The Observation Deck

The City of Vallejo, California has declared bankruptcy as the result of a projected $16 million budget deficit.

The City’s insolvency was driven by the growth in salaries and benefits for police and fire departments. The refusal of the unions to accept less forced the City Council to act. The City may seek the permission of the bankruptcy court to void its labor contracts with the government unions.

http://www.contracostatimes.com/news/ci ... ck_check=1

http://www.sfgate.com/cgi-bin/article.c ... 10HUK6.DTL

The City of Lakewood is currently seeking contract concessions from various government labor unions. It is unclear what, if any, concessions have been agreed to. Without those concessions the City will face huge budget deficits in a few years. Is bankruptcy an option?

Vallejo should ask one of its more successful sons to help out.

Im sure CC sabathia would kick in a couple of million, right?

Dee Martinez wrote:Vallejo should ask one of its more successful sons to help out.

Im sure CC sabathia would kick in a couple of million, right?

When you make $10, $15, $20 million a year, year after year $16 million is just petty cash. Bill Gates could put his money in a pass book savings account, spend a million dollars per day and finish the year with more money than he started with.

Here is a partial list of salaries for Vallejo City workers:

http://www.sfgate.com/webdb/vallejo/?ap ... 6483776263

Fringe benefits normally add about 30% to total compensation. When you see a salary of $212,000 think $275,000.

In case anyone was wondering the median household income in Vallejo, CA is about $56,000.

http://www.visitvallejo.com/about-valle ... d77deaaba5