Compton City officials announced that it would run out of money by summer’s end, with $3 million in the bank and more than $5 million in debt.
The has a long term $43-million deficit that the city amassed after years of improperly using money from water, sewer and retirement funds to balance its general fund, a violation of California law. Compton is legally obligated to pay when it has no reserves and has been frantically cutting costs.
Compton is the latest city to fall victim to California’s self inflicted finical crisis that has swept the state this year. Declining revenue streams, mass influx of resources going to illegal immigrants, including passing a law that makes California a sanctuary state, causing a massive influx of illegal immigrants to flock to the state has forced California’s debt to balloon over 16 billion dollars.