Tags: California | Controller | Municipal | Bankruptcies

California Controller: More Municipal Bankruptcies Possible

Wednesday, 19 Sep 2012 05:57 PM

California may see more municipal bankruptcies than the three that have been filed since June, state Controller John Chiang said.

“We need the state to participate in trying to prevent these bankruptcies,” Chiang said at a conference in San Francisco. “There’s no trust from local government with state government, so they don’t want our assistance.”

Governor Jerry Brown abolished redevelopment agencies statewide, responsible for rebuilding decaying neighborhoods, and redirected more than $1 billion in their funds to cut California’s deficit.

Stockton and San Bernardino officials have said the state raid on redevelopment funds helped push them into bankruptcy court. Mammoth Lakes, the third to file for Chapter 9 protection, traced its financial problems to an adverse court judgment.

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California may see more municipal bankruptcies than the three that have been filed since June, state Controller John Chiang said.
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