Will Austin Follow California’s Trend And Declare Bankruptcy?
Everyone knows California considers itself a trendsetter in everything from culture to commerce. And now a Bay-area town with a $16 million budget shortfall has declared municipal bankruptcy in what could be a harbinger of things to come for cities like Austin, which faces red ink of its own — as much a $40 million worth, according to some estimates.
Citing disappearing tax revenues and housing declines in the current economic recession, council members in Vallejo, California, about 25 miles north of San Francisco, this week voted unanimously to throw in the financial towel.
“There are a lot of other cities that [will] probably be in the same boat shortly,” Councilwoman Joanne Schivley, a retired banker, told the New York Times.
Posted on May 8, 2008 – 8:53 am by APR
3 Responses to “Will Austin Follow California’s Trend And Declare Bankruptcy?”
This is happening awfully soon after Toby left. Wasn’t she the best city manager in the universe? What happened?
By Fred Friendly on May 9, 2008
Voters should throw the bums out tomorrow and complete the job that began when city manager Toby Futrell moved on. It is time to start anew with a new slate of councilmen (and women) who MIGHT not drive us into bankruptcy. They can’t do any worse than the current bunch.
By John Magginis on May 9, 2008
Magginis is right. The financial mismanagement at city hall is outrageous. Paying more than marklet value for land for water treatment plants. Corruption at the convention center. The Northcross Mall scandal.
By willis on May 9, 2008