San Jose, Calif.
The San Jose Unified School District has declared bankruptcy. The largest school district in California's ''Silicon Valley'' is partly blaming its problems on Proposition 13 and high salaries for teachers.
The unanimous decision was believed to be the first time since 1943 that a US public school system decided to file bankruptcy papers.
The teachers union charges that the bankruptcy declaration is an attempt by the board to ''blackmail'' teachers into giving up their pay raises.