The Basics of Restructuring: Alternative Paths to Reform – Prospects for Deficit Reduction and Pension Reform in the Golden State

October 1, 2012 – In The News
University of California Television

Michael A. Sweet was part of a panel discussion about the political and financial contexts within which communities address fiscal stress. Although the options are quite large, the panel explores a number of questions., including:

  • How does the initiative process shape incentives and options for managing fiscal stress and related issues?
  • What happens when a city falls behind in its responsibilities to provide timely financial reports and budgets?
  • What constitutes insolvency? Why was AB506 adopted and how has it shifted the rules of the game in managing fiscal stress?
  • Is municipal bankruptcy really so terrible? What kinds of deals can localities strike with their creditors and contractors to reduce the magnitude of debt burdens and fiscal stress?
  • Is it possible to restructure local finances without succumbing to bankruptcy?