US Cities That Could Face Bankruptcy In 2011

[Svnla]

They are:

San Diego, CA
NYC, NY
San Jose, CA
Cincy, OH
Honolulu, HI
San Fran, CA
LA, CA
Washington DC
Newark, NJ
Detroit, MI
Reading, PA
Joliet, IL
Camden, NJ
Hamtramck, MI
Central Falls, RI
Paterson, NJ
Chicago, IL

What do these cities have in common? :awe: Hint = look at the comments at the bottom of the article.

Story = http://finance.yahoo.com/tech-ticke...nkruptcy-in-2011-535744.html#mwpphu-container

 

[shortylickens]

They're filled with lazy, spoiled, liberal Americans?

 

[Red Dawn]

They're not in states heavily subsidized by the Feds?

 

[Exterous]

What do these cities have in common? :awe: Hint = look at the comments at the bottom of the article.

Here's how to get iPhones, iPads, laptops and more for FREE. Visit the site set as my name or click on it to find out more. .20j

Everyone from these cities is getting free iPhones, iPads and more for free?

 

[rudder]

They're not in states heavily subsidized by the Feds?

While it is true that the more rural states get more money per capita, those states on the list receive a hefty sum from the Federal government. That donor/recipient state thing does not really have much relevance. Take California for instance. Yes, they send more money to the Feds that they get back in Federal payments.

By that statement you can blab "oh the blue states are supporting the red states, blah blah blah" where in reality the majority of California residents are not tax donors by any means. California's ratio benefits from a few very large companies and wealthy residents.

The states listed are in trouble because they spend a whole hell of a lot more state tax money than they bring in. Couple that with future state/city employee pension liabilities and it is easy to see why they are headed for trouble.

 

[IBMer]

While it is true that the more rural states get more money per capita, those states on the list receive a hefty sum from the Federal government. That donor/recipient state thing does not really have much relevance. Take California for instance. Yes, they send more money to the Feds that they get back in Federal payments.

I think the point is, if these rural states didn't get these subsidies that the list would be 8 times as long filled with "red cities".

 

[rudder]

I think the point is, if these rural states didn't get these subsidies that the list would be 8 times as long filled with "red cities".

Depends on the state government. Tennessee receives about $1.07 back for every dollar it sends the feds. This Federal money is factored into the State budget. If any Federal money were not received, it would be taken out of the budget since we have a balanced budget amendment. Interstates would deteriorate, and patients relying on medicare would see a decrease in service.

Despite having a democrat as governor for the last 8 years who increased the budget at twice the rate of inflation, Tennessee is a long way off from bankruptcy (though there is that pesky pension liability problem). The state employees in Tennessee do not belong to any unions. If there is a budget shortfall, the state can help deal with that by laying off employees, reducing hours, etc.

I do not know enough about other governments to comment. Fiscal responsibility is the key. Spend more than you take in and you will have problems.

If Tennessee did not receive any federal dollars and had no federal obligations, it would be safe to assume that the residents of Tennessee would not have to send in Federal taxes (hypothetically speaking). That money sent to the Feds would likely be money send to the State government instead. Again, if that State government spent more than tax revenues could cover, they would have problems. Federal subsidies seem irrelevant in this discussion.

 

[Saint Nick]

Socialism Democrat California ILLegals are suing everything!! they need $$ My Grandma was takened by an illegal and lost her home and now shes in a nursing home from being abused!! Terrible people!! Welfare ILLegal disease spreads!!

LOL!@!@!

 

[CrackRabbit]

If you think San Diego is "liberal" you are sorely mistaken.
I would say it is probably the second most conservative large city in the state.
Having your entire economy based around the military and it's contractors will do that.

 

[Fingolfin269]

Depends on the state government.

Basically what you're saying is "we do it the right way here". Spend no more than what you have available to spend. It really is that simple.

 

[Fingolfin269]

If you think San Diego is "liberal" you are sorely mistaken.
I would say it is probably the second most conservative large city in the state.
Having your entire economy based around the military and it's contractors will do that.

The second most conservative large city in California is probably still pretty liberal. Relatively speaking of course.

 

[jhu]

The second most conservative large city in California is probably still pretty liberal. Relatively speaking of course.

