VALLEJO, Calif. (AP) – 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.
Filed under: State News
