Bankruptcy option being probed by PG
The Budget and Finance Advisory Committee of Pacific Grove is looking into the implications of declaring a Chapter 9 bankruptcy to solve the budget problems and other obligations.
The city has been struggling to keep the finances intact due to the present economic down slum. The pension program of the state is dependent on the income of investment for the benefits of the fund. However due to the shortfall in the funds, the cities and the public agencies which are being included in the CalPERS must cope up with the loss.
According to the officials of Pacific Grove, “the City Council has made decisions to bring costs into line with revenues in recent years, which have improved our overall financial health.” The new budget will be balanced through a mixture of new revenues and cost reductions.
Although the police administration officials have received benefits, the general employees have not yet enjoyed any raises over the last four years. There has also been reduction in staff force.
The people of the city also welcomed the proposal. According to them, it is a good step that the city officials are beginning to recognize it as a revenue problem rather than a cost problem.