UPDATED: July 18, 2013
Many local governments across the U.S. face steep budget deficits as they struggle to pay off debts accumulated over a number of years. As a last resort, some filed for bankruptcy.
Governing is tracking the issue, and will update this page as more municipalities seek bankruptcy protection.
Most recently, Detroit became the largest municipality in U.S. history to file for bankruptcy. The state had already appointed an emergency financial manager for the city, saddled with debts totaling an estimated $18 billion.
Overall, though, bankrupt municipalities remain extremely rare. A Governing analysis estimated only one of every 1,668 eligible general-purpose local governments (0.06 percent) filed for bankruptcy protection over the past five years. Excluding filings later dismissed, only one of every 2,710 eligible localities filed since 2008.
The majority of filings have not been submitted by bankrupt cities, but rather lesser-known utility authorities and other narrowly-defined special districts throughout the country. In Omaha, Neb., 10 sanitary districts have filed for bankruptcy, accounting for nearly a third of all Chapter 9 filings since 2010.
It’s also important to note that only about half of states outline laws authorizing municipal bankruptcy. View our bankruptcy laws map for each state’s policies.
List of Bankruptcy Filings Since January 2010
All Municipal Bankruptcy Filings: 36
General-Purpose Local Government Bankruptcy Filings (8):
– City of Detroit
– City of San Bernardino, Calif.
– Town of Mammoth Lakes, Calf. (Dismissed)
– City of Stockton, Calif.
– Jefferson County, Ala.
– City of Harrisburg, Pa. (Dismissed)
– City of Central Falls, R.I.
– Boise County, Idaho (Dismissed)
Municipal Bankruptcies Map
The map below shows all municipalities filing for Chapter 9 bankruptcy protection since 2010, along with local governments voting to approve a bankruptcy filing.
Click on this link, map will ultimately come up.. google slow map,
http://www.governing.com/gov-data/municipal-cities-counties-bankruptcies-and-defaults.html
Cities, towns and counties are shown in red. Utility authorities and other municipalities are displayed in gray. Click a marker to view details of each filing. Multiple municipalities have filed for bankruptcy in some cities, such as Omaha, Neb., so not all markers are visible without zooming in on the map.
Please note that several municipal bankruptcy filings have been rejected, as indicated.
Detroit Bankruptcy
States without laws authorizing municipal bankruptcies often allow for different measures providing financial relief. In Michigan, seven cities and school districts have emergency managers, and another three are under consent agreements. View our map and story about the state’s efforts to turn around the distressed municipalities.
Other Detroit Coverage:
Detroit Files for Chapter 9 Bankruptcy
10 People Who Could Help Save Detroit
Detroit’s Recovery Plan Increases Default Risks, Says Moody’s
Related Content
How Rare Are Municipal Bankruptcies?
Local governments rarely opt to file for bankruptcy. View totals and bankruptcy laws for each state.
Detroit Files for Chapter 9 Bankruptcy
It’s the largest municipal bankruptcy in U.S. history.
Municipal Bankruptcy State Laws
View state laws regulating local governments filing for Chapter 9 bankruptcy protection
Michigan Governor Declares Financial Emergency in Hamtramck
Michigan Gov. Rick Snyder declared a financial emergency Monday in Hamtramck, a step that could lead to the appointment of an emergency manager.
SEC Charges Harrisburg, Pennsylvania with Securities Fraud
Pennsylvania’s capital, which is under receivership after nearly going bankrupt, is the second municipality or state to get charged with securities fraud this year.
Financially Distressed Cities Isolate Poor and Minorities, Former Receiver Says
Segregated minority and poor populations foster municipal distress, according to the former receiver for the city of Harrisburg, Pa.
The ‘B’ Word: Is Municipal Bankruptcy’s Stigma Fading?
There’s a growing sense among some leaders that municipal bankruptcy — unthinkable just a few years ago — may be a valuable tool.
City Bankruptcies: The Wild West of Financial Law
Unlike corporate bankruptcies, there’s so little precedent for cities filing for bankruptcy protection that case law is being written with each major decision.
State Officials Propose Ways to Detect Cities’ Fiscal Troubles Before They Worsen
Top finance officials in California and New York are proposing closer state-level scrutiny of local government budgets to help prevent the distress that has plagued many cities, towns and counties over the last few years.
California Cities Hope Election Changes Their Fortunes
Local governments have placed more than 230 revenue-raising proposals on the ballot — a number that’s consistent with past elections, but this time, they need the money for essentials rather than extras.
Atwater, California Declares a Fiscal Emergency
Atwater, California, declared a fiscal emergency and told almost a quarter of its city employees they will lose their jobs as it seeks to avoid becoming the state’s fourth city to seek bankruptcy protection.
Is Bankruptcy a Viable Tool for Struggling Cities?
