Stockton bankruptcy: 'All that's left is sadness' for city

The Los Angeles Times ^ | June 27, 2012 | by Diana Marcum

[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.

[Oldeconomybuyer]

Stockton California bankruptcy: 'All that's left is sadness' for city state

[Deagle]

Sorry, but nothing like reality to change minds.

[Cicero]

They got what they voted for.

[Jane Long]

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

[sanjuanbob]

Exactamundo.

[Cicero]

Stockton Sports Arena

[NFHale]

Vote in more Democrats. See how well it works?

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

[Steely Tom]

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."

[MinuteGal]

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

[samadams2000]

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

[Buckeye McFrog]

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.

[AEMILIUS PAULUS]

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?

[drypowder]

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.

[Uncle Chip]

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.

[ArmstedFragg]

CALPERS payments go toward future benefits, not current retirees.

[chris_bdba]

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.

[chris_bdba]

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.

[Carry_Okie]

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.

[Oldeconomybuyer]

...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.

[TurboZamboni]

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

[itsahoot]

A few mods and it could become a detention center.

[hinckley buzzard]

The working-class port city -- 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...

Stupid is as stupid does. The peons should flush the turds who did this, but they won't.

[ex91B10]

""Tonight especially I think of the poor, the unemployed, the elderly, the handicapped, the helpless and the sad, and they need us tonight.""

80 % of Mr. Mondale's list is the reason they're in the jam they're in.

[<1/1,000,000th%]

Why don’t they just borrow the money like the state of Illinois does?