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Saturday, January 11, 2014

LA Times: For Scranton residents, bankruptcy is an inviting option

Everyone but the politicians (and the municipal union officials) get this basic fact:  Scranton is already, functionally bankrupt; all that's left is the legal designation.

How widely known is this?  Well they know it Los Angeles.

LA Times Article:  Scranton & Bankruptcy.

Granted, this is not the most flattering picture of the city, and I don't think that the properties shown on the webpage are actually in Scranton.  However, the basic facts are true:

  • The city's revenue comes no where near matching operating expenses.
  • The city has to borrow to meet operating expenses.
  • Basically no one (other than a union-owned bank) will lend the city money. 
  • The city can not afford court judgments against it.

If the above isn't the very definition of "municipal bankruptcy", then what is?  

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