Butte County Delays Bankruptcy Filing
Butte County officials indefinitely postponed their planned declaration of bankruptcy Thursday, but said Gov. George Deukmejian’s suggestion that the county make deep budget cuts was “full of inaccuracies.”
Most of the five county supervisors said they still expect to file for bankruptcy, but that it would be irresponsible to do so without attempting to negotiate with Deukmejian or at least address a letter the Republican governor sent to the county.
“This letter precludes acting as we anticipated today,” said Supervisor Haskel McInturf, adding that the letter would have to be answered first. “It’s not a matter of if we file (for bankruptcy) but when we file.”
The supervisors voted unanimously last week to file for bankruptcy by the end of this week unless the Legislature and governor provided sufficient aid to cover a $14.1-million deficit in the county’s pending $155-million annual budget.
Before it adjourned last week, the Legislature passed three bills that would provide that aid. But Deukmejian indicated in a letter to the county Thursday that he would veto those bills.
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