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Related: Editorials & Other Articles, Issue Forums, Alliance Forums, Region ForumsJudge: Scranton, must pay employees full wages
SCRANTON, Pa. (AP) A judge has ordered the city of Scranton to pay employees full wages, but the mayor says the cash-strapped government can't afford it.
Lackawanna County Judge Michael Barrasse on Friday granted an injunction to unions challenging Mayor Chris Doherty's decision to impose minimum wages to nearly 400 employees. The Times-Tribune of Scranton reports paychecks containing the minimum wage of $7.25 an hour had already been issued.
Doherty says he can't print money and that City Council has to fulfill the obligations of their budget. City Administrator Ryan McGowan says the city would have only $83,000 available after making a minimum-wage payroll of $311,000.
Union attorney Thomas Jennings says he will again file a motion seeking to hold the mayor in contempt of court if paychecks do not contain full wages.
http://news.yahoo.com/judge-scranton-must-pay-employees-full-wages-203233291--finance.html;_ylt=A2KJ3CbKX_tPOgIAMJbQtDMD
Scuba
(53,475 posts)Ruby the Liberal
(26,219 posts)They voted down his tax increase proposal.
http://thetimes-tribune.com/news/as-scranton-hits-rock-bottom-blame-game-ensues-1.1340563
...
The mayor's mantra has been that council reduced his 29 percent tax proposal to 4.8 percent, and instead relied on borrowing and refinancing to provide the rest of the funds.
But the city cannot obtain such financing from wary banks without first adopting a viable Act 47 recovery plan demonstrating how the financially distressed city will be able to repay loans, he said.
To that end, Mr. Doherty has proposed a recovery plan with 78 percent tax increases over the next three years. However, the council majority has refused to consider the mayor's plan or any tax hikes greater than 10 percent each year, and instead wants to fill the gap with alternative revenue sources, such as increased contributions from nonprofits and commuter, sales and payroll taxes, to name a few.
Honeycombe8
(37,648 posts)But the City Council wouldn't approve it.
The city is out of $. The legislature (is it Democratic? or Republican?) won't let it file bankruptcy.
No one would buy bonds from the city.
So....that's how they came up with across the board pay cuts. For everyone employed by the city.
So I guess they have to lay them off? And stop city services? No sanitation, police, firefighters, etc.?
Geez, didn't they see this coming?
Ruby the Liberal
(26,219 posts)Edit - Mayor is Dem, Council is Republican.
Honeycombe8
(37,648 posts)Honeycombe8
(37,648 posts)when you have a problem that big.
valerief
(53,235 posts)Honeycombe8
(37,648 posts)there are about to be even more non-wealthy people.
FrodosPet
(5,169 posts)We need TAKE CHARGE executives, from the mayor's level to the presidency.
We need people who are willing to shut down and arrest uncooperative legislative bodies. We need people willing to say "Taxes NEED to be this, so they ARE this!", regardless of what "the law" or "the voters" say.
I would not want to trade places with the mayor of Scranton. Does he want to go to jail for check fraud or contempt of court?
sweetapogee
(1,168 posts)but the Mayor and Council are so disfunctional that a third option currently not on the table is actually worse. The problem is way deeper than a simple cash flow or funding glitch.
1StrongBlackMan
(31,849 posts)that will ask his co-workers:
Gee, I wonder if we would be going through this if our legislators made voted for President Obama's Jobs Plan that would have sent federal money to help shore up local governments.
But more, I wonder if we will vote for them again, since we see the effect it has had on us?" loan
longship
(40,416 posts)What a bunch of douche bags those Republicans are!
This will probably not hit the national news this evening, or tomorrow.
Honeycombe8
(37,648 posts)file for bankruptcy? I don't know if the PA state legislature is dem. or repub.
The Mayor is a Democrat. Half the City Council is Democratic.
longship
(40,416 posts)I just know that when we stop paying police and fire, we're in deep shit.
DontTreadOnMe
(2,442 posts)Wait a few more month and see how many more cities file for bankruptcy.
Then billionaires can come in and buy entire cities for pennies.... and build a huge moat around the city borders and keep poor people from entering their kingdoms.
WAKE UP AMERICA!
longship
(40,416 posts)Yes, in Detroit, a proud 1966 Cooley High graduate. Now, Detroit is a shadow of a city, having lost over a million residents, much greater than 50%!
It is sad to see the death of a city, formerly entitled The Arsenal of Democracy. I wouldn't want to know what Detroit is entitled today, but I am sure the teabaggers and freepers would have something colorful, so to speak.
The whole thing makes me sick.
rurallib
(62,415 posts)that ALEC drafted that cut the throats of cities
Honeycombe8
(37,648 posts)They are out of money to pay for basic nessecities like garbage pickup, police, fire.
It's a small city. There's not a big tax base there, to begin with. Even raising the property taxes 78% wasn't going to fix the problems.
It sounds like they need to file for bankruptcy and get rid of debt, or structure it, as the only way out. But the legislature won't let them, for some reason.
If I lived there, I'd move. If I could.
tammywammy
(26,582 posts)Does anyone know?
SunSeeker
(51,557 posts)Hopefully Californians won't make the same mistake this November when they are given a chance, yet again, to raise taxes to pay for the services they want.
Sirveri
(4,517 posts)Happened last time Jerry was the gov, since that's when we passed Prop 13.
SunSeeker
(51,557 posts)At least now he's pushing for his tax increase Prop. But I am afraid you're right.
Sirveri
(4,517 posts)But once it came down he basically said, well all right I'll gut the state if that's what you guys want! And then proceeded to enact austerity measures. He doesn't screw around, he'll balance the budget one way or another.