State Offers $2.5 Million to Scranton

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SCRANTON -- The state is making an offer that Scranton may not be able to refuse.

It’s a loan to help the financial crisis if city council and the mayor can come up with a recovery plan by August.

On Thursday the state announced that it will give the city a $2 million, no-interest loan and a $250,000 grant as long as city council and the mayor agree on a recovery plan by August 1 and have it in place by August 15.

This is to help with expenses that include the back pay of hundreds of city employees who have been working at minimum wage for the past week and some future pay.

In order to get that, the city must show there is a recovery plan in place that shows how Scranton will generate revenue.

The mayor, city council, and union workers are hopeful.

“We've been forced to hold back pay from our employees because we don't have the money. Now it's time for the mayor and council to come together. Let's get a plan done and move on,” said Mayor Chris Doherty.

“I'm very hopeful $2 million, interest free, it will help the city, also the $250,000 grant that we don't have to pay back will definitely be a step in the right direction,” said Pat Rogan, Scranton City Council member.

“If this is now a chance to compromise with council, so that this plan works for everybody, I think it could be a good idea,” said John Judge, head of the fire union.