Stockton, CA will file for bankruptcy

Astonishing. Stockton, California, a city of 300,000 people, has gone flat broke. Reuters: A Chapter 9 bankruptcy by the city of nearly 300,000 in California's Central Valley, about 85 miles east of San Francisco, could come as early as Wednesday. Stockton's city council voted six to one in favor of the 2012-2013 budget after a contentious five-hour meeting where angry retired city workers pressed council members to reject the $155 million spending plan. It proposes eliminating retirees' medical benefits to help fill a $26 million budget deficit. Retired police department employee Geri Ridge said she fears not being able to afford health-care insurance. "I don't have that kind of income," said Ridge, 56, noting she is concerned a large share of her $1,895 monthly pension payment could be consumed by large insurance costs due to her history of heart attacks. The council's vote followed three months of confidential talks between Stockton and its creditors aimed at averting bankruptcy....(Read Full Post)