Stockton, California symbolized the worst effects of the Great Recession on local governments—not to mention, to some, California's decline.
After entering into bankruptcy in 2012, Stockton, California finally exited bankruptcy, according to Liz Farmer, "when a federal judge approved the city’s exit plan and allowed city retires and employees to keep their public pension benefits."
"Stockton had stood its ground on the pressure to reduce its pensions, arguing that doing so would cause a mass exodus of employees and put the city at an extreme competitive disadvantage in hiring new employees. Of particular concern was the prospect of losing police officers as Stockton has struggled with skyrocketing crime rates since it laid off cops prior to filing for bankruptcy."
Stockton was one of three cities in California to enter Chapter 9 bankruptcy protection during the recession—Vallejo exited in 2011 and San Bernardino's case is still pending.
Read the full story: Judge Rules Stockton Can Exit Bankruptcy
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