SFGate reports:
behind closed doors the Oakland City Council has discussed filing for bankruptcy protection in the midst of a $100 million budget deficit.
“We have asked the (bankruptcy) question because we wanted to know the impact,” said District 5 council member Ignacio De La Fuente. “In closed session, the question has been asked, and an answer was given.” He would not elaborate.
“It’s a possibility,” he acknowledged. “Things are that bad.”
…
Consider the city’s cash position: Out of next year’s general fund of approximately $415 million, police costs are estimated at $212 million, fire protection service $103 million and $41 million in debt service payments. That leaves about $60 million to pay for everything else, from library services to recreation centers to public works.
And that calculation doesn’t include $50 million more in deferred debt service in a budget proposal presented to the council last month by Mayor Ron Dellums.
Yikes.
(H/T Mish)
Related links:
California screaming – Lex
California’s nightmare – FT Alphaville
California faces deep budget cuts – FT
How to balance California’s budget: you decide – Mish’s Global Economic Trend Analysis