Third California city votes to declare bankruptcy

[Bad_Daddy 2,209]

http://news.yahoo.com/third-calif-city-votes-declare-bankruptcy-050210981.html

Associated Press – 1 hr 38 mins ago

SAN BERNARDINO, Calif. (AP) — The City Council in San Bernardino voted Tuesday night to seek Chapter 9 bankruptcy protection, making it the third California city in less than two weeks to make the rare move.

The Southern California city of about 210,000 people will also become the second largest in the nation ever to file for bankruptcy. Stockton, the Northern California city of nearly 300,000, became the biggest when it filed for Chapter 9 on June 28.

The City Council directed the city attorney to make the move during a meeting where administrators explained the dire fiscal circumstances and urged them to choose the bankruptcy option.

"We have an immediate cash flow issue," Interim City Manager Andrea Miller told Mayor Patrick Morris and the seven-member City Council, according to the Los Angeles Times.

Miller said the city is facing a budget shortfall of $45.8-million. It has already stopped paying some vendors, and may not be able to make payroll over the next three months.

Four council members voted for the authorization, two opposed it, and one abstained.

"This is probably the hardest decision this councilwoman will ever have to make in this chair," Councilwoman Wendy McCammack said, according to the San Bernardino Sun.

The councilman who abstained from voting, John Valdivia, said he did not trust the information presented at the meeting, and having only served since March believed he should not be held responsible for the money mess.

"The taxpayers of this city have been duped, hoodwinked and misguided for the past several years," Valdivia said, according to the Sun.

It was not immediately clear when the city planned to file.

Sixty miles east of Los Angeles, San Bernardino is in a region that soared economically during the housing boom, and suffered accordingly after the crash.

It joins a number of other cities and counties across the nation that have plunged into financial crisis as the recession made it tough to cover rising costs involving payroll, pensions, bondholders and vendors.

Before Stockton, a California city had not filed for bankruptcy since Vallejo in 2008.

Now, with Mammoth Lakes also voting to declare Chapter 9 on July 3, the state has seen three in two weeks.

Since Congress added Chapter 9 to the bankruptcy code in 1937 to allow municipalities to seek protection, about 640 government entities have filed.

[The Nature Boy 4,224]

Liberalism govt just does not work

[Penny Lane 8,159]

You really hate California, don't you?

[X Factor 1,112]

I wonder what happen to all those city bonds that folks invest in (believing it to be very low risk) when these towns go into bankruptcy?

[Bad_Daddy 2,209]

You really hate California, don't you?

Back in '94 when my now ex wife and I went to Medford, Oregon to visit her relatives I drove across the California border just to pull over so I could take a whiz on California. I didn't know when I'd get another chance like that but the extra drive was well worth it.

[JohnR! 5,495]

Back in '94 when my now ex wife and I went to Medford, Oregon to visit her relatives I drove across the California border just to pull over so I could take a whiz on California. I didn't know when I'd get another chance like that but the extra drive was well worth it.

You're not alone. Most people who dislike California have never been there either.

[Bad_Daddy 2,209]

You're not alone. Most people who dislike California have never been there either.

Iv'e been to California before that, I have a brother that lives in California, another sister that used to live in California along with a brother that lives up here now.

Don't assume anything.

[JohnR! 5,495]

Iv'e been to California before that, I have a brother that lives in California, another sister that used to live in California along with a brother that lives up here now.

Don't assume anything.

I must have expressed myself incorrectly.

You're not alone. Most people who dislike California have never been don't know it first hand there either.

I think they should change the state flag to include the wording 'The Sour Grapes State'.

Edited July 11, 2012 by Gegel

[mawilson 2,133]

Third California city votes to declare bankruptcy

Silly Californians. They should have voted to remain solvent.

[Ban Hammer 13,724]

Silly Californians. They should have voted to remain solvent.

in some cases, that may be a bridge too far.

[elmcitymaven 9,712]

I think it is indeed wise to absolve the financial markets of any blame in this mess.

All hail the invisible hand of the market!

[MyLittlePony 340]

A lot is to offer in California just lots of haters liberal tree hugers dissing Cali. they are a jealous of the best weather we have.

[Penny Lane 8,159]

A lot is to offer in California just lots of haters liberal tree hugers dissing Cali. they are a jealous of the best weather we have.

What?!

[Bad_Daddy 2,209]

A lot is to offer in California just lots of haters liberal tree hugers dissing Cali. they are a jealous of the best weather we have.

http://www.calwatchdog.com/2012/05/29/ca-debt-much-larger-than-reported/

California’s debt much larger than reported

May 29, 2012 By Katy Grimes

Reports of California’s debt usually just include the $17 billion budget deficit. But California also owes the federal government $14 billion, and public schools $10 billion.

While California sputters under the massive debt, legislators continue to take up ridiculous bills and resolutions, and ignore bills which would begin necessary reforms.

etc, etc......

[MyLittlePony 340]

We have the best state parks than any other state and the best weather all year round compared to the states are below freezing.