What Happens When City Hall Goes Bankrupt? : NPR: "Are we likely to see more towns and cities declare bankruptcy in the future?
That's difficult to say, but some experts believe the warning signs are clear: unfunded pension liabilities, an anemic economy, costly infrastructure repairs and falling property values. 'All of the ingredients are there,' Spiotta says. 'I wouldn't be surprised if we start to see more bankruptcies.'"
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From February, 2008, an NPR story focusing on Vallejo, CA but dealing with the history of municipal bankruptcy...and its possible future. The view from 8 months down the road isn't a whole lot cheerier.
2 comments:
It's striking to ponder that local governments face this dire fiscal future notwithstanding the likely substantial savings they have realized over the past three to four decades from privatizing much of their traditional functions via land use policies requiring the formation of common interest developments governed by HOA corporations.
Not only that, but there was that $206 billion tobacco settlement.
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