Voters in Stockton, Calif. approved a tax hike yesterday, putting a city that had been regarded as a test case of pension spending in U.S. municipal bankruptcies closer to regaining solvency, Reuters reported yesterday. The increase in the sales tax in Stockton from 8.25 percent to 9 percent will raise about $300 million over 10 years and allow the city to move on with restructuring its finances and hire more than 100 additional police officers. Stockton recently filed its plan to exit bankruptcy with the judge overseeing its case. The plan includes concessions from current and retired employees, settlements with creditors and the expectation of revenue from the tax increase. Without that revenue, Stockton would have to restart talks with its creditors and cut $11 million in spending, said Bob Deis, the architect of the city's financial restructuring.
