The city of San Bernadino, California officially filed for Chapter 9 bankruptcy yesterday, becoming the third California city, after Stockton and Mammoth Falls, to do so this year. City officials say that there won't be any immediate reductions in services as a result of the filing, but they are developing an operational budget for bankruptcy, which they expect to submit to the city council in about three weeks. Cuts may then occur at that time. The city of 210,000 people declared a financial emergency on July 18, and faces a $45.8 million deficit in its current budget.
According to the San Bernadino Sun, the city filed earlier than had been anticipated because an attorney had moved to collect on a $1.4 million judgement against the city. Had the judge taken action to seize those funds, the city would not have been able to meet payroll, said the city attorney.