NPR: Scranton Workers See Pay Slashed To Minimum Wage

[FrodosPet]

For example, in the case of Scranton, PA, a judge ordered the mayor to pay full wages to city workers. But it sounds like there are insufficient funds in city accounts to do so.

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http://www.npr.org/blogs/money/2012/07/10/156509668/scranton-workers-see-pay-slashed-to-minimum-wage

~snip~

Without an agreement, the city faces a cash-flow crisis. Last week, even after paying only minimum-wage salaries, the city had just over $5,000 left. More money has since come in, but not nearly enough to pay the estimated $1 million still owed to workers.

~snip~

"It's getting worse and things need to be done," says life-long resident Colleen Maziarz. "The mayor and the council really need to get together and they don't — they argue and they fight with each other and they just don't agree."

That's the first complaint many residents have. The second is they don't want higher property taxes. Pushing for that has made Mayor Doherty unpopular with some residents.

~snip~

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Individuals who deliberately write bad checks can go to jail. But what about this case? If the city accounts do not have enough funds to cover the checks, what then? Write the checks, and the judge orders them to be covered by the bank?

Can a judge REALLY order you to break the law?

[badtoworse]

1. I would say the city would have to declare bankruptcy

I don't know how the workers would be impacted under that scenario, but I doubt they'd get away with out a haircut, maybe a substantial one.

[FrodosPet]

3. But the A-holes in the state legislature won't let them

Stuck between a rock and a hard place. Can't raise revenue through taxes, no one will lend them any money, and the Harrisburg gang won't give them a bailout or permission to declare BK.

It sounds like pushing for a property tax increase may cost the mayor any chance of re-election, but he tried. Of course, being that he is a mayor, not a city wide dictator, he has to rely on the council. Who, for better or worse, are doing what the voters want them to do - not raise taxes.

[badtoworse]

4. So what happens when the checks start to bounce?

[FrodosPet]

6. That is what I am wondering

It really sucks for the city employees and citizens of Scranton. What good is a full sized paycheck if the bank won't honor it?

They, and many other cities, need a miracle. They need the cash NOW to pay the legal and proper wages.

Only the Federal government is allowed to "deficit spend". My understanding is that states and local governments cannot.

[Huey P. Long]

2. This will be happening all over soon. All part of the collapse most refuse to see, but will happen.

It will go on, over and over, until we are all slaves. Thats the point, the goal. I know, I'm just fear mongering...but watch.
The collapse comes.

[DBoon]

5. Just lay off all the police

and tell Scranton residents they should buy guns and learn to protect themselves.

They have 2nd amendment rights, don't they?

[FarCenter]

7. Scranton appears to have about $330,000,000 in debt

Scranton is Broke

http://scrantonisbroke.blogspot.com/

Stockton, CA had about the same amount of debt, but Stockton has about 4 times the population.

[Trillo]

8. Perhaps cities need their own "central bank"

where they can print however much they need just like the Federal Reserve. Bypass the state banks, just make currencies local.