Distressed City Exemption?

"A lack of planning on your part does not constitute an emergency on my part"

I'm sure that we've all seen this saying posted on someone's cubicle at the office, on a refrigerator magnet strategicaly placed by mom, or on a t-shirt at the ballgame. Well, I'm hoping that the City of Vallejo receives this same message as they walk the halls of the legislature.

Vallejo Mayor Osby Davis met with the Governor's deputy chief of staff and his assembly representative this past week to ask for relief from the state's proposal to borrow or take local government revenues.

According to the Contra Costa Times:
"I explained Vallejo's financial situation, how four years ago, we started making cuts and now we have nothing left to cut," Davis said, shortly after returning from his trip on Tuesday and Wednesday. "Any cuts would be direct layoffs ..."

Schwarzenegger staffer Michael Prosio asked Davis if the city would be able to turn around and borrow any money the state took away. Davis said the city's bankruptcy filing would make such a move next to impossible.

Evans, Assembly budget committee chairwoman, "is trying to keep Vallejo off the table," Davis said. He referred to a plan to enact a "distressed city exemption."

Davis said the problem with that plan is that every city could claim to be distressed.

I find it amazing that Vallejo is asking for special treatment. Frankly, most of their problems are of their own making. They continued to approve generous labor contracts during times that city revenues were contining to tank due to military base closures. They continued to make questionable real estate deals with Six Flags and others. The Council ignored the advice of city staff until bankruptcy was their only remaining option.

Frankly, I believe that any city leader that has the "chutzpah" to ask for a special exemption of this type is probably still in denial and will likely continue to create more financial armageddon. We'll continue to follow this story and let you know if anything transpires. I'm sure every local agency in the state will be watching this closely as well.

To read the full news story, click here.