Page 17 - Patrick Morris News Today

>> why has that not happened yet? >> it will happen under the guidance of chapter 9. >> in other words, bankruptcy court. but public is sector unions are saying not so fast. they point to state precedence that suggests their pensions are are untouchable. however, morris, a former judge believes that in this unprecedented crisis the courts will allow cities to it modify at least some of their contracts. meanwhile, he is dealing with the day-to-day trials of a city gone belly up. >> now, you dont ...

♪ get your kicks on route 66 >> on old route 66, san bernardino was known as the last stop before l.a. ♪ san bernardino >> with freeways and major railway station it was the ideal hub linking the ports of los angeles and long beach out to the rest of the country. san bernardino symbolized the promise that economic growth held for middle class america. it was even the location of the first mcdonalds. but today, this city of around 210,000 has a shortfall of $46 million. over a quarter of its ...

2006. >> how did sweard ge san bernat into the predict ament? >> it was a perfect storm economically when this hit in 2006 and 2007 the bottom fell out. >> in the perfect storm, morris says san bernardino property values dropped by 65%. seven car dealerships shuttered and the city lost tens of millions of dollars of sales, income tax and tax receipts. >> we have major cash flow issues. >> he names a great recession. every city in california has been through the great recession. >> republican sta...

accomplish. >> fox news reporting cities going broke. reporting from wall street in new york city here is bret baier. >> this hour we will take you inside an alarming trend. cities that have slid deep into debt. even bankruptcy. new york is not on the list today but for a number of other reasons we begin our report from this spot, americas financial nerve center. the first reason is simple. some of the nations most desperate cities are in trouble because of the millions they have borro...

>> on old route 66, san bernardino was known as the last stop before l.a. ♪ san bernardino >> with freeways and major railway station it was the ideal hub linking the ports of los angeles and long beach out to the rest of the country. san bernardino symbolized the promise that economic growth held for middle class america. it was even the location of the first mcdonalds. but today, this city of around 210,000 has a shortfall of $46 million. over a quarter of its entire budget. unable to fund e...

>> in other words, bankruptcy court. but public sector unions are saying, not so fast. they point to state precedence that say their pensions are unochable. but morris, a former judge, believes in this unprecedented crisis, the courts will allow cities to modify at least some of their contracts. meanwhile, hes dealing with the day-to-day trials of a city gone belly up. >> you dont have credit. you are paying cash? >> cash and carry. >> you have vendor who is have leased equipment, who may try to...

On old route 66, san bernardino was known as the last stop before l.a. >> moscow, san bernardino.... with three freeways and a major railroad station, it was the ideal hub, linking the ports of los angeles and long beach to the rest of the country with the promise of economic growth for middle-class america. it was the location of the first mcdonalds. but today, this city of around 210,000 has a shortfall of $46 million. over a quarter of its entire budget. unable to find the cuts to close the g...

Bottom fell out. >> in that perfect storm, morris says that san bernardino property values dropped 65%. seven car dealerships shuttered and the city lost tens of millions in sales -- real estate and income tax reach the receipts. >> we doubt have a lot of long-term debt, but we have major cash-flow issues. >> he names a great recession. every city in california has been through the great recession. >> mike morel represents portions of san bernardino, he rejects the perfect storm analogy to the e...

>> it was a perfect storm economically when this hit in 2006 and 2007 the bottom fell out. >> in the perfect storm, morris says san bernardino property values dropped by 65%. seven car dealerships shuttered and the city lost tens of millions of dollars of sales, income tax and tax receipts. >> we have major cash flow issues. >> he names a great recession. every city in california has been through the great recession. >> republican state assemblyman mike mor morrell rejects morri perfect storm an...

Time when life looked rosy. but morris admits, its been in good times and bad that san bernardinos public unions have had a powerful influence over the politicians. politicians they help elect. morris says, thats just the way it is. >> in a blue-collar city, as old as we are, unions have the presence in terms of funding for candidates for city council and theyre present at the table in the labor negotiations. >> those negotiations, in some cases, have bound san bernardino to pay employees just a...