America's Cities Are in Financial Peril

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  • Detroit, Michigan
  • Scranton, Pennsylvania
  • 071312 national banruptcy stockton california
  • Mammoth Lakes, California
  • San Bernardino, California
  • Jefferson County, Alabama
  • bankruptcy

Stockton, California

When Stockton filed for bankruptcy on June 28 it became the first city in California to file for protection since 2008. The housing market crash that swept the state in recent years was a huge part of the city's financial problems, and over the past three months Stockton officials have tried to mediate with its creditors to close its $26 million budget shortfall. The city, with a population of 290,000, tried previously to slash debts by cuttings wages and benefits in addition to cutting its police force, firefighter force and 40 percent of all other city employees. 

(Photo: Courtesy of Wikicommons)