San Diego’s mayor and a city councilwoman are trying to reassure the public that the city is not in danger of bankruptcy despite a $1.43 billion deficit in its pension plan. Some financial experts, however, say the city may still have to file for Chapter 9 protection, the municipal form of bankruptcy, according to The San Diego Union-Tribune. The skeptics say it doesn’t appear that the city has made the major budget cuts or increased its revenue enough to stay solvent, but audited financial statements for the past three years that could clarify the city’s fiscal status aren’t scheduled for release until later this month.
http://www.signonsandiego.com/news/metro/pension/20060619-9999-1n19bankrupt.html