Vallejo To Become Largest Calif. City To File For Bankruptcy

By: AP
By: AP

VALLEJO, Calif. (AP) - Vallejo is set to become
the largest California city to declare bankruptcy after leaders
voted in favor of it to solve a spiraling budget crisis.
The city council in the San Francisco suburb of 117,000 voted
unanimously last night following hours of public comment.
City Manager Joseph Tanner had advised filing for bankruptcy
before the city's fiscal year ends on June 30 because Vallejo faces
a projected budget deficit of 16 million dollars and has no money
in its reserves.
Many officials and residents attribute Vallejo's fiscal troubles
to overly generous pay and benefits to the city's police and
firefighters.
The decision came after two years of negotiations with the
police and firefighter unions failed.

(Copyright 2008 by The Associated Press. All Rights Reserved.)


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