Stockton Voters to Decide the Fate of city’s bankruptcy exit plan

We previously posted a story about Stockton’s plan to exit bankruptcy. That plan hinges on Stockton residents’ approval of a tax measure that would increase Stockton’s sales tax to 9 percent from the current 8.25 percent. Reuters reports that residents will be hitting the polls Today, November 5, 2013– city officials are optimistic that the measure will be approved by a clear majority.

The tax measure is the last piece to the puzzle that is Stockton’s bankruptcy. With approval, the city will be primed to raise nearly $300 million over the next decade, and most importantly, take a step toward exiting bankruptcy. The measure will also enable the city to add at least 100 officers to its police force.

Alternatively, voters’ refusal of the tax will lead to mandatory closures of libraries, recreational buildings, and firehouses. Stockton will have to return to the “drawing board”, continue negotiation with its creditors, and present an alternate plan for its bankruptcy exit.