Oh Zee's Words of Wisdom: Stockton, CA Filed for Bankruptcy, but What's Next...

Oh Zee's Words of Wisdom: Stockton, CA Filed for Bankruptcy, but What's Next...: Stockton, California files for bankruptcy By Jim Christie SAN FRANCISCO | Thu Jun 28, 2012 11:49pm EDT (Reuters) - Stockton, Californi...

Oh Zee Clothing: Oh Zee - "REPRESENT" Tee Falcons

Oh Zee Clothing: Oh Zee - "REPRESENT" Tee Falcons: Oh Zee - "REPRESENT" Tee Falcons Sizes Small$14.00 USD Medium$14.00 USD Large$14.00 USD X-Large$14.00 USD XX-Large$14...

A town that is on their toes

Stockton, Calif., to file for bankruptcy

June 27, 2012

Its crazy in Stockton California - Bankruptcy!

City officials say Stockton has run out of options. Stockton's $26 million shortfall if the city files for bankruptcy, as expected, by Friday.

"The average citizen will not put up with this. Their home prices have plummeted, they have no jobs, a lot of people are getting fed up so that they have to resort to crime." said Gregory Pitsch, a 26-year-old unemployed resident who made an unsuccessful run for mayor. "I'm asking you to make the right decision, not destroy the property values in this city, which bankruptcy will do."

Stockton bankruptcy is hard hit for city retirees

Stockton bankruptcy is hard hit for city retirees

(AP Photo: Ben Margot)

Associated Press

When Stockton becomes the largest U.S. city ever to file for bankruptcy, it will strike a hard blow to residents, especially city employees and retirees whose health benefits and pensions helped drive the city toward insolvency.

City Manager Bob Deis said late Tuesday that officials were left with little choice but to recommend bankruptcy after failing to hammer out deals with creditors to ease the city's $26 million budget shortfall.

Deis expects the city to file for Chapter 9 protection by Friday.

Stockton will join a number of other cities and counties across the nation that have plunged into financial crisis as the recession made it tough to cover rising costs involving current and former employees, bondholders and vendors.

"What's going on in Stockton is endemic to what's going on all over the state and the country," said Michael Sweet, a San Francisco bankruptcy attorney at Fox Rothschild LLP. "Local governments are hurting and strained under the current pension and compensation systems. These systems are not appropriate for the type of economy this country has evolved into."

At a standing room-only Stockton City Council meeting Tuesday, numerous former city employees talked about their life-threatening medical conditions and said cuts to their health benefits prompted by the city's financial straits meant they would, in effect, lose their insurance.

"Some people will be devastated. There are those who have such severe medical problems that they will not be taken up by any medical company," said Gary Gillis, a retired fire chief on the board of directors of the city retiree association. "This plan appears to be a sledgehammer or a machete."

Several retirees broke down in tears after the city approved changes to their medical benefits as part of a bankruptcy budget adopted by the City Council.

"For me, bankruptcy might as well be a life sentence," said Gary Jones, a retired police officer, who was diagnosed with a brain tumor 10 years ago. Jones said his medical insurance enabled him to undergo chemotherapy and other treatments, which he said will be unaffordable at the lower level of coverage.

During the past three years, the city has dealt with $90 million in deficits in part through drastic cuts in police and fire personnel, even as residents said they have to deal with recurring break-ins and robberies, a climbing murder rate, homelessness and plummeting property values.

Once a beneficiary of the housing boom, the city now has the second-highest foreclosure rate in the nation. Its unemployment rate has doubled in the past decade and now hovers around 16 percent while a fifth of residents live below the poverty line.

"The average citizen will not put up with this," said Gregory Pitsch, a 26-year-old unemployed homeowner who made an unsuccessful run for mayor. "Their home prices have plummeted, they have no jobs, a lot of people are getting fed up so that they have to resort to crime."

Betty Garcia, who co-owns a downtown jewelry store with her husband, said her community is starting a neighborhood watch group to respond to a rise in crime and lack of police response, which they expect will only get worse.

"We already hear gunshots every night," Garcia said. "It's becoming like listening to the train go by. People don't even call the cops anymore."

Experts say municipalities such as Stockton must find a way to lower their contractual obligations to current and former employees as the cost of health care skyrockets and people are living longer.

