Scranton, PA. Mayor Chris Doherty Out of Control!

[JM15 386]

According to that article the city only has 5,000 bucks..... How does a city let it get to that point?

[ny10570 745]

According to that article the city only has 5,000 bucks..... How does a city let it get to that point?

Its happened to other cities and counties. Politicians refusing to make hard choices, bad bets, and tough economics can quickly sink a fagile budget.

Yonkers is close to being taken over by the state, Nassau is run by NYS, and a multitude of towns cities, and counties across the country are in similar positions.

Edited July 6, 2012 by ny10570

[FireMedic049 597]

According to that article the city only has 5,000 bucks..... How does a city let it get to that point?

That may be so, but just because a city leader says they have no money, doesn't mean they actually have no money. They have been known to exaggerate the severity of their city's financial situation on occasion in the past. And sometimes "no money" means no money for stuff that they don't want to spend money on - like their employees.

[JFLYNN 681]

Its happened to other cities and counties. Politicians refusing to make hard choices, bad bets, and tough economics can quickly sink a fagile budget.

Yonkers is close to being taken over by the state, Nassau is run by NYS, and a multitude of towns cities, and counties across the country are in similar positions.

What makes you think Yonkers is close to being taken over by the state?

[INIT915 1,119]

What makes you think Yonkers is close to being taken over by the state?

For better or worse, it would at least appear the idea is being floated in some circles.

2011 - http://newyork.cbslocal.com/2011/06/01/yonkers-running-out-of-time-to-close-budget-gap-avoid-fiscal-crisis/

2012 - http://newyork.newsday.com/politics/report-yonkers-budget-deficit-at-89m-1.3650354

2012 - http://online.wsj.com/article/SB10001424052702303302504577326262070206648.html

[JFLYNN 681]

For better or worse, it would at least appear the idea is being floated in some circles.

2011 - http://newyork.cbslocal.com/2011/06/01/yonkers-running-out-of-time-to-close-budget-gap-avoid-fiscal-crisis/

2012 - http://newyork.newsday.com/politics/report-yonkers-budget-deficit-at-89m-1.3650354

2012 - http://online.wsj.com/article/SB10001424052702303302504577326262070206648.html

The first article is from over a year ago. I couldn't access the second. The third refers to the opinion of an "independent" commission, of which all of its members were appointed by the Mayor. That opinion was apparently incorrect, as the budget was subsequently balanced with a 3.4% tax increase, and no large scale cuts to city services.

[INIT915 1,119]

The first article is from over a year ago. I couldn't access the second. The third refers to the opinion of an "independent" commission, of which all of its members were appointed by the Mayor. That opinion was apparently incorrect, as the budget was subsequently balanced with a 3.4% tax increase, and no large scale cuts to city services.

Second link works for me. The fact that the first link is from last year is actually pertinent. Generally, municipal bodies that come under the domain of financial control boards do not do so after a single year. So that fact that it's been under discussion for over one year (at least two in Yonkers' case) is an important element.

In practicality, it does not change the fact that there has been discussions of it, whether you agree or not.

Edited July 6, 2012 by INIT915

[INIT915 1,119]

The first article is from over a year ago. I couldn't access the second. The third refers to the opinion of an "independent" commission, of which all of its members were appointed by the Mayor. That opinion was apparently incorrect, as the budget was subsequently balanced with a 3.4% tax increase, and no large scale cuts to city services.

Actually, I might go one step further and say certain aspects of Yonkers finances are already under de facto control.

http://polhudson.lohudblogs.com/2012/07/02/state-comptroller-oks-revised-yonkers-budget/

The city was forced to tweak its budget after Deputy State Comptroller disapproved it on Wednesday. His two concerns were the school district’s overuse of its surplus, essentially a financial cushion of reserve funds, and insufficient staffing in the Fire Department. State law gives the Comptroller’s Office authority to review Yonkers’ finances because of the city’s history of financial distress.

