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Stockton May Be Biggest City To Go Bankrupt

From the Associated Press:

Stockton could become biggest city to go bankrupt

By GOSIA WOZNIACKA and HAVEN DALEY
February 29, 2012

Calif. (AP) — The city of Stockton in California’s crop-abundant Central Valley has the second-highest foreclosure rate in the nation and one of the highest crime and unemployment rates. It was named America’s most miserable city in a national magazine — twice.

Besides crops, what else is the area abundant in, we wonder? (Hint: illegal aliens.)

And now, officials say this river port city of 290,000 is on the brink of insolvency and could become the nation’s largest city to fall into Chapter 9 bankruptcy protection.

The City Council voted late Tuesday to use a new California law to enter mediation with its creditors. City leaders said they hoped the plan to renegotiate Stockton’s debt would help it avoid bankruptcy.

Dozens of residents spoke against the move, saying they feared it would do the opposite, KRCA-TV reported.

"If they vote for mediation, it is the first step towards bankruptcy," former City Manager Dwane Milnes said. "That means 1,000 people could lose retirement benefits."

Stockton will be the first city to test the state law, Assembly Bill 506, which is less than 2 months old. It requires local government agencies to undergo mediation or hold a public hearing and declare a fiscal emergency before filing for bankruptcy

City leaders say Stockton could soon be unable to pay its debts. The city has a $15 million deficit — $6.6 million from the last fiscal year and $8.7 million expected for the current fiscal year, according to documents.

Forecasts also show deficits ranging from $20 million to $38 million for the fiscal year 2012-2013 and increasing in subsequent years

Stockton’s KRCA-TV also reports:

City Manager Bob Deis blamed Stockton’s problems on bad management, unsustainable retiree health insurance, and the sale of bonds resulting in large debt

Hmm. That sounds familiar. In fact, it sounds like what we are doing on a national scale.

In addition to approving a mediation process, as part of the resolution, the city was also asked to approve several other moves as part of the resolution including a continuation of the city’s fiscal emergency, several spending cuts and the suspension of pay-outs for unused sick and vacation time for retiring employees

Spending cuts? Suspension of pay-outs? Doesn’t Stockton realize it can spend its way out of any problems?

This article was posted by Steve on Wednesday, February 29th, 2012. Comments are currently closed.

2 Responses to “Stockton May Be Biggest City To Go Bankrupt”

  1. GetBackJack says:

    California vs. Arizona
    CALIFORNIA

    The Governor of California is jogging with his dog along a nature trail. A coyote jumps out, bites the Governor and attacks his dog.

    1. The Governor starts to intervene, but reflects upon the movie “Bambi” and then realizes he should stop; the coyote is only doing what is natural.

    2. He calls animal control. Animal Control captures coyote and bills the State $2000 testing it for diseases and $5000 for relocating it.

    3. He calls a veterinarian. The vet collects the dead dog and bills the State $2500 testing it for diseases.

    4. The Governor goes to hospital and spends $35,000 getting checked for diseases from the coyote and on getting his bite wound bandaged.

    5. The running trail gets shut down for 6 months while Fish & Game conducts a $1,000,000 survey to make sure the area is free of dangerous animals.

    6. The Governor spends $500,000 in state funds implementing a “Coyote Awareness” program for residents of the area.

    7. The State Legislature spends $20 million to study how to better treat rabies and how to permanently eradicate the disease throughout the world.

    8. The Governor’s security agent is fired for not stopping the attack somehow and for letting the Governor attempt to intervene.

    9. Additional cost to State of California: $125,000 to hire and train a new security agent with additional special training re: the nature of coyotes.

    10. PETA protests the coyote’s relocation and files suit against the State.

    ARIZONA

    The Governor of Arizona is jogging with her dog along a nature trail. A Coyote jumps out and attacks her dog.

    1. The Governor shoots the coyote with her State-issued pistol and keeps jogging. The Governor has spent $0.35 on a .380 hollow point cartridge.

    2. The Buzzards eat the dead coyote.

    And that’s why California is broke.

  2. geronl says:

    Illegal aliens are burdens, welfare is a burden, Kalipornia puts both above things like jobs and common sense.

    Who s surprised they are broke?


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