Back from Bankruptcy, Can Vallejo Become a National Model?

Since declaring bankruptcy in 2008, the climb out of the budgetary depths hasn't been an easy one for the city of Vallejo, California. But, as it springs back to life, could Vallejo become a model for how to run a city in an age of austerity?

2 minute read

May 24, 2012, 1:00 PM PDT

By Jonathan Nettler @nettsj


After a period of painful budget cuts following what was the largest municipal bankruptcy at the time, Ariana Eunjung Cha reports on the keys to Vallejo's reinvention, as, "For the first time in five years, the city expects to have enough money to do such things as fill potholes, clear weeds, trim trees and repair tennis courts." With cities across the country facing tough decisions on how to overcome fiscal catastrophes, Vallejo could provide valuable lessons.

"For Vallejo to survive, two city council members - Marti Brown, 46, a redevelopment worker for the state, and Stephanie Gomes, 45, a legislative specialist for the U.S. Forest Service - decided that the city needed to study best practices from around the world and bring some of them to California."

"We're trying to be more innovative and risk-taking," Brown said. "It's something we've been forced to do, but it's turning out to be a really positive experience for the city."

By "using technology to fill personnel gaps, rallying residents to volunteer to provide public services and offering local voters the chance to decide how money would be spent - in return for an increase in the sales tax," Vallejo is in much better financial shape than many cities across the country.

While Cha notes that, "Economists warn that a number of large bankruptcies of cities, concentrated over a short period of time, could have a devastating effect on the national economy," hitting the reset button has allowed Vallejo to think optimistically again.

Wednesday, May 23, 2012 in The Washington Post

Young Professional

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching. Mary G., Urban and Environmental Planner

I love the variety of courses, many practical, and all richly illustrated. They have inspired many ideas that I've applied in practice, and in my own teaching.

Mary G., Urban and Environmental Planner

Get top-rated, practical training for planners

"Planetizen federal action tracker" logo superimposed over black and white image of US Capitol dome.

Planetizen Federal Action Tracker

A weekly monitor of how Trump’s orders and actions are impacting planners and planning in America.

October 28, 2026 - Zachary Whalen

A car drives through a puddle, making a large splash. Rain pours down.

California plans to bury El Niño’s downpour

If the state plays its cards right, it may be able to store a billion acre-feet of El Niño’s water in aquifers.

October 28, 2026 - Grist

A pencil rendering of Foundry Park, which shows skyscrapers and public green spaces.

Chicago breaks ground on $3 billion megadevelopment

The new neighborhood, titled Foundry Park, will one day host 3,700 residences.

October 23, 2026 - Chicago Sun Times

A swamp in South Carolina with tall pale trees and Spanish moss in the water.

Satanic Place Names

From streams and lakes to valleys and canyons, I mapped more than 1,000 places named after the Devil.

October 31 - The Daily Yonder

A rendering of a high speed rain station in California, with wide platforms and a sleep train with yellow highlights.

California High-Speed Rail Authority CEO resigns after $600,000 scandal

Under Ian Choudri, the authority used taxpayer dollars to fund first class flights and trips to nightclubs.

October 30 - Cal Matters

 A bridge stretches across the Missouri River at Chamberlain, South Dakota.

Want to study the Missouri River? Soon, you may need unanimous approval from 10 states

Legislation would require 10 governors’ permission to study or build projects moving water outside the basin.

October 30 - South Dakota Searchlight