Could this happen here?

In Uncategorized on May 23, 2008 at 7:45 pm

Vallejo Files For Bankruptcy Due To Budget Woes
VALLEJO (CBS 5 / AP) ― The city of Vallejo filed Friday for bankruptcy protection to deal with a ballooning budget deficit caused soaring employee costs and declining tax revenue.

The Bay Area community of about 120,000 residents is the largest California city to declare bankruptcy.

Mayor Osby Davis said the city’s attorneys filed papers seeking Chapter 9 bankruptcy protection in federal court in Sacramento on Friday morning.

“We’ve exhausted all avenues at this point, and this is all we had left,” Davis said. “I had hoped to avoid it all the way up until yesterday. It’s something we can’t avoid … We can’t pay our bills.”

The City Council voted to authorize the city manager to file for bankruptcy on May 6 after months of failed negotiations with its public safety unions.

Some officials blame the chronic financial crisis on labor contracts they said provide overly generous pay and benefits to the city’s police officers and firefighters.

Those city workers comprise about three-quarters of Vallejo’s general fund.

The unions maintain compensation for Vallejo’s public safety employees is in line with that of other Bay Area cities.

(© 2008 CBS Broadcasting Inc. All Rights Reserved. This material may not be published, broadcast, rewritten, or redistributed. The Associated Press contributed to this report.)

  1. No, No it can’t.

    We make a lot of money here and we like to pay taxes.

    In fact we vote for people who run on a platform of raising taxes.

    We vote for BOE members who support failed academic programs and vote them 82 million dollars.

    We vote for Village Council Members who come from administrations who raise taxes.

    We vote for presidential candidates who proudly state that they will raise taxes on people who are in our tax brackets.

    So, NO. This cannot happen here. The town (sorry… village) will continue to raise taxes and we will continue to pay.

  2. I was going to say the town would love to file for bankruptcy in order to slide more income into their pockets. But on second thought, when filing, they would suddenly be put under a magnifying glass and all that pocket candy they have been greedily taking would come to light. Doesn’t sould like such a bad thing.

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