Downtown Stockton

A federal judge has ruled that Stockton is eligible for bankruptcy protection, making it the largest city in the United States to enter bankruptcy. The judge rejected claims by the city’s creditors that Stockton isn’t really broke and that it should have cut its pension payments instead of reneging on other debts. The judge said the question of how bankruptcy will affect Stockton’s large pension obligations will be a central issue in the case going forward, and it will be closely watched by other struggling California cities. We will discuss the bankruptcy case and what it will mean for Stockton.

Guests:
Scott Smith, reporter for The Stockton Record
Jeff Michael, director of the Business Forecasting Center at the University of the Pacific in Stockton

  • BubblesGoPop

    Cut the bloodsuckers loose. By bloodsuckers I mean the greedy banks and the greedy people who got sweetheart deals for working only 1 month for the city.

  • Chemist150

    Seriously, I hope the ones that back bonds wake up now. Why would they back a bond intended to pay pensions? It should not be legal. Can I insure my Social Security? My ROTH? Really now, this is corrupt beyond corruption and it’s just been legalized. Bonds are suppose to be for growth. i.e. building income generating infrastructure. Selling bonds
    to pay off debt that is growing is wrong.

    People need to go to prison for this. This is a gross negligent use of bonds.

  • Livegreen

    The lesson is Cities need to balance services with salaries. Poor cities that want to keep up with wealthy San Francisco will eventually have to slash services. The only thing that keeps Oakland afloat, with $1 billion in unfunded liabilities, has been slashing Police, libraries and Parks & Rec.

    That and its proximity to residents fleeing expensive San Fransisco.

  • shouldn’t stockton cut the tax breaks it gave to industry and corporate land owners first. The premis for the tax breaks was they would benefit the economy. Looks like those companies that promised wealth in return for tax breaks and cheep access to land and public resources failed to live up to their part.

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