3rd Calif. city to file for bankruptcy in 1 month

San Bernardino, Calif., in 2008 / Getty Images

(CBS/AP) SAN BERNARDINO, Calif. - The Southern California city of San Bernardino has voted to declare bankruptcy.

The City Council in the city of 210,000 people decided to seek Chapter 9 protection Tuesday night, making it the third California city - after Mammoth Lakes and Stockton - in less than two weeks to make the rare move. It would also become among the largest in the nation ever to declare bankruptcy. Stockton, the northern California city of nearly 300,000, became the biggest when it filed for bankruptcy June 28.

The Los Angeles Times says the City Council made the decision during a meeting where Interim City Manager Andrea Miller told them San Bernardino "has an immediate cash flow issue" and may not be able to make payroll with a budget shortfall of more than $45 million in the next fiscal year.

Stockton bankruptcy to become a trend?
Another Calif. city votes to file for bankruptcy
Stockton is largest U.S. city to seek bankruptcy
Stockton residents angered by bankruptcy move

Stockton filed for bankruptcy after officials were unable to reach a deal with the city's creditors to restructure hundreds of millions of dollars of debt under a new state law designed to help municipalities avoid bankruptcy. The city had been facing a $26 million deficit in next year's budget.

The ski town of Mammoth Lakes sought bankruptcy protection because it is facing a $43 million judgment that's more than twice the town's budget.

Before Stockton filed for bankruptcy Thursday, Peter Navarro, a professor of economics at the University of California, Irvine, told "CBS This Morning" there is "a long queue out there of cities like Stockton that are going to be doing the same thing."

Stockton, a river port of 290,000 in Central California, had been one of less than a half-dozen larger governments to seek Chapter 9 protection in U.S. history, according to James Spiotto, a Chicago bankruptcy attorney who tracks municipal bankruptcies.

[speakthetrut]

Lets privatize everything. Lets start by renaming states based on which pivate company will be owning the state. For example,

Lousiana owned by Chevron = Chevriana
Texas owned by Exxon = Exxas
Nevada owned by Adelson = Adevada

You will be requied to work as much as 16 hours for 8 hours pay. If you say anything bad about the company you will be fired, put in prison or even executed. When company CEO comes by, you are requied to fall to the ground in respect, and you may not make eye contact with the CEO. More rules will be created tomorrow, and you are expected to learn and obey them as soon as they are published via Faux Nooze every morning.

[Aurealia]

Republicans have held the California governorship for 24 of the past 36 years. Since 1933, a 2/3 vote is required to pass the California budget. As a result Republican legislative minorities have had a disproportionate influence on state budgets. Since 1978, a 2/3 electoral vote is required to raise property taxes. Since 2010 a 2/3 legislative vote is required to increase other taxes, fees, levies and charges. California is the sum of the actions of all her citizens Republican, Democratic and independent.

[AVoiceofR3ason]

This should be getting the attention of the Feds, but nothing - Jefferson county AL too, along with Detroit and others. IL and CA are on the brink of collapse. If you'd like I have a couple tickets to the dance band on the upper deck of the ship.

[jschm2681]

Just as in the Scranton bankruptcy article CBS refuses to mention that in San B the mayor is a Democrat and has been mayor since 2006. In Scranton, mayor and council are Democrats. If Obama wins, he will attempt to bailout all Democrat controlled towns and states that are in trouble, which is most of them.

[BWB2020]

OK by me, the GOP only bails out their big bux cronies, who don't even need it.

At least this way, innocent citizens would not lose their municipal services, and their city jobs.

[jschm2681]

Just as in the Scranton bankruptcy article CBS refuses to mention that in San B the mayor is a Democrat and has been mayor since 2006. In Scranton, mayor and council are Democrats. If Obama wins, he will attempt to bailout all Democrat controlled towns and states that are in trouble, which is most of them.

[stormerF69]

From Scranton,PA to San Bernardino,CA.the chickens are comming home to roost.Liberal run cities for too long and too much promised in Retirement and pensions for Public employees. Giving away public services to illegals who pay no taxes and too many handouts for those who want something for nothing,free college,free supplies,free lunches,etc,etc,etc,.

[atanu_banerjee]

Time to change the state from Blue to Red - since it's already anyway in RED ? Thanks.

[fredrickh]

Stay tuned, more bankruptcies to follow. This is what they call a standing headline. This is what happens when politicians promise the world for union votes expecting that they'll be dead before the bills come. The earthquake is your only savior now.

[tmn]

Only a moron points to a highly complicated problem and blames it all on "unions"...

[stormerF69]

tmn,..your right it is not all the Unions fault it is the Democratic politicans run by the Unions fault.

[melbatom]

Now you know that California is a State of NON balanced Budget. It always has been. You know this if you have lived in California as I have. The cities also practice this with no concern for non citizens that take and give nothing back. You can see what is about to happen to this country with the current non American actions.

[overthehill5]

Folks, that light coming in the tunnel is TRAIN!
BUT DON'T WORRY, THE ENGINEER IS A COMMUNITY ORGANIZER!

[lesserof2evil]

i take a community organizer over a tax dodger any time of the day.