Thursday, November 03, 2011

Compton finds itself in full financial meltdown -

Compton finds itself in full financial meltdown -
Compton's finances are in such disarray that the city amassed $369,000 in late fees over the last year because it could not pay its policing contract with the Los Angeles County Sheriff's Department on time. The city has already laid off about 15% of its workforce, and city leaders warn that more cuts may be on the way. City Hall has slashed spending, even canceling the city's popular gospel concert. But most disconcerting is the city's looming deficit of $39 million, a sum that represents about 80% of its annual general fund budget. Standard & Poor this summer lowered the rating of some of Compton's bonds to just above junk status. City officials said they're hoping for a short-term loan or line of credit to get through the year and vowed not to file for bankruptcy.
Short term loan? Can you imagine what the interest rate would be on that?

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