SAN BERNARDINO, Calif. (AP) - An austerity plan approved by leaders of bankrupt San Bernardino slashes more than $26 million in spending and freezes debt payments as the Southern California city struggles to survive.
The city 60 miles east of Los Angeles filed for Chapter 9 bankruptcy protection in August after learning it faced a $46 million budget shortfall.
The Los Angeles Times says the City Council voted on Monday to freeze vacancies in the Police Department cut the Fire Department overtime budget by 35 percent.
Payments to CalPERS, the state's public employee pension fund, were halted in August.
The austerity plan is a requirement in the federal bankruptcy process.
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