http://www.foxnews.com/story/0,2933,354367,00.html
Vallejo to Become Largest Calif. City to Declare Bankruptcy
Wednesday, May 07, 2008
VALLEJO, Calif. — Vallejo is set to become the largest California
city to declare bankruptcy after leaders voted in favor of the
solution to the city's spiraling budget crisis.
The city council voted unanimously Tuesday night following hours of
public comment.
City Manager Joseph Tanner had advised filing for bankruptcy before
its fiscal year ends on June 30 because Vallejo faces a projected
budget deficit of $16 million 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.
