Cox: California bankruptcy bill needs more review
A bill affecting California cities that file bankruptcy was recently amended.
A proposed law that could affect the ability of cities in California to
file bankruptcy recently received amendments.
The bill, proposed by Assemblyman Tony Mendoza, could make it more difficult
for municipalities to file for bankruptcy by making them go through the
California Debt and Investment Advisory Commission. However, the changes
to the bill would allow municipalities to override that body's decision.
Given the changes, David Cox, a Republican member of the state Senate,
said the bill should return to the Local Government Committee for more
Recently, the League of California Cities noted it still opposed the bill
even with the proposed amendments. The organization said the measure is
based on the incorrect notion that the state should have power over the
financial decisions of local governments.
"The irony is that the state can't seem to effectively manage
its own financial affairs and the public's distrust of Sacramento
is at an all-time high," the league said.
Recently, a grand jury in the state noted that the school district in
Sacramento faced bankruptcy if it could not gain concessions from its
teachers union to deal with a budget deficit.
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