By PBN Staff
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?