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.
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.
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