More Chapter 9 Filings Seen
California may see more Chapter 9 municipal bankruptcies than the three that have been filed since June, according to Controller John Chiang.
Municipal budgets already strained by surging pension costs and declining real-estate tax revenue were stripped of more than $1 billion in local redevelopment funds and vehicle-license fees to cut California’s deficit.
Stockton, San Bernardino and Mammoth Lakes filed for bankruptcy in the past three months. Chiang said he expects further bankruptcies in Jurupa Valley, Wildomar, Eastvale and Menifee in Riverside County.