The Third California city in a month has now sought Bankruptcy protection with a 46 million dollar deficit and near empty city accounts.
Officials have said the situation is so dire they cant even cover the payroll through the summer, the council passed the resolution, with the Mayor opposing but saying the only other option was “draconian cuts” to all city services.
The reasons for the bankruptcy as said to be due to the recession, escalating pension costs and lucrative labor agreements (ANYONE SEEING A TREND HERE???)
The city “s still facing the possibility of insolvency due to a variety of issues including accounting errors, deficit spending, lack of revenue growth and increases in pension and debt costs,” according to a budget analysis prepared for the council.
According to the L.A. Times
“City Atty. James Penman said city budget officials had falsified documents presented to the mayor and council for 13 of the last 16 years, masking the city’s deficit spending.
“For the last 16 years the budget prepared for the council showed the city was in the black,” Penman said, not naming those allegedly responsible. “The mayor and the council were not given accurate documents.” “
Many of you are probably saying “Hey Stockton, Mammoth Lakes and San Bernadino are just California problems and Providence and Scranton are Liberal strongholds, this isnt that big of a deal, just liberal chickens coming home to roost and will show everyone how wrong they are.”
Well you are right in a very small degree, for years those of use with any brains have been looking at California and saying “This isnt sustainable” And for a long time my opinion was, well let California run itself into the ground who cares.
The problem is….THIS ISNT JUST CALIFORNIA!
They have been the first to fall, because well they were the worst of the worst, BUT most cities, states, boroughs, municipalities, counties, etc. are not any better off, and the problem is the ones that are…well…they are so interconnected to everyone around them, reliant on the state, the feds and others for major parts of their operating budgets, no one is safe.
This is just one big spider web, everyone is connected and some places have been putting up heavier and heavier objects (debt) on their parts of the web, and when they fall they tear the strings around them and when that happens in too many places the web tears everywhere and flops around in the wind (nice analogy right?)
FOLKS YOU NEED TO UP YOUR PREPPING BY 10 fold, dont take those vacations, dont get the new whatever you want, take that money, that time and put them into getting ready for whats coming, I cant stress this enough.
It wont happen tomorrow, these things take time, but they degenerate over that time and things speed up as the time passes, it may be a few years it may be five, but getting preps ready, especially on a tight budget takes time, use it wisely