Panelists at Governing’s Cost of Government summit shared their experiences with Chapter 9 bankruptcy.
Michigan’s Emergency Manager Law Suspended
The state Supreme Court says Michigan residents can decide the controversial law’s fate in November. What happens until then is less clear.
States and Localities Take Hit in Libor Scandal
Recent allegations of banks manipulating the Libor rate have some governments considering legal action. But which municipalities were affected and how much did they lose?
Near-Bankrupt San Bernardino, California Votes to Suspend Debt Payments
San Bernardino, the third California city planning to file for bankruptcy since June, voted to stop debt payments, freeze vacant jobs and quit paying into a retiree health fund under a three-month emergency proposal submitted to the city council
Mapping Municipal Bankruptcies
A total of 27 cities and municipal agencies have sought bankruptcy protection since 2010. View a map with details on each filing.
San Bernardino: 3rd California City to Seek Bankruptcy Protection
San Bernardino, facing the possibility of missing payroll, becomes California’s third city in weeks to authorize a bankruptcy filing.
Stockton, Calif., is Largest City to File for Bankruptcy
The City Council hopes bankruptcy protection will help it avoid a total collapse, but experts say it’s only a short-term fix.
Michigan Emergency Manager Law to Stay on Ballot for Now
Opponents of the state’s toughened emergency manager law scored a victory in the Michigan Court of Appeals on Thursday as they fight to get the repeal of the law on the Nov. 6 ballot. But the issue remains far from settled.
Stockton ‘Can Avoid Bankruptcy,’ Says Councilman
Councilman Dale Fritchen, often criticized for his stance as being dead-set against taking Stockton into bankruptcy, said his plan will balance the city’s deficit budget without laying off any police officers.
Financial State Takeover Possible for Monroe, Ohio Schools
Officials with the Ohio Department of Education recommended to the state auditor’s office that the Monroe school district be placed into fiscal emergency, which would be a first for any Butler County school system.
Emergency Financial Managers: Michigan’s Unwelcome Savior
In Michigan, financial advisers take control of cities on the brink of bankruptcy.
Stockton, California’s Debt Problems May Set Precedent
How Stockton’s story unfolds could have major consequences for public employee pensions and bondholders nationwide.
Stockton, California’s Bankruptcy Makes ‘Normal’ Cities Nervous
Unlike many high-profile bankruptcies, Stockton’s financial woes are the result of many different factors that are not unusual for many localities.
Harrisburg, Pennsylvania’s Financial Overseer Resigns
Gov. Tom Corbett will move swiftly to recommend another financial custodian to help restore stability to Pennsylvania’s debt-laden capital after his first appointee said he was resigning.
Providence Mayor Warns of Possible Bankruptcy
PROVIDENCE, R.I. — Mayor Angel Taveras painted a bleak picture Thursday of the city’s finances, saying Providence faces “devastation” and could go bankrupt if retiree benefits aren’t cut and tax-exempt institutions like Brown University don’t pay more in lieu of taxes.
R.I. Governor Seeks $400K More for Central Falls Receiver
The cost of the state-appointed receiver and legal fees related to bankruptcy proceedings in the Rhode Island city of Central Falls is nearly $400,000 more this fiscal year than budgeted, and the total spent on the receivership is expected to reach $2.26 million by July.
Jefferson County Permitted to Proceed with Bankruptcy, Judge Says
Wall Street banks tried to block the county from declaring the largest municipal bankruptcy in U.S. history, a ruled that it can legally do so.
Global Libor Scandal Cost States and Localities Millions
State and local governments have sued banks, claiming that they cheated them out of enormous investment returns at a time when their budgets were already badly damaged from the recession.
[comments deleted – see original post]
GOVERNING Data is your source for state and local government statistics and public records.
Feel free to use any data or visualizations in your own reports with attribution and a link to the source.
Contact: Mike Maciag, mmaciag@governing.com
Which States Have Recovered the Most Lost Jobs?
Last month marked the four-year anniversary of the end of the recession. While employment has returned to pre-recession levels in a few states, most are still far from recovering lost jobs.
As Obesity Measures Gain Prevalence, Limitations Exist for Policymaking
Data Shows Varying Housing Costs for Metro Areas
What Aging Population? 5 Areas Getting Younger
What the GAO Predicts for States and Localities’ Future
Daily Digit
12 percent
The amount of U.S. waste that is converted to energy through a chemical combustion process. By comparison, Germany converts 38 percent of its waste.
Cities, towns and counties are shown in red. Utility authorities and other municipalities are displayed in gray. Click a marker to view details of each filing. Multiple municipalities have filed for bankruptcy in some cities, such as Omaha, Neb., so not all markers are visible without zooming in on the map.
Please note that several municipal bankruptcy filings have been rejected, as indicated.
