San Bernardino bankrupt: Blame pet projects, not labor, union says

Source: LATimes

San Bernardino's labor unions pushed back at the suggestion that lucrative labor agreements were forcing the city to seek bankruptcy protection – and instead blamed city officials for frittering away money.

Steve Tracy, a fire engineer and spokesman for the city firefighters' union, said the city's labor groups had already given $10 million in concessions. He cited the mayor and former city manager's pet projects, including a call center and new movie theater downtown, as reasons for the $46-million deficit.

"Before you start putting blame on the labor groups, get your own fiscal house in order," he said.

The City Council voted 4 to 2 Tuesday night to seek bankruptcy protection. Although Mayor Patrick Morris called it a "stain" on the city, he said the only other option was "draconian cuts" to all city services, including the police and fire departments.

Read more: http://latimesblogs.latimes.com/lanow/2012/07/san-bernardino-bankruptcy.html

The politicians spend on unnecessary stuff they can't afford, then blame the unions when they go in the red. Hmmm, where have I seen this before?

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5 replies	Author	Time	Post
San Bernardino bankrupt: Blame pet projects, not labor, union says (Original post)	SunSeeker	Jul 2012	OP
That's like one of those PA. cities $300 million in debt due to an incinerator overhaul. WTF?	Hassin Bin Sober	Jul 2012	#1
Quit attacking Pennsylvania's State Capital, just because it has a debt of $30,285 per resident	happyslug	Jul 2012	#5
A movie theater?	freethought	Jul 2012	#2
The company (Regal) brought in abt 4 million to start, the city got a 34 year lease, and for	jtuck004	Jul 2012	#4
Local businesses will be hurt	RogueBandit	Jul 2012	#3

Response to SunSeeker (Original post)

Wed Jul 11, 2012, 11:56 PM

Hassin Bin Sober (8,609 posts)

1. That's like one of those PA. cities $300 million in debt due to an incinerator overhaul. WTF?

And they cut city wages to minimum wage.

The looters have left the building.

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Response to Hassin Bin Sober (Reply #1)

Thu Jul 12, 2012, 10:41 PM

happyslug (10,746 posts)

5. Quit attacking Pennsylvania's State Capital, just because it has a debt of $30,285 per resident

That is three times the debt to resident ratio of Philadelphia (Which is the only County that is also a city, every other county in Pennsylvania has several subdivisions, cities, Boroughs and Townships, thus Philadelphia is both a County AND a city, Harrisburg is just a largest city in Dauphin County, which is a separate legal entity).

Harrisburg itself
http://en.wikipedia.org/wiki/Harrisburg,_Pennsylvania

More on the Incinerator:
http://www.npr.org/blogs/money/2012/03/23/149057880/how-a-city-goes-broke

http://www.governing.com/topics/transportation-infrastructure/Harrisburgs-failed-infrastructure-project.html

http://www.pennlive.com/midstate/index.ssf/2012/03/judges_order_granting_receiver.html

http://www.pennlive.com/editorials/index.ssf/2012/06/harrisburg_trash_problems.html

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Response to SunSeeker (Original post)

Thu Jul 12, 2012, 12:01 AM

freethought (2,372 posts)

2. A movie theater?

Why would any town build a movie theater? Or did the city build it for a private party. This is baffling.

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Response to freethought (Reply #2)

Thu Jul 12, 2012, 01:09 AM

jtuck004 (5,070 posts)

4. The company (Regal) brought in abt 4 million to start, the city got a 34 year lease, and for

a 7 million investment they expected to get at least 10 million in direct, and a lot of indirect, revenue - on which taxes are paid as part of the income for the city.

It's not a bad strategy, along with stores and shops, for revitalizing a downtown that you need more business in, and it's a lot easier than trying to attract or grow companies that create wealth via making something. But over time, people have to have spendable cash to make such a thing work. That is in short supply these days, and without the companies that build something it may not be sustainable.

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Response to SunSeeker (Original post)

Thu Jul 12, 2012, 12:39 AM

RogueBandit (178 posts)

3. Local businesses will be hurt

It's probably local businesses that will be hurt most. Maybe the contractors for the movie theater, contracted parks maintenance people, the local stationary supply store. At least that's how it goes in southern Oregon. Makes me wonder if I should check Medford's debt ratio.

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