SAN BERNARDINO, Calif. (AP) — San Bernardino declared a fiscal emergency Wednesday night, allowing the city to avoid a lengthy mediation process and head straight to federal bankruptcy court.

The declaration comes after the city announced last week that it would seek Chapter 9 protection, making it the third California city in recent weeks to make the rare move.

The City Council voted 5-2 to declare the emergency and file for bankruptcy protection amid a dire cash crunch that has officials worried San Bernardino can't meet payroll in August.

Continue Reading for Free

Register and gain access to:

  • Breaking benefits news and analysis, on-site and via our newsletters and custom alerts
  • Educational webcasts, white papers, and ebooks from industry thought leaders
  • Critical converage of the property casualty insurance and financial advisory markets on our other ALM sites, PropertyCasualty360 and ThinkAdvisor
NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.