Moody's Investors Service, which less than two years ago gave Fresno an Aa2 credit rating and declared the city's finances to be "very strong," has since downgraded the city's bonds step by step, culminating in a recent drop to a subpar level. Moody's cited a big general fund deficit, high payrolls and other fixed costs and a struggling local economy.
Nobody's uttered the B-word – bankruptcy – yet in Fresno, but clearly if it cannot meet all of its obligations, that becomes an alternative, just as it did in Stockton and San Bernardino. The key to Fresno's immediate future obviously is the trash collection franchise, which promises the city $1.5 million in immediate cash, plus $200,000 a month. But Fresno is also becoming ground zero for public employee union opposition to privatization of public services at any level of government.
Tuesday, February 12, 2013
Dan Walters: Fresno joins the ranks of troubled California cities
Dan Walters on Fresno fiasco.