O.K. so by now I am sure you have heard that the city of Vallejo is on the verge of declaring bankruptcy. The story is all over the t.v. news. My pet peeve is that all the news stories I watched never once talked about how Vallejo got this point of financial disaster. The covered the who, when and what, but not the why of the story. I did find that the print medium did a better job of discussing the WHY. Here is a nice article by sfgate
that explains the general cause of the Vallejo's financial crisis.
With the down turn in the realestate market and job market I doubt Vallejo will be the only city in California that will have to consider bankruptcy.