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Economy
Moody's warns of bankruptcy in Scranton
2013-11-12
[WATCHDOG.ORG] Scranton could be headed towards another fiscal crisis like the one that resulted in city workers having their pay cut to minimum wage in 2012, according to a major credit ratings agency.

In a weekly publication, Moody's warned investors that Scranton could be facing the threat of default or bankruptcy thanks to a $20 million budget gap for the fiscal year that begins Jan. 1. The city is supposed to approve a new budget by Nov. 15, which would have to close that deficit to balance the budget.

Without a balanced budget, the ratings agency warned that two financial institutions could withdraw from scheduled debt financing for the beleaguered northeastern Pennsylvania city.

"The resulting liquidity squeeze would leave the city with few options to meet its financial obligations, raising the threat of default or bankruptcy," warned Moody's analysts.

A similar crisis hit the city in July 2012, which lead to Mayor Chris Doherty cutting all city workers' pay to minimum wage for several weeks, a move that made national headlines.
Posted by:Fred

#10  No bananas in Scranton, PA...

...and that, Pappy, is why you are a mod...

Posted by: Uncle Phester   2013-11-12 20:30  

#9  Has the Wild West Museum stuff been auctioned yet? That was some crazy there.
Posted by: Shipman   2013-11-12 18:08  

#8  ...maybe they can pay their public workers in banana bread...?

No bananas in Scranton, PA...
Posted by: Pappy   2013-11-12 15:23  

#7  Just declare bankruptcy and walk away. Let the voters fend for themselves without government services. They don't need the police and fire departments after all as long as the welfare checks keep coming.
Posted by: DarthVader   2013-11-12 14:35  

#6  ...maybe they can pay their public workers in banana bread...?
Posted by: Uncle Phester   2013-11-12 10:38  

#5  Ever since Dunder Mifflin Paper Company closed Scranton has never been the same.
Posted by: airandee   2013-11-12 09:33  

#4  Things to do in Scranton? Watch your taxes go up and up. Politicians create the problem and then sound the alarm on the problem as if they had nothing to do with the problem. Vicious cycle.
Posted by: JohnQC   2013-11-12 09:22  

#3  birthplace of Joe "Choo Choo" Biden
Posted by: Frank G   2013-11-12 09:19  

#2  Detroit wasn't some anomaly, it was only the worst and the first. Arithmetic always wins in the end.
Posted by: SteveS   2013-11-12 02:51  

#1  What a surprise - Doherty's a Democrat!
Posted by: Raj   2013-11-12 00:45  

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