San Bernardino of Southern California became the third city in the state to choose a Chapter 9 bankruptcy protection with a City Council vote on Tuesday night. The city, holding nearly 210,000 people, will also become the second largest in the nation ever to file for bankruptcy. Stockton, of Northern California, which houses about 300,000, became the biggest when it filed for bankruptcy on June 28. Mammoth Lakes, a smaller city, voted for bankruptcy on July 3. Before Stockton, no California city filed for bankruptcy since Vallejo in 2008.
Administrators urged San Bernardino’s City Council to choose the bankruptcy option after explaining dire fiscal circumstances. Interim City Manager Andrea Miller said the city is facing a budget shortfall of $45.8 million. The city has already halted payments to some vendors and may be unable to make payroll for the next three months. “This is probably the hardest decision this councilwoman will ever have to make in this chair,” said Councilwoman Wendy McCammack, according to the San Bernardino Sun. Located 60 miles east of Los Angeles, San Bernardino is a region that once soared economically during the housing boom, then suffered after the crash.
