Due to declining tax revenue, growing employee costs and accounting discrepancies, San Bernardino third California city to file for bankruptcy. The city of San Bernardino has a population of 209,924 as of the 2010 census. It is also the 17th largest city in California, and the 99th largest city in the United States. But the city can't make its August 15, payroll, interim City Manager Andrea Travis-Miller said. “If the employees are not paid on Aug. 15, on Aug. 16 there will be a mass exodus of city employees,” City Attorney James Penman told the council before the vote. “People are not going to work when they don’t get paid. Most of our employees will not show up to work. That would include police, fire, refuse, everybody. The city will virtually shut down.” Definitely workers won't work if they don't get paid. With our economy's situation, its really hard to find job and the worst thing is that if you work hard and don't get paid. Miller said the city is facing a budget shortfall of $45.8 million. It has already stopped paying some vendors, and may not be able to make payroll over the next three months. Four council members voted for the authorization, two opposed it, and one abstained. "This is probably the hardest decision this councilwoman will ever have to make in this chair," Councilwoman Wendy McCammack said, according to the San Bernardino Sun. San Bernardino is seeking for protection and file Chapter 9, Title 11 of the United States Code protection
which is a chapter of the United States Bankruptcy Code, available exclusively to municipalities and assists them in the restructuring of debts. The two largest municipal bankruptcies under Chapter 9 have been Jefferson County, Alabama in 2011 and Orange County, California in 1994.