ECONOMY

Generous to a Fault

To escape the crushing burden of its gold-plated benefits packages for city workers and retirees, Vallejo, Calif., is filing for bankruptcy in federal court.

by Alexis Simendinger

Sat. Jun 14, 2008


Facing crushing financial commitments to municipal unions, officials in Vallejo, Calif., have decided to seek bankruptcy protection for their city. Others across the country are watching Vallejo's strategy closely to see whether commitments to unions could be vulnerable.

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