SACRAMENTO, Calif. (AP) -- A civil trial is under way to determine whether the California city of Stockton becomes the nation's most populous to enter bankruptcy.
City officials argued Monday in opening remarks in federal bankruptcy court in Sacramento that they have cut the city budget and services to the bone.
Creditors countered that Stockton had failed to negotiate cuts in the amount of money it pays into the state pension fund.
The trial will determine whether the city of 300,000 people negotiated with its creditors in good faith before filing for Chapter 9 protection.
The court proceeding is expected to last four days.