matt davies accepted a plea deal to send him to prison for the mandatory minimum of five years. as for u.s. attorney melinda hague, i have called, and called and called and -- nothing. that is what i am getting from the phone calls right now.

here from the bay area because they could afford the how many times here. they could buy a great house in a great subdivision. and then commute to work in the bay area. so our population expanded by like 20%. >> why did stockton go broke? >> why did stockton go broke? because when the money was rolling in, property tax money, sales tax money, the decision was made to try to invest the money that was coming in in things that would benefit the community. >> things that would benefit the community like new schools, better roads, more police, and emergency service worker, right? not exactly. this is the marina they built. this marina apparently cost $22 million. and it's basically just a place for you to dock your boats there is no gas.

there is no place to get food. there is no place to get snacks. there is no place to dump your waste. so it's a marina that -- that doesn't serve any of the purposes of a marina. it cost $22 million. this is a pretty awesome baseball stadium. you got to admit. but you know, you have to wonder how much money does a minor league baseball stadium actually generate for a city? for civic pride you could do a lot of other things with $22 million. it's a nice looking arena, and a great place to catch cirque du soleil when they come to town, once a year. this is the crown jewel of stockton. in the middle of the boom, the city hall decided what we need is a new city hall for $40 million, and then ended up defaulting on it. and now there is a bank in the bottom. some people on a couple of the

floors. but most of this giant building is empty. as if that's not bad enough they spent $32 million on two other parking garages next door which they also defaulted on that also aren't being used. throw in a couple of other pet projects, and all told, stockton wracked up a pretty hefty bill. they decided to pay for it the old-fashioned way. they borrowed for it. by issuing municipal bonds to cover the costs of the projects. but when the housing bubble burst, the tax revenue they were counting on dried up, and stockton found itself unable to pay back the loans. you know, it's interesting because stockton was this boomtown. this boomtown that really kind of came into existence during the gold rush. and when you kind of look at the things that were being built, it was almost this same type of gold rush mentality, this dream ideal of what a city would be, of what you wanted this place to become. and right when that dream was about to be realized, everything crashed, everything collapsed.

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for a decade, stockton rode the housing boom for all it was worth, building new homes for a growing population hungry for real estate. after the housing market collapsed, thousands of people suddenly found themselves unable

to pay their mortgages. with nothing left to loose, many residents just walked away, leaving neighborhoods like this one full of middle class homes that are modern, spacious, and completely abandoned. >> i believe at one time there was upwards -- i know there was well over 33% were vacant. and i think at one point it got closer to 50% in this area in western ranch. >> wow. richard and his wife anne have lived in stockton for more than 12 years. they say all the empty houses have torn the fabric of their community. is there a lot of crime in this area now? >> there is now. i mean, it's pretty obvious which homes are lived in and which is not. say you're a criminal, it's pretty easy to decide which house you want to hide out at. there was a shooting last week. >> last thursday. six rounds. and then three hours later, we get another one, and it is like a couple more blocks down. >> you're like wow, that's the neighborhood we live in now. >> yeah. i don't want to be in that kind of a neighborhood. >> the new one is they knock on your front door.

if you open the door, at gunpoint they take your stuff. if you don't open the door, they go around the back and come in through the back door. >> and that's happened in your neighborhood? >> yeah. that's how brazen is it now. western ranch used to have a substation. we used to have our own police station and have officers around all the time. well, of course, when they had the cuts and they closed the substation, we don't have the police officers out here. so it doesn't take a very advanced criminal to figure out there is nobody here to catch me. i'm pretty open to going out and doing whatever i want, right. all i want is to stop the violence. i mean the violence stops, then the home values go back up, of course. then the jobs come back to stockton. business comes back to stockton. all the businesses that left come back. it starts at the very bottom, which is the crime. >> yeah. it sounds like a simple idea. stop the crime, watch the city spring back to life. only in stockton it's not that easy. deep budget cuts have made even the most basic municipal tasks

like john crutch's code enforcement job incredibly difficult. hey, lynn, is this dispatch? hey, this is john over in code enforcement. i was wondering if i could get a police officer to meet me at a vacant house. >> who are you calling right then? >> police dispatch. >> okay. >> my contact, who was supposed to be tagging along, he was just kind of driving around in the part of town we were going to go to, and then they just found three burglary suspects. it happens every time. >> wow. >> yeah, yeah. >> just another day in stockton? >> that's it. >> john's job boils down to stopping crimes before they start, boarding up vacant homes, and protecting neighborhoods against urban blight. but in a town with thousands of vacant housing units and only 12 enforcement officers, it's fair to say that the good guys are a little outnumbered. >> it looks like the posting is on the window. that's a requirement.

