by: Ronald Grover and Jim Christie
Wednesday, July 18, 2012
The Los Angeles
suburb of Compton, which suffered damage during the 1992 Rodney King riots
, now faces the threat of bankruptcy.Photo Credit:Flickr.com
The City of Compton, a city of 93,000 people located on the outskirts of Los Angeles, must decide by September 1 whether to seek bankruptcy, according to its two most senior financial officials. …
Compton, which has an accumulated $43 million deficit and has depleted what had been a $22 million reserve, will run out of cash to make its payroll on September 1 at its current cash consumption rate, city comptroller Steven Ajobiewe told the city council during a July 17 meeting. …
[Compton Mayor Eric J. Perrodin] told the city council that at one point in its past the city had overspent legally set limits on certain programs by $17 million but would not elaborate.