San Bernardino insolvent

[Nova78]

Ca. city's fiscal emergency vote speeds bankruptcy | US National Headlines | Comcast

"The horse is out of the barn — the whole world knows we're insolvent," Shorett said, according to the San Bernardino Sun. "I will be supporting going forward with Chapter 9 and fiscal emergency."

The vote could make the city of 210,000 people the third in California to seek bankruptcy protection since last month, following Stockton and Mammoth Lakes.

The city is facing a $45.8 million budget shortfall this year.

Last week's announcement of the bankruptcy plan has further stressed San Bernardino's finances by prompting a dozen employees to put in for retirement with hopes of cashing out accrued vacation and sick time, and it has spurred vendors to demand cash instead of credit, said Gwendolyn Waters, a spokeswoman for the city manager's office.

The debate over bankruptcy in San Bernardino has also raised questions about the city's financial management. Last week, City Attorney James Penman told the public that 13 of the last 16 budgets presented to the city council had been falsified, masking the city's deficit. The finance director, who is new to the job, said officials had borrowed cash from restricted funds to cover payments, and eventually ran out of money to pay the funds back.

Cities are falling like dominoes, expect to see more of this as we fall into the abyss under Obama rule...

 

[B. Kidd]

It leaves me to wonder how many other cities out there have falsified their budgets in order to hide the extent of their deficits.

 

[Mad Scientist]

Nothing will happen to those who falsified the budgets.

What do you think would happen to us if we falsified our Tax Returns?

Inb4 someone blames Bush.

 

[waltky]

Granny says is `cause dey smokin' all dat dope out there, dey don't know what dey's doin'...

Moody's: More California cities at risk of bankruptcy
Deliberate strategy to take on budget deficits, avoid obligations to bondholders

One of the nation’s top credit rating agencies said Friday that it expects more municipal bankruptcies and defaults in California, the nation’s largest issuer of municipal bonds. Moody’s Investors Service said in a report that the growing fiscal distress in many California cities was putting bondholders at risk. The service announced that it will undertake a wide-ranging review of municipal finances in the nation’s most populous state because of what it sees as a growing threat of insolvency. The report has both investors and government leaders worried.

Three California cities - Stockton, San Bernardino and Mammoth Lakes - have filed for bankruptcy so far this year. They are not likely to be the last, Moody's said. Moody's reports that some cities are turning bankruptcy as a new strategy to take on budget deficits and avoid obligations to bondholders, an emerging dynamic that could have ripple effects throughout the investment community. The municipal bond market has long been characterized by low default rates and relatively stable finances, Moody's said, but that outlook is beginning to change as bankruptcy becomes a tool for cash-strapped cities.

As a result, the agency will reassess the financial position of all cities in California, which issues about 20 percent of the municipal bond volume nationwide, "to reflect the new fiscal realities and the governmental practices." The agency also will examine the outlook for municipal bonds in other troubled states, according to Robert Kurtter, managing director of public finance at Moody's. Moody's would not say which states it will review, though Kurtter mentioned Michigan and Nevada as possibilities. Friday's report noted that cities across the country are in financial distress but said that a greater share of bankruptcies are expected in California.

In California, officials rushed to downplay the report. "Moody's has an obligation to review changing circumstances, but we would just suggest that their assessment of the framework and ground activities is perhaps exaggerated," said Chris McKenzie, executive director of the League of California Cities. The state treasurer's office also cautioned against overacting to three bankruptcies among California's 482 cities. "No city's going to blithely skip into bankruptcy court to avoid its obligations," said treasurer's office spokesman Tom Dresslar, who called the report "a little hyperbolic."

MORE

See also:

Jay Leno takes pay cut to save staff
19 August 2012 - Leno returned to the late night show in 2010 following an unsuccessful move to primetime.

US TV host Jay Leno has taken a pay cut to save the jobs of other members of staff working on the popular late night talk show The Tonight Show. Some 20 staff reportedly lost their jobs on Friday, as broadcaster NBC moves to reduce the show's costs. "Jay's foremost concern is for the wonderful people who work with him at The Tonight Show," said Bruce Bobbins, a spokesman for Leno.

Reports suggest his salary will drop by more than $5 million (£3m) to $20m. "He did what was necessary to ensure their well-being," said Mr Bobbins. Leno's current salary is between $25 million and $30 million (£16-19m), and it is understood he volunteered to take a pay cut if it would save some jobs. Reports suggest his annual pay will now be closer to $20 million (£12.8m). He reportedly brings home another $15-$20m annually through personal appearances as a stand-up comedian. Other senior staff on The Tonight Show are also believed to have agreed to pay cuts.

Weekly budget

While the show remains the most watched late night show in the US, it struggles to make any money, according to experts inside the industry. The job cuts and salary reductions - first reported by Deadline.com - are believed to be part of a restructuring programme that will see the show's weekly production budget, estimated to be around $2.3 million, cut by 25% to $1.7m. NBC Universal has declined to comment.

