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8A Daily News – Wednesday, December 4, 2013 WORLD BRIEFING Judge clears way for Detroit's next phase of epic bankruptcy DETROIT (AP) — A federal judge ruled Tuesday that Detroit can use bankruptcy to cut employee pensions and relieve itself of other crushing debts, handing a defeat to the city's unions and retirees and shifting the case into a delicate new phase. Judge Steven Rhodes, who wondered aloud why the bankruptcy had not happened years ago, said pensions can be altered just like any contract because the Michigan Constitution does not offer bulletproof protection for employee benefits. But he signaled a desire for a measured approach and warned city officials that they must be prepared to defend any deep reductions. ''This once proud and prosperous city can't pay its debts. It's insolvent,'' Rhodes said in formally granting Detroit the largest public bankruptcy in U.S. history. ''At the same time, it also has an opportunity for a fresh start.'' The ruling came more than four months after Detroit filed for Chapter 9 protection. Rhodes agreed with unions and pension funds that the city's emergency manager, Kevyn Orr, had not negotiated in good faith in the weeks ahead of the July filing, a key condition under federal law. But he said the number of creditors — more than 100,000 — and a wide array of competing interests probably made that ''impossible.'' Detroit's bankruptcy follows years of decay DETROIT (AP) — The city of Detroit, which for years paid its bills with borrowed money, is the largest city in U.S. history eligible for bank- The Over 25 years of experience STOVE JUNCTION BBQ PELLETS The North State's premier supplier of stoves Now in Stock! ruptcy protection. Here's a look at how the city spiraled into financial ruin and why it's in so much trouble: WHAT HAPPENED? For decades, Detroit paid its bills by borrowing money while struggling to provide the most basic of services for its residents. The city, which was about to default on a good chunk of a long-term debt exceeding $18 billion, now will get a second chance in a federal bankruptcy court-led restructuring. Detroit's budget deficit this year alone is estimated at roughly $300 million, and Kevyn Orr, its state-appointed emergency manager, chose bankruptcy over diverting money from police, fire and other services to make debt payments. The move conserves cash so the city can operate, but it will hurt Detroit's image for years. It also leaves creditors with pennies on the dollar and places in jeopardy the pension benefits of thousands of city retirees. WHY DID IT HAPPEN? It took decades of decay to bring down the once-mighty industrial giant that put the world on wheels. The city grew to 1.8 million people in the 1950s, luring them with plentiful jobs that paid good wages to stamp out automobiles for sale across the globe. But like many American cities, Detroit's fall began late that decade as developers starting building suburbs. Then came the 1967 riots that accelerated the number of white residents who moved to the cities north of Eight Mile Road, considered the region's racial dividing line. At the same time, auto companies began opening plants in other cities, and the rise of autos imported from Japan started to cut the size of the U.S. auto industry. Detroit's property values fell, tax revenue dropped, police couldn't control a growing murder rate, and many middleclass blacks fled the city for safer suburbs with better schools. By 2009, the auto industry collapsed along with the economy as a whole, eventually pulling the city down with it. Government corruption EVICTIONS $300 Attorney Fee + Costs FIXED COSTS: under former Mayor Kwame Kilpatrick only made things worse. In the 2000 census, Detroit's population fell under 1 million in as the exodus continued. Today it's barely above 700,000. Illinois Legislature approves fix for $100B state pension shortfall SPRINGFIELD, Ill. (AP) — The Illinois Legislature approved a historic plan Tuesday to eliminate the state's $100 billion pension shortfall, with a vote that drew threats of a legal challenge from labor unions but that supporters said was crucial to repairing Illinois' deeply troubled finances. The House voted 6253 in favor of the plan, sending it to Gov. Pat Quinn, who has said he will sign it. The Senate approved the measure 3024 just minutes earlier. ''The message is this is not a one-sided bill. There will be changes here, much-needed changes, but this bill is a well thought out, well balanced bill that deserves the support of this body, the state Senate and the approval of Gov. Quinn,'' House Speaker Michael Madigan said at the start of the House debate. ''Something's got to be done. We can't go on dedicating so much of our resources to this one sector of pensions.'' Public employee unions, who oppose the bill, vowed to quickly take legal action. They say the legislation is unfair to workers and retirees who for years made faithful contributions to retirement systems but now will see benefits cut because of government mismanagement. They also argue parts of the measure are unconstitutional. Illinois' unfunded pension problem is considered the worst in the nation, primarily because lawmakers failed for RUNNINGS ROOFING Sheet Metal Roofing Residential Commercial • Composition • Shingle • Single Ply Membrane Serving Tehama County No