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Stockton bankruptcy: 'All that's left is sadness' for city
The Los Angeles Times ^ | June 27, 2012 | by Diana Marcum

Posted on 06/27/2012 11:28:01 AM PDT by Oldeconomybuyer

With the city of Stockton moving to become the nation's largest city to seek protection under the U.S. Bankruptcy Code, Tuesday night's City Council meeting was quiet, with an evident sadness on faces in the packed chambers.

The working-class port city -- from where many of California's agricultural exports set sail -- lived largely on credit during economic boom times. The city borrowed millions of dollars for ambitious, eye-catching projects in the mid-2000s. Up went a sports arena, hotel and promenade. The city booked a Neil Diamond concert as a kickoff to better times. Houses in sprawling tracts sold quickly and with high mortgages.

When the bust came, few places fell as hard as Stockton. It has the second-highest rate of foreclosures in the nation. Property tax money dried up.

In a desperate effort at solvency, the city made $90 million in drastic cuts over the last three years, including reducing the Police Department by 25%, the Fire Department by 30%, and cutting pay and benefits to all employees.

As of July 1, the city will still face a $26-million shortfall.

The city has stopped making bond payments, and City Manager Bob Deis said he expected to file bankruptcy papers immediately.

(Excerpt) Read more at latimesblogs.latimes.com ...


TOPICS: Business/Economy; News/Current Events; Politics/Elections; US: California
KEYWORDS: bankruptcy; budget; citycouncil; failure; socialism; spending; stockton; taxandspend
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Stockton California bankruptcy: 'All that's left is sadness' for city state
1 posted on 06/27/2012 11:28:10 AM PDT by Oldeconomybuyer
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To: Oldeconomybuyer

Sorry, but nothing like reality to change minds.


2 posted on 06/27/2012 11:30:30 AM PDT by Deagle (nOT Get a)
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To: Oldeconomybuyer

They got what they voted for.


3 posted on 06/27/2012 11:33:06 AM PDT by Cicero (Marcus Tullius)
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To: Oldeconomybuyer

Lower taxes, increase tax incentives for businesses, do away with unions and cut benefits to illegals and see what happens, Stockton.


4 posted on 06/27/2012 11:36:37 AM PDT by Jane Long (Soli Deo Gloria!)
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To: Cicero

Exactamundo.


5 posted on 06/27/2012 11:38:27 AM PDT by sanjuanbob (Festina Lente)
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To: Oldeconomybuyer
Stockton Sports Arena


6 posted on 06/27/2012 11:38:51 AM PDT by Cicero (Marcus Tullius)
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To: Oldeconomybuyer

Vote in more Democrats. See how well it works?

No sympathy here. “California, Rest In Peace” as the song says.


7 posted on 06/27/2012 11:40:39 AM PDT by NFHale (The Second Amendment - By Any Means Necessary.)
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To: Oldeconomybuyer
Stockton bankruptcy: 'All that's left is sadness' for city...

"Let us continue to seek an America that is just and fair," Mr. Mondale said. "Tonight especially I think of the poor, the unemployed, the elderly, the handicapped, the helpless and the sad, and they need us tonight."

8 posted on 06/27/2012 11:44:37 AM PDT by Steely Tom (If the Constitution can be a living document, I guess a corporation can be a person.)
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To: Oldeconomybuyer; Cicero; seenenuf; mickie; flaglady47
The city of Stockton is the tail that wags the dog in San Joaquin county population-wise.

Voting Percentages for San Joaquin County in 2008 Presidential Election:

Obama.....54%
McCain.....44%
Other.....2%

Yup, the fact that you get what you vote for is right on the mark. Hardly even close in stuck-on-stupid Stockton. Mass delusion reigns supreme non-stop in California.

Leni

9 posted on 06/27/2012 11:47:46 AM PDT by MinuteGal
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To: Oldeconomybuyer

Thats not true..all the city has now is 10s of thousands of poor illegal aliens and their families.


10 posted on 06/27/2012 11:49:43 AM PDT by samadams2000 (Someone important make......The Call!)
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To: Oldeconomybuyer
The undervalued piece of the story...

The city has stopped making bond payments

This is going to have broad ramifications. The municipal bond market is going to dry-up because no one is going to take the risk of buying them anymore. This will have major repercussions for how local governments operate. It is also going to zap a lot of "the 1%" who were buying them to avoid taxes.

11 posted on 06/27/2012 12:09:27 PM PDT by Buckeye McFrog
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To: Oldeconomybuyer
STOCKTON DEMOGRAPHICS:The 2010 United States Census[12] reported that Stockton had a population of 291,707. The population density was 4,505.0 people per square mile (1,739.4/km²). The racial makeup of Stockton was 108,044 (37.0%) White, 35,548 (12.2%) African American, 3,086 (1.1%) Native American, 62,716 (21.5%) Asian, 1,822 (0.6%) Pacific Islander, 60,332 (20.7%) from other races, and 20,159 (6.9%) from two or more races. Hispanic or Latino of any race were 117,590 persons (40.3%).

Query: Did "Diversity" assist in the bankruptcy option?

12 posted on 06/27/2012 12:19:34 PM PDT by AEMILIUS PAULUS (It is a shame that when these people give a riot)
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To: Oldeconomybuyer
Anyone with a brain can figure what the demographic breakdown is in Stockton CA. That city is a real sh#t hole; gangs, drugs and crime. I'm not in favor of our military policing our streets but I surmise that's what it will take to cleanup that city.
13 posted on 06/27/2012 12:22:02 PM PDT by drypowder
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To: Buckeye McFrog
The city has stopped making bond payments

But I'm sure the city is still making those outrageous payments to CALPERS so that its retired firemen, policemen, and other retirees can continue to live high off the hog in the meantime.

14 posted on 06/27/2012 12:24:33 PM PDT by Uncle Chip
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To: Uncle Chip

CALPERS payments go toward future benefits, not current retirees.


15 posted on 06/27/2012 12:39:11 PM PDT by ArmstedFragg (hoaxy dopey changey)
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To: Oldeconomybuyer

It is a preview what is about to happen to all of California.You can not continue to spend and spend after you have a shrinking income because there is not enough money to pay Democrats’ folly.


16 posted on 06/27/2012 12:48:37 PM PDT by chris_bdba
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To: Oldeconomybuyer

It is a preview what is about to happen to all of California.You can not continue to spend and spend after you have a shrinking income because there is not enough money to pay Democrats’ folly.


17 posted on 06/27/2012 12:48:44 PM PDT by chris_bdba
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To: Buckeye McFrog
The city has stopped making bond payments

Which is not to say that the city has stopped paying outrageous pension benefits.

These people won't get it.

18 posted on 06/27/2012 12:54:12 PM PDT by Carry_Okie (The Slave Party: advancing indenture since 1787.)
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To: Buckeye McFrog
...The city has stopped making bond payments...

All 0bama's "stimulus" did was delay the pain. Cities and States took his bribe money, continued their reckless spending, and are now paying the price. Unfortunately, Stockton is the tip of the iceburg.

19 posted on 06/27/2012 1:43:01 PM PDT by Oldeconomybuyer (The problem with socialism is that you eventually run out of other people's money.)
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To: Steely Tom

I thought we had market cornered on idiot Mondales here in MN.


20 posted on 06/27/2012 2:07:05 PM PDT by TurboZamboni (Looting the future to bribe the present)
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