A Nation of Children - Are there any adults left? or do children run the People's Republic of California?
- The politicians answer for everything is more Big Government, more spending, more re-distribution of the wealth.
BANKRUPT - Vallejo, Stockton, Mammoth Lakes and San Bernardino with more to come.
Little children are running the finances of a once Golden State. Whenever the politicians or voters see something shiny that they like they stomp their feet and cry until it is given to them.
Cost. Taxes. Debt. These words have no meaning to children.
Many cities in the People's Republic and around the nation are struggling to cover their costs as the economic and anti-business regulations hurt tax revenues. This will lead to even more municipal bankruptcies, which have been rare until now.
"This is not the end. This is the beginning," said Peter Navarro, business professor at University of California, Irvine. "As cities see it can be done and is being done, it will give them the idea to do it."
Despite negotiating tens of millions of dollars in concessions and reducing its workforce by 20% over the past four years, San Bernardino was facing insolvency and would not have enough cash on hand to meet its obligations.
They had reached a breaking with the city of 211,000 residents facing a $45 million shortfall.
Stockton filed for bankruptcy in late June after three months of mediation with creditors failed to close a $26 million budget shortfall. The city of 292,000 residents had already addressed $90 million in deficits over the past three years, mainly through reducing services and employee compensation.
California cities have also struggled from budget changes made on the state level. Suffering from their own massive budget shortfalls, Comrade Governor Jerry Brown and the state legislature made changes to vehicle tax money and redevelopment agencies that stripped locales of hundreds of millions of state funding.