Northwest Indiana Discussion

From the IndyStar
July 11, 2012

San Bernardino, Calif., opts for bankruptcy
by USA TODAY

SAN BERNARDINO, Calif. (AP) — As recently as last month, no city in California had opted for bankruptcy since 2008, and no U.S. city of more than 200,000 people had ever chosen bankruptcy.

The past two weeks have changed all that, in a big way, as the fiscal struggles faced by so many American cities became too much for some to bear.

San Bernardino became the third California city in that small span to choose Chapter 9 bankruptcy protection with a City Council vote on Tuesday night.

The Southern California city of about 210,000 people will also become the second largest in the nation ever to file for bankruptcy. Stockton, the Northern California city of nearly 300,000, became the biggest when it filed for Chapter 9 on June 28. The much smaller city of Mammoth Lakes voted for bankruptcy July 3.

San Bernardino's City Council directed the city attorney to make the move during a meeting where administrators explained the dire fiscal circumstances and urged them to choose the bankruptcy option.

"We have an immediate cash flow issue," Interim City Manager Andrea Miller told Mayor Patrick Morris and the seven-member City Council, according to the Los Angeles Times.

Miller said the city is facing a budget shortfall of $45.8 million. It has already stopped paying some vendors, and may not be able to make payroll over the next three months.

Four council members voted for the authorization, two opposed it, and one abstained.

"This is probably the hardest decision this councilwoman will ever have to make in this chair," Councilwoman Wendy McCammack said, according to the San Bernardino Sun.

The councilman who abstained from voting, John Valdivia, said he did not trust the information presented at the meeting, and having only served since March believed he should not be held responsible for the money mess.

"The taxpayers of this city have been duped, hoodwinked and misguided for the past several years," Valdivia said, according to the Sun.

It was not immediately clear when the city planned to file.

Sixty miles east of Los Angeles, San Bernardino is in a region that soared economically during the housing boom, and suffered accordingly after the crash.

It joins a number of other cities and counties across the nation that have plunged into financial crisis as the recession made it tough to cover rising costs involving payroll, pensions, bondholders and vendors.

Before Stockton, a California city had not filed for bankruptcy since Vallejo in 2008.

Since Congress added Chapter 9 to the bankruptcy code in 1937 to allow municipalities to seek protection, about 640 government entities have filed.

actually considering the debt, tax revenue and outstanding liabilities found in Hammond's budget, we could be on the list.

What? Lake County in that sort of pickle? Why, you've got Karen Freeman Wilson and her Harvard diploma, gleaming smile, and big dreams! You've got baseball fields on every streetcorner in Hammond! You've got the indomitable spirit of those Grabowski Hammond residents, who according to one prominent poster here, have risen from the ashes more times than any one hundred phoenixes. There's a new mayor in East Chicago who's going to usher in a new age of open government and civic responsibility. Whiting has a Class W minor league baseball team. There's the Railcats....

Where's Peter Katic when you need him?

And don't forget the great northern Lake County Democratic mouthpiece of a radio station WDEM radio, also known as WJOB. You have the great so called Republican of Matt Reardon, also known as Mr.Mara Candelaria (You Know I am Hispanic) Reardon. And lets not forget Mr. Jim (I wish i grew up in the hood) Dedelow. Along with his bride Alexis Vasquez (She pronounces Vaskis for the Faux Greek effect) Dedelow. Man they really miss the hood.Yet they still choose to live in lilly white Munster. And tell everybody how rough it is to live amongst all those Republicans! Damn it is rough. And in case you haven't heard Jim say it for the millionth time. You know she is a lawyer. Just in case you haven't heard!