City of Compton May Declare Bankruptcy by September: Officials

Ronald Grover and Jim Christie, Yahoo! News, July 18, 2012

The City of Compton, a city of 93,000 people located on the outskirts of Los Angeles, must decide by September 1 whether to seek bankruptcy, according to its two most senior financial officials.

Such a move would see it join a growing number of deficit-hobbled California cities that have used the filing to restructure onerous debt loads.

Compton, which has an accumulated $43 million deficit and has depleted what had been a $22 million reserve, will run out of cash to make its payroll on September 1 at its current cash consumption rate, city comptroller Steven Ajobiewe told the city council during a July 17 meeting.

{snip}

A bankruptcy filing would follow one by San Bernardino, which on July 9 became the third California city this year to seek restructuring of its liabilities. Earlier, Stockton and Mammoth Lakes also said they would file.

Compton’s problems escalated on July 13 when credit rating agency Standard & Poor’s said it may cut Compton’s BB long-term and underlying ratings for its lease revenue bonds.

S&P cited a decision by Mayer Hoffman McCann, the city’s independent auditors, to resign rather than sign off on Compton’s 2011 financial statement.

{snip}

The city council added to Compton’s accumulated deficit on July 10 when it adopted a $161 million budget with a $9 million projected deficit.

The red ink grew to $10 million during the council meeting, when city maintenance officials said they needed to make $1 million in immediate repairs to the city’s water system to bring them up to code and avoid fines from LA County health officials.

Mayor Perrodin was more optimistic than his financial staff that the city could avoid bankruptcy, although he noted similarities between Compton and San Bernardino, which has a population twice that of his city.

Unemployment is worse in Compton than San Bernardino, he said, although both have seen property taxes fall precipitously due to rising home foreclosures.

{snip}

[Editor’s Note: According to 2010 census data, Compton is 65 percent Hispanic, 32.1 percent black, and 0.8 percent white.]

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  • ILOVEMYRACE

    This is the way an Empire ends: not with a bang, but a wimper.

    • The Worlds Scapegoat

      And with a whimper, I’m f****** splitting, Jack.

      Dennis Hopper – Apocalypse Now

  • Los Angeles is next. “Officially,” there are 50% latinos and 10% black, but I would guess the numbers of latino illegals is much greater. When L.A. goes, California goes with it.

    •  Los Angeles city proper has a FOREIGN born population of 4,407,353 as of the 2010 census.  I think you could safely add another 2 Million illegals or more to that number.

  • How did Compton go this long without having to declare bankruptcy?

    • bluffcreek1967

      That’s a very good point! Interestingly, they lost their own police department in the early 90s mostly likely due to corruption and lack of sufficient funding. The L.A. County Sheriff’s Department had to take the city over at that point.

    • Why are Ice-Cube, Dr. Dre., MC- Ren and all of the other N.WA. (astronauts WITH ATTITUDE) fools not helping out their beloved Compton?  I mean they are all from Compton and they all deplore the plight of the lowly black man, so why are they not stepping in to help THEIR PEOPLE with their millions? 

      • Easy E is dead (AIDS), and the rest are probably bankrupt.  And they’re probably yesterday’s news, today’s generation of hip hop aficionados probably say, “Ice Who?”.  Save the occasional cameo mention in an Eminem song.  Call them ONWA,(Professors Emeritus With Attitude).

        •  Ice Cube has an estimated net worth of $145 million.  He has his own production company (Cube Vision) that has produced many (financially) successful movies.  Dr. Dre has an estimated net worth of $260 million.  Hell they could BUY the city of Compton and turn it into one of those Space Age African kingdoms, like the ones that existed before the white man somehow conquered them.

      • These rich black rappers wouldn’t care less about their old “hood” and their “peepulz”. Add to that the fact that Compton is majority Hispanic now.
        First Compton, then California, then half the country. Just give it time. Until MANY things change, this country is doomed.  The first people to thanks: Liberals.

        • FWG

           Hell these rappers are the ones who participated in the 1992 riots.  Tupac Shakur even drove from Oakland to actively participate in the looting.  These folks aren’t familiar with civilization.

        • FWG

           Hell these rappers are the ones who participated in the 1992 riots.  Tupac Shakur even drove from Oakland to actively participate in the looting.  These folks aren’t familiar with civilization.

