While Scranton, Pa.’s financial recovery plan coordinator called the city’s latest financial recovery plan an improvement, it still questions some revenue projections as speculative.
The Pennsylvania Economy League, which by state law must sign off on a plan for Scranton to emerge from the abyss, considers alternatives to real estate tax increases speculative and revenue baselines too high.
Scranton’s latest plan, to which Mayor Chris Doherty and a City Council majority — usually antagonists — have approved, calls for a 35% property tax over three years, down from the 78% Doherty had originally proposed; commuter and sales taxes; and more payments in lieu of taxes from nonprofit organizations.
PEL considers the real-estate tax alternatives iffy because they need state and-or court approval, and also called some city revenue baseline projections high.
“We recognize that the continued development of a revised recovery plan and your response to our concerns ... has not been an easy process,” PEL executive director Gerald Cross wrote in a letter to Doherty and Council President Janet Evans.
The capital markets have essentially shut off 77,000-population Scranton, adding urgency to the debate. On Thursday night, Doherty made a rare appearance before the council.
“I have to say, we’ve made tremendous progress and we’re on the right track,” Doherty told council members.
The council is expected to hold a final vote on the plan next Thursday.
Pennsylvania’s Department of Community and Economic Development has offered the city an interest free $2 million loan and a $250,000 grant if it agrees to the plan.
