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Posted: Monday, 12 May 2008 4:45PM

Unions Offer Plan to Keep Vallejo Out of Bankruptcy

VALLEJO, Calif. (KCBS)  -- Unions representing police and firefighters are proposing a plan to keep the city of Vallejo out of bankruptcy.

The proposal calls for a $10 million reduction in salaries, said Matt Mustard of the Vallejo Police Officers Association.

City officials and the unions were unable to reach an agreement for salary reductions prior to a city council vote to file for Chapter 9, bankruptcy. But Mustard said this plan may win acceptance when the council meets on Tuesday.

Vallejo, the largest California city to declare bankruptcy, is facing a $16 million deficit.

Listen KCBS' Dave Padilla reports  Dave Padilla

 

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