we don't really care for them too much. when you see stuff like this, all the transients and teenaged kids in the neighborhood know it's a vacant house. >> right. >> when we see these blankets and sheets up, it's a pretty good sign that someone is living in there. i would bet on it. >> so a lot of times the neighbors actually call in? >> absolutely. >> and notify you. >> right. the complaint said there is transients living inside. >> okay. >> and a lot of the property owners, they know best. they know who is supposed to be here. they know the house is supposed to be vacant. >> not our guy? >> no, it's him. ♪ >> a k-9 unit. come out with your hands up. dog will come in and bite you. come out with your hands up. >> it smells terrible in here. >> places are real easy to get into, and they just squat here and do their drugs, and they'll sit here until they get caught.

and then they'll just go to the next one. >> so have you seen places that you have boarded up before that you have had to gone back, gone back a second time? >> i've gone back to the same house ten times. >> wow. >> won't stop. >> this one is still boarded up. that's a good sign. >> it's still boarded up, but for whatever reason, they're still getting inside. squatters have gotten in this garage twice now. hey, how is it going? >> all right. >> what is up? this is where you're hanging out now? >> yeah. >> how long have you been staying in here? >> i've been here for two weeks. >> is there nowhere else to go? is there no shelters or anything here? >> you should see the shelters. packed. sidewalks outside lines with tents and card board boxes. hello, city of stockton. anyone in here? >> it's like they were cooking. >> yeah.

>> what is that, heroin? >> yeah. >> a little crack pipe. >> right. oh, boy. and you can see the garage is open. >> i know. there is all kinds of stuff back there and the garage is open. >> son of a gun. are they getting in the garage? >> yeah. >> oh, boy. >> so they're climbing over the fence every day? >> in this case we're going to have to have our contractor come out, unscrew the board they put in so they can get in there and then screw the garage back up. all right. work with us. we're trying. >> thanks, man. >> this doesn't stop. >> no, not at all.

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stockton is not the first city to face financial doom. all across the country, cities, counties, and even states have had to come up with some pretty desperate measures to avoid or try to avoid sliding into bankruptcy. in utah, a state senator suggested abolishing the 12th grade to save a little cash. >> go, utah! >> texas governor rick perry proposed a brands new tax on strip clubs to balance the lone star state's state budget. and the city of pontiac, michigan, sold the silverdome, former home of the detroit lions. completed in 1975 at a cost of $55.7 million, roughly $238

million today, pontiac sold it at auction in 2009 for $583,000. about 1% of what it cost to build. they netted just about enough cash from the deal to buy a nice three bedroom in phoenix. there is harrisburg, pennsylvania. they racked up a $310 million debt by failing to fix a broken trash incinerator. so steven reed, the mayor at the time, did what any responsible mayor would do. he used the money that could have gone to fix the incinerator to travel the country and collect $8 million worth of artifacts for a proposed wild west museum. located in harrisburg, pennsylvania. stockton didn't go the wild west route. they did something even more desperate. faced with huge deficits, they made drastic cuts to municipal services, including the department of public works, the fire department, and a full 25% of their police force. there have been a lot of people

who said part of the reason this problem came about, or one of the big reasons was the influence of the police and fire unions. >> yes. i mean, two years ago, i looked at salary statistics. there were over 200 employees in the city out of 1700 that made over $200,000 a year. the majority of those, all but about 15 were in the fire department and the police department. that was an eye-opener to me, because you expect some of the key management people to, you know, have the higher salaries. i mean, our city manager makes a little over 200,000. his deputy makes $190,000, something like that. they're the highest paid. they do the work. >> right. >> but for, you know, the policemen, the firefighter to make almost $200,000 or over $200,000, it's like whoa. >> stockton saw the results of

the cuts they made almost immediately. just not the results they wanted. >> shooting, the 299th shooting of the year. male victim steven. he was shot in the back, transported to county hospital. carjacking, kidnapping, south, 1120 east main street, 19-year-old male victim. >> violent crimes spiked, making stockton one of the ten most dangerous cities in america. >> stockton 911, what is yourself emergency? >> in 2011, they had 58 homicides, a record-breaking number that strained the response team even further. >> she is in shock. >> walk me through what happens. >> okay. these are all the calls that are holding that have yet to have been sent an officer. and then this right here is going to be all the officers that are currently on calls. and these are the calls and the addresses that they're sent to. so we just had a homicide. so that's what they're going to be working right now. >> male is dead and the female

