Scranton, Pennsylvania has run out of money. Mayor Chris Doherty, left with no other choice, has reduced the pay of all Scranton government workers, including himself, to the state’s minimum wage of $7.25 per hour.
The pay cut also includes policemen and firefighters. We’ve seen how this can quickly backfire and lead down a dangerous road.
After issuing checks on Friday, the city was left with around only $5,000 in the bank, a pathetic sum for an entire city. Doherty says that Scranton has simply run out of money, and he intends to raise taxes to reconcile the $16.8 million budget gap.
To add insult to injury, the firefighters’, police, and public works unions have taken the city to court. Doherty has acknowledged that he is breaking the law by paying the workers only minimum wage, but says he doesn’t have any other choice.
Scranton has nearly 400 workers who are now living on minimum wage. These people are all still technically employed, which is why when looking at unemployment rates it may be more beneficial to analyze the U-6 rather than the U-3.