Bankrupt Calif. City May Be a Harbinger

The Washington Post reports:

When this city of 120,000 declared bankruptcy in May, the extraordinary step appeared to arise from an extraordinary circumstance: Vallejo's payroll largess. Police captains in this blue-collar town north of San Francisco make more than $200,000. The city manager's $338,000 salary is more than that of the vice president or anyone on the Supreme Court.

"I think it's fair to say everybody's here because the wages and benefits are very good," said city Finance Director Bob Stout, with a tight smile.

You'll want to read the whole article.