The city of Long Beach's expected $15.7 million budget deficit certainly isn't good, but apparently it could be worse.
The Wall Street Journal's Bobby White reported earlier this month that two more California towns may join Vallejo in declaring bankruptcy as the economy worsens. From the article:
RIO VISTA, Calif. -- California may soon have more bankrupt towns on its hands.
The city of Vallejo, Calif., gained national attention earlier this year by filing for Chapter 9 bankruptcy protection. Now, two neighbors are fighting to avoid the same fate, as the state's economic crisis spreads.
Isleton and Rio Vista, small towns roughly 50 miles northeast of San Francisco, say they have begun consulting with bankruptcy lawyers as they draw up plans to deal with their mounting budget crises. The towns' leaders say they hope to avoid bankruptcy, but concede the move may eventually be their only option.
"We're strapped for cash and by the end of March or early April we may not have enough money to pay for payroll," says Hector De La Rosa, Rio Vista's city manager.
Read the full article here.
When Long Beach City Manager Pat West announced the city's new budget deficit, which was largely the result of oil revenue declines, about two weeks ago, I asked him whether bankruptcy could be in Long Beach's future. He assured me that the city is far from going bankrupt as Vallejo has done and those two other Northern California towns possibly will do. Let's hope he's right.
Paul Eakins reports on Long Beach City Hall, and local and regional
politics. A newcomer to the Press-
Kris Hanson reports on the Ports of Long Beach and Los Angeles,
covering environmental issues, economic triumphs and
pitfalls and trade trends of America’s largest port.
He also writes a weekly column “On The Waterfront”,
appearing Tuesdays, and also produces an occassional video
and column titled “On The Job,” which follows the hard-working
men and women who keep Southern California’s economy humming.
Karen Robes Meeks came to work for the Press-
And you're taking Pat West at his word? Perhaps you should read the attached article and draw comparisons.
http://capitalmatters.blogspot.com/2008/06/city-files-bankruptcy-to-get-out-of.html
The next biggest scam after investment bankers. Bankruptcy Lawyers. They go in after the Wall Street Guys do their number and get paid by taxpayers to clean it all up. Sweet.
Thank God for free market, supply side, Republican based economics. So much better than those tax and spend liberals, lmao.