As the bankruptcy process moves forward with full steam in Stockton, CA, residents and city employees are not completely satisfied with how things are going. And, considering the fact that bankruptcy includes a few deep cuts, many of which are causing a bit of a stir.
No More Retiree Benefits
One of the biggest cuts is the recent removal of retiree benefits. From health care to pension plans, Stockton, CA, has been granted the authority by a federal judge to eliminate health care benefits that were once provided to retirees. Clearly, retirees are quite unhappy about the recent developments. And, as a result, they are suing the city.
While the bankruptcy process is never 100% popular with all parties involved, the ultimate goal is that it brings relief to the debtor, and creates new, workable financial situations for all parties involved. In this case, Stockton, CA may or may not be going through Chapter 9 in the best way possible, but one thing is certain. In a few years, the ramifications of the city’s decisions will become fully evident. Most likely, the result of these decisions will be quite positive.
After all, by going through the bankruptcy process, Stockton isn’t taking an easy way out. Rather, they’re taking the necessary way out. While it may hurt retirees in the short term, it will benefit all residents in the long term. The bankruptcy process is about healing. As the city enters into healing, its residents will all benefit from “going under the knife.”