Posted on 07/18/2012 7:36:08 AM PDT by BenLurkin
The city of Compton is reportedly facing bankruptcy following an announcement at a City Council meeting Tuesday night.
During the four-hour meeting, two senior financial officials told council members they have to decide by September 1 whether or not to file for bankruptcy.
The municipality has accumulated a $43 million deficit with no reserve. Funding for the city is expected to run out by the beginning of September.
The Council added to Compton’s accumulated deficit on July 10 when it adopted a $161 million budget with a $9 million projected deficit.
“Either you’re gonna pay these bonds . . . don’t pay the bonds, default on them, preserve your cash or you either need to have a serious talk about bankruptcy,” Douglas Sanders, Compton City Treasurer, said Tuesday night.
The city council meeting adjourned without any discussion of bankruptcy.
If filed, Compton would be the fourth California city to declare or consider bankruptcy. San Bernardino, Stockton and Mammoth Lakes have all announced this year that they would seek restructuring of their liabilities.
Compton has a population of 93,000.
As someone living in this F’d up state, I hope more cities go bankrupt. In fact, I hope the entire state goes bankrupt. And I don’t want to see one dime of federal money to bail us out. Maybe the idiots who keep voting the commies in office will eventually wise up. Yeah.....maybe.
BAIN capital’s fault...that and the fact that Romney refuses to release his entire life’s worth of tax returns, it’s no wonder why so many California cities are declaring bankruptcy.
Summer of recovery!!!
Whenver a city is in the news for financial distress, I like to look at City Data, to get some demographic information...incomes, crimes, avg age....
...and then I found this:
Hispanic - 65%
Black -32.1%
White - 0.8%
Talk about being a minority!
Straight outta money!
Cities in California are declaring bankruptcy on a daily basis, primarily due to overly-generous union contracts, particularly for retirees. Liberal Detroit looks like Port au Prince, Haiti. The social democracies of Europe, epitomized by Greece and Spain, are completely broke and largely dysfunctional. So, the clear message that liberals infer is to emulate these economies, rather than that of Texas, or Singapore.
I’m with SignalMan. Bankruptcy couldn’t happen to a more corrupt, overspending bunch.
Those demographics don’t portend well for the left’s plan to import Mexican workers to save Social Security. I wouldn’t feel obligated to pay taxes to support retired white baby boomers if I was a Mexican, would you?
If the left is more interested in power than a well-functioning country, then the left's political decisions make complete sense. Just saying.
Yeah
“the White Guy’s guide to driving in L.A.”
Rule #1 - don’t get off on any exit you have heard mentioned in a rap song.
Inglewood is up to no good.
Get straight OUT of Compton.
California seems to have plunked down all of their bets on a second Obama term and the Mother of All Bailouts.
On a side note, I attended the Fullerton City Council meeting last night. Proposed bike paths running through parts of the city, which are part of a County wide design, were discussed. The OC Supervisor giving the presentation stated that the Federal government has to give approval before the project goes forward. Federal approval- for bike paths!
Note that the first thing they consider doing is to default on their municipal bonds rather than default on payments to CALPERS where all the people who caused this bankruptcy are living high off and on the hog, and where they intend to escape to after finishing off the city.
That was our unspoken mantra when I went to high school in Compton, 40 years ago. Within a year of graduation, 75% of us had moved away. The remaining 25% followed within a year or two.
It was a dump then, and has only gotten worse in the decades since.
Yup.
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