Stockton, Calif., is set to declare bankruptcy as early as this week, according to local officials, a move that would make it one of the largest U.S. cities ever to file for reorganization, the Wall Street Journal reported today. A state-required mediation with creditors to find a fiscal solution is scheduled to expire today and Stockton's City Council is then slated to meet Tuesday to decide whether to adopt a budget for operating in bankruptcy. Stockton is required to file a budget before its new fiscal year begins July 1. "The budget I'm sending to the council assumes we will file for bankruptcy," Stockton City Manager Bob Deis said. "We've been working very hard in trying to negotiate a major financial-restructuring package, but the timeline is close to ending."
