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Thanks to the new budget deal, stealing billions from cities, we finally have a growth industry in California again.
Municipal bankruptcy is going to be all the rage. The good news is that this will end dozens, if not hundreds, of sweetheart unions deals.
The bad news is that lots of money will be wasted on attorneys and trustees. While the new budget does not raise taxes, it also did not reform government. Yes, selling a few properties looks good on paper--in fact, the "sales" are actually lease backs--we get up front money, then the State pays for leases on buildings it owns today--not much profit in that. This is just one example of the "ugly gimmicks" in the phony budget.
But, we could reform local government as they come out of bankruptcy.
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Municipal bankruptcy is going to be all the rage. The good news is that this will end dozens, if not hundreds, of sweetheart unions deals.
The bad news is that lots of money will be wasted on attorneys and trustees. While the new budget does not raise taxes, it also did not reform government. Yes, selling a few properties looks good on paper--in fact, the "sales" are actually lease backs--we get up front money, then the State pays for leases on buildings it owns today--not much profit in that. This is just one example of the "ugly gimmicks" in the phony budget.
But, we could reform local government as they come out of bankruptcy.
More...