OPINION: The six-states plan would newly create two of the poorest states in the country, “Jefferson” at our state’s northern border and “Central California” encompassing a huge swath of out Central Valley including the cities of Stockton, Fresno, and Bakersfield. In both states, one of every five people would be living below the poverty line.
U.S. Bankruptcy Judge Christopher Klein, ruling disclosure was adequate, gave Stockton permission to circulate the debt-cutting “plan of adjustment” to all creditors for a vote on Feb. 10. An objection from one creditor can force a trial.
Moves may allow bankrupt city to avoid pension fight
Bond insurers who walked away from mediation last year before Stockton filed for bankruptcy are at the table this summer. A deal could avoid a precedent-setting legal showdown on whether public pensions can be cut in bankruptcy.
Attorneys for the
A key planner of the Stockton bankruptcy, City Manager Bob Deis, plans to retire on Nov. 1, shortly before what could be a crucial public vote on a sales tax increase that has split the city council.
Deis battled
A little-known private firm that has sold customized supplemental pensions to dozens of California cities, including bankrupt Stockton and San Bernardino, is prohibited from selling more by a pension reform bill that took effect this year.
Public Agency Retirement