“We went fifty years without any municipal bankruptcies in the United States, and now we are going to get dozens of them. The governing class did not get stupid fast.”-Richard Brodsky, former 14-term New York State assemblyman

(Actually, contrary to Brodsky’s statement, I think there was one chapter 9 bankruptcy in 1994, and another in 2008 [both in California]. But the point is that we’ve never seen the numbers we’re seeing now.)

Since 2010 dozens of cities, counties and local service agencies have gone bankrupt, something not seen in at least fifty years! Analysts are predicting dozens more.  The reason is simple: Bad economy means less jobs, and most of the jobs that are available pay a pittance (minimum wage, no benefits). That means less tax revenue for state and local governments.

Some stupid local governments try to make up for it by raising local taxes.  That shows you how out of touch your local reps are.  If tax revenues are down because most people are making less money, then raising taxes will only make things worse (remember what sparked the U.S. Revolutionary War: Unfair taxes).

2010 Local Government/Service Bankruptcies

Lost Rivers District Hospital, Arco, IDAHO

Lake Lotawana Community Improvement District, Lee’s Summit, MISSOURI

Grimes County MUD 1 and Official Committee of Bondholders, Grimes County, TEXAS

The Southern Connector (toll road), Piedmont, SOUTH CAROLINA

2011 Local Government/Service Bankruptcies

Central Falls, RHODE ISLAND

Jefferson County, ALABAMA

Centerton Municipal Property Owner’s Improvement District 3, Fayetteville,  ARKANSAS

Harrisburg, PENNSYLVANIA (courts rejected claim)

Boise County, IDAHO (courts rejected claim)

Barnwell County Hospital, SOUTH CAROLINA

Bamberg County Memorial Hospital, SOUTH CAROLINA

Sanitary and Improvement District 512, Douglas County, NEBRASKA

Mendocino Coast Recreation and Park District, Fort Bragg, CALIFORNIA

2012 Local Government/Service Bankruptcies & Defaults

Harrisburg, PENNSYLVANIA (default)

Suffolk Regional Off Track Betting Corp, Hauppauge, NEW YORK (second filing, first was rejected by courts in 2011)

Hospital Authority of Charlton County, GEORGIA

Rural Water District 1, Cherokee County, OKLAHOMA

Sylamore Valley Water Association Public Facilities, Izard County, ARKANSAS

Stockton, CALIFORNIA

Mammoth lake, CALIFORNIA

San Bernardino, CALIFORNIA

Seven local governments are under emergency management in MICHIGAN

Analysts predict many more major U.S. cities to go bust

Washington DC: In debt by $537 per resident

Detroit, MICHIGAN: In debt by $217 per resident

Honolulu, HAWAII: In debt by $110 per resident

New York City, NEW YORK: In debt by $565 per resident

Almost every major city in CALIFORNIA (beware the saying; “As California goes, so goes the rest of the nation.”)

Camden, NEW JERSEY: In debt by $54 per resident

Cincinnati, OHIO: In debt by $181 per resident

And the biggest loser is: Chicago, ILLINOIS: In debt by $2,353 per resident