Thursday, July 19, 2012

Compton Considers Bankruptcy

The south Los Angeles city of Compton is considering bankruptcy. If it files for Chapter 9 protection, it would be the fourth California city to do so this year. Many economists say the financial crises many state cities are facing is the result of severe property tax losses due to foreclosures and pension payouts. But residents also point to mismanagement and corruption in the four municipalities going broke. Compton city officials painted a stark financial picture and said the city would run out of money by September. Pacifica KPFK’s Ernesto Arce has more from Los Angeles.