Push Has Come to Shove in Some California Cities

Peter C. GordonIndependent Institute

It seems that push has come to shove in some California cities. The Stockton City Council voted to give its City Manager the green light to file for bankruptcy—which could address the problem of that city’s debt, now thought to be in the range of $25-40 million. The City’s diminished income is not up to such amounts. And last Tuesday, the voters in San Diego and San Jose took an even bigger step by addressing expenditures and voting to cut the pension benefits of city workers. Both cities’ votes were by wide margins; San Diego’s passed with 66% and San Jose’s by 70%. The New York Times (June 6) noted that these budget moves were of a nature that, “. . . governments traditionally avoid: moving to cut not just the benefits of future hires, but also those of current city workers, whose pensions generally have much stronger legal protections than those of private-sector workers.”

Read More: http://blog.independent.org/2012/06/08/push-has-come-to-shove-in-some-california-cities/