City of Vallejo may declare bankruptcy

[Tobra]

I don't know the details, but heard this on the news. How will it be if a bunch of cities or states go bankrupt, Like the great depression part two is what I am saying. Wonder who picks up those pensions if the city drops them?( I don't really wonder, that is a bit rhetorical.)

[lendaddy]

Our city has hinted at this in the distant future. They were until recently paying 100% pensions!!!!!!!

That's right the paycheck you were making on your last day continues until you die. Plus healthcare!!!

INSANE to think that is sustainable. New contracts are at 80% which is still stupid. The city has warned them but the unions won't hear it.

[artplumber]

I think a number of cities are considering bankruptcy because the state of CA is late on payments, leading to inadequate cash flow......

Somehow, despite one of the highest income tax rates, and gasoline tax rates (both of which may be going up), and at least mid level excise tax rates, CA will be 14-16 Billion short next year

[Tobra]

and they still want to raise existing taxes and add new ones

[mikester]

...and in 2004 we floated the 15 Billion dollar bond...Where did that go?

[tabs]

AWWWE..POOR CALIFORNIA....That Bond money was spent...and now U need another one...AWWWE....Didn't the CA people vote DOWN Arnolds Propostions.....I guess the geniuses in CA will just have to suffer....AWWWWWE

This is what happens when Liberal Democrats get their hands on the reigns of Government power. Fiscal Ruin. Couldn't happen to a better state.

[Sonic dB]

in search for more revenue....the city could always pimp the Zodiac killer site for some tourism dollars...create a Zodi Amusement park...Zodi action figures etc.

[lendaddy]

It always cracks me up that Cali, the most geographically and financially fortunate state in the country cannot afford it's own liberal stupidity yet they would seek to spread their policies to all states.

[tabs]

Originally Posted by lendaddy

It always cracks me up that Cali, the most geographically and financially fortunate state in the country cannot afford it's own liberal stupidity yet they would seek to spread their policies to all states.

Misery loves company.

[the]

It happens. Heck, even "The OC," Orange County, California (Home of San Juan Capistrano!) filed for bankruptcy in the mid-1990s.

[scottmandue]

Your city... how much for your city? I want to buy your city!

[scottmandue]

Originally Posted by lendaddy

It always cracks me up that Cali, the most geographically and financially fortunate state in the country cannot afford it's own liberal stupidity yet they would seek to spread their policies to all states.

How exactly are we spreading our policies to all states? Are we threatening to take over the Federal government?

[Porsche-O-Phile]

Originally Posted by scottmandue

Your city... how much for your city? I want to buy your city!

Was that a Blues Brothers reference?

Good stuff.

Let's see - CA condones an idiotic run-up in living costs (particularly housing) and drives countless good jobs/wage earners out of the state because of it - and because of over-taxation and over-regulation of businesses that support those jobs. Then it welcomes illegals with open arms and even wants to give them drivers' licenses and free healthcare (yes, Ahhnold actually supported this crap - a "republican"). And they wonder why the revenue streams are drying up and unable to support the bajillions of dollars in worthless bureaucracy & other nonsense this bloated state government has come to accept as "normal".

Let 'em go under. I could care less. Maybe some good will come of it.

[tabs]

The CA government doesn't have much to do with the high cost of living with regards to housing costs. That is more a function of the free market economy and competition for living space. However the government of CA does think running a business for a profit is immoral, and as such does tax and regulate excessivily. Which in turn drives business and people away. The high cost of living does deter new business and people from relocating to CA...Welcome to NV and AZ.

[artplumber]

Originally Posted by Porsche-O-Phile

Let 'em go under. I could care less. Maybe some good will come of it.

Yeah, but I thought you wanted to live in CA?

[jyl]

Getting back to the original topic, as far as I can tell the reason for Vallejo's financial problems is (1) the deteriorating economy,causing declining sales tax revenues and property tax revenues, and (2) rising salary, overtime and retirement costs for police and fire department employees.

According to news reports, the city has a $80MM/yr budget. Sales and property tax revenue are $2MM less than plan (I don't know if that is June fiscal year to date, or last 12 months, or what). Meanwhile, police and fire dept costs have risen due to staff shortages, rising overtime, and contractual pay raises. Since the city's finances have deteriorated, something like 20 police and fire personnel have retired or quit, some going to other departments.

News reports say that 80% of Vallejo's budget goes for police and fire departments. It must be pretty hard to offset above-plan costs in the 80%, by cutting costs in the other 20%.

Sounds like the city is negotiating with the police and fire union to cut salaries and staffing. If they can't agree, I guess the city files bankruptcy. If it works like a normal bankruptcy, the police and fire department contracts are basically torn up and the court approves a reorganization plan that probably cuts police and fire expenses as well as other city expenses like libraries, parks, etc. I think Vallejo's schools are already being run by the State, so they aren't a factor.

I think we'll see lots of cities with similar problems in the coming year. Sales tax, property tax, and development fees revenue are going down almost everywhere. California cities have it tough since so much tax and fee revenue go to the State. I know when I lived in Berkeley, the citizens regularly voted on additional taxes and fees to pay for libraries and similar.

[lendaddy]

Originally Posted by scottmandue

How exactly are we spreading our policies to all states? Are we threatening to take over the Federal government?

I don't mean institutional absorption or a new manifest destiny

I mean the liberal way of government is on full display in California and the liberals in our country seek those same means and style nationally as if we can't see what's going on in the Cali fishbowl.

Michigan is another example. We were for decades a workers paradise. We taxed the hell out of our auto industry, perhaps more so the surrogates, and protected the unions. What did that get us?

Now we have a reputation as a hostile environment to business. Who in their right mind would bring any large industry here with a Governor and legislation showing their blood dripping fangs longing for tax revenue? And a union velocitized workforce that has unrealistic compensation expectations.

It doesn't work.

[Tobra]

Originally Posted by tabs

AWWWE..POOR CALIFORNIA....That Bond money was spent...and now U need another one...AWWWE....Didn't the CA people vote DOWN Arnolds Propostions.....I guess the geniuses in CA will just have to suffer....AWWWWWE

This is what happens when Liberal Democrats get their hands on the reigns of Government power. Fiscal Ruin. Couldn't happen to a better state.

Rare indeed is the time when things I vote for prevail. I was stunned when Ahnold got elected, then not so stunned when he could not get squat done because he is handcuffed to the wrong gang of political operators. The California Democratic Party reminds me of that bit by Dr Zeus at the end of Planet of the Apes, you know, man turning a paradise into the Forbidden Zone.

Barbara Boxhead and DiFi will die of old age before someone I vote for represents me in the Senate. Those two hags frighten me more than somewhat, and Barry Hussein is FAR to the left of them, think about THAT for a second.