Another City on the Brink of Bankruptcy

What is it with Northern California? Vallejo has already filed for bankruptcy, overcome by pension liabilities, a diminished economy, and a dwindling tax base.

Oakland has fended off Occupy protesters once again, with the liberal Mayor forced not to cross lines and side with destroyers of the public peace.

Now Stockton is on the brink of bankruptcy, having stopped payments under newly-infused authority from the state legislature.

Assemblyman Bob Wieckowski authored a bill providing another step for cities overwhelmed with debt. His legislation permitted indebted cities to restructure themselves before entering into "garden variety" municipal bankruptcy. The responsible actions of under-water residents like Megan Escuedro, however, contrast with the inherent incapacity of local government to shift significantly in the face of a downturn. As labor unions begin pressuring cities to maintain loyalty to unconscionable pension and benefits packages, Stockton has decided to take stock of its option, opening its anxiety-fraught decision-making process to the voters, working men and women who still understand the need and the value of balancing one's budgets and respecting the limitations of income versus outgo.

Assemblyman Wieckowski submits that he wanted to engage all those affected by a potential municipal bankruptcy filing, yet a core interest frustrating reform in many communities are the public sector unions, many of which have handsomely bank-rolled council members and legislators and discourage cuts to their bottom line.

Cities do not need more people bickering at the table to discuss reorganizing insurmountable debt. In desperate financial straits, civic leaders must face fiscal crises squarely and independently, making tough choice in the best interests of the voters, not the employees.

I hope that Stockton city leaders and citizens assess and redress their wasteful and outlandish public sector promises that also threaten other municipal governments throughout the state of California. If Stockton can survive a bankruptcy attempt, then a model of fiscal restraint and responsibility will emerge to help guide other leaders still looking for ideas and precedent to guide them through these unprecedented times.