News

Scranton granted request for $9.75 million to deal with budget deficit

Written by The Associated Press | Nov 2, 2012 11:13 AM
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(Scranton) -- Cash-strapped Scranton that had to briefly cut worker pay to minimum wage earlier this year is borrowing more than $9 million to plug a budget hole.

A judge has granted Scranton's request to borrow an extra $9.75 million needed to fill budget holes because of "unforeseen" circumstances.

The judge ordered the debt repaid by a dedicated portion of real estate taxes.

The city was granted a request in January for $9.85 million in unfunded debt and $6.4 million in refinancing to pay 2011's bills.

In July, Scranton temporarily cut the pay of about 400 employees to the federal minimum wage of $7.25 per hour because it didn't have cash on hand to meet its full payroll obligations.

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