Misblog

The city of Vallejo, California, files for chapter nine, a section of the bankruptcy law reserved specifically for city municipalities.

Bankruptcy will no doubt focus on restructuring union contracts for police and fire services¹ and raising taxes to off-set revenue loses from declining property values.

If the city's 16 million dollar deficit and subsequent bankruptcy are primarily the result of failed negotiations between the city and its police and fire unions, the bankruptcy will be short and contentious.

Web: Vallejo to become largest Calif. city to file for bankruptcy

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1. Many see the union contracts for police and fire services as overly generous and a cause, if not the cause, of the city's financial problems?