Stockton Struggles to Recover After Bankruptcy

by San Antonio Attorney

When Stockton filed for bankruptcy 13 months ago, it has slowly steered its way on a recovery process but continues to encounter challenges along the way as it tries to provide services to more than 300,000 residents.

The city payroll maintains its small amount in dollars as compared to 2012, when Stockton initially filed for bankruptcy.  The payroll issue became more visible when the inflation came into the equation.

Stockton spends a budget of approximately $117.5 million in their payrolls, to render wages to more than 1,400 full time employees last 2015.  The wages increased by $4 million, compared to 2014.  It became $10 million more as compared to 2012.

But this amount was lesser that the 2009 payroll, which $137.5 million in total.  At that time, Stockton employed 1,600 full time workers and laid off 90 of them by the end of the year.

The payroll pattern of decreasing wages from 2009 is interpreted as a suspected inflation.

If Stockton’s payroll in 2009, which cost $137.5 million, caught up with inflation in the succeeding years, it would rise to $152 million by 2015.

However, by 2010, the payroll declined as the city slowly dwindled towards insolvency.

In 2010, the payroll decreased to $126 million and became lesser than $119.1 million in 2011.  It finally settled to a lesser amount of $107 million in 2012.

Wilson said that the ratio of the population of the city and the local government employees is inversely proportional.  The number of employed workers has declined, resulting to an understaffed office serving a rising Stockton population.

Wilson added that the city aims to have balance between maintaining equilibrium for rendering compensation among workers and fiscal restraint.  The city’s long term objectives have reflected that problem, even when there is more work to be done.

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