The struggling San Joaquin Valley town of Chowchilla, 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.
Assistant City Administrator Wayne Padilla said Thursday that he will draw down on bond reserves to make the payment.
On July 15, 1976, 26 children and a school bus driver were kidnapped for ransom and buried 16 hours in a moving van in a quarry.
Information from: Los Angeles Times
Copyright 2011 The Associated Press.