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Stockton attorney: Judge can't tell city how to spend its money

9:17 PM, Jul 23, 2012   |    comments
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SACRAMENTO, CA - The city of Stockton was in back in bankruptcy court Monday afternoon in downtown Sacramento.

Stockton is defending its right to stop paying medical benefits to hundreds of retirees

About 40 of those retired workers were in court listening to arguments. Their attorney said they took pay cuts in exchange for those benefits and those payments should continue.

"When these benefits were negotiated, they gave back wages," Retiree Dwane Milnes said. "They feel they have paid for the right to have these benefits...they took less wages."

The City Stockton argued that bankruptcy judged don't have the authority to tell Stockton how to pay its bills.

"The issue is, does the court have the power to say to the city, how to spend its money, pay retirees as opposed to police and fire salaries and repairing fire trucks," City of Stockton Attorney Marc Levinson said.

The judge implied in court that he'll rule for Stockton, but the formal decision isn't expected for a few days.

News10/KXTV

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