Wednesday, June 26, 2013

Bankruptcy threat recedes as Atwater, California, approves budget

It's hard to tell if this is the just a stop-gap solution or a real solution.  Hopefully, the tough times are really behind them.  All because of out of control pensions.
Since it declared a fiscal emergency last October, the city of 28,000 was seen at risk of following Stockton, another city in California's Central Valley, into bankruptcy court. To keep its budget balanced, Atwater had cut 40 percent of its workforce over the past five years.

Atwater's new $12 million general fund budget approved late on Monday relies on revenue from a sales-tax hike and increased water, waste and garbage service rates, and will fund about 80 positions.

Revenue is expected to remain tight. The Central Valley was hit particularly hard by California's housing market crash and is lagging the state's coastal regions in job growth.

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