Cash-strapped RI city files for bankruptcy

http://hosted.ap.org/dynamic/stories/U/US_CENTRAL_FALLS_BANKRUPTCY?SITE=AP&SECTION=HOME&TEMPLATE=DEFAULT&CTIME=2011-08-01-14-09-15

CENTRAL FALLS, R.I. (AP) -- The state-appointed receiver overseeing Rhode Island's cash-strapped Central Falls on Monday filed for bankruptcy on the city's behalf in an effort to solve its fiscal crisis.

Receiver Robert G. Flanders described the step as one of last resort after city taxes had been raised and services cut "to the bone," and after municipal retirees and current workers failed to agree on deep - but voluntary - cuts to their pensions and benefits.

"From the ashes of bankruptcy Central Falls will rise again," Flanders said at a news conference at City Hall.

Flanders had earlier indicated that seeking Chapter 9 bankruptcy protection in federal court - a rare step for a municipality - might be the only option without major concessions from retirees and union groups. Retirees, for instance, were asked to take cuts of up to 50 percent to their pensions and to contribute a sizable amount to their health benefits. Only 12 of 141 retirees agreed to Flanders' proposal before last Thursday's deadline, and of those 12, nine would not have seen their pensions reduced.

as we progress through this recession (advance to depression?). No revenue = huge cuts.

it's going to make for interesting times in the states.

on top of the worries about all the other shit that is going on (stupid debt ceiling!!), I wonder how people deal with this. Maybe they block it out in order to get by.

I will have a small pension when I retire due to my 10 years at a UC however I what is to say that they won't cut that if California doesn't pick up? I empathize with the folks in your link and unless we get more people working and revenues up, if will be a disaster for most of us.

there were hills.

They paid into the account and it is the fault of the local government for being irresponsible.