I would say San Diego is just behind Orange County for large urban areas.

 

[JS80]

If you think San Diego is "liberal" you are sorely mistaken.
I would say it is probably the second most conservative large city in the state.
Having your entire economy based around the military and it's contractors will do that.

I guess that's why 54% of SD county voted for Obama.

 

[CrackRabbit]

The second most conservative large city in California is probably still pretty liberal. Relatively speaking of course.

While that is true,for all of California, most of San Diego's money problems stem from two things.

1. Many of the military contractors closed up shop or reduced operations here, coupled with the large amount of foreclosures on way overpriced homes, killed the cities tax income.
2. The city promised to much in the way of pensions for former workers.

 

[CrackRabbit]

I guess that's why 54% of SD county voted for Obama.

Your idea of liberal and what is actually liberal are two very different things.

 

[cubby1223]

The whole state of Illinois is about to default. Anyone see my state get trashed on 60 minutes Sunday? The pension system is the 800lb gorilla here, so many public employees have retired the past few years with $200k+/yr guaranteed payout for the rest of their lives...

 

[rudder]

Basically what you're saying is "we do it the right way here". Spend no more than what you have available to spend. It really is that simple.

Yes and as long as you add the caveat to not increase the budget too much in the good times (i.e., Bredeson) then you can survive the downturns in the economy a lot better. I am kind of proud that Tennessee actually has a billion dollar rainy day fund and lawmakers here are real concerned when they have to use it. I wish the Federal budget was like that.

 

[techs]

I know. There all in the country that sent its jobs to China.

What do I win?

 

[Dissipate]

I have an idea. Why don't they expand QE2 and use the money to buy muni bonds?

 

[Attic]

I think the point is, if these rural states didn't get these subsidies that the list would be 8 times as long filled with "red cities".

That is BS speculation. What is reality (liberals need not apply) is that the states listed in the OP have shown an inability to balance a budget. I'm sure we could have a jerk fest spouting off reasons to avoid accpeting the reality of it, but really why try so hard to live outside of what's really happening and is being shown here?

Obvious answer is obvious.

 

[Zargon]

The whole state of Illinois is about to default. Anyone see my state get trashed on 60 minutes Sunday? The pension system is the 800lb gorilla here, so many public employees have retired the past few years with $200k+/yr guaranteed payout for the rest of their lives...

thats not even really the problem though

the state has underfunded it for atleast a decade, and they have raided it(SERS, state emp ret sys) more a few times for projects in that time. it would be much better off if they quit doing to it what congress does to SS, but I guess children tend to imitate their parents.....

quinn isnt helping either, nor is chicago. chicago is a black hole of $$$, and quin spent his way to get votes to sneak back into office while not actually doing anything important in the last 2 years

we're proper fucked as the brits say

 

[1prophet]

One odd thing about that list, New York State is one of the very few states that has a fully funded pension system while NYC does not.
http://www.pewcenteronthestates.org/report_detail.aspx?id=56695


http://downloads.pewcenteronthestates.org/The_Trillion_Dollar_Gap_final.pdf

 

[Red Dawn]

The second most conservative large city in California is probably still pretty liberal. Relatively speaking of course.

Well they aren't inbred Bible Belt Conservatives but they are conservative.

 

[Pulsar]

thats not even really the problem though

the state has underfunded it for atleast a decade, and they have raided it(SERS, state emp ret sys) more a few times for projects in that time. it would be much better off if they quit doing to it what congress does to SS, but I guess children tend to imitate their parents.....

quinn isnt helping either, nor is chicago. chicago is a black hole of $$$, and quin spent his way to get votes to sneak back into office while not actually doing anything important in the last 2 years

we're proper fucked as the brits say

Yet, in the mean time, you notice that good 'ol Detroit isn't on that list. Why? We've been lucky enough to have a couple decent mayors (Archer and now Dave Bing) who have managed to ignore the corruption and actually do the right thing and cut spending to match income.

Of course, there's a huge chunk of blue constituents that scream every time it happens because they don't understand cutting spending to balance your checkbook. That's why that same group is largely on the public dole...

 

[Pulsar]

Well they aren't inbred Bible Belt Conservatives but they are conservative.

The great thing about the inbred conservatives is that they can pray and their budget balances itself....