"When times were good, it was easier to expand benefits and pensions and not pay as much attention to the unfunded liabilities that were growing," said David Dubrow, a bankruptcy lawyer at Arent Fox LLP in New York City. "Now that times are not good and not good for prolonged periods, those costs are becoming severe."

Some states have passed legislation related to changing pensions and retirement benefits for new employees, Dubrow said. But it's difficult to change the rules for existing employees and even more complicated for retirees, because state constitutions and other legal issues may prevent such restructuring.

In Stockton, pensions will not be affected by a bankruptcy filing, but health benefits for employees and retirees will.

There are about 2,400 retirees in the city and slightly less than half of them receive medical benefits. The unfunded liability for those benefits stands at $417 million.

As of July 1, the bankruptcy plan approved by the City Council reduces contributions to current employee and retiree health benefits and eliminates benefits for employees with less than 10 years of city service. And as of July 2013, it completely eliminates city-funded medical benefits for retirees.

Thirteen cities, counties and other government entities filed for bankruptcy protection last year _ the highest annual level in nearly two decades.

Stockton, a river port of 290,000, would be the seventh U.S. municipality to file this year and the first California city since Vallejo, which sought protection in 2008, according to James Spiotto, a Chicago bankruptcy attorney who tracks municipal bankruptcies.

Since Congress added Chapter 9 to the bankruptcy code in 1937 to allow municipalities to seek protection, some 640 government entities have filed. Last year's 13 filings more than doubled the six filed in 2010. That was the most since an equal number were filed in 1994.

Bankruptcy is a bandage for Stockton that won't solve the city's deeper problems, said Garcia, the jewelry store owner.

"With all the cuts, it's just so much, it will have a trickle effect on everybody," Garcia said. "If we make it out of this, I don't know how much skin we'll have left."

Change Your Thoughts, And Your Life!

The Ron Paul Messege is Simple, WIN!!

LIFE AS A REFLECTION: This Is Port City: Tonight Stockton Will Decide To...

LIFE AS A REFLECTION: This Is Port City: Tonight Stockton Will Decide To...: This Is Port City: Tonight Stockton Will Decide To Go Forward With Ba... : What would your solution be, if you were one of the council membe...

Oh Zee's Words of Wisdom: Sandusky convicted of 45 counts, seeks an appeal

Oh Zee's Words of Wisdom: Sandusky convicted of 45 counts, seeks an appeal: By Kimberly Kaplan, NBC News, and M. Alex Johnson, msnbc.com Updated at 11:37 p.m. ET: BELLEFONTE, Pa. — Jerry Sandusky was convicted of ...

Oh Zee's Words of Wisdom: CBS in Maryland talks About Drones in USA

Oh Zee's Words of Wisdom: CBS in Maryland talks About Drones in USA: Of course, my campaign is still competing in several state conventions still yet to come. And we have a lot of planning to do to prepar...

Oh Zee's Words of Wisdom: Texas Did not Seal Mitt Romney's Nomination!

Oh Zee's Words of Wisdom: Texas Did not Seal Mitt Romney's Nomination!: Ron Paul is the only true American Politician, besides myself of course. 2012 The year of a Spiritual Awakening!

Oh Zee's Words of Wisdom: Gregorian - Wish You Were Here

Oh Zee's Words of Wisdom: Gregorian - Wish You Were Here: This Is my favorite song EVER.... This is a good take on it, as good as a cover can be!

Oh Zee's Words of Wisdom: Where in America Is Mitt Romney?

Oh Zee's Words of Wisdom: Where in America Is Mitt Romney?: Mitt Romney's campaign bus has been traversing America on his "Every Town Counts" bus tour this weekend. Check out what you missed while yo...

Oh Zee's Words of Wisdom: Chinese couple reacting to what they are Watching ...

Oh Zee's Words of Wisdom: Chinese couple reacting to what they are Watching ...: Lady Screaming:"Ithink Kim Jung un Is shooting down the moon!! AHAHHHHHHAAHHHHHH Man: Naw, honey it's just a show. Both: OMG! St...

Oh Zee's Words of Wisdom: What is REALLY going on in Stockton? City's Police...

Oh Zee's Words of Wisdom: What is REALLY going on in Stockton? City's Police...: This Is what the City of Stockton really couldn't resist at the low price of $300,000. A New armored vehicle for the S.W.A.T. team. W...

Oh Zee's Words of Wisdom: Alex Jones takes on Frustrated Paul Supporters abo...

Oh Zee's Words of Wisdom: Alex Jones takes on Frustrated Paul Supporters abo...

