Stockton Bankruptcy Decision Looms
Stockton, CA -- The City of Stockton is expected to become the largest U.S. city to ever file for bankruptcy protection.
The city has been hit hard by the economic crisis and has the second highest percentage rate of home foreclosures in the nation. This has taken a bite out of the city's tax rolls. The city is also straddled with debt from worker pensions.
The city is hoping that bankruptcy protection helps fend off additional cuts to services like public safety. City Manager Bob Dies released a statement reading, "If we file for Chapter 9 protection it is because the City Council wants to protect services."
The city had a record 58 homicides last year. Over the last three years, police and fire services have been cut by 25-30 percent. The bankruptcy decision is expected at the Stockton City Council meeting that begins at 5:30 tonight.
Written by BJ Hansen