Rising Costs Could Push More Calif. Cities Underwater
"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.”