Vallejo bankrupt again? ‘We are not going there’
The Vallejo city council last week voted to close a $5.2 million gap in the current budget, showing no alarm that in a five-year forecast the gap reopens, mainly driven by rising pension costs.
Moody’s, a Wall Street credit rating agency, said in a report last month that Vallejo and two California cities currently in bankruptcy, Stockton and San Bernardino, risk returning to insolvency without pension relief.
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