San Berdoo declares bankruptcy

July 11, 2012

By John Seiler

San Bernardino — San Berdoo to old-time Californios — just declared bankruptcy. The reason, reported the Sun:

“In an earlier report to the council, [Acting City Manager] Travis-Miller said the city has faced declining revenues and escalating retirement costs, with employee compensation accounting for about 75 percent of the city’s general fund spending.

“A bankruptcy filing would reopen negotiations on employee contracts but would not invalidate its pension payments, which Mayor Pat Morris and others have said are the main cause of the city’s financial problem.”

So even now, with the pensions causing the bankruptcy, the pensions won’t get changed. That shows the ultimate power of the government-worker unions: Their greed caused the bankruptcy, but even after the bankruptcy their greed remains unabated.

San Berdoo is the third California city to file for bankruptcy since Stockton did it on June 28, and Mammoth Lakes followed on July 2.

That’s three city bankruptcies in 13 days, or one every 4.3 days. At that rate, 212 California municipalities out of 482 will file bankruptcy by the time Brown’s term ends in January 2015.

Brian Calle also has reported on our site on how Los Angeles is close to bankruptcy. And Stanton may be headed that way as well.

When he took office in January 2011, Brown immediately should have called a special election to enact a reform plank with two elements: 1) Restoring the Gann Limit, which limited spending increases to the increases in population plus inflation, but was repealed by misled voters in 1990. 2) Major pension reform.

Instead, he has been begging and maneuvering for an $8.5 billion tax increase, Proposition 30 on the November ballot, to pay for $5 billion in new splurge spending in his fiscal 2012-13 budget, which began on July 1. It will only make matters worse.

And Brown advanced a modest, 12-point pension-reform plan only in the Democratic-controlled Legislature, which has spiked it at the behest of its government-union masters.

The bankruptcies will continue.

 

 

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  1. Andy Favor
    Andy Favor 11 July, 2012, 10:56

    Any projections on when San Francisco will file?

    Reply this comment
  2. Hondo
    Hondo 11 July, 2012, 11:03

    My brother works for the county of san berdoo and their pension fund is funded at around 50% which is horrible.
    The papers say that the old city managers lied to the city council for years, saying that the budget was balanced when it was in the red for the 13 of the last 15 years.
    What a scam. IT IS THE CITY COUNCILS JOB TO KNOW THOSE NUMBERS, NOT TO SIMPLY ACCEPT THOSE NUMBERS GIVEN THEM.
    The city council obviously knew what was going on. It is there job to represent the people and they chose to be sgt. Shultzes from Hogans Heroes, ” I know nooooooooooothing”.
    My brother and his pension are now in trouble. My brother has always played by the rules and has kept out of dept, but for his house. My brother can’t go to his wife and say ” We’re bankrupt and I don’t know why”. She should and does know everything in their house.
    Please pray for my brother and his family as I do. I don’t have the money to help them out. Maybe George Soros will pop them a check. I’m not holding my breathe.
    Hondo……

    Reply this comment
  3. Sylvia Robles
    Sylvia Robles 11 July, 2012, 11:08

    Also, in the mix 30% of property tax revenues we to crony capitalism. Voters are taxed but had no voice in building big box stores, baseball stadium and San Bernardino International Airport.

    For investment of stolen property taces to redevelopment schemes 22 percent in sales taxes and that figure is dropping each day.

    Audit firm should have caught city had phony budgets for 13 years.

    Reply this comment
  4. Sylvia Robles
    Sylvia Robles 11 July, 2012, 11:10

    Stolen property taxes

    Reply this comment
  5. Dyspeptic
    Dyspeptic 11 July, 2012, 11:21

    “Restoring the Gann Limit, which limited spending increases to the increases in population plus inflation, but was repealed by misled voters in 1990.”

    See how easy it is to fool the gullible, ignorant and irrational California voter. The evidence is everywhere. Time and time again the doltish voters of this state are induced to vote for fraudulent initiatives that a village idiot could see are bogus and dangerous.

    Observing California politics is like watching con artists play three card monte with a bus full of special needs kids. If it didn’t have such catastrophic effects it would be a grand amusement.

    Reply this comment
  6. Hondo
    Hondo 11 July, 2012, 11:24

    Plus, they hired a felon who had spent 50 months in federal prison to run their new airport. Don’t they have Google on their puters out there.
    Hondo….

    Reply this comment
  7. jeffinsocal
    jeffinsocal 11 July, 2012, 12:52

    I did not grow up in San Bernardino but I did live in a nearby community so I am very familiar with how this city used to be many years ago. I am 57 and have lived in the Inland Empire all my life. Currently we are still close to San Bernardino but we rarely go there because much of the city is a dump (sorry but that’s how it looks). We shop, go to movies and dine in Redlands, Rancho Cucamonga even Riverside but never in San Bernardino. San Bernardino we drive through hoping we aren’t taken out by a stray bullet.

