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Vallejo votes for bankruptcy unanimously

May 7, 2008 12:00:00 AM PDT
A northern California city is a step closer to becoming the largest in the state to declare bankruptcy.The Vallejo City Council voted unanimously Tuesday night to declare bankruptcy.

The San Francisco suburb of 117,000 faces a projected budget deficit of $16 million and has no money in its reserves.

Some blame the shortfall on overly generous pay and benefits to city police and firefighters.

The decision followed hours of public comments and months of failed negotiations with police, fire and other unions.

 

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