The California Bankruptcy Dominos Line Up

Russ Steele

Los Angeles is joining Fresno, San Jose, San Diego, Stockton in the waiting line to file bankruptcy.

LA Times:

“Chief Administrative Officer Miguel Santana said rising employee costs combined with flat-lining revenues have left the city in a precarious position. Even after reducing its workforce by 4,900 positions in recent years, the city faces a $222-million budget shortfall, he said, a figure that is expected to rise to $427 million by 2014-15.

“We’re always in crisis mode,” Santana said in an interview. “We’re always trying to close that shortfall.” Without cutting costs and coming up with about $150 million in new revenue, “we’re facing the complete devastation of city services, including public safety,” he said.”

The rest of the story is HERE.  First it was the cities, then the Counties and then the State!  Who is next?

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About Russ Steele
Freelance writer and climate change blogger. Russ spent twenty years in the Air Force as a navigator specializing in electronics warfare and digital systems. After his service he was employed for sixteen years as concept developer for TRW, an aerospace and automotive company, and then was CEO of a non-profit Internet provider for 18 months. Russ's articles have appeared in Comstock's Business, Capitol Journal, Trailer Life, Monitoring Times, and Idaho Magazine.

One Response to The California Bankruptcy Dominos Line Up

  1. sean2829 says:

    I suspect that the Chief Adminstrative Officer for LA is floating trial ballons for the mayors office to see what he can make the union swallow going forward. The mayor, being a former union attorney is probably reluctant to handle the issue directly. I dought that things are as dire in LA as they are in Stockton but the way money funnels through Sacramento you just never know.

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