OT: San Bernardino votes to file for bankruptcy protection

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Submitted by blake on July 10, 2012 - 9:52pm

San Bernardino votes to file for bankruptcy protection

Quote:

The San Bernardino City Council votes to file for bankruptcy. Facing a $45-million budget shortfall and the prospect of not being able to pay city workers, the panel Tuesday voted to file municipal bankruptcy, the third California city to do so in recent weeks.

The vote came shortly after the interim city manager recommended seeking bankruptcy protection, saying the city may not be able to make payroll over the next three months. "We have an immediate cash flow issue," Andrea Miller told the mayor and seven-member council.

The dire fiscal situation remains even after the city negotiated $10 million in concessions from employees and slashed the workforce by 20% over the last four years.

If San Bernardino votes to declare bankruptcy, it would be the third California city to do so in recent weeks, joining Stockton and Mammoth Lakes. The council called special back-to-back budget meetings Tuesday and Wednesday, which are expected to attract a packed house at City Hall.

Who's next?

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Allan from Fallbrook
Submitted by harvey on July 18, 2012 - 8:24am.

Allan from Fallbrook wrote:
CalPERS article from Mish Shedlock on Business Insider: http://www.businessinsider.com/stunning-...

Simple arithmetic, not partisan solutions, will ultimately determine what happens.

Simple arithmetic will define the ultimate breaking point, but political solutions will determine how costly the disaster will be, and who bears that cost.

From the cited article:

CalPERS is both corrupt and incompetent.

Pretty much sums it up.

Recall that in the public pension debate threads we've had here, one side (and one poster in particular) uses CalPERS articles and data extensively as her source of "facts." We have yet to see any evidence - from a credible and objective source - to support the idea that public pensions in CA are anything less than a disaster.

Pensions aren't the only problem in the state budget, but they are a sizable component of the problem. And they are the one problem that can be fixed with a very straightforward and fair solution:

End defined-benefit plans for public employees. Pay them the same way that everyone else gets paid.

Next up, Compton, Ok not
Submitted by The-Shoveler on July 19, 2012 - 6:09am.

Next up, Compton,
Ok not exactly a garden spot but definitely part of the L.A. inter city area, So the lizard land excuse will not work this time.

The-Shoveler wrote:Next up,
Submitted by flu on July 19, 2012 - 7:12am.

The-Shoveler wrote:
Next up, Compton,
Ok not exactly a garden spot but definitely part of the L.A. inter city area, So the lizard land excuse will not work this time.

What? Hip hop gang bangers aren't paying taxes? No really?

You would be surprised, They
Submitted by The-Shoveler on July 19, 2012 - 7:32am.

You would be surprised, They have a few industries and a police force as well as fire department and court system etc… so...

I really like how the cities
Submitted by no_such_reality on July 19, 2012 - 8:10am.

I really like how the cities just pop up. They don't have the bankruptcy discussion until, like Compton, they have $5 million in bills and $3 million in the bank.

Are the cities that badly managed? Do they all believe their own rosy projections of revenues coming in and pay attention when they aren't?

But hey, why should we be surprise. We had Rizzo in Bell. The Cudahy group are taking plea deals on the corruption charges. The LAFD admits they submitted 'inaccurate' data for the review on staffing.

But hey, Governor Brown signed the High Speed Rail plan.

And the UC approved multi-hundred thousand dollar pay packages for a few incoming presidents to smaller schools along with $60,000 a year housing allowances, $12,000 year car allowances yesterday and turn around today and threaten a 20% tuition hike if they don't get Brown's tax raise passed.

LOL.

Get your baksheesh, err I mean campaign contributions, ready folks.

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