Philadelphia Stops Paying Vendors In Cash Crisis

[megimoo]

http://www.youtube.com/watch?v=rNQRfBAzSzo

Philadelphia's city government has stopped paying its vendors and suppliers, citing a cash crisis. Mayor Michael Nutter on Friday blamed the drastic move on the failure of the Pennsylvania legislature to act on his request for authorization to raise the city sales tax and change the formula for the city's contribution to its employee pension plan. Nutter says these items are necessary to help close a projected city budget deficit of $1.4 billion over the next five years. The sixth-largest U.S. city by population will delay spending on anything other than payroll, debt service and emergencies, until passage in Harrisburg...


http://online.wsj.com/article/BT-CO-...17-712813.html

[BadCat]

Couldn't happen to a nicer city.

[PoliCon]

I have to fight the urge to laugh when bastions of liberal policy can't support themselves any more.

[lacarnut]

Couldn't happen to a nicer city.

It's only going to get worse in these large Dummiecrat controlled cities especially with the Obummer tacking taxes on the so called rich.

[Nubs]

So the city is effectively operating on the credit of it's vendors. If this is not resolved quickly, vendors will reduce their workforce. If this goes for more than 60-90 days, vendors will lose their credit facilities and will go out of business.