http://news.yahoo.com/judge-set-rule-calpers-fits-stockton-bankruptcy-193913022–sector.html

Earlier, the city said this ruling could mean a 60% cut to Stockton pensioners, discussed here.

Cities in Illinois cannot now file for bankruptcy, but that could be changed by the legislature. Our analysis of that possible eventuality is linked here.

The Stockton decision would not be directly binding on bankruptcy courts here in the Seventh Circuit but it would be important precedent.