Debt and defiance in bankrupt Stockton, California


Stockton, California has been forced to slash its police force even as crime rates have soared in formerly middle-class areas

From behind the wheel of her black and white patrol car, Sgt Katherine Nance points out a modest house behind a white picket fence.

It was built by her parents, and was where she grew up until she was a young teenager. "It was a good middle-class area," she says wistfully.

She says she rode around on her bike, babysat for the neighbours. Now the local park has become a haven for drug-dealers and a venue for gun fights. You wouldn't let a child walk around here, even during the day.

You might think this is the sort of change has come to many areas, and that it has been happening for years, all across America, for many reasons. Maybe.

But Stockton is part of a new trend: American cities that have gone broke and declared themselves bankrupt.

For Sergeant Nance, crime has spiralled upwards and her old neighbourhood spiralled downwards because of bad choices made by politicians. While you can't get away with murder in Stockton, it sometimes seems to residents you can get away with everything else.

'Most miserable city'

The former river port bloomed during California's first boom, the 19th Century gold rush, and Stockton has seen ups and downs over the years. But the recent economic crisis seemed to change everything.

Stockton recently became the largest city in the US to declare bankruptcy, but along the road to ruin also earned the title of "America's most miserable city".

The marina in Stockton, California Stockton is a city of contrasts - from an empty and boarded-up Main Street to a gleaming marina

Stockton has an unemployment rate twice the national average and jostles with many other places for the unenviable sobriquet of "America's murder capital".

Amid all these problems, it is crime and the sense of growing vulnerability that dominates the conversation of locals.

Sgt Nance clearly relishes her job as leader of a community response team. Their main role seems to be to disrupt the many gangs battling it out for control of the city streets.

We hear sirens nearby. Then she gets a message that her colleagues, in an unmarked vehicle, are in hot pursuit.

When we get there a young man with a wispy moustache and a sullen look is sitting handcuffed. He had accelerated away when they tried to stop him for speeding.

When they do stop him, a search reveals several bags of marijuana, a small rock of crack cocaine and a semi-automatic pistol.

There aren't as many officers on the streets as there once were. Police numbers have been cut by one-third, and police pay has been cut by up to 30%, those with the longest service losing the most.

Not surprisingly many officers have left. But it's not only that.

Stockton Mayor Ann Johnston appears for a meeting of the city council 26 June 2012 Stockton Mayor Ann Johnson says the city will rise again

The city can't afford to prosecute many offences. Many of those arrested have been let out of jail early. Sgt Nance feels this failure to disrupt petty crime often means criminals are at large, able to do something more serious.

Residents complain that the police won't investigate house burglaries and car thefts.

She agrees that for the most part, they don't have the resources to follow-up.

Many of the areas where I am taken don't look particularly bad: just row of after row of shotgun housing, some cared for with loving pride, others more dilapidated.

But Stockton is a city of very visible contrasts. Main Street is a horror: there are whole rows of boarded-up shops, and doors behind heavy bars and grills, pad-locked shut.

It is empty except for the occasional homeless man or woman walking nonchalantly down the street, clutching everything they own.

Less than a mile away, by the waterfront, multi-million dollar yachts idle in the marina, gleaming white, shaded from the sun by rows of white canvas awnings, the very picture of California dreaming.

But the half-empty marina has turned out to be a bit of a nightmare for Stockton.

Like the city's other prestigious projects - the ballpark, a sports stadium and hotels - what once must have seemed like smart regeneration turned out to be a pointless burden as the recession hit home.

Equally, what once seemed like decent treatment for city workers, i.e. generous health care, pensions and pay, particularly for firefighters and police, is now seen as absurd featherbedding.

Lost benefits

I meet the mayor, Ann Johnston, in her balloon shop. We can't go to city hall; it is closed one day a week to save money.

She says Stockton suffered from a perfect storm. These big projects left the city with no money in the bank, and borrowing expanded. Then the recession struck.

All of the city's money comes from property tax, and as property prices went into freefall, the local government's income was slashed.

