Wednesday, September 1, 2010

Municipal Mergers?

Cash strapped cities in California are considering the "D" word as a solution to their fiscal woes.
No, I don't mean Democrat (that's what caused the problem), I mean dis-incorporate.
Over the last twenty years, many cities have incorporated in order to retain tax revenue that would normally go to the county and retain more autonomy.
With dis-incorporation, the taxes and power return to the county along with the fiscal responsibilities.
It isn't clear if the move by cities like Half Moon Bay will resolve issues with employee unions, but the responsibility will be the county's and perhaps they will be able to justify layoffs due to duplication.
Public employee unions in California have effectively blocked cities from declaring bankruptcy unless approved by a state board stacked with pro-union members which will not approve any deal that doesn't insure union members still get everything promised them.

Isn't this solution the municipal equivalent of a merger or acquisition?

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