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Tuesday, September 18, 2012

How to Know if Your City is About to Go Bankrupt

http://www.statebudgetcrisis.org/wpcms/

So what does this mean for those of us who care about cities and pay attention to politics, governance and finance? A conversation with Crane, who was a special adviser to California Gov. Arnold Schwarzenegger from 2003 to 2011, offers some fresh and useful insights.
For cities, he says, social and cultural bankruptcy come long before financial bankruptcy. At first, street cleaning is cut back from once a week to once a month, library hours are cut and some libraries are closed. Street repairs, building maintenance and vehicle maintenance are reduced. Arts and cultural programs are eliminated, park maintenance is cut back and some parks are closed, and community centers are open for fewer hours or shut down. Then come the cuts to public safety as police officers and firefighters are let go. By the time cities declare bankruptcy, services already have declined steeply and the time has come to make really hard choices--pay police or pay creditors?

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