Straight Outta’ Money: Will Compton Be the Fourth Calif. City to Go Bankrupt in 2012?
- Posted on July 18, 2012 at 8:01pm by
Becket Adams
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Compton, Calif., has until September 1st to decide whether it will become the fourth city in the Golden State to declare or consider bankruptcy this year, according to two city officials.
“I have $3 million in the bank and $5 million in warrants due in the next 10 to 12 days,” said city treasurer Doug Sanders. “By then, the council will have a decision to make: don’t pay the bonds, default on them, or have a serious talk about bankruptcy.”
And this shouldn’t come as a surprise. The city’s finances have been a mess for a while now.
“The municipality has accumulated a $43 million deficit with no reserve. Funding for the city is expected to run out by the beginning of September,” CBS Los Angeles reports.
“The Council added to Compton’s accumulated deficit on July 10 when it adopted a $161 million budget with a $9 million projected deficit,” the report adds.
Compton’s financial predicament was further exacerbated on July 13 when credit rating agency Standard & Poor’s said it may cut the city’s “BB” long-term ratings for its “lease revenue bonds.”
“S&P cited a decision by Mayer Hoffman McCann, the city’s independent auditors, to resign rather than sign off on Compton’s 2011 financial statement,” Reuters reports.
The council meeting broke up without any further discussion of filing for bankruptcy.
Watch the CBS update:
“If filed, Compton would be the fourth California city to declare or consider bankruptcy,” CBS adds. “San Bernardino, Stockton and Mammoth Lakes have all announced this year that they would seek restructuring of their liabilities.”
This story has been updated.
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Comments (70)
cemerius
Posted on July 18, 2012 at 9:34pmCall it Compton or South Central they may have only about a dozen high school diplomas and ACTUAL job holders in the whole darn town!!! What ****** me off is this “liberal paradise” called California will be looking to the REST of the USA to bail them out and they will NOT be forced to reform or heaven forbid go into some sort of austerity measures!!!! Keep paying those millions to them Mexican citizens living in the USA California how’s THAT working out for you????? How they feeling about the 1992 riots now that Rodney King is dead??? We better bail them out or they will burn their town again and force us to rebuild it! (again)
Report Post »Detroit paperboy
Posted on July 19, 2012 at 12:19amLiberalism itself is bankrupt………..
Report Post »JRook
Posted on July 19, 2012 at 8:55amWhy shouldn’t towns and states take advantage of the bankruptcy laws. If private equity funds can use them to buy companies, walk away from creditors and pensions and as a result make $millions while the original investors and creditors get stiffed. And this is the type of business integrity we want in the White House.
Report Post »melthemean
Posted on July 19, 2012 at 11:14amCompton has contracted with the LA County Sheriff’s Department for police protection. When they declare bankruptcy, who’s going to “serve and protect” them then? Compton has been a no mans land for years and years – the housing projects on MLK Blvd. (fka Imperial Hwy) are notorious hot beds of lawlessness. Willowbrook Station was known as Fort Apache many years ago. No police protection equals one big jungle.
Report Post »thibx
Posted on July 18, 2012 at 9:16pmcorrupt politians and unions will destroy everything they touch.
Report Post »Mikev5
Posted on July 18, 2012 at 9:10pmCalifornia is sliding into a dark black hole and still giving boat loads of money to all the illegal aliens like candy and they still don’t understand why they are going under. This state is doomed every whack job State agency is running it into the dirt and they still keep spending the money at an even faster rate that last week.
Report Post »Mikev5
Posted on July 18, 2012 at 9:06pmCompton is a crap hole of a city with nothing going for it but corruption it’s been the butt of jokes for about 25 years let it sink into a hole and die no one would notice at all but the crooks running it. It’s a ghetto at best and an ugly city
Report Post »TheEDGE
Posted on July 18, 2012 at 10:53pmI’m pretty sure they call that “Keepin’ it real.”
Report Post »NOT-A-MUSHROOM
Posted on July 18, 2012 at 9:00pmA union contract is mightier then a empty bank account.
Report Post »progressiveslayer
Posted on July 18, 2012 at 8:56pmI heard our skinny Marxist POS president say that government makes all things possible,yes like bankruptcy,graft,theft all in all politicians are just a bunch of corrupt F ups.
