Already in bankruptcy, San Bernardino City Council votes to cut $26M in spending. Ah, the old “open parachute after landing” strategy. #tcot
— Fred Thompson (@fredthompson) December 3, 2012
Read the story below from the Los Angeles Times:
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.
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 Departmentâ€™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.
â€œThis is a document that Iâ€™m holding my nose and voting yes on,â€™â€™ said Councilwoman Wendy McCammack.
The council voted 5-2 in favor of the plan, which both Mayor Patrick Morris and City Atty. James Penman said was a mandatory step in the cityâ€™s effort to restructure its debts and repair its finances under federal bankruptcy protection.