Vallejo Bankruptcy Approved by Judge

Vallejo's filing of Chapter 9 bankruptcy, the legitimacy of which was disputed by some of the city's public employee unions, was approved by a federal judge last week.

This officially makes Vallejo the largest govermental bankruptcy in the state since Orange County went belly up in 1994, and the first since Desert Hot Springs in 2001.  Some of Vallejo's union reps may yet appeal the decision, but it seems clear the city is now focused on moving forward towards long term fiscal stability.  Read more in Reuters.