Chowchilla, Calif. has failed to make its January payment on a bond issued to make expensive renovations to its city hall.
We warned you on Tuesday that city was on the brink and could foreshadow similar cases across the country.
Now Chowchilla has crossed the line.
The 11,000-person town got into this situation through a massive collapse in home prices and bad fiscal management, not least of which was an $8 million city hall project. Earlier this year the city posted a technical default by depleting its bond reserve fund to make a payment.