Fresno Vows Not to Join Ranks of Bankrupts
Fresno, California, leaders insist that the state’s fifth-largest city isn’t going to go bankrupt. That’s cheering investors who bought its debt at a record low.
Like Stockton and San Bernardino, California cities that sought court protection from creditors in the past six weeks, Fresno’s budget has buckled as labor costs rose while tax revenue lagged. The city north of Los Angeles had its credit downgraded last month as cash ran dry and talks to win concessions stalled.