SCRANTON, LACKAWANNA COUNTY (WBRE\/WYOU) \u2014 In 2012, Scranton was on the verge of bankruptcy, but today, the city has an A- credit rating and has managed to significantly cut down its debt from just a few years ago.<\/p>\n
“We’ve been able to cut our debt nearly in half, which has been remarkable. That is saving taxpayers money,” Scranton Mayor Paige Cognetti said.<\/p>\n
On Wednesday, a five-year forecast was released by Pennsylvania Economy League (PEL) in partnership with The Electric City. That report shows there’s a lot more work to be done.<\/p>\n
For this year, the city’s general fund budget is balanced; with a little more than $115,000,000 in expenses and revenue respectively. But starting next year, the gap between those numbers begins to grow.<\/p>\n
A roughly $1,300,000 deficit is projected in 2027, growing to more than $4,000,000 by 2029 before shrinking slightly in 2030.<\/p>\n
Scranton Five-Year Report FINAL<\/a>Download<\/a><\/p>\n The reasoning is simple; the money coming in is expected to grow, but the money being spent is expected to grow even faster.<\/p>\n “The projections give the city a baseline idea of where their challenges are coming from. We actually call those the ‘Ghost of Christmas Future.’ If you take steps, they won’t happen,” Lynne Shedlock, Director of Operations for the Pennsylvania Economy League, said.<\/p>\n City employees are expected to make up almost 73% of all general fund spending by 2030. More than half of that is spent on essential services like police and fire.<\/p>\n Overall employee costs are projected to rise by more than $11,000,000 over the next five years.<\/p>\n