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| Economy |
| San Bernardino Files Emergency Bankruptcy Petition |
| 2012-08-02 |
| San Bernardino on Wednesday became the third California city to declare insolvency, joining Stockton and Mammoth Lakes after officials say they filed an emergency petition for Chapter 9 bankruptcy. The filing – prompted by a $45.8 million budget shortfall the city faces this year – makes official a move the City Council approved last month. San Bernardino’s bankruptcy filing won’t affect essential service to the community, and there are no immediate reductions or changes planned, according to Interim City Manager Andrea Travis-Miller. City officials are working on a plan for the city's operational budget during bankruptcy, and once the plan is complete reductions may occur, Travis-Miller said. |
| Posted by:Fred |
| #3 There is also the issue of several litigation cases filed against the police department. |
| Posted by: Pappy 2012-08-02 15:23 |
| #2 Their planned general expenditure budget for 2012-13, with the bankruptcy, is $166.2 million (per their website). Their general expenditure budget for 2011-12 (also per their website) was $128.1 million. So they are spending $38 million more in the year they're going bankrupt. I think I see the problem... |
| Posted by: Steve White 2012-08-02 11:14 |
| #1 Unsustainable spending will be, uh, sustained... |
| Posted by: M. Murcek 2012-08-02 10:47 |