Articles Tagged 'insolvency'
MI: State Senator Proposes Dissolving City Of DetroitLANSING (CBS Detroit) –
Â It would no doubt be controversial, but the idea of dissolving theÂ fiscallyÂ struggling city of Detroit and absorbing it… READ MORE
After bankruptcy, California city experiments with letting voters make budget decisions
A California city that recently emerged from bankruptcy is taking a new approach to budgeting — this time, by asking voters how it should spend the taxpayers’ money.
The question is being put to residents in Vallejo, Calif., a blue-collar port city of 116,000 people.
Under a pilot program, Vallejo is using what is known as “participatory budgeting” to… READ MORE
MORE CALIF. CITIES AT RISK OF BANKRUPTCY
SACRAMENTO, Calif. (AP) — One of the nation’s top credit rating agencies said Friday that it expects more municipal bankruptcies and defaults in California, the nation’s largest issuer of municipal bonds.
Moody’s Investors Service said in a report that the growing fiscal distress in many California cities was putting bondholders at risk.
The service announced that it will undertake a… READ MORE
San Bernardino votes to file for bankruptcy protection
The Los Angeles Times
The San Bernardino City Council votes to file for bankruptcy. Facing a $45-million budget shortfall and the prospect of not being able to pay city workers, the panel Tuesday voted to file municipal bankruptcy, the third California city to do so in recent weeks.
The vote came shortly after the interim city manager recommended seeking bankruptcy… READ MORE
Stockton, Calif. to take up bankruptcy budget plan
By Jim Christie
(Reuters) – Stockton, California was poised on Tuesday to take a major step toward becoming the largest U.S. city ever to file for bankruptcy after talks with its creditors on Monday at midnight.
Negotiations aimed at averting bankruptcy may press on informally, the city’s spokeswoman said, adding that city officials would next discuss any moves toward bankruptcy… READ MORE
Court clears way for rescue pact for Detroit
Ben Klayman, Reuters
DETROIT (Reuters) – Michigan’s Court of Appeals has cleared the way for a team appointed by the governor to come up with a consent deal to keep afloat Detroit, America’s historic “Motor City,” which could run out of money in months.
The pressure on Detroit is intense. Monday is the deadline for GovernorÂ Rick Snyder‘s team to… READ MORE
Michigan a step closer to Detroit takeover
DETROITÂ â€”Â Heading down a path that could lead to the state of Michigan taking over the running of Detroit, Gov. Rick Snyder on Tuesday appointed a team to review the city’s finances.
The team was named after a preliminary review of city finances showed “probable financial stress” after Detroit was unable to tackle its mounting deficits.
The team,… READ MORE
Lawmakers Hope To Make Money With Detroit-Only LotteryDETROIT (WWJ) –
Â Would a city-run lottery in Detroit solve the cityâ€™s financial problems? One state lawmaker thinks so.
WWJâ€™s Vickie Thomas reports that state Rep. Dr. Jimmy Womack, D-Detroit,Â is drafting legislation to start a â€œDetroit onlyâ€ lottery. He plans to meet with the state lottery commission next week.
TheÂ idea is the brainchild ofÂ Councilman Kwame Kenyatta,… READ MORE
Detroit faces state takeover
ByÂ Andrea Billups-The Washington Times
In Detroit, battle lines are being drawn between the mayor and the city council over ways to keep the Motor City out of bankruptcy and what some fear will be a state financial takeover under a new provision in Michigan law.
Since last week, when MayorÂ Dave BingÂ offered a tough-love prescription to fix the… READ MORE
Mayor’s last-ditch effort to save Detroit would privatize 88,000 streetlights
ByÂ Mark Guarino, Christian Science Monitor
Since assuming office as mayor ofÂ DetroitÂ two years ago,Â Dave BingÂ has challenged the city council and union leadership, saying the city is broke and needs sacrifice on all levels of the private and public sectors to prevent insolvency.
Mayor Bing is now bringing the message to the people. He appeared on local… READ MORE