Wednesday, June 03, 2009

Vallejo causing big fight in state - The Reporter

Vallejo causing big fight in state - The Reporter: "What started as a municipal bankruptcy in the city of Vallejo has morphed into an all-out fight between California's local governments and unions over the sanctity of labor contracts vs. the autonomy of cities and counties. Next battle zone: the floor of the state Assembly, where legislation requiring local governments to get state approval to file for bankruptcy protection is headed for a vote later this week... If the bill becomes law, California will join 16 other states that face some level of bankruptcy filing oversight. Another 22 states don't allow localities to file for bankruptcy protection, Wills said."
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I haven't seen any head counts on this, but I am guessing that it will pass, because of the enormous power of California's public employee unions with the Democrat-dominated and very liberal legislature. If it passes, will some cities proceed with their disincorporation strategy, or is that an idle threat?

1 comment:

Anonymous said...

Sounds like any municipality considering disincorporation should get the process initiated to preserve their options.