is still breathing. right now we're calling these. i don't know who we're going to send. >> you have information on that homicide, like what happened? >> i got a report of a neighbor that said that they heard some shots fired in the area. and when they went to go check on their neighbor, they found her down. we just had a double homicide last night too. >> there were three homicides this weekend, right? >> yeah. >> how long have you been here? >> five years in december. >> five years in december. so you basically started right before the housing collapse. >> yep. >> how was it then until now? >> we had more people that were working amongst us. >> yeah. >> and more officers on the street. when you don't have as many officers on the street, it makes it difficult when you're doing your dispatching job, because you have nobody to go to the calls. as you can see, we have 43 that are still holding that don't

have anybody that has even responded yet. we just don't have anybody to go. >> that's -- that's disheartening. >> you try to get them the help as fast as you can, but we can only do so much with what we have. >> it appears this isn't as related to the 187 on regent, female victim is being transported to amr to county. >> they found a third victim. >> have another body inside the van. medics are on the scene. third victim is 972. what is 972? >> dead. >> is that the most homicides that have ever happened in stockton? >> yes. >> ever? >> yes. >> wow. >> we broke our own record 45 minutes ago. >> and there are still two and a half months left in the year. >> yeah. >> yeah. >> there is two people shot on wagner heights. one is a 187. i think the other is still alive.

>> i'm riding to the crime scene with responding officer sergeant bill hutto. they tell me there were two bodies there, is that correct? >> i don't know if there is three or four homicides related to this incident. but we're going to go over to the regent, which is where the command post is set up, and we'll get briefed there on what is going on. >> sergeant hutto is a 23-year veteran of the stockton police force. and in more than two decades of service, he has never seen the city as dangerous as it is now. >> we went this past, i think, five or six weeks with only two homicides. pretty slow for us. >> yeah. >> and everybody is like wow. and maybe things died down. and then you get a weekend like this. >> right. is it six in total now? >> there is three today. that makes eight for the

weekend, from today's incident. if there is another one, it will make nine. >> wow. that's incredible. >> yeah. >> so what do you think is part of the reason why there are more homicides now than there have ever been? >> less staffing all the way around. >> yeah. >> there is less detectives, less officers. code enforcement has been cut. our csos have been cut. >> can you just walk me through what happened here? >> i know that a guy, i don't know who, killed a lady here. >> uh-huh. >> and then went to the other address on wagner heights and killed one or two more. >> okay. >> and killed himself. >> at that address? >> at that address.

>> okay. >> and then when they checked his vehicle that was out front or nearby, they found another person in his vehicle dead. >> okay. 957 is shots fired. >> shirt with jeans -- 957. >> you'll hear that. quite a bit. hey, where are you at? okay. i'm en route. >> are they at the other crime scene? >> yeah, they're on wagner heights. >> okay. >> i've worked homicide prior to becoming a public information officer. this is something that i have never seen. >> right. >> our homicide unit right now is depleted because of limited resources. and we've had to call in other detectives from other units within the police department just to come out to assist our homicide teams with witness statements and processing the crime scene. >> right. >> so very taxing right now. >> yeah.

>> the bottom line is when you cut 25% of the department and 25% of the city workforce, and your crime starts going through the roof, there is a direct correlation. >> that may be true, but in spite of stockton's obvious need for more police, many residents have followed the mayor's lead and laid the blame for the city's troubles squarely at the feet of the firemen, police officers, and their unions. when you hear people -- people who talk about kind of the situation the city is in right now, when they say things like, well, you know, part of the problem is we had too many of the unions make good deals for the cops, the firemen, you know. that's what depleted so many of our resources. >> well, can i -- we start talking about city management like that, can i do that -- >> absolutely. we can do that. yeah, absolutely.

out of uniform, sergeant hutto can be more candid about his opinions, both as a private citizen and as the vice president of stockton's police union. >> the real problem with the city's finances lies in right here, downtown redevelopment. >> according to hutto, when the city was borrowing and spending to develop the waterfront, they neglected to put money into the employee pension system. >> during that same time frame, you know, california public employees retirement system was doing so well that they said stockton, you don't have to make the payments. you can put that money into an investment account and earn interest or whatever. so when the stock crashed and said okay, all that money you owe us, go ahead and pay us now, take it out of your investments. well, stockton didn't have investments. they spent it. our retirements bought this. so, yeah, we're to blame because we still want our retirement. but they're the ones that spent our money. they didn't pay their bill for, you know, eight or nine years. >> yeah. and it's your fault? >> yeah.

