Zee's Quality Motors used car business sits empty of cars and closed along Tennessee Street in Vallejo. The credit crunch has really hit home in Vallejo, Calif., a city of 117,000 near San Francisco, that's petitioning for bankruptcy-court protection after failing to win concessions from police and fire unions. The question is whether Vallejo is a harbinger of more municipal casualties as a collapsing housing market drives down property tax revenues. In Vallejo, a sharp increase in labor costs, combined with a wicked decrease in housing property tax revenues, has left the city insolvent, city officials say. Its $89 million budget has a $16 million deficit. More than 2,000 homes have been foreclosed on, auctioned or are in the foreclosure process. -- Photo by Jack Gruber, USA TODAY staff

Labor groups question Calif. city's bankruptcy filing