Vallejo Votes for Chapter 9 Bankruptcy
Posted on May 7th, 2008 by MoverMike
By a vote of 7-0.
Vallejo voted to file for bankruoptcy.
The city faces a $16 million deficit in the 2008-2009 budget starting July 1 and unsuccessfully negotiated with its police, firefighter and electrical workers unions for contract concessions through 2012. Public safety salaries comprise 74 percent of the city’s general fund budget.
Who will be hurt? The Unions!
Mayor Osby Davis said he believes the city should honor its contracts with the unions, but he was persuaded the city can’t pay its debts at this time.
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