Compton, California will run out of money on September 1:
At a city council meeting Tuesday, officials announced that Compton is set to run out of funds by Sept. 1. Compton, which has only 93,000 residents, faces a deficit of $43 million after having depleted a $22 million reserve, reports Reuters.
“I have $3 million in the bank and $5 million in warrants due in the next 10 to 12 days,” said city treasurer Doug Sanders during the live-streamed city council meeting. “By then, the council will have a decision to make: don’t pay the bonds, default on them, or have a serious talk about bankruptcy.”
Standard & Poor’s put Compton’s revenue bonds on a negative credit watch last Friday, citing concern over allegations of “abuse of public moneys” and fraud, reports the Los Angeles Times.
S&P also warned that unless they receive independently audited financial information from Compton, the city’s ratings — already at BB, or “junk” status — could be withdrawn or suspended.
Other California cities that are being mentioned as being in danger of declaring bankruptcy: Victorville, Montebello, Los Angeles, Oakland.
I have $3 million in the bank and $5 million in warrants due in the next 10 to 12 days,†said city treasurer Doug Sanders during the live-streamed city council meeting. “By then, the council will have a decision to make: don’t pay the bonds, default on them, or have a serious talk about bankruptcy.â€
Bummer. As I’ve said before. This can focus the mind.
Liberals need to get real. The well is running dry.
“Other California cities that are being mentioned as being in danger of declaring bankruptcy: Victorville, Montebello, Los Angeles, Oakland.”
It’s difficult to even imagine L.A. or Oakland going bankrupt — the former being so big, and the latter is so socially charged, like a volatile stick of dynamite with a short fuse on it, already.