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City Budget Problems: San Bernardino, California Files for Bankruptcy

Hemera/Thinkstock(NEW YORK) -- Cities across the country are increasingly facing severe budget problems, and that's leading many of them to cut corners or consider bankruptcy.

On Tuesday, San Bernardino became the third city in California to file for bankruptcy protection in less than a month.  Stockton filed last month and the ski resort town of Mammoth Lakes voted to file last week.

The alternative to bankruptcy can be drastic spending cuts. That's happening in some other cities, like Scranton, Pa.  Municipal unions there are filing a lawsuit after the mayor decided to cut the pay of city employees to minimum wage -- $7.25 an hour.

Copyright 2012 ABC News Radio

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