The Latest

Southern California breaking news and trends

Credit cards cancelled in San Bernardino as bankruptcy crisis charges forward

41816 full
41816 full

The bankruptcy crisis in San Bernardino charges forward with the news that city credit cards have been cut off.

City Manager Andrea Travis-Miller told members of city council that credit firms had cancelled the city’s cards. Even the gas cards. 

Travis-Miller spoke with KPCC about San Bernardino’s debt, saying the deficit could grow as municipal employees flee the fiscal fiasco.

"We are now paying cash for all of our goods and services. We have had many employees come to us and indicate that they plan to leave e organization. I was told that we had upward of 25 people at Cal-PERS filing for retirement or at least investigating that possibility. So our estimates of payout values have grown exponentially."

San Bernardino city council is preparing to vote on whether to file for bankruptcy in the face of a $45 million deficit. Declaring bankruptcy would allow the city to restructure its debt. 

The city, with $9 million on hand, could run out of money to cover its mid-August payroll.

PREVIOUSLY

San Bernardino's finances were already dire in 2010
Q&A on the San Bernardino bankruptcy
San Bernardino bankruptcy: Much worse than Stockton
San Bernardino City Council tells city attorney to prepare bankruptcy papers
San Bernardino teetering on edge of bankruptcy
San Bernardino authorities confirm probe into city finances
San Bernardino bankruptcy caught the bond market by surprise

blog comments powered by Disqus

Enjoy reading The Latest? You might like KPCC’s other blogs.

What's popular now on KPCC