State may swoop on Orange County debt
Your support helps us to tell the story
From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it's investigating the financials of Elon Musk's pro-Trump PAC or producing our latest documentary, 'The A Word', which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.
At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.
The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.
Your support makes all the difference.Orange County, one of the wealthiest counties in America, is poised to be rescued by the state of California in a move not seen since the days of the Depression.
The county was recently ordered to come up with a plan by 15 August to pay its $1.9bn debt or face the appointment of a state trustee.
A deepening of the financial crisis has increased the likelihood that the state of California will seize fiscal control and force it to pay its debt.
Orange County's four state senators are putting finishing touches to the legislation, which could be enacted as early as next month.
The county filed for bankruptcy in December after making wrong-way bets on interest rates with taxpayers' money.
Last month, voters rejected a half-cent increase in sales tax to alleviate the county's crisis, which has dragged on for eight months.
Since then, financial planners have proposed to divert funds from public transportation and public amenities such as water and sewage to pay debts.
Though a trustee cannot raise taxes without a vote,the measure could go some way to resolving the crisis.
Join our commenting forum
Join thought-provoking conversations, follow other Independent readers and see their replies
Comments