Bankruptcy
On 20 February 2008, KRON, KPIX, KNTV, and the San Francisco Chronicle reported that Vallejo is on the brink of becoming the first California city in history to declare bankruptcy. Vallejo city council member Stephanie Gomes, interviewed on camera, said the Vallejo police and fire department payroll consumes 80 percent of the city budget, meaning the city could be bankrupt as early as March or April. The city council is negotiating with the police and firefighters unions to avoid this outcome.[6]
Stephanie Gomes, Vallejo City Councilwoman largely blames exorbitant salaries and benefits for Vallejo firefighters and police officers. Reportedly, salaries and benefits for public safety workers account for 80 percent of Vallejo's general operating budget. 98 firefighters made more than $100,000 and 10 made more than $200,000 including overtime. [7]
Two contributing factors have also been cited: the aforementioned high salaries, and current and future pension outlays, payments of which are likely not sustainable if bankruptcy is to be avoided. [8].
On May 6, 2008, however, the City Council voted 7-0 to file for Chapter 9 bankruptcy, becoming the largest city to do so ever in California
“98 firefighters made more than $100,000 and 10 made more than $200,000 including overtime. “
Well that’s just insane.