City of Stockton CA may file BK

[Wigmeister General]

Stockton, Calif., one of the hardest-hit cities in the country in terms of real-estate foreclosures, is weighing whether to seek Chapter 9 bankruptcy protection from its creditors.

"The city is in an immediate and severe fiscal crisis and it is or likely will become unable to meet its financial obligations," City Manager Bob Deis wrote in a memo to council members.

[Jack]

After it files BK will it be Home of the Whopper?

[Zakk Wylde]

Is there some way short of bankruptcy to renege on ridiculously generous retiree medical benefits? Those seem to be driving the problem. Why not just not pay, or announce that you are capping the benefits at current levels, or five years ago levels? The retirees don't have to be real smart to figure out that Stocktonians aren't going to tolerate a city government that only functions to provide gold-plated benefits to retired city workers.

[johnny storm]

There's not really a legal mechanism short of bk in most jurisdictions.

You can negotiate, but of course this is intractable when you have so many different factions, all of whom think that the right answer is "Me and my group should be protected, but I think we can all agree that other people deserve cuts".

Because there's always plenty that can be cut/taken from other people without cutting/taking from me. It's the basic problem of big government, on a small scale.

[Len Myers]

Originally Posted by Zakk Wylde

The retirees don't have to be real smart to figure out that Stocktonians aren't going to tolerate a city government that only functions to provide gold-plated benefits to retired city workers.

Stocktonians will tolerate anything they're told to tolerate. If they try to vote out the government, they will pay court-levied taxes; if they try to amend the constitution, the state government will spit on them, and a US court of appeals will tell them to stuff it. If they try to move away, their homes, cars, and belongings will be confiscated, their wives will be sold into white slavery -- and their kids will still have to buy inadequate school lunches.

[Wigmeister General]

http://news.yahoo.com/stockton-could...024108696.html

And now, officials say this river port city of 290,000 is on the brink of insolvency and could become the nation's largest city to fall into Chapter 9 bankruptcy protection.

The City Council voted late Tuesday to use a new California law to enter mediation with its creditors. City leaders said they hoped the plan to renegotiate Stockton's debt would help it avoid bankruptcy.

Dozens of residents spoke against the move, saying they feared it would do the opposite, KRCA-TV reported.

"If they vote for mediation, it is the first step towards bankruptcy," former City Manager Dwane Milnes said. "That means 1,000 people could lose retirement benefits."

Stockton will be the first city to test the state law, Assembly Bill 506, which is less than 2 months old. It requires local government agencies to undergo mediation or hold a public hearing and declare a fiscal emergency before filing for bankruptcy.

[FormLetter]

The asparagus I ate for lunch yesterday was tagged as coming from a Stockton company.

[Rickson]

The need to have Nick and Nate Diaz come in and run the show....

[FormLetter]

I know you love the Diaz boys, but I'm not so sure they'd handle pension obligations all that well.

[Rickson]

Originally Posted by FormLetter

I know you love the Diaz boys, but I'm not so sure they'd handle pension obligations all that well.

They would...they ain't no bitches...they aren't scared of no punk asses!

They'd make the hard choices!