Posted on 06/09/2009 7:42:25 AM PDT by SmithL
Even though city officials would prefer to avoid a public conversation, behind closed doors the Oakland City Council has discussed filing for bankruptcy protection in the midst of a $100 million budget deficit.
"We have asked the (bankruptcy) question because we wanted to know the impact," said District 5 council member Ignacio De La Fuente. "In closed session, the question has been asked, and an answer was given." He would not elaborate.
"It's a possibility," he acknowledged. "Things are that bad."
Council President Jane Brunner was equally aloof. She ably acknowledged the city's dire financial problem while managing to avoid the b-word altogether.
"We're going to try to avoid it, but am I going to say it would never happen? I can't say that," Brunner said.
Consider the city's cash position: Out of next year's general fund of approximately $415 million, police costs are estimated at $212 million, fire protection service $103 million and $41 million in debt service payments. That leaves about $60 million to pay for everything else, from library services to recreation centers to public works.
And that calculation doesn't include $50 million more in deferred debt service in a budget proposal presented to the council last month by Mayor Ron Dellums.
"We are in the worst recession since 1981," said UC Berkeley Professor John Ellwood, an economist who worked in the Congressional Budget Office. "This recession is a bit different in that it's being driven by the housing bubble, but as more and more people ask for property-tax reassessments, it's going to leave a huge funding gap for cities," Ellwood said.
It's already begun. Alameda County Assessor Ron Thomsen said tax assessments fell $13.6 billion in the fiscal year that will end June 30.
(Excerpt) Read more at sfgate.com ...
And yet, Oakland continues to coddle illegals:
http://www.freerepublic.com/focus/f-news/2265906/posts
Woooeee that is one spendy county!
The solution is simple: license liquor stores to open up and operate right next to social services offices. Legalize slot machines in these operations and the good times are rolling again x 10!
Time to tap into the rainy day fund eh, Mr. Ellwood? /s
Woooeee that is one spendy county!
Not like New Mexico. Here the legislature mandated that county assesors raise property values by about 10% even though insurance companies are stating the value of the houses has declined about 30%.
That I believe.
I'm leaving bright red MN and heading for deep blue OK because of the same.
Soon MN will have government paying for itself for business is fleeing at a rapid pace.
Oakland can sink into SF Bay for all I care.
Translation: "We wanted to know if we could renege on our existing debt and then get right back to overspending."
Oakland? Now that IS a surprise. I would have thought Oakland enjoyed a near 100% employment rate. How in the world could this Marxist paradise of Obama voters be in trouble??
Legacy of Gov. Moonbean and Ron Red.
Great job guys! No doubt higher office is in order.
Dear FReepers...escrow closes tomorrow as we are selling our home in OAKLAND.
Please pray the deal funds for me and my family.
It is a Socialist cesspool, we are OUT! (Hopefully)
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