Confronted by declining tax revenue and rising employee costs, Stockton, Calif., is considering bankruptcy—while several other struggling California cities warn they could eventually face the same predicament.
Stockton officials voted Tuesday night to take the initial step toward a bankruptcy filing by the city of 290,000, located in the agricultural Central Valley. The decision launches the first test of a new state law that requires cities to negotiate with employees, creditors and others to try to stave off a filing before making the move.
As in Stockton, two other Northern California cities, Hercules and Lincoln are in the same situation
WSJ
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