Leno has presented the talk show since taking over from host Johnny Carson in 1992. However, he briefly left in 2009 for a primetime slot on the network, and was replaced by Conan O'Brien. But ratings for both shows slumped and NBC took the decision to move Leno's new show to his original 23:35 slot and move O'Brien and the Tonight Show to after midnight. Following an acrimonious dispute, O'Brien evenutally quit with a $33m (£20m) pay-off after eight months, and Leno returned as host of The Tonight Show in March 2010.

http://www.bbc.co.uk/news/entertainment-arts-19310907

 

[Rozman]

Ca. city's fiscal emergency vote speeds bankruptcy | US National Headlines | Comcast

"The horse is out of the barn — the whole world knows we're insolvent," Shorett said, according to the San Bernardino Sun. "I will be supporting going forward with Chapter 9 and fiscal emergency."

The vote could make the city of 210,000 people the third in California to seek bankruptcy protection since last month, following Stockton and Mammoth Lakes.

The city is facing a $45.8 million budget shortfall this year.

Last week's announcement of the bankruptcy plan has further stressed San Bernardino's finances by prompting a dozen employees to put in for retirement with hopes of cashing out accrued vacation and sick time, and it has spurred vendors to demand cash instead of credit, said Gwendolyn Waters, a spokeswoman for the city manager's office.

The debate over bankruptcy in San Bernardino has also raised questions about the city's financial management. Last week, City Attorney James Penman told the public that 13 of the last 16 budgets presented to the city council had been falsified, masking the city's deficit. The finance director, who is new to the job, said officials had borrowed cash from restricted funds to cover payments, and eventually ran out of money to pay the funds back.

Cities are falling like dominoes, expect to see more of this as we fall into the abyss under Obama rule...

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It's OK the Libs have a plan....

They need to spend more...

 

[Katzndogz]

Give the unions more money.

 

[Wiseacre]

It's happening all over, cities, counties, and states have reached the end of the road, time to pay the piper.

 

[freedombecki]

It's too bad those cities didn't have open city hall meetings where conservative speakers could warn them of the catastrophe they would have on their hands for raising taxes beyond people's ability to pay for their own family's welfare and sky's-the-limit city ambitions.

I really love the beautiful city of San Bernardino. I'm so sorry to see her take such a hard bump.

 

[freedombecki]

Nothing will happen to those who falsified the budgets.

What do you think would happen to us if we falsified our Tax Returns?

Inb4 someone blames Bush.

Blaming Bush is all stupid people have, because the Democrat Party used the JHHatfield book of lies about GWB as their party platform for 3 elections, and now, going on the fourth.

As far as falsifying budgets, I hadn't realized that was the problem. Maybe the people will get together and work on a way to restart their city on a more honest basis fiscally.

Again, I'm so sorry to see this.

 

[Nova78]

$100,000 a year meter maids and $200,000 a year firemen does not bode well for cailf,not to mention every other person is illegal sucking the tit dry and closing hosiptals ......womb to the tomb entitlements " The Obama Way"

 

[uscitizen]

Apparently no one here really cares that San Bernidino is bankrupt.

 

[william the wie]

Apparently no one here really cares that San Bernidino is bankrupt.

With very few exceptions bankruptcies are hitting D districts. For Ls and Rs this means the end of the D machine which is all to the good.

 

[CrusaderFrank]

[ame=http://www.youtube.com/watch?v=2vYW0ECES5g]Frank Zappa - San Ber'dino & Black Napkins.avi - YouTube[/ame]

 

[Trajan]

hey, tax $$ are already paying down principal for some homeowners.......so, if like me you have been paying your mortgage and bought wisely, you get to subside folks who aren't and didn't.

the banks, who were re-capitalized have been able to basically tell the feds to *uc off and barely participate.


Fannie, Freddie work to pay down principal in California
By Justin T. Hilley
• May 8, 2012 • 4:59pm

Fannie Mae and Freddie Mac signed on to participate in Keep Your Home California, a $2 billion foreclosure prevention program intended to make it easier for homeowners reduce prinicipal on their mortgages.

The move could provide a major boost to both the program and usage of the Treasury Department’s Hardest Hit Fund.

California officials dropped a requirement of Keep Your Home California that banks match taxpayers’ funds when homeowners receive mortgage reductions through the program.

“As announced last year, Fannie Mae and Freddie Mac may accept the pay down of mortgage principal funded through a HHF program provided other guide requirements are satisfied," a Federal Housing Finance Agency spokesperson told HousingWire. "In response to this week’s announcement by the California HFA, the enterprises will work with the housing finance agency to apply its new program to enterprise loans.”

The FHFA stressed that the principal reduction is not a write down, something Acting Director Edward DeMarco is reluctant to do, but a payment of principal through the underutilized HHF grant dollars. In other words, Fannie and Freddie are not taking losses.

The special inspector general for the Troubled Asset Relief Program reported that just 3% of HHF’s $7.6 billion fund had been used as of Dec. 31. The Treasury Department meant for the program to provide modifications, short sales, unemployment assistance and principal reduction.

more at-

HousingWire | Fannie, Freddie work to pay down principal in California

 

[Uncensored2008]

San Bernardino?

Rent the city out to the North Koreans and Iranians for above ground nuclear testing.

It'll improve the place, seriously.

 

[freedombecki]

Apparently no one here really cares that San Bernidino is bankrupt.

What was it about "I'm so sorry to see her take such a hard bump." and "I'm so sorry to see this," did you not understand?

 

[Avorysuds]

The answer of course is to hire more Government employee's....

 

[Uncensored2008]

San Bernardino will need to sharply raise taxes on both of the people who have non-government jobs in the city....