• BREAKING NEWS ABC shows live and on-demand -- Download the WATCH ABC app!

Bankruptcy protection granted for city of San Bernardino; CalPERS opposed

The San Bernardino City Hall exterior is seen in this file photo from Tuesday, July 10, 2012.
August 29, 2013 12:00:00 AM PDT
Bankruptcy protection was granted for the city of San Bernardino Wednesday by a federal bankruptcy judge.

The California Public Employees' Retirement System (CalPERS) opposed bankruptcy protection for the city over concern the city would cut public-pension money from its debts.

CalPERS lawyers had argued the city did not budget wisely and ignored warnings of impending financial crisis.

San Bernardino filed for bankruptcy protection in 2012 with a $46 million deficit. The city said only essential services could be paid for, and that required city contributions to CalPERS would not be met.

Federal Bankruptcy Judge Meredith Jury granted the bankruptcy protection.

The Associated Press contributed to this report.

Load Comments