Question

Scranton Borrows Money to Make Payroll and Service Expenses

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Stephen Piechura
Stephen Piechura asked
Aug 31 2012

http://citizensvoice.com/news/scranton-closes-on-6-25m-loan-to-cover-payroll-1.1366302

The link above takes you to a news article explaining the recent approval to borrow money from the bank(s) owned by the Unions that the city employee representative locals affiliate to.

For the purpose of public policy discussion:

Is this transaction legal?

Does this transaction conform to the ethical standards for local governance and fiduciary responsibilities?




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Answers

 
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Lawrence Di Re
Lawrence Di Re said
Sep 1 2012

To answer your questions - yes. Concerning ethical standards, the City government has obligations that must be paid and borrowing to meet those obligations is not unheard of. As for fiduciary responsibility, the City Council and administration of Scranton abandoned that as a priority many years ago. I would not expect that to become a priority through the act of borrowing to meet payroll.

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