(Updated, 3:19 p.m.)
Gov. Lincoln D. Chafee on Tuesday issued a statement defending the need for Rhode Island to repay the 38 Studios moral obligation bonds and criticizing gubernatorial candidates Cranston Mayor Allan W. Fung and Ken Block, who have voiced opposition to repayment.
An assessment of the 38 Studios LLC moral obligation bond debt service conducted by SJ Advisors concluded that failure to repay the bonds would probably result in a downgrade of Rhode Island’s bond rating to “junk bond” status.
Moody’s Investors Service issued a warning on April 17 regarding Rhode Island’s failure to reach a settlement with public employee unions over the state’s pension lawsuit, which will go trial on Sept. 15 following the breakdown in renewed mediation talks earlier this month.
(Updated, 5:34 p.m.)
A Superior Court judge ordered state and public employee union representatives back into mediation on Monday after 61 percent of eligible police officers and retirees voted to reject the proposed settlement of the state’s pension lawsuit.
(Updated, 5:30 p.m.)
Fifty retired state employees and public school teachers have filed a lawsuit against the state of Rhode Island, objecting to their inclusion in the proposed class-action settlement of the state pension reform lawsuits.