*Update* Stockton Voters Approve Increase in Sales Tax–Solvency Becomes a Possibility

Last week, we posted a blog about the importance of Stockton’s voters approving a sale-tax hike to stabilize the city’s finances. On November 5, 2013, 53 percent of voters approved the ballot measure that calls for a 9 percent sales tax (up from 8.25 percent). This tax increase is projected to generate approximately $28 million each year, thus creating room in Stockton’s budget to exit bankruptcy, re-commence certain city services, and enhance its police force.

With voters’ approval, the city avoids having to shutdown public libraries, community programs, and fire houses. Instead, now the city and its citizens are poised to exit bankruptcy and begin the journey to economic recovery.