CHOWCHILLA, Calif. – A struggling California town best known for its dairies, prisons and sensational 1976 school bus kidnapping case has defaulted on a municipal revenue bond payment.
Chowchilla has been hard hit by plummeting home prices, a nearly 18 percent unemployment rate and a $1 million budget shortfall.
The Los Angeles Times says the city failed to make its January payment on a bond issued to renovate its city hall. Chowchilla drew down on reserves to make a payment last summer.
The assistant city administrator said Thursday he will again draw down on bond reserves to make the payment.
On July 15, 1976, 26 children and a school bus driver from Chowchilla were kidnapped for ransom and buried for 16 hours in a moving van in a quarry before escaping.
Information from: Los Angeles Times, http://www.latimes.com
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