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...
"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...