WHY DID STOCKTON CALIFORNIA BANKRUPT

Stockton, Calif , is the latest city to file for bankruptcy protection It€™s a city of nearly 295,000 people that can€™t keep up with its bills Stockton is the largest city in the state to ever file for bankruptcy Its a city that depends heavily on the agricultural industry But the city wasn’t€™t hit by a natural disaster It€™s been struggling for years because of its own poor fiscal management Stockton has struggled with its finances for years, including a campaign promise to give every citizen of the city a free garbage can They also had a generous pension plan for city employees But Stockton was in denial They had been spending money they didn€™t have The city was spending more than they were bringing in, and they weren’€™t paying their bills The city was also spending money on a sports arena The city was paying $300,000 a year on a loan the city could never pay back The city had been spending money they didn’€™t have, and it only got worse The city’ €™s bond rating kept dropping The city spent $7 5 million on consultants to help the city get out of debt, but didn’t work The city’€™s financial situation was bleak, and it had a pension plan that was underfunded by $900 million The city filed for bankruptcy protection on June 28, 2012 HOW MUCH MONEY DOES VENTURA COUNTY CALIFORNIA NEED? The Ventura county was struggling financially, but had a plan to increase revenues and cut expenses They were hoping to cut $20 million in expenses and increase revenues by $22 million They were hoping to delay $12 million in capital projects The county was hoping to save $15 million by renegotiating contracts with its unions The county was hoping to save $7 million by closing two facilities, and save another $2 million by eliminating 100 positions The county was also looking to cut $3 million by merging several departments They were also hoping to generate $7 million by selling off county assets The county was also asking for a $5 million bailout from the city of Thousand Oaks https://www.reuters.com/article/us-stockton-bankruptcy-cause/how-stockton-went-broke-a-15-year-spending-binge-idUSBRE8621DL20120703 In 2022 Stockton approved budget was $900 million https://www.recordnet.com/story/news/politics/government/2022/06/26/stockton-officials-approve-nearly-900-million-city-budget/7716732001/