SAN FRANCISCO, Aug 1 (Reuters) – Bond insurer Assured
Guaranty, facing massive losses in Stockton,
California’s bankruptcy, on Wednesday said the largest U.S.
public pension fund, Calpers, was getting preferential treatment
That may set the stage for a fight over whether cities in
dire circumstances legally have the ability to change
obligations under pension plan benefits agreed to in much better
times. Calpers, the California Public Employees’ Retirement
System, so far has said that the cities don’t have that ability.
SAN FRANCISCO (Reuters) – California may be struggling to make ends meet, but Governor Jerry Brown is still thinking big.
The 74-year-old governor is championing major public works projects, including a statewide bullet train network and giant tunnels for delivering fresh water, even as he tries to convince voters to approve a tax increase in the fall.
SAN BERNARDINO, California (Reuters) – San Bernardino, the third California city planning to file for bankruptcy since June, voted to stop debt payments, freeze vacant jobs and quit paying into a retiree health fund under a three-month emergency proposal submitted to the city council on Tuesday.
The city is preparing a longer-term plan to make it through its expected bankruptcy period, when it will financially regroup under court protection from a financial hole created by a combination of the bad economy and poor management.
SAN FRANCISCO (Reuters) – San Bernardino, California, which is planning to file for bankruptcy, would suspend payments on pension obligation bonds and other debt under a three-month proposal to be submitted to the city council on Tuesday.
A package of materials on the city council’s website included the plan for July-September of this year.
SAN FRANCISCO, July 20 (Reuters) – Stockton, California, the
largest U.S. city to file for bankruptcy, never came close to
striking deals with key creditors in talks before it sought
court protection, the city disclosed on Friday in documents
illustrating its stark choices.
The city’s bond insurers snubbed proposals from managers of
the city of nearly 300,000 in California’s Central Valley, where
crime and unemployment have soared as the housing market fell.
Retired city employees and fire and police unions over three
months made some headway, but in the end the only tentative
deals were with six other unions.