Nothing official as yet, but the SF Chronicle columnist Chip Johnson says city officials are having private conversations about the possibility. The deficit in that city is running around $100 million. "Things are that bad," says council member Ignacio De La Fuente. The city seems to have three options: drastic pay reductions across the board, including police and fire services; massive layoffs; or bankruptcy.

Barring a substantial cash transfusion in federal aid, the Oakland Police Department will lose close to 200 officers next fall unless [Mayor Ron Dellums], who's in Washington, D.C., this week, succeeds in securing more than $60 million over the next three years. A federal grant in any amount would help maintain the minimum requirement of 739 sworn officers. Any Oakland resident will gladly tell you that the possible loss of 200 police officers on the streets of this city is a bone-chilling thought.