the visible hand

it is the theory which decides what can be observed – einstein

Vallejo files for bankruptcy

Posted by ecoshift on May 23, 2008

Vallejo files for bankruptcy to deal with budget shortfall

By TERENCE CHEA Associated Press Writer
Article Launched: 05/23/2008 10:56:22 AM PDT

SAN FRANCISCO—The city of Vallejo filed for bankruptcy protection Friday to deal with a ballooning budget deficit caused by soaring employee costs and declining tax revenue.The San Francisco Bay area suburb of about 120,000 residents became 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.

“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. It just doesn’t work. We can’t pay our bills.”

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