Stockton Chapter 9 proceedings result in retiree’s “giving up” $550 million in benefits

7 Dec

 

I’ve been trying to follow the proceedings in Stockton, where the city is currently negotiating a Chapter 9 bankruptcy with the court.  I found the court reporter’s word-for-word report of the most recent October 30 hearing, it’s really interesting:

http://www.stocktongov.com/files/COS_Chapter9_ConfirmationHearingTranscript_2014_10_30_DRAFT_61pages.pdf

On page 13, the judge acknowledges that significant changes were made to Stockton’s employee contracts, regarding the payment of “employee share”. He doesn’t offer all the details, but on page 16 or so he says it amounts to around $550 million in “unsecured claims” that retirees will now pay themselves. 

As with Vallejo, the cops were the biggest problem, but he says they’ve now reached agreement with the city. We’ll have to keep an eye on that, Chico will very likely be headed in a similar direction within the next two to four years. 

 

 

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4 Responses to “Stockton Chapter 9 proceedings result in retiree’s “giving up” $550 million in benefits”

  1. Michael Jones December 7, 2014 at 7:21 am #

    Sounds that way. My understanding is that the debt or deficit in the General Fund has increased recently, but I didn’t fully understand the numbers I saw. If the CPOA’s offer is accepted, the percent of the General Fund that goes to public safety goes from 76% to 81%. Andrew is in the uncomfortable position of having to do what I said he would have to do (eviscerate all other departments). For example, taking another 5% of the General Fund and giving it to police so they don’t leave us for Redding, means, for example, eliminating the Park, Greenway, and Tree funding. Dan Efseaff may not be with us much longer. Hey Progressives! Why did you follow Bob Mulholland’s advice to support public safety unions? Now you can’t cry when the conservatives implement Bob’s vision for full funding of police and fire….and all programs progressive vanish…… Boneheaded Bob.

    BTW police we love you [heart]. I know criticism of your pay feels painful, but it is not directed at you, it is that progressives like me like government to do some other things as well. We’re giving you ~50% of the General Fund (plus another ~25% goes to Fire). If that’s not enough, you remind me of a woman once knew who I cared a lot about, but was never satisfied no matter how good or devoted a producer I was…

    • Juanita Sumner December 9, 2014 at 6:48 am #

      Thanks Michael. Our “leaders” are not going to get the pension deficit under control, we’re going to see a lot of services go by the wayside.

  2. Getalife December 8, 2014 at 9:43 pm #

    To bad they can’t keep their Benifits and give the bank this waste of money http://www.visitstockton.org/things-to-do/on-the-water/stockton-marina

    • Juanita Sumner December 9, 2014 at 6:49 am #

      Yeah, the city council in Stockton tried to turn it into a champagne town, when it’s really a beer and peanuts town. Same with Chico – there’s always some investor(s) or landowner(s) with a grandiose vision that’s going to make them alot of money, but isn’t really good for the taxpayers.

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