Compton, California, a city just outside of Los Angeles, may be the third city in the state to file bankruptcy. The city, which has become an iconic symbol of black inner-city life thanks to the music of West Coast hip-hop acts like NWA, is facing a $43 million deficit, and high-ranking city officials, including Mayor Eric J. Perrodin, are alleging corruption and mishandling of funds. The city began having financial problems when it began to spend beyond legally set limits. City officials have stated that the city only has $3 million on hand and disbursements of $5 million due within the next ten to twelve days.
Reuters reports Doug Sanders the city treasurer told the city council during a July 17 meeting that within a few days the city would be forced to default on bond payments.
“I have $3 million in the bank and $5 million in warrants due in the next 10 to 12 days,” Sanders said, “by then, the council will have a decision to make: don’t pay the bonds, default on them, or have a serious talk about bankruptcy.”
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