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Pocono News Section
Luzerne Co. Reported To Be Headed For Financial Mess
Luzerne Co. Reported To Be Headed For Financial Mess - Wednesday, December 5, 2007 at 11:18PM EST
Reported by: Joe Holden
Wednesday, Dec 5, 2007 @11:18pm EST
WILKES-BARRE, LUZERNE COUNTY- First, a scandal involving county-issued debit cards emerges. And now there's more trouble for the county.
Budget and finance chief Sam Diaz told WBRE News a complaint filed with the state will freeze the county's payment of a tax anticipation note in the amount of $10 million. Due on or before December 31, if left unpaid, the county's credit rating will devolve to default status, affecting future interest rates and the county's ability to insure its interests.
The county's financial standing will crash, according to Diaz, because of the complaint filed in the state Department of Community and Economic Development.
Tim Grier of Wilkes-Barre defends his filing move, saying he wants county leaders to come clean on their reported need to borrow tens of millions of dollars. Grier said the county is failing to properly report its borrowing practices. Diaz disputed that claim Wednesday afternoon, shortly after preparing a list of services that will be jeopardized while the county waits for a ruling on the complaint.
Diaz says to expect layoffs and reduced services January 1st as a result. He believes payroll and health care payments will be made through the end of the year.
Grier says he will withdraw his complaint if county leaders explain why they're borrowing those funds.
A private meeting is set for Thursday afternoon at the courthouse.
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