Associated Press
FILE - In this Feb. 29, 2012 file photo, a banner proclaiming Stockton as an All-America city hangs from city hall in Stockton, Calif. The Stockton City Council is scheduled to decide Tuesday night, June 26, 2012, whether to adopt a special budget to close the city's projected $26 million deficit in case bankruptcy protection is sought. Stockton, the city with the second-highest foreclosure rate in the nation, could become the largest city in the U.S. to declare bankruptcy. (AP Photo/Ben Margot, File)

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