The San Francisco Chronicle asked a question in its editorial section on Friday that has been on the minds of local governments and labor across the state. Now that Stockton has entered AB 506 proceedings, who could be next?
San Diego certainly has its problems with debt, and its looking to reform its pensions. San Jose continues to make headlines with its potential $650 million pension shortfall and corresponding drain on the general fund. Oakland has been struggling with massive shortfalls and temporary fixes for years. So which city could be the next to flirt with the nation’s largest municipal bankruptcy
The editorial ends with a line that most people only discuss privately: “(Stockton) may be the largest to face bankruptcy, but it likely won’t be the last.”
From the San Francisco Chronicle:
Stockton’s gleaming waterfront park belies the troubles swirling beneath this gritty river city. In an act of political courage, City Manager Bob Deis persuaded the City Council last month to enter a mediation process that may lead to bankruptcy. If the city of 292,000 files for protection from creditors, it will be the most populous U.S. city to do so, raising the question: Who’s next?
San Diego is mired in debt, and its citizens will vote on reforming city workers’ pensions in June unless the state Public Employment Relations Board succeeds in blocking the initiative.
Read the full article here.