Monday, March 22, 2010
East St. Louis Councilmen: Not Mathemeticians, But City is Going Bankrupt
By Keegan Hamilton
on Mon, Mar 22, 2010 at 9:30 AM
The city hoped the East St. Louis police and fire boards would lend them the cash but the agencies rebuffed the request on the grounds that the city has already violated contracts with city workers and won't be able to repay the debt.
The bankruptcy idea is being floated by councilmen Delbert Marion and Roy Moseley, opponents of Mayor Alvin Parks. The city has a $5 million budget deficit and recently rejected a proposal that would have required furlough days and a 22.5 percent pay-cut for all city employees.
Marion told the Belleville News-Democrat
"Without being a mathematician, a budget expert or certified public accountant, I am no expert. But, I do know that with no money coming in, the likelihood of the city filing bankruptcy is looking very, very prominent.
The budget shortfall is being blamed on slumping revenue from the Casino Queen, expensive lawsuits involving the police department and the economy.
Two East St. Louis Councilmen say their city is on the verge of bankruptcy after a bid to borrow more than $1.5 million was denied last week.