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it's hard to describe, because you have a numbness, but yet you have the pain like thousands of needles sticking in your foot. it was progressively getting worse, and at that point i knew i had to do something. once i started taking the lyrica the pain started subsiding. [ male announcer ] it's known that diabetes damages nerves. lyrica is fda approved to treat diabetic nerve pain.

lyrica is not for everyone. it may cause serious allergic reactions or suicidal thoughts or actions. tell your doctor right away if you have these, new or worsening depression, or unusual changes in mood or behavior. or swelling, trouble breathing, rash, hives, blisters, changes in eyesight including blurry vision, muscle pain with fever, tired feeling, or skin sores from diabetes. common side effects are dizziness, sleepiness, weight gain and swelling of hands, legs and feet. don't drink alcohol while taking lyrica. don't drive or use machinery until you know how lyrica affects you. those who have had a drug or alcohol problem may be more likely to misuse lyrica. ask your doctor about lyrica today. it's specific treatment for diabetic nerve pain. on june 28, 2012, with no other options available to them, the city of stockton filed for bankruptcy.

>> stockton became the largest city in the country to start bankruptcy proceedings. >> the largest american city ever to file for bankruptcy. >> municipal bankruptcy, or chapter 9, can be broken down into three parts, the good, the bad, and the ugly. first the good. bankruptcy allows a city to restructure their debt while ensuring the most basic city services can continue. it lets the city renegotiate union contracts, pensions, and benefits, a huge relief to any city struggling under the weight of those obligations. and sometimes it works. vallejo, california, is a city 90 minutes west of stockton. they filed for bankruptcy protection in 2008. the restructuring allowed them to ditch at least $32 million in debt and pay some creditors as little as 5 cents on the dollar. the city also cut benefits for retirees to just $300 per month, down from as much as $1500 in some cases. finally, vallejo was able to

emerge from bankruptcy just three years later. the bad part of bankruptcy? creditors take note and refuse to do business with cities that don't pay their debt. as for the ugly part of bankruptcy, that's simple. it's being a retiree or city employee caught on the wrong side of those negotiations, watching your benefits disappear. >> hi, there. hey, i'm morgan. >> van revere. nice to meet you. >> thank you. pleasure to meet you. >> i have a uniform t-shirt i'd like you to put on, if that's okay. >> right on! >> the city of stockton made $19 million in cuts to the fire department. staffing was reduced by 30%. 36 firefighters were laid off in

2011 alone. retirement and insurance benefits were slashed, and now these firemen face an uncertain future. how hard is that? here you are living on your income, and you know exactly how much tough spend. and then suddenly that's cut by 25%. >> i'm worried about whether or not i can afford another baby. and it's not about affording diapers and wipes and shoes and stuff. it's about the bill from the hospital to actually have the baby. >> we've had some that have had immediately, boom, $10,000 bill out of pocket as a result of, you know, a pregnancy or pregnancy with complications. >> you know, i lost my home as a part of this mess too. a lot of us were going along thinking things were going to get better. things aren't going get better. >> a lot of people have said, including the mayor, that one of the reasons that led to the bankruptcy was the negotiating power of the police and fire unions that kind of brought about exorbitant fees, salaries, pensions. >> not to kind of cry, but it's turned its way into political attacks.

well, the mayor says contracts with union pd are a huge reason we're in this position. well, i mean, that gets spread and that's kind of where a lot of the community stands. and a lot of it is, like, real negative. >> they put this off on the fire engine now driving down the street. >> throw stuff. and we get rocks, eggs. >> eggs. >> firecrackers. >> bottles. when i was working, the engine has been hit with that stuff. people yelling, cussing. it's a total different game than how it was a few years ago. >> it's pretty convenient to blame your overpaid firefighters for your problems, right up until your house is on fire. still, riding with these guys, i couldn't help but notice how committed they are to the job. in spite of cuts that make their jobs harder and harder and put their livelihood and retirement in doubt, their number one priority is protecting the people in the city of stockton.

