Skip to comments.Three California cities' bankruptcy cases reverberate
Posted on 08/08/2012 11:51:38 AM PDT by SmithL
The back-to-back bankruptcy filings of Stockton and San Bernardino, following Vallejo's insolvency a few years earlier, have sparked finger-pointing about causes and speculation about whether more cities may go under.
Those on the political right say the bankruptcies resulted from local politicians' caving in to pressure from unions for higher pay and more generous pension and health benefits.
Those on the left unions particularly contend that the collapse of the real estate market, caused by rapacious Wall Street bankers, is to blame.
The reality is more nuanced.
All three cities on the suburban peripheries were facing urban decay. When the housing boom brought revenue surges, their leaders assumed, irresponsibly, that the windfalls would never end.
They overspent, not only on better pay and benefits for their employees, but in Stockton's case, on massive loans for image-improving civic projects.
When the housing bubble burst, they covered up the shortfalls with creative bookkeeping. Eventually, reality caught up with them.
San Bernardino's leaders were especially creative, perhaps illegally so.
And they've also blamed the state's elimination of local redevelopment agencies and seizure of their assets.
It's apparent, however, that San Bernardino and many other cities had been using redevelopment funds improperly, if not illegally, to fill holes in their budgets, rather than for eliminating urban blight.
(Excerpt) Read more at sacbee.com ...
they covered up the shortfalls with creative bookkeeping. Eventually, reality caught up with them.
Coming soon to a WHOLE CIVILIZATION near you.
This sort of content in his opinion has only been expressed for about the last three months.
A rat leaving the sinking ship and swimming furiously for the minuscule speck of credibility on the horizon.
I happen to know, from friends living in San Bernardino, that there is no meaningful evidence that the local state funded “redevelopment agencies” made any dent in “urban blight” - it has grown, not stopped or receded. Imagine that!!!
San Bernardino is also a case of local officials believing the housing bubble (and rising house values & assessments) would go on forever, and budgeted as if it would; making promises that a sane person would have recognized as not just unimaginable but insane.
What we do not have are enough laws with which clearly criminal acts - breach of trust and fiduciary responsibility inherent in the oath of office - can send government officials to jail.
I have but one question. Are they mayors or prefectures or whatever the hell they call the head supervisors, council persons in these cities black or hispanic?
They are all a mixture: The only black on the city council in Vallejo is the mayor, Osby Davis
Marxist, Socialist, Commie, Liberal, Democrats come in all colors!!
Too late, Dan.....
“Marxist, Socialist, Commie, Liberal, Democrats come in all colors!!”
You are, of course correct! I was merely responding to a question from another poster. That said, minorities do play a significant role in the “leadership” of our big cities. Pick the worst of the cities, and you will find minority leadership. Now, that may be because those same cities are in and of themselves populated with minorities who naturally elect their own. But the case can also be made that those same cities “ transitioned” to minority majorities over time and that may also be the reason that they are experiencing decline. Here in CA I just read today that a minority legislator from Oakland is trying to pass a bill to increase spending through a new “program” to deal with the 70% of the minorities in our prison system. More in-prison education and job training to try and prevent recidivism. What I want to know is why these criminals failed to get the education that was offered to everyone when they were growing up. Maybe it’s because most of them don’t know who their fathers are.