Dallas Confronts a Big Risk of Bankruptcy

by San Antonio Attorney

Dallas, a progressive city in Texas, was considered to be a progressive city and least considered to be bankrupt.

However, the trouble in the city started when Michael S. Rawlings, the Mayor of Dallas, testified for this month that the city was heading for bankruptcy.

Rawlings added that the city’s situation is horribly ironic.

Dallas was considered to have the fastest economic growth among the 13 largest cities.  The streets are filled with high-end vehicles and numerous commercial district.

Rawlings, a former CEO of Pizza Hut, had a lot of plans for the city.  Multinational corporations make Dallas as a location for their primary headquarters due to its rapid growth and development.

Low taxes are one of the main reasons why companies opt for Texas as their primary location for business establishments.  Jacobs Engineering, a company based in California, recently moved to Dallas.  The company’s original office came from Pasadena, whose tax prices are higher than any other state.

Beneath the progressive image of Dallas, lies an impending financial problem which can result into a catastrophe if there is no intervention.

This impending problem serves as a challenge for the state after its election.  The government has promised the city with tax relief and proper order.  However, the pension fund for the police officers and firefighters of Dallas is in turmoil and a bailout is the only solution to fix the problem.

As a result, retirees have pulled out approximately $220 million out of the fund for the past six weeks.  The pullout was stemmed from a public recommendation that retirees were no longer allowed to receive huge portions of funds.

Dallas’ government officials have promised employees hefty pensions that have not been fulfilled.  Big withdrawals from pensioners affect the city funds of Dallas, which can precipitate another set of problems.

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