Location of Pottstown in Montgomery County (Photo credit: Wikipedia)
POTTSTOWN — Facing a potential liability of as much as $27 million for medical costs for current and future retired police personnel, the borough is finally beginning to set aside money to cover the costs, as a financial review and several audits have recommended.
At its Sept. 4 meeting, council was briefed on the proposal to set aside $250,000 per year for what the council agenda labeled opaquely as “OPEB,” which, according to Borough Manager Mark Flanders, stands for “other post employment benefits.”
The official vote will occur at Monday night’s council meeting, which begins at 7 and is the meeting at which the public is allowed to comment.
These potential costs are not retirement payments, but rather represent medical benefits for retirees, both current and future.
A panel of three judges Wednesday rejected Scranton‘s petition for a 1 percent wage tax on the nearly 23,000 nonresidents who work in the city but live elsewhere.
The city may make up the resulting budget shortfall next year by borrowing more next year than had been anticipated or selling an unspecified city asset, Mayor Chris Doherty said.
In their 50-page ruling, Lackawanna County Judges Terrence Nealon and Robert Mazzoni and visiting Pike County Judge Harold Thomson stated the city failed to prove its case for a 1 percent earned income tax on the 22,655 nonresidents working in the city.
The city failed to pass a required hurdle of having “substantially implemented” a revised recovery plan, by failing to fulfill two revenue generators in that plan. Those included failing to obtain a commitment from a lender for a lease-back borrowing measure to be undertaken next year; and failing to obtain commitments from nonprofit entities for significantly increased donations, according to the ruling.
CHESTER, Pa. (AP) — Nearly two decades after being declared financially distressed, the school system in this struggling Philadelphia suburb faces a new and even more daunting crisis: It may run out of cash.
Administrators in the Chester Upland School District, one of Pennsylvania’s poorest systems and once the center of a failed experiment in school privatization, say they won’t be able to make payroll Wednesday unless the state advances the district $18.7 million in expected funding. While teachers and staff have vowed to continue working, the situation has thrown the system into new turmoil and has parents scrambling for other options.
Hoping to avoid a shutdown, the school filed a lawsuit Thursday, declaring a “cash-flow crisis” and asking a judge to tell state Education Secretary Ronald Tomalis that he must act to provide students in the district with a “thorough and efficient educational system.” Meanwhile, anxious parents are looking at other options for their children, such as sending them to private schools or having them live with relatives and go to other public schools.