  • Francis Galton

    “…city COMPTROLLER Steven AJOBIEWE…”–that’s probably a large part of the problem right there: an African financial supervisor.  That’s sort of like a blind pilot, or maybe like Tom Thumb joining the NBA.

    • The__Bobster

      Did they hire him from a Nigerian scam outfit?

      Well, I guess some African prince left Compton a few billion.

    •  Yeah I noticed that too, a straight up REAL LIVE African is in charge of the cities finances.  You can see how well that has worked out in Africa.

      • Fuzzy

        Why don’t they contact the black genius who runs Detroit, St. Louis, Oakland, Gary, these black leaders would show them what they have done to maintain their communities

      • Fuzzy

        Why don’t they contact the black genius who runs Detroit, St. Louis, Oakland, Gary, these black leaders would show them what they have done to maintain their communities

    • Gereng

      In Liberia in early 1980s, my organization assisted several ‘ministries’ run what were referred to as ‘development projects’. They sent over their line-item project budgets and we added our funds to those accounts we wished to support. When our accountant (White) went over the ministry’s figures, he found numerous addition and multiplication errors.  We corrected these when we entered our contributions and I sent these corrected budget forms back to the moron-in-charge with a polite letter of explanation for the changes in figures on the original forms.

       Next day I was summoned to the ministry’s offices by the MIC and given a dressing down for daring to accuse the ministry’s officials of being unable to  do simple arithmetic. He tossed the corrected papers we had sent him across his desk and told me to re do the budgets using the numbers they sent us.   I said, ” Of course, sir, our error. We will add our contributions to the line items as you have calculated them”. We always treated with these Liberians as if we were dealing with a fully evolved species.

      It really didn’t matter to our own accounting as we reported expenditues using the corrected budgets with explanations of differences with those of our counter-parts. The black I was dealing with held a master’s degree from some US university in demographics- courtesy of US tax payers through USAID. The stupidity of the average African is beyond the power of fiction to exaggerate. 

      • nettle

        That would also apply to the present administration.  Little barry looking mean and cross eyed at Paul Ryan while he is trying to explain budget numbers.  Then dismissed Ryan, as like the above.

  • bluffcreek1967

    I’ve been to Compton on a few occasions (job related), and I can assure you that it’s a mean, dirty place. Blacks dominate the city with hood-rats (i.e., gangsters) on every corner (literally!). The infamous 90’s rap group ‘Niggas with Attitude’ originated from there. The buildings are run down, graffiti is almost everywhere, and there are a load of liquor stores everywhere (any surprise there?). Any self-respecting White man would be wise to carry concealed if he happens to find himself in that God-forsaken hell-hole!   

  • libertarian1234

    Black run cities failing today; a black run country is in the process of failing now and imploding tomorrow.

    One more term should put the country on the same path as Compton….and Zimbabwe….and South Africa.

  • LaSantaHermandad

    I’m going to repeat this often asked question. How many people who opine here believe that there are only 30,000,000 million Blacks in the US? It sometimes seems as though there are 15,000,000 just in Philadelphia.

    • Francis Galton

      I think the “official” number is actually somewhere around 40 million now, but I get your point.  Here in Norfolk, it is “officially” 45% White (REAL Whites) and about 43% black, but you would never guess that driving or hanging around most parts of the city; day-to-day life makes it seem like blacks are at least 70% of the population.

      My hypothesis: blacks, for whatever reasons, loiter and hang around outside a lot more than do Whites, and so blacks SEEM to have a much larger presence than they really do.

      What amazes me is that 13% of the US population causes so many problems–social, financial, political, and more.  If you could quantify our problems as a nation, I’d say at least 50% are directly attributable to the presence of blacks.  This nation could be so much better than it is; it’s really a crying shame.

    • mikejones91

      It certainly does seem that way. A real eye opener for anyone skeptical white is to do the simple test of White Neighborhood/Black Neighborhood/. Start out in Hunting Park/Tasty Cake Factory Area. Then head up Fox St. and make your way into Roxborough. Then bask in the astounding contrast. 

  • APaige

    Well with the large increase in Hispanics, I would have thought that the ‘diversity’ itself would foster a stable area where all the different people would join together…, but maybe diversity inhibits unity. If Hispanics are unable to improve a black ghetto how can ANYONE believe they will make a postive impact elsewhere?

    • Yeah…just look at the “positive impact” Mexicans have had on Mexico….

  •  In the 1950’s ALL of LA was basically White as Vermont.  If you like video games (i know, i know) try playing L.A. Noire some time.  It is set in the late 1940s and realistically depicts the REAL L.A. of our ancestors. 

