As the third California city in a month files for bankruptcy protection, fears of a domino effect worry many. While bankruptcy may seem like an enticing solution, officials that have gone through it caution about the downside.
This week, another California city, San Bernardino (population over 200,000), voted to follow the fate of the Sierra Nevada resort town Mammoth Lakes, and Central Valley city Stockton, by filing for bankruptcy. With fast rising labor costs and municipal debt plaguing cities across the state, and country, the slippery slope to bankruptcy may trap other municipalities in the near future, write Phil Willon, Catherine Saillant and Abby Sewell.
"Joe Nation, a Stanford economics professor and co-author of the February report [on rising pension costs], thinks that for at least some cities, insolvency is inevitable unless they can wrest much bigger concessions on salaries and pensions from public employees."
"'I think this is the tip of the iceberg in terms of the problem,' Nation said. 'Stockton was spending $12 [million] or $13 million on pensions 10 years ago. By 2010, it was $30 million and will double again over the next five years, unless something is changed.'"
Writing in The New York Times, Mary Williams Walsh reports that analysts were not, however, predicting a wave of defaults, at least outside of California. "I don't believe that this is the beginning of a tidal wave of insolvency across the country," said Richard P. Larkin, director of credit analysis at the underwriting firm H. J. Sims. "I am worried, however, that this phenomenon may grow in California."
For those cities considering bankruptcy as a viable option, a voice of warning comes from Osby Davis, mayor of Vallejo, the Bay Area city that began the current trend of municipal bankruptcies in May 2008. His advice: don't do it. "It takes an enormous toll on everyone,'' Davis said. "And you have the stigma of being a bankrupt city. How do you come out of being labeled a bankrupt city to one that is a desirable place to live?"
FULL STORY: Rising costs push California cities to fiscal brink

Maui's Vacation Rental Debate Turns Ugly
Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

Planetizen Federal Action Tracker
A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

In Urban Planning, AI Prompting Could be the New Design Thinking
Creativity has long been key to great urban design. What if we see AI as our new creative partner?

Cal Fire Chatbot Fails to Answer Basic Questions
An AI chatbot designed to provide information about wildfires can’t answer questions about evacuation orders, among other problems.

What Happens if Trump Kills Section 8?
The Trump admin aims to slash federal rental aid by nearly half and shift distribution to states. Experts warn this could spike homelessness and destabilize communities nationwide.

Sean Duffy Targets Rainbow Crosswalks in Road Safety Efforts
Despite evidence that colorful crosswalks actually improve intersection safety — and the lack of almost any crosswalks at all on the nation’s most dangerous arterial roads — U.S. Transportation Secretary Duffy is calling on states to remove them.
Urban Design for Planners 1: Software Tools
This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.
Planning for Universal Design
Learn the tools for implementing Universal Design in planning regulations.
Appalachian Highlands Housing Partners
Gallatin County Department of Planning & Community Development
Heyer Gruel & Associates PA
Mpact (founded as Rail~Volution)
City of Camden Redevelopment Agency
City of Astoria
City of Portland
City of Laramie