How did this happen?
- Bad budget decisions based on overly optimistic assumptions of the local economy;
- Over-generous salaries and pensions that have spiraled into massive liabilities;
- An expensive downtown redevelopment effort; and
- Falling tax revenue due to the real-estate downturn.
It's a difficult situation, and one that bears watching, as many other California cities are in difficult financial situations.
Sacramento Bee: http://www.sacbee.com/2012/06/24/4584857/vote-tuesday-could-send-stockton.html