Page 34 - Patrick Morris News Today : Breaking News, Live Updates & Top Stories | Vimarsana

>> 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, he's dealing with the day-to-day trials of a city gone belly up. >> you don't have credit. you are paying cash? >> cash and carry. >> you have vendor who is have leased equipment, who may try to take that equipment back? >> yes. that's a daily thing? >> we deal with it daily. >> bankruptcy. ...

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 mcdonald's. 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 gap, san bernardino, on august 1, filed for bankruptcy. >> you have called this a stain on the city....

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 extent that it suggests a series of unexpected factors came together to devastate the city. >> they h...

>> 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 analogy at least that a sear reof factors came together to devastate the city. >> they had five years...

Time when life looked rosy. but morris admits, it's been in good times and bad that san bernardino's public unions have had a powerful influence over the politicians. politicians they help elect. morris says, that's 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 they're present at the table in the labor negotiations. >> those negotiations, in some cases, have bound san bernardino to pay employees just as much, even aft they retire. >> that's not going to work. that's not going to work. you cannot ...