(City) Vallejo Strikes Deal to Avoid Bankruptcy

[flashl]

Source: Washington Post

SAN FRANCISCO -- A Bay Area suburb grappling with declining revenue and ballooning employee expenses postponed a vote Thursday on whether to become the first city in the state to declare bankruptcy over a budget shortfall.

The Vallejo City Council pushed the vote back until Monday after city officials and the police and firefighters unions reached a tentative deal to cut labor costs, both sides said. Pay and benefits for firefighters and police officers make up nearly 80 percent of the city's general fund budget.

City officials and labor leaders would not disclose details of the agreement, which was set to be publicly released Friday afternoon.

But Mayor Osby Davis said the deal would balance the budget for its current fiscal year and "provide a framework for solving the long-term issues."

Washington Post

Read more: http://www.washingtonpost.com/wp-dyn/content/article/2008/02/28/AR2008022802048.html

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We have death watch lists for banks. Now it seems, we need death watch lists for cities?