Another One Bites the Dust- San Bernardino Edition
Another California city ran out of other peoples’ money. Actually, it happened a year ago. San Bernardino ran out of money and filed for bankruptcy protection last August. That is when the city stopped paying into Calpers, the California state employee pension system. Yesterday the bankruptcy judge asked the city to request summary judgement due to the long delay since the city filed. Calpers was shocked, but the judge said San Bernardino may proceed to negotiate with creditors.
“I don’t think anyone in this courtroom seriously thought the city was anything but insolvent.”
Judge Meredith Jury, U.S. Bankruptcy Court for the Central District of California
Living and Dying in the Age of Bankruptcy- In other news of mismanaged bankruptcy, Detroit continues to pay pensions, but ignores the living and the dying. Detroit can’t afford paper to print birth or death certificates. This could mean Detroit is reducing costs by implementing fully electronic records.. but I doubt it.
The website “Governing” lists the cities and and utilities who filed for bankruptcy. Here is their updated map.
Related post- Will States Compete for Prosperity or Charity
Rob the financially solvent