Report Post »DevotedDad
Posted on July 18, 2012 at 8:55pmThe average citizen has to go through hell to have their debts forgiven in a bankruptcy proceeding but yet a whole state can simply say “hey, we are bankrupt” and it is a done deal.
I bet none of their books are even looked at, including how much money they threw to their buddies and political allies right before the bankruptcy.
Report Post »soybomb315
Posted on July 18, 2012 at 8:53pmWe need to pass a law RIGHT NOW declaring the federal government will not be bailing out the states that are bankrupt….Lets AT LEAST find out what Obama and Romney think about it. My thinking is that both of them would bail out the states
Report Post »Mikev5
Posted on July 18, 2012 at 9:32pmThese states must pay for their corruption and out of control spending I agree 100%
Report Post »TSUNAMI-22
Posted on July 18, 2012 at 9:42pmPassing laws can’t force corrupt people or organizations to be honest, especially when there IS NO rule of law.
Report Post »MrButcher
Posted on July 18, 2012 at 8:52pmThe whole state of California is bankrupt!
Furthermore, so is the entire United States.
Going down like dominoes…
Its gonna get ugly.
Report Post »chips1
Posted on July 18, 2012 at 9:57pmIt’s going to get Michelleish.
Report Post »progressiveslayer
Posted on July 18, 2012 at 8:51pmThe typical modern day politician bares no semblance to our founding fathers,those men were geniuses compared to these idiots.We will see many more bankrupt cities because they to are ruled by a collection of communists and socialists with their sick twisted ideologies.
Report Post »soybomb315
Posted on July 18, 2012 at 8:56pmWe have concentrated stupidity in this country, typically located in the northeast, west coast, and major population centers. I pray the federal government does not bail them out, or else we all suffer their fate
Report Post »progressiveslayer
Posted on July 18, 2012 at 9:09pmBut who will bail out the federal government? 232 trillion in the hole,we’re screwed Soy.
Report Post »soybomb315
Posted on July 18, 2012 at 11:08pmthats what war is for
Report Post »progressiveslayer
Posted on July 18, 2012 at 8:44pmCities controlled by communists ie democrats are all ***** rich,that‘s why they’re all broke. I‘d like to use the proper word but since we’re all treated like children I censored myself.
Report Post »Carlinpa
Posted on July 18, 2012 at 8:42pmGee what could be the problem? I mean doesn’t money just grow on trees in California?
Report Post »How many examples of failure by Liberal policies and liberals does America need to see in order to realize that liberals are feckless and should NOT be allowed to govern? They are like kids with Mom’s credit card.
Victoria
Posted on July 18, 2012 at 8:38pmThe city of Compton will likely declare bankruptcy. That is the only way it can renegotiate the union contracts including the generous pensions and health care plans. I own a small business so I know what it is like to sweat payroll each month. The privately owned companies that do business with the city are probably never going to see the funds due them.
Report Post »JustDontUnderstand
Posted on July 19, 2012 at 4:09amthe privately own companies are all minority owned businesses that are owned by the minorities in city govt. it is the tax paying base not doing its fair share that is bankrupting this wonderful CA city. The city should tax the wealthier citizens. They didn’t create those crack selling corners! Someone else did. Sure it was whitey.
Report Post »vinnymac46
Posted on July 18, 2012 at 8:37pmFirst, America would be racists if we don’t bail out Compton, second, this is an election year, OF COURSE OBAMA is going to intervene, lastly, bet money on the fact OBAMA is going to have his ONLY campaign speech in a “black city” after he rescues Compton, California.
Report Post »SFsuper49er
Posted on July 18, 2012 at 8:30pmOn one hand liberals get what they vote for… On the other hand save California so more liberals don’t come here… Especially California liberals !
Report Post »The_Almighty_Creestof
Posted on July 18, 2012 at 8:29pmCompton has been a cesspool for gangbangers for decades. Save any pity you have for the city’s around it that will now be further contaminated by the trash as it overflows.
Report Post »Snowleopard {gallery of cat folks}
Posted on July 18, 2012 at 8:23pmHere is the question I have; how long will it be before Obama interviens to save the counties and the state of California from their fiscal problems? How much will he demand be surrendered to him in exchange for the financial help and thus sunder one more part of the power reserved solely for the states into his own waiting, grasping hands?
