Scranton council hears controller report showing $1.2 million first‑quarter shortfall

Council President Schuster said during the April 21 meeting that the city’s controller’s report for the quarter ending March 31 shows the city is "short, $1,200,000," the first first‑quarter shortfall Schuster said he can recall in his tenure on council.

The shortfall prompted Schuster to ask the business administrator, Matt Domnis, whether staff project further shortfalls this year and to provide explanations for revenue or expenditure variances. "I made the statement prior to the purchase of the Fidelity building next door that it was my fear this year that we were overextending ourselves," Schuster said, noting recent capital choices that increase fiscal exposure.

Council members discussed possible drivers of a larger budget gap, including the local services tax (LST) and the city’s distressed‑status designation. One council member said staff told them a near‑term $3 million risk tied to LST language could materialize if the state does not alter minimum distressed‑status rules; members urged outreach to state legislators to seek changes that could preserve local revenue.

Members asked administration staff for updated five‑year projections. The administration said it will provide additional figures in three to four weeks and that staff will follow up on questions about potential gaps and contingencies.

Council did not take formal fiscal action at the meeting; members recorded motions and requests for follow‑up from the business administration and controller’s office. The council also discussed planned property acquisitions and their budget impacts, and directed staff to report back with more detailed revenue and expenditure forecasts.

Next steps: council members asked the business administrator and finance staff to supply updated projections and to identify options to close any emerging gaps ahead of the next budget cycle.