The Vallejo Debacle: A Fiscal Crisis Solution for California Cities
Ted Costa, father of the Gray Davis recall that set in motion the gubernatorial ambitions of Arnold Schwarzenegger, has been closely watching the financial demise of Vallejo. Often regarded as the state's perennial gadfly, Ted Costa has arguably utilized (and certainly been a part of) enough revolutionary initiative movements in California to merit close scrutiny of his prognostications.
His latest prediction: The impending financial tidal wave resulting from bloated pensions and overextended cities will wipe out many a municipality. This pension tsunami will lead to a government shake-up and taxpayer revolt as significant as Proposition 13 -- a measure he had something to do with as an associate of Paul Gann -- whose organization, People's Advocate, Costa now heads.
Today, in conjunction with economic consultants Laffer Associates, he contends that rather than piecemeal solutions or higher taxes, "there is a smarter solution to the predicament in which local governments find themselves." He proposes a fiscal responsibility solution made up of six concrete steps and calls out those cities and counties that face imminent financial danger.
Read the full report here. Remember to post comments on this serious subject below, but also know that Ted Costa has asked CCN to request that city officials write him with your thoughts directly at tedcosta@tedcosta.com







