There are many potential obstacles to reaching an agreement in the AB 506 process.
Declarations of Fiscal Emergency: A Viable Option as Cities and Counties Fight to Maintain Essential Services
Before public agencies consider bankruptcy or take actions that seriously jeopardize the health and welfare of the residents, they should consider the alternative of declaring a fiscal emergency.
For public employers in California, this has truly been an “annus horribilis”—a “year of horrors.”
What all of these emergencies have in common are local and state governments in terrible financial distress.