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    Camden, two other New Jersey towns, among nine U.S. cities going broke

    Erin Wright, Y! Local

    While President Obama and the assorted GOP contenders for the 2012 presidential nomination push their ideas for getting the country back in the black, there are some U.S. cities and counties on the brink.

    An analysis by 24/7 Wall St. examines the nine municipal bodies with the worst credit ratings assigned by Moody's, not including school systems, rated Ba2 and lower. (For perspective, Moody's rates junk bonds as Ba1.)

    Coming in at No. 9 on the list is Camden. The city has been beset with money issues for quite a while, highlighted by a mass layoff of its police officers and firefighters earlier this year. The city collected $181,257,000 in revenue in 2009, but was in debt to the tune of $103,284,000 during that same year.

    >> More from Yahoo! Finance

    Moody's notes that "more than half of Camden's real estate is tax-exempt, hampering already weak tax collections." The city has had a speculative grade credit rating since 1998. And it doesn't help that three out of the past five Camden mayors have been sent to prison for corruption, the most recent in 2001.

    Camden isn't the sole Jersey city on the list. It is joined by Salem and Harrison, coming in at Nos. 6 and 4, respectively. Both towns have stumbled financially in part because of bad investments.

    Salem built a large office building downtown with the intention of leasing office space. But construction delays caused lease payment delays and money has been taken from the debt fund numerous times.

    In 2010, Harrison built the $200 million Red Bull Arena. The venue cost the city $39 million in debt but has yet failed to have the expected returns. To help solve its debt problem and inch toward recovery, the city has drawn inspiration from Camden and plans to fire some police officers and firefighters.

    Aside from the cash-flow issues, the nine struggling locales on the list have little in common -- even the reasons they are going broke are vastly different. Central Falls, R.I., which tops the list, is in the red due to a bloated pension plan. Strafford County, N.H., spent two-fifths of its budget on a single nursing home. And Detroit was the victim of a tanking economy that saw several major employers, such as Chrysler and General Motors, declaring bankruptcy and residents leaving to find work and homes elsewhere.

    The full list:

    1. Central Falls, R.I.

    2. Pontiac, Mich.

    3. Jefferson County, Ala.

    4. Harrison, N.J.

    5. Detroit, Mich.

    6. Salem, N.J.

    7. Riverdale, Ill.

    8. Strafford County, N.H.

    9. Camden, N.J.

     

    462 comments

    • John  •  3 mths ago
      This is what the people of NJ get after paying all those high taxes? Wow!!
    • B.L.  •  7 mths ago
      There are ,give or take a few.300.000,000 people in this country.You mean we can not stop this Bull bull bull.
      • Dave 7 mths ago
        As long as we are giving billions to Ethiopa and China and ..... we are all screwed!
      • Steve 7 mths ago
        There is now such a mix of different peoles and ideas thta the government has basicly made it almost impossible for people to come together on issues and take them on. The ideas of America back when are really no longer ideas as a community.
    • Eat Me  •  7 mths ago
      North Bergen Mayor congress man and board of education member Sacco....triple dipping!!!!! making close to $500k a year!!!! biggest crook!!!!!!
    • Taxpayer  •  7 mths ago
      Harrison, Salem and Camden of NJ have managed to waste their funds through nepotism, fraud, no-bid contracts and plain old simple corruption. Camden was so bad it had to be taken over by the state as if it were an abandoned child. These corrupt and inept politicians should all go to jail!
      • jimmy 7 mths ago
        ha so true. they think they are living in the boardwalk empire times. let em drown in corruption. wheres nucky to save ya?
      • terence 7 mths ago
        It costs too much to keep these creeps in jail. I say use either a firing squad or the electric chair. Even that that costs too much while these creeps appeal their sentences.
    • ra  •  7 mths ago
      more and more and more and more fuel to the fire to get illegals.

      stop visas. employ only our people. stop the visa program cold

      mean time let the grievences pile up.

      We aint going no where. watching the globalists and there broken system fall to pieces. red bull was another globalist fantasy of having a soccer league to attract internaitonal teams.

      You globalists better start abandoning your crap. gig is up its a broken system.

      99 percent want full restoration of sovriegnty and domestic economy and culture.
    • psionycx  •  7 mths ago
      Camden and Harrison are very run down and dilapidated cities (I have never been to Salem). Both have suffered from the decline of industry and their status as ports for either shipping (Camden) or rail (Harrison). Being relatively grungy cities, they do not attract much gentrification and urban renewal is costly since their tax bases are overwhelmingly poor and/or are businesses that were given tax breaks to move in.

      New Jersey has had a problem this way for a long time. The mantra for decades was "growth". State politicians of either party were desperate to draw in more businesses and people, but in the end the tax incentives never fueled the necessary revenue growth to cover the expenses of the enlarged population. More people bring in more taxes, but they also cost more in services.

      This is nowhere more evident in places like Camden, which has an unbelievable crime rate, but cannot afford to maintain even the police force that they have, much less increase it.