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not all of stockton's problems stem from bankruptcy. the city is home to more than 70 street gangs, and fewer officers on the street translates into a huge uptake in gang violence. >> this triple homicide brought stockton's homicide rate to 59 this year. >> unable to count on the police force, local business owners like tony finnegan are taking security matters into their own hands. i heard you have a very dubious honor. >> what's that? >> that you're the only place in stockton where there has not been a shooting. knock on wood. >> right. that is -- that is my understanding. we've been open for about four years now. and thank god that, you know, it hasn't happened. if you noticed, one side of our building that faces the street has no windows. no windows means no bullets. we have concrete block reinforced with, you know, another barrier out front that covers our patio.

>> and building a bulletproof safe house isn't the only thing tony finnegan does to protect his valuable customers. oh, what have you got? this is the whole -- >> it's part of our dress code. >> so we started off with really simple things. we have a length requirement on t-shirts. so your t-shirt can be up to your outstretched thumb. we don't allow people to wear gold teeth. we don't allow them to wear big medallions. we specified which sports team hats we wouldn't allow in. certain halts represent certain gangs in stockton. and we did colors. somebody comes in all red or all blue or a certain color, we know they're affiliated with a gang. >> what about green? green is all right? >> green is the only color we allow someone to come head to toe. >> setting an example in stockton, that's what police say one neighborhood watch group is doing. >> taking matters now into their own hands. that's what neighborhood groups in stockton did today. >> with violent crime up and

fewer officers around to prevent it, stocktonians have been quietly organizing into community watch groups, determined to fix the problems themselves. marci waller is a founding member of a local neighborhood watch group in the area where stockton's murder record was recently broken. >> the best thing now is to continue to encourage stocktonians to neighbor up and join or start a neighborhood watch. be aware and take action when something suspicious is happening in your neighborhood. talk to each other. come out of your house. don't isolate yourself out of fear. walk your streets, walk your dog. be proactive so you don't have to be reactive. >> scott smith is a reporter for stockton's local newspaper, "the record." are things changing for the better in stockton? >> you know what is interesting, i've been covering the bankruptcy big-time. i went over to vallejo which is a short distance from here. they were sort of the other big

city in the state that went into bankruptcy. i went over there for a day and did some reporting. and people i talked to said you know what happened is we became less reliant on the city and police, and we did what they're doing here today. they formed neighborhood watch groups. and that's changed how we live. it forced us to go back 40 years and know our neighbors more so. and i kind of see that same thing happening here, which is interesting. everywhere i go, somebody is forming some kind of a group. you know, that doesn't necessarily solve the problem, but it shows you that people are trying to do something. and they're getting engaged with one another, their neighbors, with people in their church, and they're saying okay, how can we use our organization, our neighborhood to do something good. >> for some, community watch groups conjure up images of nosy neighbors peers out the window. some stocktonians are in the

market for something a little more adventurous. hey, man. >> come on in. >> how you? >> good to see you. >> how are you doing. hey, guys. >> everybody, this is morgan. >> hey, i'm morgan. brother, good to see you. how you doing? >> pretty good. >> morgan. so what is the plan for tonight? >> we're going to do some quick training, and then we're going to go over the patrol area and then do a quick safety brief and make sure there are no questions and move out. >> how dangerous is the area you're in? >> the area we've picked for tonight is moderate. there has been an assault there is an unsolved murder, and about two months ago it was the site of the place a gentleman fled from police, shot at them, barricaded himself and shot himself in the garage. >> serious. a serious area. >> we're trying to hit the trouble spots in stockton right now, try and help. >> why did you want to do it? >> murder number 48 was actually i knew the guy. he was a friend of my dad who he used to work for 15 years. he actually got killed and shot and killed in victory park for his gold chain, broad daylight. >> so that is when you said i

got to do something? >> that was the point where a day later i happened to see the news report about the guardian angels, and hopped on my computer, found the contact info and said how do i do this? where do i start. >> that's great. how does that look? does it look intimidating? >> pull it down a little bit. pull it down to where it's comfortable. how is that? there you go. now you're one of us. there you go. nice. >> so now what are we doing? >> first we're going to go over -- we're going to go over eastbound basic patrol routine. >> okay. >> we're going to use you as our bad guy. >> awesome. >> go ahead and stand right here. >> okay. >> facing me. >> okay. how is that? do i look more intimidating now? >> that's pretty good. i was almost scared. basically coming across patrol, say we see you out there. you're out there smoking and joking.

