(California city) El Monte considers bankruptcy

[Robbien]

Source: Pasadena Star

EL MONTE – The city council will consider Tuesday whether to initiate Chapter 9 bankruptcy proceedings for El Monte, according to the council's agenda.

. . .

El Monte has faced serious financial troubles since last year, when plunging sales tax revenues and rising employee benefit and retirement costs caused a budget deficit that hasn't gone away since, despite layoffs and cutbacks.

Most recently, it faced a $12 million deficit for the fiscal year that starts Wednesday. To cut $10 million, the city manager laid off 100 employees and recommended other cutbacks, including the closure of one of the city's four fire stations.

. . .

Despite these cutbacks, the city still faces a $2 million deficit. And a state takeaway of property tax and gas tax revenues – proposed by Governor Arnold Schwarzenegger to address the state's own budget crisis – would bump the deficit to $4 million, according to the resolution.

Read more: http://www.pasadenastarnews.com/news/ci_12711953

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States steals taxes from its cities so the cities get in trouble. Its happening all over.

[Downwinder]

1. Why aren't the Cities

calling for the Single Payer Health Care Option? That would remove health care costs from their budget.

[rfranklin]

2. Oh, thank God! I thought they meant Del Monte!

I can just taste that sweet, sweet pineapple in heavy syrup.

[No Elephants]

3. This is what happens when gubbamint tries to give people the impression that they

can have everything they want, and plenty of it, without paying for it. Sooner or later, that crap hits the fan. And, modern gubbamint tends to cut jobs while preserve all the waste and perks. Will the mess ever get straightened out or is this handbasket an express?

[mule_train]

4. i see economic cracks running everwhere

this is far from over