Bankruptcy Talk Spreads Among Calif. Muni Officials

Money News ^ | 05/28/10

[TigerLikesRooster]

P!

[JPG]

Of course, the cash will continue to flow for services for illegals and SEIU benefits and pensions.

[Bhoy]

“... politically powerful public employee unions. ...
pressing the legislature to pass a bill that would require local governments to get the approval of a state board before filing for bankruptcy. Since the board could be stacked with union-friendly appointees, bankruptcy pleas could be rejected or delayed.”

[RobRoy]

>>Of course, the cash will continue to flow for services for illegals and SEIU benefits and pensions.<<

At first maybe. But this will still end very badly, even for them.

[dennisw]

I don’t know how successful they were but the Gov’t worker unions in California were trying to jam a law through the legislature making municipal bankruptcy very difficult

[RobRoy]

“You don’t have the easy out of increasing revenue and you have a lot more call on services because of the economy,” Street said.

At least they understand that raising taxes can actually reduce tax revenue.

[dennisw]

Talk of municipal bankruptcy has not escaped California's politically powerful public employee unions.

A number of them are pressing the legislature to pass a bill that would require local governments to get the approval of a state board before filing for bankruptcy. Since the board could be stacked with union-friendly appointees, bankruptcy pleas could be rejected or delayed.

[richardtavor]

Most o...f them will claim bankruptcy in order to stiff us bondholders..this will cause a chain reaction that will be difficult to stop.

[eyedigress]

Don’t worry. Walmart has lowered prices by 12 cents on their goods. All will be just great.

[pnh102]

Municipal bankruptcy really isn’t such a bad idea.

[eyedigress]

Bankrupt the teachers union. The bastards have been trained to teach failure from the word go.

[DB]

The dominoes are teetering...

[MIchaelTArchangel]

I have long wondered why California municipalities have not yet declared bankruptcy. Doing so would void all the out of control labor contracts and allow the municipalities to simply terminate, en masse, most municipal employs and then start restructuring the towns and cities. Oh, wait. The mayors and "leaders" of those municipalities are the ones who tried to buy voters from municipal unions using taxpayer monies so they aren't likely to take that route...unless it is forced upon them.

[YHAOS]

Welcome to the Liberal Land of Fruits and Nuts . . . comrade.

Coming soon to a neighborhood near you.

[FlingWingFlyer]

ARIZONA SB 1070! When bankruptcy is NOT the answer!

[Extremely Extreme Extremist]

California's solution:

(1) Outlaw public unions
(2) Kick out the illegals/deny illegals benefits and employment
(3) Drill off-shore
(4) Hire outside firm to cut the size of state government
(5) Abolish state income and corporate taxes and switch to a universal 10% sales tax with no deductions or credits
(6) Privatize Cal-Medicaid and give vouchers to recipients

[Wally_Kalbacken]

It will no doubt be widely used in CA - but the critical point is that it is only available to municipalities, sub-units of states, but not states themselves. The political choke hold of the prison guards unions and other state employees on Sacramento cannot be mitigated by bankruptcy. And a lot of th problem is at the state level.

[Hildy]

So, what does it mean if a municipality goes bankrupt?...I have no idea. Please explain if you could, since you seem to understand all of this.

[Drango]

Finally....the unions have the state by the throat. Goodness knows the voters don’t care. Perhaps a bankruptcy judge can fix it. (shudder)