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Stockton, Calif., faces midnight deadline to avert bankruptcy

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posted on Jun, 26 2012 @ 12:00 AM
Stockton could become the largest U.S. city to file a rare "Chapter 9" bankruptcy.

They are negotiating with "creditors".

Does anyone have details on why they are busted out ?

Corruption ? .. Fraud ? .. Embezzlement ? .. Expensive, unfunded benefits ?

What can the citizens look forward to ?

SAN FRANCISCO, June 25 | Tue Jun 26, 2012 2:55am IST

(Reuters) - Stockton, California was at risk on Monday of becoming the largest U.S. city ever to file for bankruptcy as the clock ticked down toward the midnight deadline of talks with creditors.

If Stockton, home to a population of 292,000 about 85 miles east of San Francisco, fails to win concessions in the talks to close a $26 million shortfall for the fiscal year beginning on July 1, City Manager Bob Deis will soon seek protection from creditors with a rare Chapter 9 bankruptcy filing.

On Tuesday evening the city council will vote on a so-called pendency plan budget crafted by Deis to guide the city's finances during bankruptcy proceedings....

Reuters story

posted on Jun, 26 2012 @ 01:00 AM
reply to post by xuenchen

Well, my friend....there are several reasons we are going bankrupt here in Cracktown, U.S.A....all of which have to do with poor city leadership, poor financial decisions, and unsustainable benefits packages for government employees. Our city council spent millions on reviving the downtown area, but they did stupid PAY an upscale Bay Area restaurant $5 million dollars to open their business here....all at the taxpayer's expense. That restaurant lasted about a year before it bailed outta here.

Our city built a huge arena that has been in the red pretty much the entire time since it opened. Our downtown businesses and many of the mom and pop stores are shutting down because they just can't make it. The only kind of retailers that seem to be popping up on every corner are the pharmacies....(go figure).

They've drastically reduced our police department down to a skeleton crew and our crime rate has gone through the roof ever since. We're already up to 30 homicides. Last year at this time, we only had 15. Shootouts in broad daylight are becoming very common.

I've lived here all my life and, though I've often wanted to move, I never really made a serious effort to do so....until NOW. I'm in the process of moving to the hills. This town needs an enema and the negative energy has become intolerable. We have a very racially diverse population....and too many people here are products of generations of family members who live off welfare. Our school system sucks and there isn't any end in sight. As long as I can remember, we have never had decent leadership in this city. At some point, the consistent incompetency had to catch up to our city leaders.

If and when the economy worsens, I foresee riots....I really do....and I don't wanna be anywhere near here when they start. I recently read that the Stockton Police Dept. acquired one of those military tanks we've heard about on ATS. Apparently, they feel something wicked this way comes.

edit on 26-6-2012 by NightGypsy because: (no reason given)

edit on 26-6-2012 by NightGypsy because: (no reason given)

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