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After Vallejo, City Of Antioch Officials Consider Bankruptcy Filings ( California )
Reuters ^ | May 31, 2010

Posted on 06/03/2010 8:44:49 AM PDT by george76

Two years after Vallejo, California, filed for bankruptcy protection, officials in nearby Antioch are also tossing around the 'B' word.

Antioch's leaders earlier this month said bankruptcy could be an option for the cash-strapped city of roughly 100,000 on the eastern fringe of the San Francisco Bay area.

Antioch's fiscal woes are standard issue for local governments in California: weak revenue from retail sales and property taxes is forcing spending cuts, layoffs and furloughs.

Orange County Treasurer Chriss Street would not be surprised if more local governments across the Golden State sound a similar alarm.

Street expects more talk of municipal bankruptcy across California because local government finances are in such dire shape -- a situation underscored Wednesday when a top finance officer for Sacramento County projected a worse-than-expected shortfall for the county of $181 million, which could force more than 1,000 layoffs from the county's payroll.

Like Vallejo, Los Angeles is suffering from weak revenue at the same time the cost of its pensions and other retirement benefits are rising. Former Mayor Richard Riordan said those factors put the government of the second largest U.S. city on track to declare bankruptcy between now and 2014.

"The threat of bankruptcy is really the only way you're going to get them to make major changes,"

Talk of municipal bankruptcy has not escaped California's politically powerful public employee unions. A number of them are pressing the legislature to pass a bill that would require local governments to get the approval of a state board before filing for bankruptcy. Since the board could be stacked with union-friendly appointees, bankruptcy pleas could be rejected or delayed.

"It's a horrible bill," Levinson said. "If you don't have the bankruptcy outlet, what do you do? If you can't pay your bills what do you do?"

(Excerpt) Read more at fox40.com ...


TOPICS: Business/Economy; Government; News/Current Events; US: California
KEYWORDS: antioch; bankruptcy; losangeles; pensions; unions; vallejo

1 posted on 06/03/2010 8:44:49 AM PDT by george76
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To: george76

One by one the municipal dominoes are falling in this once great state.

I won’t be surprised if eventually, various counties in the greater Los Angeles area come next.

This city can’t even pay its teachers without going to Washington hat in hand. They once had to issue IOU’s to the teachers as currency.


2 posted on 06/03/2010 8:52:35 AM PDT by SeekAndFind
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To: george76

So either we defeat the public employee unions or we go bankrupt.


3 posted on 06/03/2010 8:55:39 AM PDT by GeronL (Political Correctness Kills)
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To: george76

Well they just need to raise taxes.

/sarc


4 posted on 06/03/2010 8:58:10 AM PDT by Tzimisce (No thanks. We have enough government already. - The Tick)
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To: GeronL

Vallejo, much to its detriment, is a union stronghold.


5 posted on 06/03/2010 8:59:26 AM PDT by Califreak (A man is defined by the nature of his enemies-Preach it Rush!)
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To: SeekAndFind; george76

The State is considering making it more difficult for cities to declare bankruptcy. There will be a commission (stacked with municipal employee union goons, I expect) that will review and approve filings. I wonder if there might be a flurry of bankruptcy filings in advance of the approval of this new commission.

http://www.sacbee.com/2010/06/01/2789155/dan-walters-municipal-bankruptcy.html


6 posted on 06/03/2010 9:00:12 AM PDT by rogue yam
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To: Califreak

Figures.

So I was right. The unions will resist reality until the whole thing collapses. It’s the same with America as a whole.


7 posted on 06/03/2010 9:00:42 AM PDT by GeronL (Political Correctness Kills)
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To: rogue yam
The State is considering making it more difficult for cities to declare bankruptcy

Great, you don't have the money to pay your bills and you can't declare bankrupcy inspite of that. Either way, no one gets paid.

What are you going to do next? Sell the parks and government buildings ?

How much blood can you squeeze out of a turnip ?
8 posted on 06/03/2010 9:03:23 AM PDT by SeekAndFind
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To: george76

Democrat controled state for thirty years files for bankruptcy protection,who knew?. /s


9 posted on 06/03/2010 9:07:18 AM PDT by Vaduz
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To: george76
weak revenue from retail sales and property taxes is forcing spending cuts, layoffs and furloughs.

Not to mention the unreimbursed costs of ERs.

10 posted on 06/03/2010 9:07:21 AM PDT by martin_fierro (< |:)~)
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To: SeekAndFind
which could force more than 1,000 layoffs from the county's payroll.

Bloated government at all levels is dying...The tax payers have no more money to give....

This is great news....If this is what it takes....

Get er done!!

11 posted on 06/03/2010 9:08:35 AM PDT by dragnet2
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To: GeronL

That has to be the reason why Obama’s toad George Miller keeps getting re-elected. Around election time, he’ll throw a few crumbs out to the unions and they’ll keep him in office.


12 posted on 06/03/2010 9:17:20 AM PDT by Califreak (A man is defined by the nature of his enemies-Preach it Rush!)
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To: george76

Another example of greenies ruining the economy. Antioch used to have a pulp mill which supplied many jobs and gave a good tax base but of course it went the way of the lumber mills in CA and so did the tax base, now all the residents work in the bay area at various jobs, of which the income is eaten up in commuting and toll fees.


13 posted on 06/03/2010 11:14:44 AM PDT by calex59
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To: rogue yam

The State is considering making it more difficult for cities to declare bankruptcy.


I think many California cities are in such a state of ruin that it doesn’t matter what scheme the union thugs and our state legislature come up with.

The money tree is gone. If a city isn’t allowed to go bankrupt it means absolutely nothing if there ain’t no money.
Broke is broke. The state can use every legal trick in the book and that doesn’t change. Broke is Broke.

All


14 posted on 06/03/2010 5:25:43 PM PDT by Joan Kerrey (The bigger the government = The smaller the people)
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