City of Scranton may miss a payroll and not be able to pay health insurance bill

http://thetimes-tribune.com/news/scranton-s-leaders-ponder-payless-paydays-and-possible-lapse-of-employee-health-care-coverage-1.1297196#axzz1rYwMN1yp

One of the many problems with city and school district finances is that the state required little to be paid into retirement accounts in the early parts of the last decade. The state also paid little into retirement accounts for state employees and teachers (which the State is obligated to help fund under state law).

During the Ridge administration, retirement benefits were also expanded for state employees, teachers and of course State legislators. As a result, pension funds are underfunded, and the state is making cities and school districts make up the difference over the next few years. Retirement benefits have been reduced for newer hires, but the debt is huge for past retirees and current employees.