    The economic and demographic changes in the city over the last 10-20 years have had a catastrophic effect upon the city. Parts of the town are virtually uninhabitable. I know that I certainly wouldn’t want to live there now when there are so many nicer and safer places nearby and, let’s fact it, that’s the real problem faced by San Bernardino and so many other So Cal cities. They simply not a good places to live, work, shop, etc. and because of that they can’t attract the kind of citizens that are needed to sustain a local economy. You can’t balance the budget on the backs of citizens who are gang bangers or welfare cheats or drug addicts. Nobody wants to say this but it is true.

    As for me, you could bulldoze the entire town and it would be an improvement.
    I really like open space.

    It would be interesting to know how the loss of redevelopment money plays into this problem. I would bet that money which should have been used for redevelopment has been somehow used for operating purposes, thus, hiding what has been a structural deficit for years.

    It’s so sad but people should be fired and they should lose their pensions over what amounts to fraudulent behavior but it won’t happen. In the private sector the people responsible would be held accountable but not in government “service”. I am so sick of seeing the disparities between workers who work for the government and the rest of us that live in the real world that I could literally puke. Eric Holder can lie to Congress but not you or me. We would be in jail.

    It isn’t right… And, please take note Geriatric Brown union lackey and liar, I will not pay one more stinking penny in tax to bail out these idiots so don’t even go there with me. I can’t wait to see it all crash.

    Reply this comment
  8. Rex the Wonder Dog!
    Rex the Wonder Dog! 11 July, 2012, 13:58

    The city council obviously knew what was going on. It is there job to represent the people and they chose to be sgt. Shultzes from Hogans Heroes, ” I know nooooooooooothing”.
    ==

    LOL……loved Sgt Shultz!

    Reply this comment
  9. Rex the Wonder Dog!
    Rex the Wonder Dog! 11 July, 2012, 13:59

    Plus, they hired a felon who had spent 50 months in federal prison to run their new airport. Don’t they have Google on their puters out there.
    ===

    Name names Hondo.

    BTW this IS how you are hired to all the good, hi paying jobs in gov, cronyism and nepotism.

    Reply this comment
  10. Ulysses Uhaul
    Ulysses Uhaul 11 July, 2012, 17:12

    Are you all happy??? Think of all the misery comes from this BK. Lots of lost jobs and increased in crime….whoa!

    Reply this comment
  11. Donkey
    Donkey 11 July, 2012, 17:24

    UH, you only have the RAGWUS machine to blame for the coming collapse. Obscene pay, benefits, perks, and pensions for all the RAGWUS members is to blame for these BK’s, not the taxpayers. I hate to be the one that said I told you so. Even as the math question became apparent the RAGWUS cabal refused to act in a responsible way. 🙂

    Reply this comment
  12. Rex the Wonder Dog!
    Rex the Wonder Dog! 11 July, 2012, 22:21

    Teddy died when SB went BK 😉

    Reply this comment
  13. Rex the Wonder Dog!
    Rex the Wonder Dog! 11 July, 2012, 22:22

    tip of the iceberg….will get much worse unless they CUT pd and fd comp packages in half.

    Reply this comment
  14. Ulysses Uhaul
    Ulysses Uhaul 11 July, 2012, 23:05

    The gloomers are happy Califirnia going toward Greece.

    You guys like lamb kabobs?

    Reply this comment
  15. Rex The Wonder Dog!
    Rex The Wonder Dog! 11 July, 2012, 23:09

    I prefer RAWGUS Kaboobs!!!!!!!!!!!!!!!!!! Teddy Steals style 🙂

    BAM, sky fell on Teddy.

    Reply this comment
  16. Ulysses Uhaul
    Ulysses Uhaul 12 July, 2012, 08:31

    We are Greece! Pass the kabobs…

    Reply this comment
  17. Donkey
    Donkey 12 July, 2012, 10:56

    But we have no one to blame for being like Greece, except the RAGWUS and its greed. 😉

    Reply this comment
  18. Ulysses Uhaul
    Ulysses Uhaul 12 July, 2012, 12:07

    Your hung up…why not join and get goodies too. You will stop whining.

    Reply this comment
  19. Skippingdog
    Skippingdog 12 July, 2012, 23:55

    Nothing better than a nice gyros pita and a Greek salad with a bottle of Hercules wine. A bit of Metaxa after dinner completes a great meal.

    Reply this comment
  20. Ulysses Uhaul
    Ulysses Uhaul 13 July, 2012, 07:39

    Skippy…wonder Dog using the word SUING concerning you and someone on Facebook for abusive comments. What’s up?

    Reply this comment
  21. SkippingDog
    SkippingDog 14 July, 2012, 11:59

    You’ll have to ask him what he means.

    Reply this comment
  22. Rex The Wonder Dog!
    Rex The Wonder Dog! 14 July, 2012, 15:22

    Ask me what?

    Reply this comment

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