Stockton is beginning to work on its budget for 2012/13, or at least the parts not associated with the AB 506 process. But due to the confidentiality rules associated with AB 506, the city will not be able to address general fund expenses until outcomes are known.

That means the city has to plan for three eventualities: successful negotiations, unsuccessful negotiations resulting in massive cuts, or bankruptcy. Work on all three scenarios will begin behind closed doors, but the process will move before the public when the AB 506 process concludes. No budget will be adopted, according to city officials, without being vetted by the public first.

From the Stockton Record Net:

City leaders anticipating a $24 million deficit come July 1 will begin the arduous task tonight of piecing together Stockton’s budget for the next fiscal year.

But in public, they won’t wade into the nitty-gritty details of the general fund, a key part of the budget, City Manager Bob Deis said. They’re bound by confidential mediation under Assembly Bill 506 from revealing much.

Read the full article here.