STATE : Butte County OKs State Bailout
Butte County supervisors, hoping to avoid the nation’s first county bankruptcy, narrowly approved the $11.1-million bailout today offered by Gov. George Deukmejian.
The five-member board voted 3 to 2 to accept the Republican governor’s proposal, which local officials said will avert immediate bankruptcy but which will leave next year in doubt.
Under the agreement, Deukmejian proposed deferring $6.3 million owed the state for fire protection services, postponed the state’s demand for payment of $2 million matching share for a new Butte County jail and offered a $1.15-million direct cash grant.
The proposal also calls for the county to raise $1.65 million by raising local fees, including property tax collections and jail booking fees.
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