"San Bernardino, California, filed for municipal bankruptcy after disclosing a $46 million shortfall in the cityâ??s budget, the third California city to seek court protection from creditors since June 28.
California cities from the Mexican border to San Francisco Bay are confronting rising pension costs as they contend with growing unemployment and declining property- and sales-tax revenue. The costs stem from decisions made when stock markets were soaring and retirement funds were running surpluses."
"Major Wave of Municipal Bankruptcies Has Begun…
A major wave of municipal bankruptcy filings is now underway. Scores of other cities nationwide will eventually do the only thing that makes sense: file for bankruptcy to escape pension promises and union salaries that cannot possibly be met.
In California, Oakland and Los Angeles are among the walking dead.
Unions would be wise to negotiate with cities in advance of bankruptcy filings to protect the most benefits for the most workers. However, the odds of that happening are close to zero
There is a city here who is in the process of secession from Los Angeles. The massive taxation, horrible business climate, have caused it to want to break off from Los Angeles and join another neighboring city.