Vallejo on verge of bankruptcy

February 20, 2008 5:39:45 PM PST
Vallejo is on the verge of becoming the first Bay Area city to be forced into bankruptcy.

The situation came to a head recently when two dozen police officers and firefighters suddenly retired, costing the city four million dollars in buyouts. That, on top of an existing $10 million dollar budget shortfall.

The city council is now looking over an emergency plan which proposes widespread layoffs, salary cuts and new fees.

A town hall meeting is scheduled for Thursday to discuss the situation.