Tagged: stockton

The city of Stockton has begun a four-day trial in U.S. Bankruptcy Court.  At stake: whether the city should be eligible for Chapter 9 bankruptcy protection.

The case has other local governments watching closely – particularly those that still face large budget deficits.  Chris McKenzie with the League of California Cities says he believes cities will “move heaven and earth” to avoid future bankruptcies.

More California cities may file for bankruptcy and default on bonds in the coming months, according to a report released today by a major credit rating agency.

In a report titled “Why Some California Cities Are Choosing Bankruptcy” Moody’s Investors Service warned that the risk of more municipal bankruptcies in the state has gone up.

So far this year, three California cities have filed for bankruptcy, Stockton, San Bernadino and Mammoth Lakes.

Many cities around the country are faced with growing costs and shrinking revenue. Despite making sweeping cuts, Stockton, California recently became the largest city to file for bankruptcy. Host Michel Martin talks with Stockton Mayor Ann Johnston about how she's managing a city that's operating in the red.