After desperately trying everything from huge budget cuts to secret negotiations with creditors, the Stockton City Council finally ran out of options Tuesday night and voted to file for bankruptcy.
The 6-1 vote was to authorize a day-to-day operating budget, called a
pendency plan, that will go into effect when city officials file for
Chapter 9 bankruptcy protection in federal court in Sacramento. That
filing is expected Wednesday.
Stockton, a river port with 292,000 residents, will become the
biggest city in U.S. history to vote itself into bankruptcy. The
previous largest bankrupt city was Vallejo, which filed in 2008 and
resumed solvency last year.
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