California, with its high taxes and regulations, is the leading state when it comes to municipal bankruptcies. With out of control government spending and unionism, California has taxed the middle class into oblivion. Middle income Californians are leaving the state in droves, leaving municipalities with decreasing sources of revenue.
But these tax, regulation and spending policies, that destroy opportunity, are not just confined to the state government. Cities all across the state also suffer from these misguided policies which have made California the king of municipal bankruptcies.
the last six years four cities in California have filed for
bankruptcy. Vallejo in 2008 and Stockton, Mammoth Lakes and San
Bernardino in 2012.
In all these cases out of control municipal government spending on
municipal workers' pay and pensions and wasteful municipal projects
combined with increased taxes have led to businesses and middle class
families leaving these cities, with the ultimate result being bankruptcy protection.
of state budget problems, California cut redevelopment funding that
many poorly managed cities across the state began to rely upon, further
exacerbating their problems. With less revenue and increased union
benefit obligations, bankruptcy has become the only way for many of
San Bernardino saw its pension fund obligation increase from $5 million in 2000 to $23 million when it filed for bankruptcy in 2012. And even though the city is the largest transportation junction in southern California with the two major railways that connect the major ports on the west coast with the rest of the country, three major highways and thousands of bridges, the city still could not make ends meet. So much for President Obama's roads and bridges creating economic growth and opportunity fantasy. San Bernardino is a prime example of government destroying opportunity.
Today, the resort town of Hot Desert Springs near Palm Springs has declared a fiscal emergency because of rising pension and salary costs and the
elimination of redevelopment funds from the state. Fiscal emergency is the first step required by the State of California before a municipality can file for bankruptcy. Hot Desert Springs will be the fifth city in California to file for bankruptcy in six years.
Not far behind Desert Hot Springs are several more California cities. San Jose has seen its pension fund obligations soar from $73 million in 2001 to $245 million last year and is facing major fiscal problems. Oakland is in deep trouble as its pension obligations and union contracts are causing its budget deficit climb from $19 million this year to $35 million or more in 2015. Fresno is facing similar problems.
Compton and Vernon are two more cities facing bankruptcy, in both cases because of rampant corruption. Standard & Poor's down graded Compton and then suspended its credit rating entirely when was impossible to complete an audit because of
allegations of fraud and abuse of public funds and non-response by city officials to auditors' questions. Vernon, another hot bed of corruption, was audited by the state. The audit found
Vernon operated with annual deficits for
20 years, while increasing spending on managers' salaries. The audit found loose contracting practices with fraud in 21 of the 25 city
Other cities in deep financial trouble in California are Azusa, Monrovia and Hercules.
California is a prime example of government gone wild, a one party state of tax and spend progressives. Politicians and bureaucrats in California believe that more government and higher taxes are the answer to state and local problems. These politicians would be better served by listening to one of the state's former governors who said, "Government is not the solution to our problem, government is the problem." What do you think?
US Patriots is a group of concerned Americans who believe in the principles of our Founding Fathers and the Constitution of the United States. We welcome conservatives, Republicans, veterans, TEA Party members and moderates who support the Constitution, who believe we are all equal under the law, citizens who believe that “We the People” can mean something once again, and anyone who fears that we are losing the America we love.
We will stand for our country, against tyranny, and in the views of our Founding Fathers who knew that the power ought to reside in the people, not the government, and feel compelled to take action in that pursuit. We believe that government serves the people, not the other way around. That America is based on the freedom of the individual, not the dictates of Washington D.C.
We believe in the principals of limited government and individual freedom and responsibility and that these principals come from the hearts and minds of "We the People" awakened from the same emotions and feelings that were the motivating factors for our Founding Fathers, an extraordinary group of American patriots who formulated an experiment previously unknown in the world.
Join us so that together we can make America great again.