  • Eagle_Eyed
  • Bon, From the Land of Babble

    The City of Compton  must decide by September 1 whether to seek bankruptcy.

    What!?!  Well, they need to tax the rich in Compton!!

    Compton is the home of Barack Obama Charter School which boasts a state test rank of 1 out of 10 and a -33 “growth rate” in test scores for 2011.

    Compton is bankrupt because it has no tax base, it is made up of welfare locusts.

    According to City Data, Compton is now 65% Hispanic and 32% Hispanic — but this bankruptcy will either be blamed on The Great White Bigot or BAIN Capital and Romney — because he won’t release all of his tax records!  It won’t be the fault of the entrenched dems who have run the entire state into the ground.

    Remember:  If you are a White driver in California, never  get off on any exit you have heard mentioned in a rap song!!

    Other than that, welcome to Compton, DAWG!!

    Bon

    • Is that a -33% (as in minus) “growth rate” in test scores for 2011? Did I read that right? If so, how is that even possible Bon? Are they conducting class lectures in German?

      • Bon, From the Land of Babble

        Yes, you read that right!!

        Even Compton’s William Jefferson Clinton Middle School didn’t score as low — it only had a -12 growth rate between 2010 and 2011!!

        There must have been a lot of cheating going on at Clinton Middle School.

        Stats from GreatSchools.com.

        Bon

  • bluffcreek1967

    Yeah, you’re probably right about that. The last time I was there was November of 2000. The Mexicans may have replaced the Blacks, but it’s still crap hole.

  • The price of diversity and negroism.

  • Up to my neck in CA

    They are winning the war with their wombs!

  • Up to my neck in CA

    “For whatever reasons”?

    Because they live in holes with 12 other family members. That is why their clothes and shoes are high-end and their cars are blinged out. You only see them away from their homes, so dey gottsta look good. They also refer to their homes as ” where you stay at”, it’s not a home but a temporary dwelling that might change at a moments notice.

  • Up to my neck in CA

    Even the ones that have it good, still find the racist White boogeyman under their beds.

  • Church_of_Jed

    City of Compton May Declare Bankruptcy by September: Officials Blame White Flight

  • Formerly_Known_as_Whiteplight

    I just learned the following during a telephone conversation this morning with a friend living in Northern California;  The state is passing a law that allows cities to force banks to modify mortgages to prevent defaults.  This is because as the foreclosures have increased, the cities have lost tax revenue.  It has grown to the point that not only the ones listed in the article, but Vallejo already has and many more are on the brink.  (Mammoth Lakes btw, is a little resort town in the Sierras that usually caters to wealthy skiers and tourists.  That this town is in trouble says something about the wealthy in Cali and/or who now owns the wealth).  The bankruptcies threaten the loss or severely limits fire and police protection among other vital services, and obviously invites imminent chaos.

    Measures similar but with a different mechanism are set up already as of this June in Oregon and Washington.  I do not know about any other states, maybe some other posters know about that.  My neighborhood is suddenly full of for sale signs and garage sales.  I saw two signs for sales that read “selling everything” yesterday while I was out running errands.

  • Formerly_Known_as_Whiteplight

     Razor blades is what I remember.  I think he meant razor blades.  Knives are pretty hard to conceal even in beehive hairdos.  By the early ’60s, some white girls wore razor blades in their hair in the Sacramento area, where I grew up.

  • mikejones91

    You can’t rape the willing.

  • Fuzzy

    Most residents of Compton are black.
    How did their city get into this mess?
    Did a white guy sneak in when they were sleeping?

  • Fuzzy

    Most residents of Compton are black.
    How did their city get into this mess?
    Did a white guy sneak in when they were sleeping?

    • Bon, From the Land of Babble

      Not any longer.  

      According to City Data, Compton is now 65% Hispanic and 32% black — one welfare population has been replaced by another.

      Bon

  • I’ll NEVER feel sorry for blacks. They’re just getting a little taste of their own medicine by being driven out of their “hoods”. Of course the unfortunate problem with that is they need to go elsewhere, which can mean to a nicer neighborhood.  We all know what happens to nice neighborhoods after that. Worse yet, the predictable result is 100% guaranteed.

  • Herman

    I will never understand how a city can be 99% non-white.

    Why would any white person in their right mind chose to live in a city that is 1% white?