Stockton: Bankruptcy planned to deal with $26 million shortfall

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Stockton Bankruptcy
A light standard rests at the dilapidated entrance to city hall Tuesday, June 26, 2012, in Stockton, Calif. Stockton officials continue to grapple with the city's financial plight, struggling to restructure millions of dollars of debt threatening to turn the city with the nation's second highest foreclosure rate into the largest American city to file for bankruptcy. (AP Photo/Ben Margot)