This is the fifth in a CalWatchDog.com Special Series of 12 in-depth articles on municipal bankruptcy.
April 11, 2012
By Wayne Lusvardi
“…If the courts rule that existing pension plans are constitutionally protected and unchangeable, then we are likely looking at formal bankruptcy for many local governments.
With the basics of municipal finance explained, let’s look at the fiscal — or budgetary — situation that California cities and counties find themselves in today.
City and County Budgets on the Verge of Upset…”
Many California cities are under fiscal stress due to the protracted contraction of the economy. Many of those cities will be staring down bankruptcy waves as public pension obligations start kicking in during the coming years.
One of the largest prospects for bankruptcy is that of…”
Click here to read the report.