Wednesday, June 27, 2012

And Over To You, Stockton

Don't you think that after we have a certain number of these in close succession, the culture of debt will change?

STOCKTON, Calif.—The city of Stockton, Calif., late Tuesday voted to adopt a new budget under which it can operate if it is under bankruptcy, a move widely considered the last step before it formally files for Chapter 9 protection. 
City officials are expected to officially file for Chapter 9 protection sometime this week, possibly as early as Wednesday... 
Under the new budget, Stockton will cut $10 million in debt payments to creditors, scale back retiree health care, and cut employee salaries and benefits. Under California law, Stockton must adopt a balanced budget by July 1... 
Stockton, with 300,000 residents and $700 million in debt, would be one of the largest cities ever to file for Chapter 9 protection, according to municipal finance experts and bankruptcy officials.
Someday someone somewhere* will start tallying up costs of promises and proposals automagically in an overlay graphic during televised election debates so everyone who doesn't want to spend quality time with fiscal data and Excel can see just how much a particular windbag is planning to spend. I seriously doubt the citizens of Stockton thought it would be a good idea to spend themselves into bankruptcy.
* - How's that for precise prognostication?

3 comments:

Tim Eisele said...

These guys aren't quite up to the point of the automagic debate overlays you are looking for, but they look to me to be heading that way. Particularly their Deficit Reduction Plan Comparison Tool.

Dean said...

*Not there yet in Greece. Our figures may vary.

lee said...

"Automagically"--I love it! Will be looking to use it myself! (No sarcasm there, either. I really do love this neologism! And it is so apt in the context.)