Did Central Falls do the right thing by declaring bankruptcy?

Posted 5/24/10

Last week Central Falls leaders declared the city insolvent, thanks to a deficit for the fiscal 2010 year of $3 million, nearly 17 percent of the entire budget.

In addition, the city has $4 million in assets on hand, with $35 million in long-term pension obligations, $1.5 million which are owed in this fiscal year.

Is declaring bankruptcy the right thing to do, given the long-term effects it will have on the city’s ability to get financing down the road?

And how many more Rhode Island towns and cities face the same prospects?

4 comments on this story | Add your comment
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In reality, Providence should annex Central Falls, Pawtucket, and East Providence. Millions would be saved each year in infrastructure costs in a larger Providence.

The Providence Fire Department alone could absorb the elimination of 2 engines and 1 ladder, and command and support personnel); reducing staffing by over 3 dozen positions.

The new city of apporx 300,000 people would get increased federal funding and achieve savings in police, public works, and schools alone.

Monday, May 24, 2010 | Report this

if they have a $3 million deficit, why does this 1 mile x 1 mile town have a $1 million investment in a SWAT team? doesn't seem to make any sense for a community that small.

Tuesday, May 25, 2010 | Report this

If we're talking about annexation, Cranston should probably be in the discussion too. Although people seem to regard that as politically incorrect, it's just as politically incorrect to think that only cities full of poor people need to think about consolidation. The upper crust needs to get on board here too, or they have no right to complain.

Tuesday, May 25, 2010 | Report this

Unions have proven beyond a shadow of a doubt that they will not cut back. They need to be busted.

M G Riley

Thursday, May 27, 2010 | Report this
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