Scranton Seeks Court OK for Commuter Tax

The Scranton, Pa., City Council Thursday adopted a 1% commuter tax for the cash-strapped city.

The Lackawanna County Court of Common Pleas must approve the tax before it takes effect.

Acting on an emergency basis Thursday night, Mayor Chris Doherty and city Controller Roseann Novembrino requested the council approve the measure immediately, as opposed to introducing it then voting on it Oct. 25. The city wants to have the commuter tax in place by Jan. 1.

Officials expect the tax to bring the financially teetering city $2.5 million next year and $4 million apiece in 2014 and 2015.

"We felt time was of the essence. We could not take a chance of postponing a court date into 2013," said council President Janet Evans, according to the Times-Tribune of Scranton.

Evans, Frank Joyce, Jack Loscombe and Bob McGoff all approved the measure. The fifth council member, Patrick Rogan, was absent.

Scranton, with a population of 70,000, also needs a short-term loan of up to $20 million to help fund operations for the rest of the year. The capital markets have essentially shut off the city since the council allowed its parking authority to default, for two weeks, on a $1 million bond payment in June.

The commuter tax is part of Scranton's revised recovery plan under Pennsylvania's Act 47 program for distressed communities. City officials are working with the state Department of Community and Economic Development and their recovery plan coordinator, the Pennsylvania Economy League.

Elected officials in communities outside Scranton oppose the new tax. Mayfield Mayor Alexander Chelik spoke against it at a recent meeting that included officials from Taylor, Benton, Olyphant and Archbald.

"The crux of their message was this: We operate within our limited means, why can't Scranton? I think they have the motivation to finally erect a roadblock to the absurd idea that Scranton can 'tax their way out" of this crisis," said Gary Lewis, a private-sector financial consultant and downtown Scranton resident.

In nearby Wilkes-Barre, meanwhile, Mayor Thomas Leighton has asked for voluntary furloughs among the nearly 300 municipal workers to help cover a $3 million to $4 million shortfall by the end of the year. "The revenue side has been really draining the city," Leighton said.

Leighton warned of mandatory furloughs and layoffs in 41,500 population Wilkes-Barre if the city can't fill its budget gap. Furloughs would run from Nov. 18 to Dec. 31 and the city could refuse a furlough if it affects community services or department readiness.

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