The mayor of a financially-strapped Pennsylvania city who made headlines when he slashed everyone on the public payroll to minimum wage is now seeking a $16 million loan from the public employees' pension fund to help the municipality get by.
Scranton Mayor Chris Doherty is seeking the loan to help the city meet expenses, including payroll. It would be paid back at 8 percent interest over 10 years.
City Controller and Scranton Composite Pension Board member Roseann Novembrino on Wednesday told The Times-Tribune she's against the plan but the board opted to discuss the loan behind closed doors.
Doherty cut the pay of nearly 400 workers to $7.25 an hour in paychecks earlier this month. He says the city can't get bank financing it would receive because he and city council can't agree on a financial recovery plan.
The Mayor is due in Lackawanna County Court on July 30 for a contempt hearing after going against a judge's orders not to cut the payroll.
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