Is San Francisco Going Bankrupt?
Mayor Ed Lee dropped a bombshell during a press interview this week at the SF Bay Citizen – saying that without some dramatic changes San Francisco would go bankrupt.
This is definitely crossing in to new territory. San Francisco mayors have avoided such loaded language, if only for the reason that it could unnerve the bond markets and raise the city’s cost of borrowing.
It is meaningful that such a serious prediction is being made by a long-time city leader not known for using inflammatory language.
Why such a prediction? Why now?
First – it could be true. As he pointed out, the city’s deficit is expected to soar over to the next few years. Cuts in federal and state budgets are only making things worse.
Two – he’s managing expectations for what is going to be a tough budget coming up. Mayors like to give dire predictions, which puts their cuts into context.
And three – maybe he is actually serious about pension and retiree health care costs. The Bay Citizen provided video of their interview with Mayor Lee.
You can check it out here: