California on Brink of Financial Armageddon

[st louis steve]

California on Brink of Financial Armageddon Californ-I-O-U

California has the largest economy in the U.S. and is also the most indebted state with a deficit that has balloned almost 70% since January 2012. Current FY 2013 budget gap is more than $15 billion. And at least three California cities are exploring the option of declaring for bankruptcy. 20% of cities in California could be teetering on the edge of bankruptcy by the end of 2012.

Stockton, CA: Carrying $700 million in debt... could become the largest U.S. city to file for bankruptcy

San Diego: 8th largest U.S. City -- city's retirement fund soared to $231.2 million this year -- 20% of the general fund budget -- Has laid off hundreds of workers in recent years to pay soaring pension bills

San Jose: 10th largest U.S. City -- mayor declared a fiscal emergency in 2011 -- experienced back-to-back General Fund deficits of over $100 million in 2010 and 2011.

Hercules, CA: recently defaulted on a debt payment -- S&P dropped its ratings on city debt by five notches

Santa Ana. CA: population of 325,000--city has recently shuttered its fire department and turned fire protection duties over to the county--saving $10 million a year

Vallejo, CA: became the largest city in America to declare bankruptcy in 2008--emerged in 2011

Antioch, CA: a city of 100,000, hammered by the housing slump. To keep its books balanced, the city implemented a hiring freeze; furloughs; employees waiving pay increases; and also reduced its workforce from 401 to 245

Costa Mesa, CA: a city of 110,000 south of Los Angeles and because of financial issues, it has slashed its payroll from 611 to 450. Reported that the city is selling its police helicopters and has hired a neighboring city for air patrols. Costa Mesa is also pursuing a somewhat controversial effort to convert to a charter city from a general law city, which would give City Hall more power to outsource more work

[sources: Bloomberg, Center on Budget and Policy Priorities, Washington Post, Wall Street Journal, Reuters]


Read more: http://nation.foxnews.com/california/20 ... z1z3PpDp7W

[GodsStudent]

Didnt a county in CA file bankruptcy today? Thought that was what a friend mentioned to me today?

[drdos]

Awe there's nothing to worry about here Obama just gave amnesty to 800k plus illegals. That should help things financially for Cali right???

[El Gallo]

Stockton city is filing for bankruptcy tomorrow. The illegals are a major drain on the state, but if you have to define it down ot one major issue, it is the powerful "public service employee" unions and wildly unsustainable pensions.

For the state pension system, the highest paid retiree is making over $500K a year. Pensions over $100K are common for senior police and firefighter retirees.

The unions are fighting every effort to curb their power and temper pension plan payouts. They will not negotiate or reason. They "own" the state legistlature, so no help there.

[drdos]

Stockton city is filing for bankruptcy tomorrow. The illegals are a major drain on the state, but if you have to define it down ot one major issue, it is the powerful "public service employee" unions and wildly unsustainable pensions.

For the state pension system, the highest paid retiree is making over $500K a year. Pensions over $100K are common for senior police and firefighter retirees.

The unions are fighting every effort to curb their power and temper pension plan payouts. They will not negotiate or reason. They "own" the state legistlature, so no help there.

Yeah Illegals are not the only problem Cali has. I would say they also have a depraved and morally bankrupt society among the HollyWeird. I mean Nancy Pelosi is seen as a normal person in Cali right?

[El Gallo]

Well, Sen Feinstein, who dressed in weird costumes to march in homosexual rights parades, is the most conservative of the big three (Pelosi and Boxer).