January 12, 2011

CITY GOV'TS GOING BROKE

City Bankruptcies Will Increase, Dimon Warns by William Alden

Different cities have different problems, but one thing remains constant: there's not enough money coming in. Often, revenue isn't enough to cover even the most basic of services.

AN EXCERPT:

* In Detroit, the problem has gotten so bad that a new proposal would deprive a fifth of the city of basic municipal services, like trash collection and police protection.

* Neighboring Hamtramck has run out of services to cut, and expects to spend its last dollar early this year.

* Prichard, Alabama, in a desperate response to depleted coffers, has illegally stopped paying its pensioners.
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* Newark has cut 13 percent of its police force.

* Camden, N.J., one of the nation's most dangerous cities, has begun a process of cutting about half of its police department.

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