Nebraska, Not California, is King of Municipal Collapse

[marmar]

(Bloomberg) Busted land deals and empty subdivisions bankrupted more governmental entities in Brian C. Doyle’s home state than anywhere in America. With the recent financial collapse of three of its cities, it might be easy to assume he’s from California.

Doyle, however, lives in Nebraska.

Quirks in local, state and federal law have made Nebraska home to almost one-fifth of the more than 220 Chapter 9 bankruptcies filed in the U.S. since 1981, according to a nationwide review of federal court records. California, with more than 20 times Nebraska’s population, is second, followed by Texas and Alabama. California may soon add to its total, as San Bernardino decides whether to seek court protection this week.

The main difference between Nebraska and its larger brethren is the kind of governmental bodies that file for bankruptcy. No town, city or county has sought court protection in the state. All 45 of Nebraska’s Chapter 9 cases were by special tax districts, most of them owned by residential subdivision developers who used property-tax revenue to pay for streets, sewers and other infrastructure. ..................(more)

The complete piece is at: http://www.bloomberg.com/news/2012-07-16/nebraska-not-california-is-king-of-municipal-collapse.html

[newfie11]

1. wow news to me

But I live in a very rural area of the panhandle. Scottsbluff/Gering area seems to be doing fine.

[Wellstone ruled]

2. Another wing-nut contoled state

screwing their Wall Street buds. Wonder what their bond rating is,got to ugly.

[AnotherMcIntosh]

3. If, as you say, "All 45 of Nebraska’s Chapter 9 cases were by special tax districts, most of them

owned by residential subdivision developers," isn't it a false equivalency to equate California's bankrupt cities with the obviously smaller Nebraska bankrupt residential subdivisions?

[marmar]

4. As who says? This is a story from Bloomberg.

nt

[AnotherMcIntosh]

5. You say, obviously, by re-publishing such language without qualification from the Bloomberg story.

If you didn't do this, who did? Who republished the language from the Bloomberg story?

[marmar]

6. Umm, you didn't notice the Bloomberg identifier ......

...... and the link to the rest of the story?

[AnotherMcIntosh]

7. No. I did notice the Bloomberg identifier. I also noticed the link to the rest of the story.

In contrast, I did not notice any language originating with you disclaiming or pointing out the false equivalency.

[marmar]

8. Dios mio.

Umm, whatever you say.