Straight outta Compton it’s a bankruptcy! Compton California, known for its icons of gangsta rap may be the next in a long line of California cities on the verge of bankruptcy, and the decision is coming soon, possibly on September 1st.
The City of Compton has some serious debt issues (as do many cities in California, unfortunately). With only $3 million in the general fund to pay expenses and over $5 million in bills due at the same time, Compton is heading for financial collapse. On August 1st, the city had no choice but to make a bond payment on their water in the amount of $1.1 million! This does not look good for Compton.
However, Compton has very different issues regarding debt than most other cities in California that are filing or on the verge of filing bankruptcy. Most cities are bankrupt because of out of control pension obligations, but Compton is in trouble because it has been decreasing its intake of cash for several years in a row. Businesses leaving the city and even the state have hurt the city in a bad way and revenue needs to be amassed quickly or Compton will be another California bankrupt city.
So, what will happen to Compton? No one knows just yet, but we’re getting close to the September 1st deadline to pay on their bills before they default. One thing is a certainty though, not even Snoop can save Compton—it’s up to the mayor and city council alone. Good luck Compton!