Overspending on public employees, plain and simple.
“In late July, San Bernardino reported it had $56 million in indebtedness payable from its general fund, the main budget, including payments on a $50 million pension bond,” this story says. “There is an additional $195 million in unfunded pension obligations, $61 million in unfunded retiree healthcare, and $40 million of workers compensation, compensated absenses and general liabilities.”
The San Berdoo twist: possible corruption.
“A recent report by the city attorney said officials had falsified budget reports to the mayor and council for 13 of the last 16 years, hiding the scale of the city’s debt,” the story says.