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Gosia Wozniacka/Associated Press

Stockton bankruptcy is hard hit for city retirees

Guillermo and Betty Garcia stand in their downtown Stockton clock and jewelry shop on Wednesday, June 27, 2012. Garcia said the Stockton bankruptcy will have a trickle effect on residents and business owners, including a rise in crime and more businesses going belly up.

Gosia Wozniacka/Associated Press

Stockton bankruptcy is hard hit for city retirees

Pedestrians cross a street near the Bank of Stockton on Wednesday, June 27, 2012, in Stockton. When Stockton becomes the largest U.S. city ever to file for bankruptcy, it will strike a hard blow to residents, especially city employees and retirees whose health benefits and pensions helped drive the city toward insolvency.

Posted: Thursday, June 28, 2012 12:00 am | Updated: 6:05 am, Thu Jun 28, 2012.

Stockton bankruptcy is hard hit for city retirees Associated Press | 2 comments

When Stockton becomes the largest U.S. city ever to file for bankruptcy, it will strike a hard blow to residents, especially city employees and retirees whose health benefits and pensions helped drive the city toward insolvency.

City Manager Bob Deis said late Tuesday that officials were left with little choice but to recommend bankruptcy after failing to hammer out deals with creditors to ease the city's $26 million budget shortfall.

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Posted in News on Thursday, June 28, 2012 12:00 am. Updated: 6:05 am. | Tags: Bankruptcy, Stockton, Chapter 9 Title 11 United States Code, Public Employee Pension Plans, Bob Deis, Michael Sweet, Stockton City Council, Gary Gillis, Gary Jones, Gregory Pitsch, David Dubrow