Stockton, California is set to become the largest city in the United States to declare bankruptcy.
FOX News Radio’s Steve Rappoport reports:
Known for problems with obesity, illiteracy and skyrocketing unemployment, Stockton, California will soon have another infamous honor: The largest U.S. city to declare bankruptcy.
(Cochran) “The Council voted to approve a pendency plan, which assumes that we’ll file for Chapter 9 federal bankruptcy.”
Public Information Officer Connie Cochran says the City Council approved the move after negotiations with creditors broke down.
(Cochran) “It doesn’t mean we can’t continue to talk to people and negotiate with people, which we will.”
Stockton is hundreds of millions of dollars in debt, with officials projecting a $26 million budget deficit for next year.
Steve Rappoport, FOX News Radio.
Editor’s Note: City lawyers have until Friday to file for Chapter 9 bankruptcy protection.
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