San Bernadino, California


The city of San Bernadino, California lies about 60 miles east of Los Angeles in the San
Bernadino valley. Like other California cities, San Bernadino was squeezed financially during
the post-2008 recession by unemployment, declining property values and rising pension costs,
on top of some significant accounting errors and years of deficit spending. It projected a $46
million budget shortfall for 2012. Concerned that creditors may take action which would
inhibit the city’s ability to deliver services to its 200,000 residents, San Bernadino filed for
protection under chapter 9 on August 1, 2012.