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State says San Bernardino mishandled over $500

Posted: March 8, 2013 2:00 a.m.
Updated: March 8, 2013 2:00 a.m.

SAN BERNARDINO, Calif. (AP) — SAN BERNARDINO, Calif. — California's controller has issued a report accusing the bankrupt city of San Bernardino of failing to transfer more than $500 million in redevelopment funds.

The report released Wednesday by State Controller John Chiang says San Bernardino illegally moved nearly $110 million to a nonprofit under the city's control and is holding onto another $420.5 million.

California has dissolved all its local redevelopment agencies, and Chang says San Bernardino should have given all of the money to a successor agency tasked with settling redevelopment debts.

San Bernardino declared bankruptcy in August, under crushing debt.

A message left for city officials was not immediately returned, but in response to a November draft of the report then-city manager Andrea Travis-Miller said the allegations were false.


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