SAN FRANCISCO – The judge in Stockton, Calif.’s bankruptcy case has allowed the city to move forward with plans to cut retiree medical benefits.

Retired city employees sought an injunction that would have blocked the city from cutting retiree medical benefits during the bankruptcy process. But U.S. Bankruptcy Court Judge Christopher M. Klein ruled that the court does not have the power to interfere with a city’s property or revenue during the Chapter 9 process.

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