SAN FRANCISCO — Stockton, Calif., has proposed a plan to slash more than $10 million of debt payments to help close its budget deficit while at the same time declaring bankruptcy. The City Council will consider the “pendency” plan for next year’s budget on Tuesday, which would include filing for Chapter 9 protection if ongoing negotiations with creditors provide no solutions by Monday’s deadline, city officials said in statements Wednesday night.

Stockton’s plan would balance its budget mainly by cutting debt payments, which makes up 40% of the proposed reductions, to close an estimated $26 million general fund gap.

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