Is this a sign of the time of come? The City of Stockton Ca is set to become the largest American city ever to declare bankruptcy.
"Unfortunately we have no comprehensive set of agreements with our creditors that would eliminate the deficit and avoid insolvency," Deis said at a City Council meeting. He said, however, that the city was still negotiating with some creditors and could reach deals with as many as one-third of them.
"We think Chapter 9 protection is the only choice left. If we get any agreements, those will be honored in Chapter 9," Deis said.
The Council was expected to vote later Tuesday on a special bankruptcy budget to plug next year's anticipated $26 million deficit, and city lawyers could file for Chapter 9 protection in court as soon as Wednesday.
The river port city of 290,000 in Central California has seen its property taxes and other revenues decline, while expensive investments and generous retiree benefits drained city coffers.
In the past three years, officials in the city that was slammed by the collapse of the housing market dealt with $90 million in deficits through a series of drastic cuts.
Read More: http://abclocal.go.com/kfsn/story?section=news/sta...
Top Opinion
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☆ElenaDiamond☆ 2012/06/27 14:14:43
+3I am not surprised. This is what happens when a state and a country gets overrun with liberals in charge.
Stockton did what many cities did in CA, because they are lead by ignorant democrats. They borrowed money and gave it to CALPRS to invest thinking they could play the "stock market lottery" and cover the stupid agreements they made with the public union monkeys. Unfortunately for Stockton, they gambled at the height of the market in 2007 and lost their shirt.
but folk, keep sending demcarp to sac
I just got this off abc30 wed site GOP blocked from California pension reform vote
http://abclocal.go.com/kfsn/s...
SACRAMENTO, Calif. (KFSN) -- There is a widening gap between what the state promised its public employees in pensions and what the state is actually able to afford. A Pew Center study is laying out the staggering numbers.
When you combine state and local governments, the Pew Center for the States estimates California's public pension systems' obligations had $112 billion in unfunded liabilities in 2010. Add in retiree health costs, the total jumps to nearly $200 billion.
Pension reformers have been sounding the alarm for years that retirement costs will drain, maybe even bankrupt budgets. They say state leaders have made only modest changes because public employee unions are too powerful.
"The hole in the budgets that are caused by feeding this pension beast are eating up all the other money we need for the programs we value, like schools, transportation, housing and safety net programs," California Pension Reform spokesperson Dan Pellissier said.
Pension supporters, though, ...
but folk, keep sending demcarp to sac
I just got this off abc30 wed site GOP blocked from California pension reform vote
http://abclocal.go.com/kfsn/s...
SACRAMENTO, Calif. (KFSN) -- There is a widening gap between what the state promised its public employees in pensions and what the state is actually able to afford. A Pew Center study is laying out the staggering numbers.
When you combine state and local governments, the Pew Center for the States estimates California's public pension systems' obligations had $112 billion in unfunded liabilities in 2010. Add in retiree health costs, the total jumps to nearly $200 billion.
Pension reformers have been sounding the alarm for years that retirement costs will drain, maybe even bankrupt budgets. They say state leaders have made only modest changes because public employee unions are too powerful.
"The hole in the budgets that are caused by feeding this pension beast are eating up all the other money we need for the programs we value, like schools, transportation, housing and safety net programs," California Pension Reform spokesperson Dan Pellissier said.
Pension supporters, though, point out the Pew Center's numbers are two years old and that the stock market has done better since then.
A pension fund is considered healthy if unfunded liabilities are kept to 20 percent or less.
"There's actually good news in the report in stating that California has gone from a funding ration of somewhere around 60-62 percent to somewhere around 70-78 percent for most of their pension funds," SEIU spokesperson Terry Brennand said. "We're going in the right direction."
Republicans tried to bring Gov. Jerry Brown's pension reform package to a floor vote this week. There's an urgency because some elements need to be approved by the end of the month in order to be placed on the November ballot. But the Democratic majority sets the timetable.
"Where was the vote today? You had an opportunity to debate it, to do up or down. What'd you say? No," State Senate Minority Leader St. Sen. Bob Huff said.
"Come on, you want to be part of the comprehensive solution here in California and in this Legislature? Then participate in all parts of governance, not just the parts that you find the most politically appealing or attractive," State Senate President Darrell Steinberg said.
Democratic leaders vow pension reform will be enacted this year, the question is how much will the final package resemble Brown's tough proposals