A valley city is on the verge of bankruptcy. City leaders in Stockton are dealing with a $26 million deficit. It begs the question how is Fresno's economic stability?
The headline for the Record in Stockton was "Bankruptcy Draws Near". We met up with Fresno city manager Mark Scott. We asked first will the bankruptcy hurt Fresno? Scott says credit agencies and bankers are going to look out and see if there's a domino effect and that could hurt fresno. We also asked, is Fresno anywhere near a situation like this? He said no. Scott said Fresno has a short-term cash problem. Scott says Stockton's problems are unique and deeply-rooted.
"Stockton has long term liabilities retiring medical costs and pensions that are underfunded. That far exceeds any challenges we have in Fresno," said Scott.
Starting Tuesday Fresno leaders will have meetings for the final budget adoption. The budget has to be approved by June 30th.