So what happens after a city goes broke? Everybody doesn't just pick up and go away (although I'm not sure that wouldn't be a good idea in this case). Nope, you have to try to figure out what comes next.
Bankrupt San Bernardino cuts $26 million, tries to stay afloat
Saying it had little choice, the San Bernardino City Council voted to cut $26 million in spending in an effort to keep the bankrupt city from dissolving and being governed by the county. The city is already in bankruptcy proceedings and facing a $45.8-million budget shortfall. The $26 million in cuts will help the troubled city stay afloat.It will be instructive to see how the broke municipalities deal with bankruptcy, because it's pretty clear the nation is going that direction. Maybe we can find a some tricks to make the process less onerous. I doubt it, but hey, it doesn't hurt to do research.
The austerity plan is a required step in the federal bankruptcy process. It freezes vacancies in the Police Department even as the city deals with an increase in violent crime. The Fire Department’s overtime budget also was slashed by 35%. The city already had stopped making payments to CalPERS, the state's public employee pension fund, since filing for Chapter 9 bankruptcy protection Aug. 1, a move city officials estimate will save San Bernardino more than $12 million.
San Berdoo's official song, "San Bernadino" by Christie
San Berdoo also inspired Frank Zappa to write this song about it:
My first post on San Berdoo's bankruptcy.