Will Los Angeles Be the Next City to go Bankrupt?

John North LOS ANGELES (KABC) -- The San Bernardino City Council decided to file for Chapter 9 bankruptcy protection Tuesday, making it the second largest city in the nation to ever file for bankruptcy.

San Bernardino faces a $46 million budget shortfall and may not be able to pay all its employees over the next three months. Meanwhile, residents don't know what to expect.

Two weeks ago Stockton, in Northern California, became the largest city in the country to ever file for bankruptcy. And the tiny town of Mammoth Lakes voted for bankruptcy last week.

The city of Los Angeles has serious money problems. Mayor Antonio Villaraigosa says the city has cut a third of the general fund civilian workforce. But Villaraigosa says the city will never declare bankruptcy as long as he's mayor. Term limits force him out of office next summer. Read More: http://www.freerepublic.com/focus/f-news/2905887/posts