San Bernardino, California Unable to Come Up With Budget Reductions Amid Bankruptcy

Updating a blog post we brought you earlier this year, the city of San Bernardino failed to pass a plan for budget cuts last week amid its bankruptcy filing.

The Los Angeles Times reports that the San Bernardino City Council met last week for nine hours and was unable to come up with a plan for budget reductions.  According to the Times, a hurdle facing council members is agreeing on cuts to the city’s fire department and trash collection services.

San Bernardino filed for Chapter 9 bankruptcy this summer, after the city council decided it could not pay the $46 million in debt it owes to creditors. When the city filed for bankruptcy, the Times reported that San Bernardino had already “negotiated $10 million in concessions from employees and slashed the workforce 20 percent over the last four years.”

On Monday we told you how Central Falls, Rhode Island, was developing a plan to restructure its debts through bankruptcy. San Bernardino will also have to come up with a way to restructure its debt and work on agreements with its employees.

Chapter 9 bankruptcies like San Bernardino’s and Central Falls’ show that that even cities struggle to pay debts. If you’re struggling financially, our Washington DC and Maryland bankruptcy attorney can help you with a free consultation if you fill out the contact form on this website or call (202) 483-6070 to schedule an appointment. We can offer you the best solution for whatever your debt issues may be.

Law Firm of Kevin D. Judd Maryland and Washington DC bankruptcy lawyer



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