County in California looking for loan from state

Without the funds, Modoc County may have to file bankruptcy.

State officials in California are considering whether to loan a county in the state around $15 million in order to help it prevent from filing bankruptcy.

Modoc County, located in an isolated, rural area is presenting an additional fiscal problem for a state that is trying to handle an array of financial problems. According to a story in the Mercury News, officials in the area are looking for a number of loans from the state, one for $4 million and another for $12.5 million.

Officials in the state met on Friday, July 23, to decide whether to loan Modoc County the money, but no decision had been made at that time.

A number of governments in the state have had difficulty trying to handle their debts. For example, the state's Department of Education noted recently that many schools are functioning at a pace that could have them having to file bankruptcy or cut programs.

Towns are also having difficulties and have cut back on services, such as police coverage or municipal administration.