A vacant home has weeds growing in the gutters in the Weston Ranch neighbourhood of Stockton, California in this 6 March 2012 One in every 195 Stockton homes filed for foreclosure in May

She says Stockton's latest dramatic move is the solution, not the problem.

Nothing changed the day after the city declared itself bankrupt. Stockton hasn't shut its doors and isn't giving up.

Indeed the bankruptcy is a device to avoid paying creditors and to avoid making even deeper cuts. But many are furious about what has happened. The mayor has faced an angry public meeting where city workers testified to the suffering caused by inept politicians.

She says the city will rise again, but Joanie Anderson is less sure.

Anderson is a former police dispatcher, and her husband used to be a policeman. They are both retired, but as they are well under 65, they rely on the city for their health insurance.

It is hugely important to them, but now their programme has been cut from the city budget.

"Our 18-year-old daughter has had four open heart surgeries since birth," she said. "Her last one was this February."

"So she has ongoing health needs that have to be put to the forefront in our family. If she has an emergency that involves her heart, it costs tens of thousands of dollars in the hospital."

But it would cost them $34,000 (£22,000) to replace their healthcare, if indeed any insurance company would take them on. They simply can not afford it and have no idea what to do.

Other city workers may have less dramatic stories, but find themselves in the same plight - they thought they had excellent healthcare, and now find themselves with none.

Stockton's descent into insecurity is chilling because it is not an isolated example.

As I left the city, news came that another California town, Mammoth Lakes, had filed for bankruptcy. And beyond each individual town, America itself is deep in the red.

Putting that right may mean as many difficult choices and as much pain.

Mark Mardell Article written by Mark Mardell Mark Mardell Presenter, The World This Weekend

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  • rate this

    Comment number 166.

    140. Chryses
    I'm glad I was raised by Great Depression kids who taught me not to buy what I didn't need, not to buy on credit, not to eat too much, not to go overboard on fat & sweets. I am not obese, don't buy what I don't need and rarely amass debt. It can be done by Americans and without drastic hardship. Just don't confuse want and need.

  • rate this

    Comment number 165.

    Will Germans open their wallets to save their fellow Europeans who are in dire financial trouble? PIIGS to Germany; "Ich bin ein Berliner! Give us the money!" What will Angela say to them? She says we need a closer banking union, we need some guarantees. What will Germans say to Merckel come the election? "Not with our pension money and savings?" And Mardell wants to talk about Stockton California

  • rate this

    Comment number 164.

    Airbus 380 is a metaphor for the European Union itself. A very large clumsy incoherent inappropriate poorly thought out idea whose one major goal is size, all else be damned. Is A380 the most fuel efficient plane in the sky? Not when it's half empty. Why did Europe develop it? Same reason it developed the EU, because it was jealous.Mostly the French.Jealous of 747, jealous of the USA.Tough!

  • rate this

    Comment number 163.

    I'm never flying in a European built plane again.I flew on an Airbus once whose wings were flappiing like a bird. It scared me to death. I once flew on a Caravelle in France that descended for landing like it was a dive bomber. I just don't trust those planes.

  • rate this

    Comment number 162.

    Boeing & Air bus both have there way of doing things & some pilots like one & some the other but its their training that is vital.I have been a passenger in both types & would chose the one who`s crew was trained to the same standard as Capt Sullenberger even if it was a Tupolev .

  • rate this

    Comment number 161.

    160It's to his credit he figured in time to override Airbus' auto controls and regain control over the aircraft himself.The pilot and co-pilots on the Air France Airbus that crashed even if they'd gotten control, how much can you do when your training tells you to throw the switch to auto and sit back and enjoy the ride with the passengers?It's not that autopilot is worthless but it can be fatal

  • rate this

    Comment number 160.

    158. Suilerua
    "When the machine fails it's hard for men to take control of Airbus"

    Unless your name is Chesley Sullenberger.Credit where credit is due.

  • rate this

    Comment number 159.

    Debt and defiance in bankrupt Europe.The disUnited Kingdom in a European disUnion is as bankrupt as any, its public + private debt 600% GDP, economy in decline, going down with shambles of Europe & YOU want to talk about Stockton California?What a "cock-up" Europe is.

