California City Considering Filing Bankruptcy
Officials in Antioch are considering seeking protection as revenues have dropped, a problem that is facing many state and local organizations.
Yet another city in California is considering filing bankruptcy, as municipal governments in the state continue to feel the crunch of dropping revenues tied to falling property values.
According to the Tampa Bay Bankruptcy Center, officials in Antioch are mulling the possibility of filing bankruptcy. To avoid this, the municipality has tried to reduce spending while also instituting layoffs, but thus far those strategies haven't led to the desired results.
If it did file bankruptcy, Antioch wouldn't be the only city to have done so in California. Vallejo also sought protection in 2008.
Along with municipalities, other official organizations in the state are facing difficulties meeting their financial obligations. For example, the state Department of Education noted recently that the number of school districts facing the possibility of facing bankruptcy increased this year.
To avoid this, these districts will have to either cut services or find a way to negotiate with unions to reduce costs.
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