM PDT by free me (Roberts killed America)
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To: TigerLikesRooster

Is Scranton changing it’s name to Obamaville??


41 posted on 07/10/2012 8:10:54 AM PDT by DTogo (High time to bring back the Sons of Liberty !!)
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To: TigerLikesRooster

Maybe some of them will get them a real job but i doubt it, they might have to have a little self responsibility if they did that.


42 posted on 07/10/2012 9:05:41 AM PDT by ravenwolf
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