Stockton Edges Closer to Bankruptcy Filing
The Stockton City Council votes Tuesday night on taking the final step to filing for bankruptcy: a "pendency plan" that would halt payments on the city's debts, slash payments for retiree medical benefits, impose new pay and benefit cuts on city workers, and increasing revenue through tougher enforcement of city codes and ordinances--including parking regulations.
The council's approval of the plan would clear the way for Stockton's city manager to file a petition for bankruptcy in federal court.
The moves come after the city failed to strike a deal with lenders, city workers, and retirees in late-night negotiations Monday.
Stockton Vice Mayor Kathy Miller says the crisis is taking a financial and an emotional toll:
“It's embarrassing. I think a lot of it is the mental anguish about being the largest city to go bankrupt. That's hard.”
AP, via San Francisco Chronicle: Mayor: Stockton appears headed for bankruptcy