you're puffing on something that doesn't look like a regular cigarette. we'll approach you. excuse me, sir, how you doing? what have you got there? >> nothing. >> it doesn't smell like a regular cigarette, you know. >> why don't you mind your own business? >> well, you know, i wish we could, but, again, we're here for the safety and security of stockton and its residents. >> why don't you guys go somewhere else. >> is there anything i can do to gain your compliance? >> listen, i live here. this is my house. hey, this is my house! this is my house! i'm calling the police! i know my rights! i know my rights! this is one of my prouder moments right here. probably my proudest moment. >> there you go. stand up. >> oh, my gosh. >> well done. >> everybody ready? >> let's circle up real quick. hands in. on three. guardian angels on three. who are we? one, two, three, guardian angels!

move it. >> it's after 9:00 already at night. so we'll just take up along here real quick where we'll make a pass through the park on the way back around. >> these guys are the eyes and ears of stockton's reduced police force, and they coordinate with the police before every one of their patrols. >> some people hanging out outside over there. how you doing? we're the guardian angels. have you guys heard of us? >> you have. how you doing? >> it's not an easy job, but these people love their city too much to see it hurt like this. and they'll do whatever they can to make these neighborhoods safe again. >> next year i want to get all these groups together in one spot, right, and have the largest nonprofit event stockton has seen, and try to bring all

our resources together so we can start working as one instead of separate entities. >> that's a good idea. you could have volunteer stockton. >> exactly. >> just the people i spoke to, there is a lot of people who are really invested in wanting to change the community, but they just don't know how. >> exactly. i didn't know how either. >> all over stockton, people are coming to the same conclusion that even though they didn't cause the problems that plague their city, they can do something to be a part of the solution. we're aig. and we're here. to help secure retirements and protect financial futures. to help communities recover and rebuild. for companies going from garage to global. on the ground, in the air, even into space. we repaid every dollar america lent us. and gave america back a profit. we're here to keep our promises. to help you realize a better tomorrow. from the families of aig, happy holidays.

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it's easy to look at stockton and see the events that led them to bankruptcy were things that happen somewhere else and not where we live. but in reality, cities all over the country are facing these problems. and while the decisions made in city hall sometimes seem abstract, the impact on people's lives is very real. hey, how are you? >> good. yourself. >> checking out. >> your room number? >> 358. spurlock. >> did you enjoy your stay in stockton? >> i did, very much. a lot of things have changed for stockton since they filed for bankruptcy. >> the city of stockton swears in a new mayor later today. >> some residents are already expressing some hope that a

change in leadership will mean a less violent and more financially sound future for their city. >> i anthony silva do solemnly swear. >> do solemnly swear. >> that i will support and defend. >> that i will support and defend. >> the constitution of the united states. >> the constitution of the united states. >> and the constitution of the state of california. >> and the constitution of the state of california. >> marianne johnston lost her bid for reelection to silva and went back to running the balloonery. her family's balloon shop. they're hoping mayor silva can turn things around. if not, he and his neighbors from western ranch are drawing up plans to secede from stockton and become their own city. >> in the block of west walnut -- >> staffing is still a problem for police, who have hired just six officers so far in 2013. but things are looking up. after a record-breaking 71 murders in 2012, this year the homicide rate so far is down. and officers like sergeant hutto credits citizens like the neighborhood watch groups and

the guardian angels with the turnaround. speaking of the guardian angels, they're still going strong, fixing up area playgrounds and joining forces with tony finnegan, helping him to drive customers home from his bar. tony has had to add two more hats to his banned list, but he has managed to keep his bar free from violence. on april 1st, 2013, a judge in federal court declared stockton officially bankrupt. the city is now starting the long process of restructuring its finances and paying its creditors. stockton's bankruptcy is historic. and how it works its way out will set the precedent for struggling cities across the country. one thing that i think is really hopeful that has come out of this is that there seems to be a real willingness of the people to work together to try to fix things. maybe that's what happens when you hit rock bottom. when you finally hit the bottom, you say wow. when there is no money left, what do you have? people are realizing it's not

going to be just fixed by money, it's going to be fixed by us. i think that's a good message for everyone. mm. delicious orange juice. we all drink it, but do you ever think about where it comes from? these people do. they're undocumented immigrants. and theb they know where it comes from because they pick the oranges that are in it. they also pick the tomatoes in your salad, mow your lawns, clean your hotel rooms, hang your dry wall, even help raise your children. right now there's an estimated 11 million undocumented immigrants living in this country today. >> it was possible for 11 million illegals to come here. why is it impossible for them to leave? >> people who oppose immigration reform say these workers are just feeding off the system. >> the vast majority of illegal aliens are consuming welfare programs.