America's Cities Are in Financial Peril

of 73Photo
  • bankruptcy
  • Detroit, Michigan
  • Scranton, Pennsylvania
  • 071312 national banruptcy stockton california
  • Mammoth Lakes, California
  • San Bernardino, California
  • Jefferson County, Alabama

Scranton, Pennsylvania

Grappling with $3.4 million in vendor bills and a $16.8 million budget deficit the city couldn't afford to pay, the mayor of Scranton, Pennsylvania, was forced to cut the salaries of all 400 city workers — including firefighters, police officers and the mayor himself — to the minimum wage of $7.25 an hour as a means to keep the near-bankrupt city afloat. A court had previously forbid Mayor Chris Doherty, above, to cut city worker salaries, and in response labor unions representing those workers are suing both Doherty and the city.

(Photo: Steve Leonard/Courtesy of Wikicommons)