Back in 1852, Vallejo was briefly the state capital of California. Unfortunately, the city failed to deliver on promises to build a grand capitol. After meeting in Vallejo for 11 days, sat on barrels under a leaky roof, the state’s legislators upped sticks for Sacramento.

Now, legislators are battling with Vallejo’s leaky finances – the city is filing for bankruptcy. Almost three-quarters of its general tax fund goes to police and fire services. On the input side, 39 per cent of general fund revenues come from property and sales taxes. Property taxes, which expanded by 17 per cent in the previous budget year, were expected to grow by just 5 per cent in the current one. It is not hard to see why: Vallejo’s median property price has tumbled by about one-third since March 2007, according to the California Association of Realtors. Sales tax revenues are flat. With unions bridling at cutbacks, and the kitty holding cash covering just 16 days of operations, city councillors have thrown in the towel.