California laws granting immense union monopoly power to union officials is creating cracks, fissures, and collapse across the state. One manifestation of the growing problem is a pension crisis coming to a head as the city of Stockton faces pending bankruptcy. The Investor Business Daily notes:
As one California city slogs toward bankruptcy, others may soon try to avoid the same fate by passing pension reforms — that is, if a pro-union state government will let them.
The financial problems plaguing many of the nation’s [Big Labor Boss-run] cities are taking a particularly heavy toll on Stockton, Calif., a blue-collar port city that struggles even in good times.
Stockton is also a cautionary tale on how not to run a city. It seems to have committed just about every fiscal sin known to local government.In those infrequent years when things were good, it spent (and promised) like there was no tomorrow. No
w tomorrow has come, and the city is broke. Its spiffy sports arena and its new $35 million high-rise city hall won’t help it pay its debt.
That debt includes, but is not limited to, a $400 million liability for its retirees’ health care. It also has had to cut its police force by almost a third. (more…)









