California City of San Bernardino files for bankruptcy

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The city of San Bernardino filed an emergency petition for Chapter 9 bankruptcy, making a move the City Council approved last month official. According to the interim city manager, city will continue to operate and provide essential services while working through its financial problems.

The city also said there are no immediate plans to reduce or make changes to services. However, officials are continuing to work on a plan that will serve as the city's operational budget during the bankruptcy process. Under that plan, reductions may take place, but there are no firm ideas as to what that may entail, officials said.

The decision to file for bankruptcy was in response to a $45.8 million budget shortfall the city faces this year.

San Bernardino, a city of 210,000 people, began voting on the possibility of bankruptcy July 10. It is now the third California city to declare insolvency this year, joining Stockton and Mammoth Lakes. Read more >>

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 >>