Report Post »mule creek ridge
Posted on July 18, 2012 at 8:21pmAs CA. towns go, CA. goes!!!!! As CA. goes, the nation goes. I’ve seen this coming from the time(a few years ago) the stat came on the news that CA. had to complete ONE school a week to stay current with the student numbers because of ILLEGAL IMMIGRATION!!!!!!!!!!!!!!!!!! Those people(the Californians that wield the power) are SSSOOOOOO SPACED OUT (including Gov. MOONBEAM) they are letting it all go to 3rd world MIND CANCER!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! Hang on folks!!!!!!!!!!!!!! They are going to scream for the rest of OUR COUNTRY to bail their MISERABLE ASSES OUT!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Stay Alert!!!!!!!!!! Make agreements with those you know for support and common assistance!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! The STUFF IS GOING TO HIT THE FAN!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!
Report Post »godhatesacoward
Posted on July 18, 2012 at 8:21pmCall Dr. Dre or Ice Cube. I’m sure they would love to lend a helping hand.
Report Post »progressiveslayer
Posted on July 18, 2012 at 8:45pmThey could do a drive by on city council,do one good deed before they go to hell.
Report Post »godhatesacoward
Posted on July 18, 2012 at 8:57pmGood poop Slayer!
Report Post »Valezka.Vidra
Posted on July 18, 2012 at 8:19pmI live in the Stockton area. It’s horrible here. I moved back here from Missouri because I had no relatives in the midwest; I was all alone. Now I’m unable to find a freaking job, no matter how hard I try. I got canned from my most recent job because of vicious rumors and lies other people were spreading about me; the worst possible thing to have happen to anyone who lives in this state.
soybomb315
Posted on July 18, 2012 at 8:54pmgotta get out of there
Report Post »chips1
Posted on July 18, 2012 at 9:46pmVALE:
Report Post »Did I buy your home? I came to Missouri after fleeing Calif. This is where America is at. Everyone speaks English and everyone waves at you when you pass. Pressure is completely gone. I sit on my porch and watch the deer, birds and turtles. I guess I’ll go fishing tomorrow.
Apple Bite
Posted on July 18, 2012 at 8:18pmNice NWA take….
They asked for it, why should we feel sorry for them? “Incompetence, is contagious.” that’s what my TI down in Lackland said to us. And time and time again, he was proven to be correct. They chose to be incompetent, they shall reap the fruits of their failed harvest…
Report Post »ENIGMA28724
Posted on July 18, 2012 at 8:15pmThis is what happens when government spends more than it takes in. And eventually you can’t raise taxes enough to cover expenses due to entitlements and bloated union wages.
Report Post »macracer
Posted on July 18, 2012 at 8:10pmEasy solution! Use the ol’ Democratic knee jerk reaction to solving all the problems in our country, Raise taxes to 100% and let government hire all the unemployed and homeless people. Give the people more welfare, forgive student loans, and FREE heath care.
Report Post »Stratosaurus
Posted on July 18, 2012 at 10:18pmThat’s not “fair” to everyone! Simply impose a 50% tax surcharge on all registered demoncraps, and a 100% surcharge on union bosses. Union members, most of whom only joined as a result of the state’s “gotta be a union member” policy, would only get a 25% surcharge. “Celebrities” would only get a 200% surcharge, and ZERO exemptions. After all, isn’t it a direct result of the collusion between the union bosses and the corrupt legislators that union costs are so high? I think it would be a great idea for the state to go bankrupt — they’d have to re-structure all their union contracts, ESPECIALLY the ruinous public-service union pensions, and cut welfare to non-citizens. That’d also reduce the illegal population by about three or four million.
Report Post »historyguy48
Posted on July 18, 2012 at 8:10pmComrades what a shock! All they need to do is raise taxes a little, say to 100%. Then they can get back to their spending binge!
Report Post »NOT-A-MUSHROOM
Posted on July 18, 2012 at 8:41pmI thought legalization of drugs and taxing them was the answer.
Report Post »Mikev5
Posted on July 18, 2012 at 9:35pmCA taxes are already super high you raise them any higher and I you will see a mass exodus like never before.
Report Post »RJJinGadsden
Posted on July 18, 2012 at 8:10pmWe can expect to see more of this. California‘s cities are just starting to suffer the effects of the Democrat’s domino effect.
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