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Thanks to the tax increase promoted by Arnold, revenues of the cities are down, while unemployment is at historic levels. This, plus, AB 32 is taking a financial toll on local government.
"Pricey pension packages, budget breakdowns and deep deficits have reduced or jeopardized the reserves some cities have amassed over recent years.
Both Colton and San Bernardino are struggling with dwindling incomes that have burned cash reserves to dangerously low levels.
Rialto is struggling with higher pension costs set to start July 1, which a top official has said will deplete a sizeable $31 million reserve within three years if employees don't agree to concessions."
Basically, cities will go the way of Vallejo and declare bankruptcy.
Add this to the $38 billion in deficit and over $600 billion in debt emanating from Sacramento and you will understand why it will be years before California ends its current Depression.
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"Pricey pension packages, budget breakdowns and deep deficits have reduced or jeopardized the reserves some cities have amassed over recent years.
Both Colton and San Bernardino are struggling with dwindling incomes that have burned cash reserves to dangerously low levels.
Rialto is struggling with higher pension costs set to start July 1, which a top official has said will deplete a sizeable $31 million reserve within three years if employees don't agree to concessions."
Basically, cities will go the way of Vallejo and declare bankruptcy.
Add this to the $38 billion in deficit and over $600 billion in debt emanating from Sacramento and you will understand why it will be years before California ends its current Depression.
More...