Even though municipal revenues are falling, costs keep rising. At some point, it will come to a head and either a city declares chapter 9 bankruptcy, or they attempt to raise taxes – much to the ire of citizens already facing a cash crunch.
Case in point – police officers in Stockton, CA want a FIFTEEN PLUS percent increase in pay because it was promised 3 years ago. Apparently, someone didn’t check the economy when they renewed their demand. See the story here:
Stockton faces a $10 million deficit as the article points out. Moves like this will certainly be duplicated across the country. Citizens will have to decide if they want higher taxes to pay for all of this or not…
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