City of SB a bust

Aug 29th, 2013 | By | Category: Budget, Courts, Unions

justiceThe teeming metropolis of San Bernardino has been granted official status as bankrupt by a federal judge today.  Just in case they owe you money, feel free to get in line. Re-payment may take a while.

The real question with this case is going to be the status of their relationship with CalPERS.  Other bankrupt entities, notably Stockton, have continued to pay CalPERS, as they are required to do by STATE law.  It is undetermined whether or not the federal bankruptcy court is going to care about that.  This matter could turn out to be very interesting indeed.

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One Comment to “City of SB a bust”

  1. kl2008a says:

    San Berdoo has, or is quickly becoming another shithole like Stockton. Only a few years ago it ranked in the nation’s top 10 per capita for homicides. If they refuse to make their mandated payments to CalPERS (who also administers Berdoo’s medical benefits and retirement system) I wonder if CalPERS will tell them “Sorry Charlie,.no tickee, no laundry.” and stiff the existing and retired workers of their benefits. I’m glad that I don’t work for them (unfortunately, I rely on those who do).