BANKRUPT CITIES TAKE SHINE OFF GOLDEN STATE

News
by: Steven Greenhut
Friday, July 20, 2012
Bankrupt cities take shine off Golden State

A homeless camp in Sacramento, the capital setting the out-of-control spending tone for California. Photo Credit:AP/Rich Pedroncelli

First Vallejo, then Stockton, then Mammoth Lakes, and now San Bernardino and soon possibly Compton. As Orange County Supervisor John Moorlach told Bloomberg News, the bankruptcy dominoes are starting to fall. One California city after another — following a decade-long spree of ramping up public-employee pay and pension benefits, as well as redevelopment debt — are becoming insolvent.

Not that the state’s legislators have anything constructive to offer. California’s Democratic leaders are not only unwilling to rein in the costs of benefits for their patrons, the public-sector unions, but they have been erecting roadblocks to those localities that want to fix the problem on their own. Yet all the political blockades in the world cannot fix the basic problem of insolvency.

Read more:http://times247.com/articles/bankruptcy-dominoes-falling-in-california#ixzz21OhUrMgw

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