The fiscal brink, that is.
From today’s LAT:
The major examples cited by the LAT are:
- Vallejo, which filed for Chapter 9 bankruptcy in 2009, because “salaries and benefits for its public safety workers were eating up too much of the general fund”.
- Stockton, which filed last month “after it was unable to come to agreement with its employee unions and creditors on a plan to close a $26-million gap in its general fund”.
- Mammoth Lakes, which filed earlier this month because of a $43 million court judgement.
- and San Bernardino, which “couldn’t close a $45.8-million budget shortfall and would be unable make its payroll this summer”. As noted previously, the city is also claiming that budget figures had been falsified for 13 out of 16 years.
Have you ever noticed how it is always the police and fire departments that they threaten to cut first? You never hear them say “We’re going to cut the budget for big-screen TVs and office furniture”. Always the cops and the firefighters. In this case, that may make sense, especially if they can contract out the services cheaper. But:
And is filing for bankruptcy worth it? Let’s ask the people of Vallejo:
Municipal pensions may be a growing crisis, and there’s certainly some evidence in the LAT‘s coverage to support that. But of the four major examples they cite, one dates back three years, one involves a court judgement against the city, one may involve falsified financial information provided to the city…and that pretty much leaves Stockton, which might be worth more investigation.

