Why a Washington State town has filed for bankruptcy

Bankruptcy is an unfortunate reality for thousands of Americans every year, but cities declaring bankruptcies are far more rare.  Since the 1930s, municipality bankruptcies have only happened around 700 times in the U.S. And in Washington State it’s only happened once, until this week when the city of Cle Elum declared itself insolvent in bankruptcy court, saddled with significant debt. How significant? 26 million dollars, more than five times the town’s annual budget. Guest: Seattle Times reporter Jim Brunner Relevant Links:  Cle Elum considers bankruptcy amid $22M debt in development dispute Cle Elum declares bankruptcy over $26M debt Thank you to the supporters of KUOW, you help make this show possible! If you want to help out, go to kuow.org/donate/soundsidenotes Soundside is a production of KUOW in Seattle, a proud member of the NPR Network.See omnystudio.com/listener for privacy information.