California Bankruptcies May Increase Without Structural Changes

Chris McKenzie, Executive Director of the California League of Cities, discusses the specter of bankruptcy and the structural difficulties cities face in addressing their fiscal deficits. The San Bernardino bankruptcy does not mean the worst is over.

1 minute read

July 18, 2012, 10:00 AM PDT

By Kevin Madden


As the City of San Bernardino joins the ranks of Stockton and Mammoth Lakes as yet another California city seeking bankruptcy this year, are we witnessing a budding trend? Unable to meet its $45 million budget shortfall and nearly out of cash, leaders of the City of San Bernardino in July chose to seek bankruptcy. A complicated host of reasons lie behind what drove San Bernardino to that point, from the mortgage crisis to rising pension costs, and it's evident that these recently bankrupt cities are not unique.

The Planning Report interviewed Chris McKenzie, Executive Director of the California League of Cities, to discuss the long run fiscal challenges tied to mandatory spending that so many cities are grappling with across the country. McKenzie implies that without drastic changes, cities are so strapped that conditions may only continue to get worse for those teetering on the edge. As the state government in Sacramento seeks to contain its own deficits by tapping into revenue streams once held by local government, the California League of Cities argues that the state is handicapping important tools for sparking economic growth and stability.

Tuesday, July 17, 2012 in The Planning Report

portrait of professional woman

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban Planner

Cover CM Credits, Earn Certificates, Push Your Career Forward

Aerial view of town of Wailuku in Maui, Hawaii with mountains in background against cloudy sunset sky.

Maui's Vacation Rental Debate Turns Ugly

Verbal attacks, misinformation campaigns and fistfights plague a high-stakes debate to convert thousands of vacation rentals into long-term housing.

July 1, 2025 - Honolulu Civil Beat

Logo for Planetizen Federal Action Tracker with black and white image of U.S. Capitol with water ripple overlay.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

July 2, 2025 - Diana Ionescu

Map of Haussmann's redesign of Paris in the 1850s through 1870s under Napoleon III.

In Urban Planning, AI Prompting Could be the New Design Thinking

Creativity has long been key to great urban design. What if we see AI as our new creative partner?

June 30, 2025 - Tom Sanchez

Street with parking protected bike lane and parked cars in downtown Portland, Oregon.

Portland Raises Parking Fees to Pay for Street Maintenance

The city is struggling to bridge a massive budget gap at the Bureau of Transportation, which largely depleted its reserves during the Civd-19 pandemic.

July 8 - Willamette Week

Aerial view of Spokane, Washington with river in foreground.

Spokane Mayor Introduces Housing Reforms Package

Mayor Lisa Brown’s proposals include deferring or waiving some development fees to encourage more affordable housing development.

July 8 - The Spokesman-Review

Close-up on black and white "Bike Lane Ends" sign with bike logo.

Houston Mayor Kills Another Bike Lane

The mayor rejected a proposed bike lane in the Montrose district in keeping with his pledge to maintain car lanes.

July 8 - Houston Public Media

Urban Design for Planners 1: Software Tools

This six-course series explores essential urban design concepts using open source software and equips planners with the tools they need to participate fully in the urban design process.

Planning for Universal Design

Learn the tools for implementing Universal Design in planning regulations.

Associate/Senior Planner

Gallatin County Department of Planning & Community Development

Senior Planner

Heyer Gruel & Associates PA