The city of San Bernardino, California has, as expected, filed for bankruptcy following Mammoth Lakes and Stockton into municipal bankruptcy
A federal bankruptcy judge has ruled Stockton, CA may proceed with cutting health care benefits for retirees while it is in bankruptcy
California cities aren’t the only ones struggling with financial solvency– up next is Scranton, Pennsylvania.
Over the past month, three California cities, Stockton, Mammoth Lakes, and now San Bernardino have begun proceedings to file for Chapter 9 bankruptcy protection.
On Tuesday, Stockton California said talks with creditors had failed and prepared to file Chapter 9 bankruptcy. They will be the largest American city ever to do so and the results will be closely watched.
Many California municipalities are facing crushing bond and pension debt, while eviscerating budgets in attempts to stay solvent. Among the worst hit is the city of Stockton, whose city council recently voted to default on bond payments.
The U.S. Supreme Court ruled that California can continue to offer in-state tuition to undocumented immigrants at the state’s public universities.