      Meanwhile, the wealthier suburbs are in no better shape. The more affluent population is less prone to crime, but also demands more in terms of municipal services. The township I grew up in was Republican-controlled but had runaway spending because the residents expected only the best schools, athletic programs and community services. Being rich, they did not want anything less than the best and that drove property taxes ever higher.
      • Patrick 7 mths ago
        Salem is a small city, located on the eastern side of the Delware about twenty-five miles south of Phili.
        Heinz and Anchor Hocking had large production facilities there.
      • Terrell 7 mths ago
        You are right. I grew up in East Orange and we had about 7 to 8 sport teams, and I'm not complaining about those things. Now I had family who lived in and around Old Bridge. They had the same sports but they also had about 15 different teams. Ice hockey, field hockey, lacross, golf, bowling, swimming... those cost money. So they may not be receiving "government handouts", but because they live in more affluent areas they have better things and those better things aren't cheap.
    • Truth hurts  •  7 mths ago
      The towns, cities, counties, states that are at the brink... they are all safe havens for the illegals. Just send them back home and there will be lotza savings as opposed to spendings. No dime is spent on betterment of Amercians but to butter the local illegal population for the vote bank. Somehow, America is bring down its own fate...

      People... choose the right representatives... not because he/she is from your race or ethnic group.
    • Serenity4  •  7 mths ago
      I know a few people in Camden some lived beyond their means but to this day never understand WHY they moved there in the late eighties when things were bad. A friend went there to visited and told me she hated it, was so depressing and never going back. It's time the people of those towns find their backbones, clean up dodge town, kick the crooks politicians out and find some who actually give a #$%$ to help their community. If this how people behaved by not doing nothing to help themselves, families, friends, communities than I'm afraid it will become contagious till every towns end up same way. We already have most of the country owned by other countries because we're broke, jobs been outsourced for years since the early 2000's, spending beyond our means for example.....buying a house that is a million dollar while having an income of less than $100,000.00 with four mouths to feed, cars/gas, utility bills, clothes, insurances, childcare/etc. Time that those people stop living beyond their means, stop hoarding 2 dozen credit cards. I have seen some people whipping out 20 to 30 credit cards in stores. The American Dream is supposed to be about living comfortable while being financial secured not exactly rich. Now it's more like a nightmare where everything around is going for broke accept the those gated communities where the rich/wealthy lived in.
      • Raxx 7 mths ago
        Finally someone gets it! Bravo!
      • chewonthis 7 mths ago
        Your friends bought million dollar homes in Camden? I can see why they were disappointed.
    • Kyle  •  7 mths ago
      Camden doesn't have any money? No wayyyyy! This is groundbreaking news!
    • Mozzer  •  7 mths ago
      Harrison is just a pawn in Newark's revival. Build a stadium in a town which is basically Newark, and then leave that town to foot the bill, while you cash in. If anything Mayor Booker in Newark should look into helping Harrison develop the area around Red Bull Arena. There was supposed to be a retail and entertainment district put there as well. Not only is the area there perfect for that sort of thing, but it would benefit both Newark and Harrison. If Newark can't kick in the dough, then the state should. NJ should make sure that its largest city and the surrounding area is propped up as well as possible. There are some good things going on around there. Also, Red Bull Arena is an AWESOME place, and it would be a shame to see the growth stagnate.
    • sunshine  •  7 mths ago
      it funny how all the cities are in the east coast,highest taxes,infested with tolled roads,but they always have money problems
    • BrianH  •  7 mths ago
      Nothing can fix Camden, or Harrison, or Paterson, or any other crime-riddled city. This is a fact, despite spending zillions of dollars on "the poor" since The Great Society daze. They say money cures everything, but apparently not in these cases. Dare I ask the question: why? What is wrong with this picture? Could it be that handouts breed dependency?
    • paxetlisa  •  7 mths ago
      So they are going to have a new soccer stadium but few police officers and firemen?! hahaha ha... WOW, How ridiculous. Sounds like a great, safe town to move to- lets hurry!
    • tom  •  7 mths ago
      giving away free stuff to welfare #$%$ people who would rather suckle on the government teat, illegals, and general liberal share the wealth idiots, bailing out companies who don't deserve it. there is why we are broke. more taxes would only lead to more wasting.
    • Ashu  •  7 mths ago
      Camden should be given to China as a "gift" for holding a trillion dollar US debt.Or declare it as a federal district, it should not be part of hardworking Jersey.
    • Brian Francis  •  7 mths ago
      I've seen the lofts on the Camden waterfront. Are they now at a huge discount?
    • John J.  •  7 mths ago
      This is bad news for NJ communities like mine which have more than their share of program addicted families moving out of cities like Camden. Thanks to illustrious NJ State legislators who concocted a scheme years ago to empty urban areas of the criminal element, the suburbs are now overwhelmed by skyrocketing gang, drug and crime activity local police cannot handle. The only solution to this problem is a temporary declaration of marshal law and suspension of civil rights for those involved in criminal activity. Otherwise, the ship will sink.
    • walter777777  •  7 mths ago
      One of the bad choices of cities with severe financial problems is to spend less on education. This ensures students of getting inferior educations which will hamper them in later life and probably increase teh crime rate.

      We might consider havingfunding and directionof educatoin coming from Washington.

      W.
    • Mr. DROT  •  7 mths ago
      I thought the Camden Acquarium and the performing arts center would revive Camden!
    • N.  •  7 mths ago
      Spending, spending, spending, and they wonder why they're broke.