{"id":108,"date":"2024-11-01T12:30:35","date_gmt":"2024-11-01T12:30:35","guid":{"rendered":"https:\/\/nyujournalismprojects.org\/48hoursinelectriccity\/2024\/?p=108"},"modified":"2024-11-02T17:25:45","modified_gmt":"2024-11-02T17:25:45","slug":"scranton-lawmakers-float-two-different-tax-hikes-to-shore-up-city-finances","status":"publish","type":"post","link":"https:\/\/nyujournalismprojects.org\/48hoursinelectriccity\/2024\/2024\/11\/01\/scranton-lawmakers-float-two-different-tax-hikes-to-shore-up-city-finances\/","title":{"rendered":"Scranton Lawmakers Float Two Different Tax Hikes to Shore Up City Finances"},"content":{"rendered":"

Scranton, which emerged from a designation of financially distressed but still struggles with its budget, is facing two radically different tax hike proposals that have prompted heated debate among local politicians.<\/span><\/p>\n

\u00a0\u201cWe inherited a $35 million deficit,\u201d according to Lackawanna County Commissioner Matt McGloin. \u201cThe S&P downgraded our credit rating again because we failed to fund pensions.\u201d\u00a0<\/span><\/p>\n

McGloin, who has been in office for only 11 months, said tough decisions were made to stabilize the budget: \u201cWe cut the Department of Health and eliminated 90 full- and part-time positions across 19 departments\u2014about 10% of the workforce. That\u2019s going to save us a few million dollars.\u201d<\/span><\/p>\n

McGloin and Bill Gaughan, another Democratic County Commissioner, recently proposed a 33% property tax hike to dig the city out of the hole.<\/span><\/p>\n

Commissioner Chris Chermak, a Republican who has been in office for the last 5 years, unveiled his own budget proposal to counter the previous one proposed by his Democratic colleagues. At a news conference, Chermak criticized the 33% tax increase as \u201cunsustainable\u201d and proposed a smaller 6.3% hike, along with spending cuts and the use of one-time federal rescue funds to bridge the gap.\u00a0<\/span><\/p>\n

\u201cRaising taxes should always be the last resort,\u201d Chermak said, condemning projects like an ice-skating rink on Courthouse Square as unnecessary expenditures.\u00a0<\/span><\/p>\n

\u201cYou can’t keep on living on one time influx,” McGloin said.<\/span><\/p>\n

Scranton residents, like many Americans, have been concerned about economics and pandemic-spurred inflation, which has largely abated but left people rattled.<\/span><\/p>\n

\"Toon
Toon Potisompornrath, manager at Thai Rak Thai on Night of Walz Rally (Photo: Esther Luz)<\/figcaption><\/figure>\n

As Democratic vice presidential candidate Tim Walz rallied nearby, the restaurant Thai Rak Thai was the busiest spot on an otherwise quiet street.\u00a0<\/span><\/p>\n

\u201cBefore, it was really good\u2026 We had two rooms (for customers). Now people moved because Scranton\u2019s tax is too high,\u201d said Toon Potisompornrath, manager of the restaurant, whose husband opened the business 19 years ago. Most of the staff, like Toon, are Thai immigrants.\u00a0<\/span><\/p>\n

The median household income in Scranton is $57,568\u2014below the state average\u2014with 14.5% of residents living below the poverty line, compared to 11.8% statewide. Even before the proposed tax hike, Scranton already had one of the highest property tax rates in the country at 3.93%, according to <\/span>a Harvester Federal Credit Union report<\/span><\/a>.<\/span><\/p>\n

\"Shopping
Shopping cart on the curb outside of Price Rite in Scranton (Photo: Esther Luz)<\/figcaption><\/figure>\n

Lisa, a cashier at Gertrude Hawk Chocolates, moved from New York for a lower cost of living but now struggles to make ends meet. \u201cI work 74 hours a week, making $1,350 a month, and I barely have money to buy food.\u201d<\/span><\/p>\n

Tensions between commissioners also highlight the stakes of the election and concerns about how the national economy will fare.<\/span><\/p>\n

Economics Professor Satyajit Ghosh of the University of Scranton said Democratic candidate Kamala Harris poses the best bet for the economy. \u201cIf the economy is the number one issue on people\u2019s minds, then this election should be a no-brainer,\u201d he said. For their part, Republicans have attacked the rising cost of living under the Biden administration and believe Donald Trump is the best choice for economic growth.<\/span><\/p>\n

Potisompornrath has witnessed changes in Scranton over the decades. \u201cBefore it was the deli, the shop, Mexican, Italian (restaurants).\u201d Now they are all gone. When asked if she will vote this year, she shook her head. \u201cI voted last time\u2026 Not this time, no.\u201d<\/span><\/p>\n","protected":false},"excerpt":{"rendered":"

Tensions between commissioners also highlight the stakes of the election and concerns about how the national economy will fare.
\n Continue reading Scranton Lawmakers Float Two Different Tax Hikes to Shore Up City Finances<\/span><\/a><\/p>\n","protected":false},"author":11,"featured_media":109,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,5],"tags":[20],"class_list":["post-108","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-economy","category-politics","tag-featured"],"yoast_head":"\nScranton Lawmakers Float Two Different Tax Hikes to Shore Up City Finances - 48 Hours in Electric City<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/nyujournalismprojects.org\/48hoursinelectriccity\/2024\/2024\/11\/01\/scranton-lawmakers-float-two-different-tax-hikes-to-shore-up-city-finances\/\" \/>\n<meta property=\"og:locale\" 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