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Bankruptcy move expected to be filed Friday, or sooner

6:22 PM, Jun 27, 2012   |    comments
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STOCKTON, CA - After being blistered by retired workers for taking the latest step toward bankruptcy Tuesday, the city council voted to accept a budget that all, but guarantees a bankruptcy move.

RELATED STORY: Stockton votes to file for bankruptcy, becomes largest city in US to do so

"What is wrong with you? Why do you keep spending on new computers while filing bankruptcy? Grow up. Quit spending," retiree Geri Ridge questioned the coucil Tuesday night.

"You believe you're independent thinkers, committed to avoiding the mistakes of past leaders who followed the advice of city managers, yet you do the same thing," retiree Frank Johnston said at the council meeting.

City spokesperson Connie Cochran said the city will file it's bankruptcy "paperwork" electronically, by the end of the day on Friday, in Sacramento's federal court.

The new budget passed Tuesday will cut millions of dollars from retirees medical coverage. It's also expected to eliminate millions that would have been paid to investors through bond purchases.

Stockton is facing a deficit of $26 million.

By Tim Daly, tdaly@news10.net

News10/KXTV

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