    "You've made a real pig's breakfast of it Guthrie."
    -- Lady Marigold Featherstone, wife of Guthrie Featherstone QCMP

  • rate this

    Comment number 158.

    155As evident from the Airbus crash in the Hudson a few years ago the Airbus design puts great emphesis on the machine, less on the pilot.When the machine fails it's hard for men to take control of Airbus.Boeing by contrast puts ultimate faith in the crew.As a last resort in an emergency, it knows the best chance for survival is a fast thinking experienced pilot.Different philosophy of life itself

  • rate this

    Comment number 157.

    Sorry to hear

  • rate this

    Comment number 156.

    Pmk: with both France and UK relinquishing theirs so that EU can enter

    I think if France+UK decide to give up their national sovereignty+democracy
    they will regret it the rest of their lives

    But whether France+UK choose EU over their own countries
    that is their decision to make, not ours

    Their decision will have a huge impact upon the world

  • rate this

    Comment number 155.

    151. powermeerkat

    "Bad news: both, Airbus and Air France can be sued for manslaughter".

    Whilst frozen pitot tubes caused the spurious info that disengaged the auto pilot,the fly by wire mini toggles caused error on error as both co pilots could not see the other`s actions.All fly by wire Boeing's use traditional yokes.Far better...

  • rate this

    Comment number 154.

    Pmk: In a decade or so India will surpass China population-wise

    Something tells me India won't give up its part of the Sea to China

    An interesting note: the majority of immigrants to USA today are Chinese or Indian
    I imagine it is or will be this way all over the world for some time
    as both countries don't have enough land+resources for their future populations

  • rate this

    Comment number 153.

    Re #149 Suilerua

    As Australia's asked for US Marines in Darwin and New Zealand for new planes, so has Japan increased its cooperation with US within America's global multilayered anti-ballistic defense system.

    [another piece of bad news for obsessive/compulsive America-haters who'll now probably go ballistic. :-) ]

  • rate this

    Comment number 152.

    Lucy: India has a similar population size to China
    yet everybody besides Pakistan
    gets along just fine w/ them
    (of course India not claiming all the Sea)


    In a decade or so India will surpass China population-wise.

    And will finally get a seat in UN Security Council.

    [with both France and UK relinquishing theirs so that EU can enter
    (if it still exists by then, of course.]

  • rate this

    Comment number 151.


    117. powermeerkat

    But ignoring Canada?

    Blimey,report some thing positive don`t be silly.

    Both ECB and China's Politbureau cut rates to discourage savings (is that a good news?) and encouragage spending (ditto?).

    Mr. Draghi saying that the current situation is not as bad as in 2008. :-)

    Bad news: both, Airbus and Air France can be sued for manslaughter.

  • rate this

    Comment number 150.

    Sui: The last thing China needs is a war with its neighbor

    So why would they risk this by claiming so much of the Sea?

    By claiming the Sea, China is provoking its neighbors

    China must feel awfully strong about this to risk such

    If their neighbors are not willing to give up their portion of the Sea to China
    how will China respond?

  • rate this

    Comment number 149.

    148You left out fear of N Korea by Japan and South Korea. Taiwan has always been worried about Red China, the Phillipines increasingly so. The US in the Pacific as in Europe is the major military power.The last thing Japan wants to see is the US pull out, close its bases in Okinawa.If China knows what's good for it, it wants the US to stay too.The last thing China needs is a war with its neighbors

  • rate this

    Comment number 148.

    Pmk: ANZUS military alliance in all-important Pacific region has been recently significantly strenghtened

    In this new era we are gaining new alliances with such, stronger than ever before
    esp due to China's greedy claims over the Sea

    India has a similar population size to China
    yet everybody besides Pakistan
    gets along just fine w/ them
    (of course India not claiming all the Sea)

  • rate this

    Comment number 147.

    81"Are there any similar services provided by your broadcasting corporations FREE here for us in Europe or is it all a one way?"

    Yeah, the internet.We invented it, you're lucky we don't charge you for using it.How about a fee for every stroke from those outside the US?How about a license for all equipment used in it?But if we did, we might not be privileged to get your scintillating thoughts.


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