Lesson for Detroit? California city struggles after avoiding pensions during bankruptcy | MLive.com:
"DETROIT, MI - A California city that filed bankruptcy two years ago is back in financial trouble as pensions, which were left untouched, eat up revenue needed for municipal services.
Reuters reports that Vallego, Calif., which completed a bankruptcy filing in 2011, is facing a $5.2 million deficit this year and nearly $9 million next year. Experts say the city's inability to cut pension benefits - while cutting all other services - left it in a precarious position.
Vallejo's experience has implications for Detroit"
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