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April 27, 2011

Vallejo Municipal-Bankruptcy Morass Prompts U.S. States to Prevent Filings

"Soon after Indiana state Senator Ed Charbonneau introduced legislation in January to bolster cash- strapped cities on the verge of bankruptcy, he got an unexpected phone call.

It was Bill Cooper, city manager of Hamtramck, Michigan, whose own state has refused permission for the Detroit suburb to file for reorganization. Cooper urged sending state help to cities before they reach a crisis, Charbonneau said.

'We’re putting a process in place with the intent of avoiding the need for bankruptcy,” Charbonneau, a Valparaiso Republican, said in a telephone interview April 19. “The whole purpose of it is to try to get fiscal help to distressed local units of government so they can correct their situation before any need for bankruptcy would arise.' "

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April 27, 2011 in Current Affairs | Permalink

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