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California is in trouble. Cities from the giants like LA and San Fran are on the verge of bankruptcy--and little cities like Calexico are in deep trouble..
"Finance Director Judy Hashem said the city owes $1.37 million to its general liability and workers compensation insurance company, Southern California Joint Power Insurance. She said that because the company changed the way it collects money, the city was billed for the amount it owed in June 2010 and will need to decide how to pay the bill by July 2011. Hashem said the city would most likely have to finance the amount due, which would probably add fees to the bill. In the meantime, the amount attributed to the general fund, a little more than $1 million was distributed among departments, consequently added to the departments’ general fund expenditures."
Financing the bill is a fancy way of saying they will borrow the money and pay interest. If they could not pay the bill in the first place, how will they repay the borrowed money with interest--by raising the cost of government services and taxes--thanks to Prop. 26 that can only happen with a vote of the people, by a 2/3vote--never happen.
Add Calexico to the bankruptcy watch list--oh, what others bills have not been paid?
More...
"Finance Director Judy Hashem said the city owes $1.37 million to its general liability and workers compensation insurance company, Southern California Joint Power Insurance. She said that because the company changed the way it collects money, the city was billed for the amount it owed in June 2010 and will need to decide how to pay the bill by July 2011. Hashem said the city would most likely have to finance the amount due, which would probably add fees to the bill. In the meantime, the amount attributed to the general fund, a little more than $1 million was distributed among departments, consequently added to the departments’ general fund expenditures."
Financing the bill is a fancy way of saying they will borrow the money and pay interest. If they could not pay the bill in the first place, how will they repay the borrowed money with interest--by raising the cost of government services and taxes--thanks to Prop. 26 that can only happen with a vote of the people, by a 2/3vote--never happen.
Add Calexico to the bankruptcy watch list--oh, what others bills have not been paid?
More...