$45M Shortfall Drives San Bernardino Into Bankruptcy

Law360, New York (August 2, 2012, 6:46 PM EDT) -- The city of San Bernardino, Calif., sought Chapter 9 bankruptcy protection on Wednesday, a long-anticipated measure after years of budget wrangling and unsustainable pension costs contributed to a $45 million budget shortfall. 

In an emergency petition filed in California bankruptcy court, San Bernardino declared more than $1 billion in assets and more than $1 billion in liabilities, according to the petition. On July 9, the city voted to pursue the bankruptcy after years, citing the $45 million budget shortfall that the city claimed was otherwise unmanageable....
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