More California Cities May Go Bankrupt
A federal judge ruled in April that Stockton can seek bankruptcy protection. Which of the California’s fiscally troubled cities will be next. 10 California cities are facing the kind of serious financial pressure that sent Stockton toward bankruptcy.
Despite signs of economic recovery, many cities are reeling from the collapse of housing prices, prolonged high unemployment and declines in revenue. They are confronting increased demands for spending on public workers’ pensions and retiree health care, and slashing services, rolling back pay and laying off cops, firefighters and other workers.
USA TODAY has made predictions on the next California cities that will declare bankruptcy, based on information from DataQuick, National Association of Realtors, California Department of Finance and California Employment Development Department. Their predictions are as follows:
- Mammoth Lakes*
- San Jose