In 2008, the California city of Vallejo took the unprecedented step of filing for bankruptcy. A combination of falling revenues caused by the collapse of the real estate bubble and rising public pension costs cratered their finances. Other California cities and counties are watching how Vallejo manages, and may well follow suit.
On Friday afternoon, the former eBay CEO and Republican candidate for governor said that she would defend Proposition 8 if elected governor. The 2008 ballot initiative amended California's constitution to prohibit same-sex marriage in the state, declaring that "only marriage between a man and a woman is valid or recognized in California."