CIRS Blog about Rural California
The Wall Street Journal profiled the city of Fresno's bleak finances October 31, 2013. Fresno, a city of 500,000 residents, had the least cash on hand of any of the 250 largest US cities. Fresno had less than a day's reserves, compared with a median 80+ days for large US cities.
One cause of Fresno's cash crunch is a $26 million convention-center garage that lost business to new facilities at California State University, Fresno in the northern part of the city. Garage deficits were financed in part by borrowing from other city funds. Eventually, the city began to lay off employees, some 1,200 or 30 percent of its 4,200 workers, between 2009 and 2013.