San Bernadino, Calif., files Chapter 9: report:
"NEW YORK (MarketWatch) -- The city of San Bernardino, Calif., on
Wednesday filed a petition to reorganize under Chapter 9 of federal
bankruptcy law, Bloomberg News reported. The city -- located 60 miles
east of Los Angeles and home to more than 200,000 people -- is facing a
$46 million budget deficit, Bloomberg reported. San Bernardino is the
third California city to file for municipal bankruptcy proceedings in a
bit more than a month. The cities are particularly facing higher pension
costs while revenue from property taxes and sales taxes wanes, the news
service reported. San Bernardino has cut its workforce 20% in the past
four years, the news service reported. The city filed the petition in
U.S. Bankruptcy Court in Riverside, Calif., Bloomberg reported."
Summing Up
Three down and more to go in California.
It's a sick situation with no relief in sight.
The money is gone, but the debts and promised public employee benefits remain.
Now the bankruptcy court will decide what to do about this mess.
Stay tuned.
Thanks. Bob.
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