The only thing I take seriously is my Freedom. And Bacon.

Friday, July 13, 2012

PA Economy Report - Scranton PA is OCC - Out of Control.

Economic Blog PA - Jill Herring
Follow Jill on Twitter - @JillHerring2

Municipal bankruptcy for San Bernardino & Stockton, CA – Now Scranton, PA?!  It’s hitting home folks!

Scranton municipal workers’ pay has been cut to minimum wage $7.25/hr. because for years Scranton’s mayors, city council, & municipal finance dept. have chosen deficit spending, debt increases and unsustainable vote-getting promises to city pensions!!!  The pay cuts affect 400 employees, police, firefighters and garbage collectors and potentially impact all city residents’ taxes and future.  Scranton’s budget problem is Math 101 – as of 7/10 it has $10,000 in cash and owes $3.4 Million to vendors.  Tax increases on a city with an older population and last-century industrial base is NOT a resolution.

As we have seen in Wisconsin, New Jersey, Ohio, and many other states with sky-rocketing pension increases decade after decade, whether municipal, state or federal workers, the Tea Party’s  solution stands as the rational and common sense approach:  government discipline, truth and integrity.