Oh Zee's Words of Wisdom: What Can Ron Paul Accomplish in Tampa at the Conve...

Oh Zee's Words of Wisdom: What Can Ron Paul Accomplish in Tampa at the Conve...: Tom Mullen’s latest Washington Timescolumn speculates on different ways Ron Paul delegates could possibly influence the Republican Party pl...

Oh Zee's Words of Wisdom: Video Clip of Britney Spears Saying she's "off to ...

Oh Zee's Words of Wisdom: Video Clip of Britney Spears Saying she's "off to ...: Britney Spears announces she's off to see the wizard... I've been waiting to meet her for 10+ years! Can't wait!

Try eMusic and get a $10 Credit. Choose from over 13+ Million songs, most just $0.49 each





Try eMusic and get a $10 Credit. Choose from over 13+ Million songs, most just $0.49 each

Oh Zee's Words of Wisdom: CA: Pushing welfare recipients to work

Oh Zee's Words of Wisdom: CA: Pushing welfare recipients to work: LOS ANGELES (AP) — Gov. Jerry Brown wants to shift the safety net protecting California's most vulnerable residents pressured by a $16 bil...

Bigger than Politics, Ron Paul Is!

Oh Zee's Words of Wisdom: Oh Zee's Words of Wisdom: Bigger than Politics, Ro...: Oh Zee's Words of Wisdom: Choosing Change : Choosing Change Tue, 05/22/2012 - 11:15 am PST by Jeff Jawer Here in the U.S. we’re heading t...

Quote of the Day 6/11/12

It isn't that hard to grasp the concept, once you do accept it and realize, that this is just the beginning." - Oh Zee I on

Oh Zee's Words of Wisdom: "They" Have all of us confident, but weary!

Oh Zee's Words of Wisdom: "They" Have all of us confident, but weary!: Ron Paul and Mitt and Mitt Romney will be splitting california's delegates. Each picking up 53 delegates. So Let's Review the total count...

Oh Zee's Words of Wisdom: Police Officer Arrested for being the Victim of a ...

Oh Zee's Words of Wisdom: Police Officer Arrested for being the Victim of a ...: By The Associated Press WOODLAND PARK — A Passaic County police officer sent a 12-year-old girl explicit photos of himself in unifo...

Oh Zee's Words of Wisdom: This guy stole 5000 pieces of Mail

Oh Zee's Words of Wisdom: This guy stole 5000 pieces of Mail: HAHAHA... anybody who knows him, should be turning him over real soon! By The Record June 07, 2012 12:00 AM STOCKTON - Federal invest...

Oh Zee's Words of Wisdom: The Future of Stockton is with EVI

GREG PITSCH FOR MAYOR 2012!


Oh Zee's Words of Wisdom: The Future of Stockton is with EVI

We are building A First Class City

June 4, 2012
Dear Governor Jerry Brown:
Dear State Assembly Member Joan Buchanan:
Dear State Senator Lois Wolk:
I am writing to ask you to support AB 484 (Alejo), which was recently amended in the Senate to help protect jobs in some of California’s most economically depressed areas.

This bill will help ensure businesses within an Enterprise Zone can continue receiving uninterrupted program benefits until such time as the Department of Housing and Community Development has completed regulatory and administrative review of the program, issued a request for proposal and issued conditional designation letters to the maximum number of Enterprise Zones within the state.

Not only is the Enterprise Zone program vital to economic development, the benefits of the program help our businesses offset costs and encourage expansion or hiring of new employees. Enterprise Zones deliver numerous benefits for employees and employers. AB 484 is a bridge to help two zones with high unemployment and improve economic stability in these distressed areas.

AB 484 ensures that employees and struggling businesses do not fall victim to bureaucratic and political delays. Our state is still struggling to pull itself out of this recession. Every job counts. AB 484 is vitally important to these economically depressed regions.

For these reasons, I strongly urge you to support AB 484.

Thank you in advance for your consideration.
Sincerely,
Mr. Gregory Pitsch
1704 Maude St
1704 maude st
Stockton, CA 95206-5713

Oh Zee's Words of Wisdom: CalPERS says Illegal funds are now Legal?

Oh Zee's Words of Wisdom: CalPERS says Illegal funds are now Legal?: STOCKTON - While in violation of the city charter, retirement benefits that Stockton paid for years on behalf of some elected leaders wer...