Money 22825 Antelope Blvd., Red Bluff $240 Court Filing Fee $25 Writ Of Execution Fee $125 Sheriff Fee $25 Service Process Per Person 530-528-2221 • Fax 530-528-2229 www.thestovejunction.com CALL 530.529.9999 Owner is on site on every job Popular customer request Serving Butte, Glenn & Tehama Counties Tues-Sat 9am-5pm • Closed Sun & Mon Man survives 3 days at bottom of Atlantic, rescued "No Job Too Steep" " No Job Too Flat" 530-527-5789 530-209-5367 CA. LIC#829089 Down! FREE ESTIMATES decades to make the state's full payments to the funds. The massive unfunded liability has led the major credit rating agencies to downgrade Illinois' rating to the lowest of any state in the nation. It's also siphoned money from education, roads and other areas. Engineer caught himself nodding at controls YONKERS, N.Y. (AP) — A rail union official says a commuter train engineer caught himself nodding at the controls before the train started to veer off its tracks and derailed in New York City, killing four people. Union leader Anthony Bottalico said Tuesday that William Rockefeller ''caught himself, but he caught himself too late.'' Bottalico says Rockefeller told him he ''nodded,'' akin to a momentary lapse while driving a car. The National Transportation Safety Board is interviewing Rockefeller. Member Earl Weener says it's too soon to say whether the engineer was fully conscious around the time of Sunday's wreck in the Bronx. He says it's too soon to say whether the wreck was the result of human error or a mechanical problem. Need a Physician? Doctors who listen ... Doctors who care. A FREE SERVICE PROVIDED FOR YOUR CONVENIENCE Call toll free 888.628.1948 www.redbluff.mercy.org Obama declares health care law is working WASHINGTON (AP) — Seeking to regroup from his health care law's disastrous rollout, President Barack Obama on Tuesday insisted that the sweeping overhaul is working and warned Republican critics that he would fight any efforts to strip away its protections. ''We're not repealing it as long as I'm president,'' Obama said during a health care event at the White House. ''If I have to fight another three years to make sure this law works, then that's what I'll do.'' Earlier Tuesday, the administration released a 50-state report saying that nearly 1.5 million people were found eligible for Medicaid during October. As website problems depressed sign-ups for subsidized private coverage, that safety-net program for low-income people saw a nearly 16 percent increase in states that have agreed to expand it, according to the Department of Health and Human Services. The White House is trying to cast the health care law in a positive light after the first two months of enrollment for the centerpiece insurance exchanges were marred with technical problems. With the majority of problems with the sign-up website resolved, by the accounting of administration officials, Obama and his team plan to spend much of December trying to remind Americans why the administration fought for the law in the first place. ''We believe that in America, nobody should have to worry about going broke because somebody in their family or they got sick,'' Obama said, flanked by people the White House says have benefited from the law. 741 Main Street, Suite #2 Red Bluff, CA 96080 1-800-287-2187 (530) 527-2187 C & C PROPERTIES An Independently owned and operated Member of Coldwell Banker Residential Affiliates. 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The Nigerian cook survived by breathing an everdwindling supply of oxygen in an air pocket. A video of Okene's rescue in May — http://www.youtube.com/w atch?vArWGILmKCqE — that was posted on the Internet more than six months later has gone viral this week. As the temperature dropped to freezing, Okene, dressed only in boxer shorts, recited the last psalm his wife had sent by text message, sometimes called the Prayer for Deliverance: ''Oh God, by your name, save me. ... The Lord sustains my life.'' To this day, Okene believes his rescue after 72 hours underwater at a depth of 30 meters (about 100 feet) is a sign of divine deliverance. The other 11 seamen aboard the Jascon 4 died. Divers sent to the scene were looking only for bodies, according to Tony Walker, project manager for the Dutch company DCN Diving. Aid workers prepare Syrian camp for harsh winter ZAATARI CAMP, Jordan (AP) — Cranes are lifting trailers into place and tents are being packed away as international aid workers rush to winterize a Syrian refugee camp in Jordan — trying to avoid a repeat of last year when three days of torrential rain turned the massive site into a muddy swamp. Warm clothing, blankets and electric heaters are being prepared for distribution to the desert camp's 120,000 residents, mostly women and children. In January 2013, howling winds tore down some tents and flooding piled more misery on those who fled Syria's civil war. Hundreds were displaced from their temporary shelters in the Zaatari camp. Exposed to freezing temperatures, some refugees attacked aid workers at a food distribution center, injuring a dozen before being dispersed by Jordanian riot police. Aid workers said they have a better winter plan this year. A drainage system was set up to dump floodwaters outside the camp and efforts are being made to keep the refugees warm and dry, said Kilian Kleinschmidt, who runs Zaatari for the U.N. refugee agency.