Scranton, Pa., will make its full payroll this week, but cannot pay back wages withheld when the financially strapped city paid its nearly 400 employees minimum wage, Mayor Chris Doherty told the Times-Tribune newspaper on Wednesday.
Doherty told the newspaper that payroll processing began with the wiring of sufficient funds to cover the full payroll, which totals about $1 million. He said tax revenue came in to cover the current payroll, but not back pay. Employers are paid every other week.
The mayor cut the pay of all city workers, including himself, to the federal minimum $7.25 per hour on July 6.
The city has been unable to obtain bank financing because the city and Parking Authority have been past due on bond payments.
Pennsylvania’s Department of Community and Economic Development has offered Scranton a $2 million interest-free loan and a $250,000 grant if it approves a recovery plan by Aug. 1.
The City Council is scheduled to meet Thursday night.