Tuesday, July 17, 2012

San Bernardino bankruptcy, the back story

Huffington Post/Business/Beuters/Jim Christie and Tori Richards, 7/15/12.  "San Bernardino bankruptcy caused by political feuds, denial."

"In August 2010, almost two years before the San Bernardino city council abruptly voted to seek bankruptcy protection, city manager Charles McNeely gave a presentation to the council that became known as "Groundhog Day."

Same day as yesterday
"He used that analogy because the city had every year been doing the same stupid things," Tobin Brinker, a former city council member, said, noting the comparison with the comic movie in which the lead character keeps reliving the same day.

McNeely's wake-up alarm, which itself came three years after a management consulting firm had warned of big problems ahead, went unheeded. Instead, local leaders continued to engage in bitter political and legal warfare over the city's biggest expense -- pay and benefits for police officers and firefighters -- and failed to warn local residents and financial markets of the depth of the problems.

The report said spending had outpaced revenue for some years, reserves were depleted, and the old ways to pay off deficit spending were no longer available. And labor costs are projected to rise by $10 million a year in the coming years as concessions expire and contributions to the state pension fund increase."  Read Article.

Related - "Groundhog Day", the 1993 movie, video clips wake-up scenes, 3:08 minutes. The alarm clicks on at 6:00 a.m. with the Sonny & Cher song, "I got you babe."  The same day repeats no matter what he does. Not shown in the last scene, the clock clicks over to 6:01 a.m., an indication a new, different day has begun.

Submitted by Jim Alex 

Posted by Kathy Meeh


Anonymous said...

Awww, and it's a lovely story, not unlike our own. Makes you want to jump ahead to the ending.

Anonymous said...

Democrats=doing the same thing over and over and the bill keeps growing and growing. Back to work, slaves!

Anonymous said...

Tea Party Republicans = support the top 1% who ship jobs overseas. Back to work slaves!

City council positions are non-partisan. And in southern California 60% Republicans on that city council are more likely. Redevelopment, stupidity, greed and the economic downturn are equal opportunity.

Enthusiastic upward distribution of wealth to those who already have the most wealth is a Tea Party Republican phenomenon. And that makes no sense, its brain dead.

Anonymous said...

Don't forget the main reason these cities are going under. Unbearable Union pensions and contracts.

Anonymous said...

which ones are the slaves?