Supervisor Mike Antonovich, Glendora's representative in Los Angeles County's 5th District, wants to know if Los Angeles County is headed down the road that led Stockton to bankruptcy and has put San Bernardino in financial ruin. The Republican asked the county's chief executive officer for a report on how Los Angeles County's fiscal practices compare to those of Stockton, his spokesman said today.
"Stockton's bankruptcy provides an ominous warning for other municipalities who fail to apply fiscally responsible policies in their budgetary planning," Antonovich said, speaking at the weekly Board of Supervisors meeting.
"Rather than matching spending to revenue, they float bonds in order to cover escalating costs for retiree health care, pensions and public facilities and capital improvements. This is a recipe for fiscal collapse."
Stockton, a city of nearly 300,000 and the seat of San Joaquin County, recently filed for bankruptcy. On Tuesday, the
San Bernardino City Council, facing about $46 million in debt, also voted to seek Chapter 9 bankruptcy, and city officials said some public employees may not get paid in coming months.
Chapter 9 enables municipal governments to be shielded from creditors while reorganizing its finances.