On Friday, Scranton Mayor Bill Courtright announced that a settlement had been reached between the city and the police and fire unions over back pay. The settlement will likely help the city avoid bankruptcy or interruptions to their Act 47 (the state's program to assist distressed cities) recovery plan.
Scranton will pay just under $30 million to active police officers and firefighters, as well as retirees affected by the lost pay. By negotiating a settlement out of court, the city was able to get the unions to agree to pension reform and interest caps. Scranton has until June 30th to secure financing for the payment.
In a statement released Friday, Courtright said, "a liability amounting to more than a quarter of our city's budget is finally off our back...we did it by fighting hard for concessions, standing firm with the banks to demand a fair interest rate, and ensuring real, game-changing pension reforms as an absolute, non-negotiable condition."
Read the full version of this reportat Keystone Crossroads' website. Keystone Crossroads is a new statewide public media initiative reporting on the challenges facing Pennsylvania's cities. WPSU is a participating station.
