I had mentioned in a previous email that there are 3 towns in CA that are either bankrupt (Vallejo and Stockton) or about to be bankrupted (Mammoth Lakes).
Government unions (and their lawyers) are the main reason for this bankruptcy, forcing tax payers to pay extravagant salaries and benefits. Mammoth Lakes, for ex, must declare bankruptcy to ease the settlement of a lawsuit occasioned by its default on a contract. Yet the union practically blocks this bankruptcy filing by forcing an anti-bankruptcy law that protects union workers. (http://www.sfgate.com/news/article/Mammoth-Lakes-Town-Council-votes-to-file-3684756.php)
"The new union-backed law aims to protect public employee contracts by making it harder for municipalities to file bankruptcy and requires local governments to enter an evaluation process with its bond holders, creditors, employee unions and retirees for up to 90 days in an effort to avoid Chapter 9 protection."
The sobering video linked below shows how government employee unions in particular are bringing us all closer to bankruptcy.
Don Hank