Wednesday, June 27, 2012

Stockton, California set to be largest US city to declare bankruptcy, mediation fails

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3/30/12, "
How Stockton, California Went Broke in Plain Sight. The new era of local government: Taxpayers can expect to pay more but get less." Steve Malanga, Wall St. Journal (scroll down on Buffalo site)
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6/26/12, "Californian city of Stockton faces bankruptcy," BBC

"The Californian city of Stockton looks set to become the largest US city to declare bankruptcy, after a deadline to make a deal with its creditors passed.

Stockton City Council is expected to vote on Tuesday night on whether to file for bankruptcy protection....

Mike Brooking, 50, a Stockton native and coffee shop owner, blames city officials. He says they paid people unreasonably generous pensions and medical benefits.

"They gave employees guaranteed healthcare when they're gone - and their families," Mr Brooking said.

"To people who worked there for one month! They couldn't afford it then. They can't afford it now. No-one else has those guarantees.

"The fact is that the police department is shrunk and crime is crazy and there are no jobs. I think this is going on throughout the whole Central Valley, in the whole country and Europe.""...

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6/26/12, "Stockton official: Mediation with creditors fails," AP

Stockton City Hall, Feb. 2012, ap


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