Jump to ContentJump to Main Navigation
When Government FailsThe Orange County Bankruptcy$
Users without a subscription are not able to see the full content.

Mark Baldassare

Print publication date: 1998

Print ISBN-13: 9780520214859

Published to California Scholarship Online: March 2012

DOI: 10.1525/california/9780520214859.001.0001

Show Summary Details
Page of

PRINTED FROM CALIFORNIA SCHOLARSHIP ONLINE (www.california.universitypressscholarship.com). (c) Copyright University of California Press, 2021. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in CALSO for personal use.date: 21 September 2021

Introduction: Roots of the Bankruptcy

Introduction: Roots of the Bankruptcy

(p.1) Chapter 1 Introduction: Roots of the Bankruptcy
When Government Fails

Mark Baldassare

University of California Press

Orange County, California, became the largest municipality in U.S. history to declare bankruptcy when it filed for Chapter 9 protection on December 6, 1994. Municipal bankruptcies are rare events that generally occur only in rural places. Large cities had always sidestepped bankruptcies when their state governments came to the rescue. Three factors are at the heart of the Orange County financial crisis: the political fragmentation in local government, voter distrust of local government officials, and the condition of fiscal austerity in the state government. This introductory chapter presents a framework for understanding the unique nature and outcome of the Orange County financial crisis. It traces the events that led up to the bankruptcy, through the local officials' response to the fiscal emergency and the road to fiscal recovery, to the local government reforms implemented in response to the crisis. It also examines the New York City fiscal crisis and contrasts it with the Orange County bankruptcy.

Keywords:   Orange County, California, Chapter 9 protection, bankruptcy, New York City, fiscal crisis, fiscal recovery, political fragmentation, fiscal austerity, local government reforms

California Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.