Great news for the people of Stockton—bad news for those cops paying bribes to the union:
“Stockton, the central California city trying to avert bankruptcy, can continue suspending accrued vacation and sick time payouts for its retiring and departing police officers, a state judge ruled.
San Joaquin County Superior Court Judge Lesley D. Holland yesterday rejected the Stockton Police Officers’ Association’s request for an order reinstating the pay. David E. Mastagni, a lawyer representing the association, said some officers have spent 30 years accruing the compensation.
“I’m proceeding on the assumption that bankruptcy, if not a certainty, is a highly probable outcome,” Holland said. The city is trying to remain solvent and win concessions from creditors through negotiations under a state law designed to discourage municipal bankruptcies, the judge said.”
Finally, a court says that paying bribes do not guarantee benefits. Second, the court recognizes Stockton is bankrupt. But because of the unions, the city was forced to default on bonds, not pay its bills and the situation is worse. Watch as other cities go through the process of bankruptcy—see how much the unions try to steal first.
Stockton Can Suspend Police Accrued Vacation Payouts
Mishs Global Economic Trend Analysis, 4/15/12
A California Superior Court Judge says Stockton Can Suspend Police Accrued Vacation Payouts.
Stockton, the central California city trying to avert bankruptcy, can continue suspending accrued vacation and sick time payouts for its retiring and departing police officers, a state judge ruled.
San Joaquin County Superior Court Judge Lesley D. Holland yesterday rejected the Stockton Police Officers’ Association’s request for an order reinstating the pay. David E. Mastagni, a lawyer representing the association, said some officers have spent 30 years accruing the compensation.
“I’m proceeding on the assumption that bankruptcy, if not a certainty, is a highly probable outcome,” Holland said. The city is trying to remain solvent and win concessions from creditors through negotiations under a state law designed to discourage municipal bankruptcies, the judge said.
City Default
The City Council on Feb. 28 agreed to extend its fiscal emergency declaration, default on $2 million in bond payments and suspend sick leave and vacation payouts to retiring workers. Officials decided to suspend the payouts to discourage workers who fear the mediation would lead to a cut in their benefits from retiring early and draining city coffers.
On April 12, San Francisco-based Wells Fargo & Co. (WFC), the fourth-largest U.S. bank by assets, was awarded possession of three Stockton parking garages in a separate lawsuit it filed as a bond trustee against the city. San Joaquin County Superior Court Judge Roger Ross made the decision about who controls the garages after Stockton missed a $779,935 payment on lease revenue bonds issued in 2004.
The City Council on Feb. 28 agreed to extend its fiscal emergency declaration, default on $2 million in bond payments and suspend sick leave and vacation payouts to retiring workers. Officials decided to suspend the payouts to discourage workers who fear the mediation would lead to a cut in their benefits from retiring early and draining city coffers.
Stockton has already made a mistake. It lost nice parking assets because it has not yet filed for bankruptcy. It should have filed first, then missed the bond payment. Two groups should lose in this mess: city employees with untenable pension benefits and bondholders.
