Clearly, Vallejo’s not alone in facing a budget crisis.  Cities and counties across California are struggling to balance the books.  But for Vallejo, it’s even worse.
 
Schivley: “We have employee contracts that are not financially sustainable.”
 
City councilmember Joanne Schivley says 80 percent of Vallejo’s general fund goes towards police and fire salaries and benefits.  The League of California Cities says that’s 10-to-20 percent above normal.
 
So Vallejo now faces a $10 million budget deficit – and it’ll run out of money in April if something’s not done first.
 
Schivley says filing for bankruptcy isn’t anyone’s first choice.  But she says it would give the city a chance to work its problems out.