Friday, July 27, 2012

26 municipal bankruptcy filings since 2010


Many local governments across the U.S. face steep budget deficits as they struggle to pay off debts accumulated over years. As a last resort, some have filed for bankruptcy.

Governing is tracking the issue, and will update this page as more municipalities seek bankruptcy protection. In June, Stockton, Calif., became the largest U.S. city to file for bankruptcy. San Bernardino, Calif., was the most recent city to approve a bankruptcy filing after City Council members learned the city had only $150,000 left in its bank accounts.

Central Falls, R.I., and Jefferson County, Ala., both filed for bankruptcy in 2011. Harrisburg, Pa., and Boise County, Idaho, also filed for bankruptcy, but their claims were rejected.

The majority of Chapter 9 bankruptcy filings have been submitted by utility authorities, special districts and other taxing entities. In Omaha, Neb., eight Sanitary and Improvement Districts have filed for bankruptcy since 2010.

Bankruptcy Filing Totals Since 2010
All Municipal Bankruptcy Filings: 26
City and Locality Bankruptcy Filings: 6
Expected Local Government Filings: 1 (City of San Bernardino)

Municipal Bankruptcies Map
The map shows all municipalities filing for Chapter 9 bankruptcy protection since 2010, along with local governments voting to approve a bankruptcy filing.  Read more >>

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