Ringo Chiu/ZUMA24.com

July 26, 2012 - San Bernardino, California, U.S. - San Bernardino must cut government spending by a third as the Southern California city heads for bankruptcy court. Widespread layoffs and pay cuts are expected. Pictured: July 12, 2012 - San Bernardino, California, U.S. - People walk in the civic center. The San Bernardino City Council voted this week to file for Chapter 9 bankruptcy protection, making San Bernardino the second largest municipality in the nation ever to file for bankruptcy and the third in California to opt for bankruptcy in the past two weeks. (Credit Image: © Ringo Chiu/ZUMA24.com)

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