Today, San Bernandino, California filed for bankruptcy. This follows on the heels of the June bankruptcy filing for Stockton, California, and the July 4 filing for Mammoth Lakes, California.
In Scranton, Pennsylvania, on Friday, the Mayor cut all city employees salaries to the minimum wage.
…the city had just $5000 in the bank last week after transfering enough money to cover the city’s payroll at $7.25 an hour [the minimum wage]…
For the Mayor of Scranton, it was either that, or a 78% property tax increase over 3 years to cover expenses.
Scranton is not alone in Pennsylvania. About 20 cities, including the capital, Harrisburg, and the city of Pittsburgh are “operating under a state law for fiscally distressed municipalities”.
All of them have run out of other people’s money.
Well, you say, I don’t live in any of those places, so I’ll just ignore that as it doesn’t apply to me.
Or does it?