Firm News

Rising Costs Could Push More Calif. Cities Underwater

July 11, 2012 Media Coverage

"Rising Costs Could Push More Calif. Cities Underwater"

Following San Bernardino, Calif.'s vote to seek Chapter 9 protection, Dean Gloster, leader of Farella Braun + Martel's restructuring, insolvency and creditors rights practice, commented on signals that other cities in the state could follow suit. "San Bernardino and Stockton are canaries in a coal mine," said Gloster. "Their financial problems are coming home to roost sooner than other cities, but in the future, there could be difficulties for even well-managed cities because of rising retiree medical costs and their inability to raise revenues. It could get ugly for cities two or three years from now.”