Last week, Wells Fargo’s Natalie Cohen, was prompted to take a look into Scranton’s financials. Her interest was due to Save Scranton’s recent campaign to put Scranton bankruptcy on the ballot for public vote. An initiative that has never been attempted but nevertheless is making waves throughout the municipal debt community.
Scranton’s Fiscal Woes
The paper details how Scranton’s fiscal issues are due to a legacy of increased cost of government. The report explains that Scranton’s total debt is approximately $519 million dollars! This includes a total liability of $375 million dollars as well as a estimated unfunded liability for non-pension post retirement benefits of $184 million. The report recommends the same thing that Save Scranton has been championing since its inception- taking advantage of advances in innovation, sensible tax policies and a renegotiation of the city’s pensions.
It is clear that the recommendation for the city is to move forward with sound policy. This includes a complete overhaul to the status quo that has existed in Scranton. It is amazing to see that Scranton has now caught the eye of others(outside). We now have allies aboard Save Scranton’s mission to revitalize Scranton. When I first started Save Scranton, I promised that I would make Scranton’s fiscal situation national news. I have yet to fail to deliver on my promises.
Report can be viewed here: populism-pensions-and-municipal-distress-102516