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Thursday, July 19, 2012

Bankrupt California Cities List

This is a list of California Cities and Municipalities in or Near bankruptcy taken from the article California Cities and Municipalities In Or Near Bankruptcy.
Cities can file for bankruptcy if they are insolvent which means they are unable to pay debts that are due. When in bankruptcy, a city doesn't have to pay its creditors while it negotiates a plan for dealing with its debts. Municipal bankruptcies are extremely rare because cities have the power to tax. Since they can tax their citizens, cities have a hard time convincing a bankruptcy court that they truly cannot pay their debts.

  1. June 18, 2012: Stockton, with 300,000 residents
  2. July 2, 2012: Mammoth Lakes with 7,700 permanent residents
  3. July 10, 2012: San Bernardino with 209,000 residents
The dominoes are starting to topple. 

How many cities are "solving" their problems with dual pay structures where new workers get lower salaries and pay for or contribute more to their pensions like "regular" taxpayers that fund the cities?

How will dual pay scales affect moral and ability for public safety employees to work well together?

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