It's not a financial control board, but it's hard to argue that Yonkers is free to make completely independent decisions.

[JFLYNN 681]

Actually, I might go one step further and say certain aspects of Yonkers finances are already under de facto control.

http://polhudson.lohudblogs.com/2012/07/02/state-comptroller-oks-revised-yonkers-budget/

It's not a financial control board, but it's hard to argue that Yonkers is free to make completely independent decisions.

Yes. You are correct, and luckily for the FD. However, a long way from "finances being taken over by the State..." (unfortunately) but we can dream, can't we???

[tommyguy 104]

According to that article the city only has 5,000 bucks..... How does a city let it get to that point?

Having read the articles I think this is basically a lapsed budget causing a cash flow problem. What happened was this: In this year's FY2012 budget negotiations the Scranton City Council cut a proposed 29% property tax increase to 5%. They proposed a bank loan to make up the revenue shortfall. To make the loan the banks want Scranton to increase property taxes 78%. The Council won't agree to that either and in the meantime the city has literally run out of cash.

"I apologize to all employees in the city that have to bear this. This is totally unnecessary," the mayor said. "This is unfortunate, but it dramatizes the seriousness of the situation. As the mayor, I can only deal with the money I have, and until the council funds its budget, this is the way it's going to be."

Mayor Doherty is offering to pay back the "deferred wages" with interest once the budget is finally passed but the unions are understandably leery of agreeing to this.

"We're trapped in the middle of a political game between the mayor and city council," said John Judge, president of the firefighters union, adding, "We're not the cause of his problem, and we're not the solution to his problem."

http://thetimes-trib...wages-1.1335736

http://www.huffingto..._n_1652271.html

[ny10570 745]

What makes you think Yonkers is close to being taken over by the state?

When the comptroller is reviewing your budget, I believe the next step is a state appointed supervisor. On June 27 when the Comptroller rejected Yonkers budget they were a few steps away from state take over.

[JFLYNN 681]

When the comptroller is reviewing your budget, I believe the next step is a state appointed supervisor. On June 27 when the Comptroller rejected Yonkers budget they were a few steps away from state take over.

The key words in this post are "On June 27", and "were", as opposed to your earlier post with the word "is". Thanks for the correction. However, as I mentioned earlier, it wouldn't necessarily be such a bad thing if it were to happen.

[ny10570 745]

Unless I'm mistaken the Yonkers budget is still subject to comptroller approval for a few more years. So in June the city of hills will once again be trying to prevent state intervention and maintain their independence from an oversight committee. Yonkers was, is, and will continue to be at risk for state takeover. Why the nitpicking over semantics?

[JFLYNN 681]

Unless I'm mistaken the Yonkers budget is still subject to comptroller approval for a few more years. So in June the city of hills will once again be trying to prevent state intervention and maintain their independence from an oversight committee. Yonkers was, is, and will continue to be at risk for state takeover. Why the nitpicking over semantics?

yes, why?

[dadbo46 50]

Another update:

http://bottomline.msnbc.msn.com/_news/2012/07/10/12659748-scranton-pa-slashes-workers-pay-to-minimum-wage#comments

[dadbo46 50]

More on the status of Scranton, Pa.

http://bottomline.msnbc.msn.com/_news/2012/07/24/12924619-scranton-pa-workers-will-get-paid-in-full-for-now?lite&__utma=14933801.368662465.1343152795.1343152795.1343152795.1&__utmb=14933801.5.10.1343152795&__utmc=14933801&__utmx=-&__utmz=14933801.1343152795.1.1.utmcsr=(direct)|utmccn=(direct)|utmcmd=(none)&__utmv=14933801.|8=Earned%20By=msnbc%7Ccover=1^12=Landing%20Content=Mixed=1^13=Landing%20Hostname=www.nbcnews.com=1^30=Visit%20Type%20to%20Content=Earned%20to%20Mixed=1&__utmk=254006536