The Ultimate Outcome of Liberal Policies - Central Falls, RI

[TVDOC]

........They finally ran out of other people's money:

Central Falls, R.I., filed for bankruptcy on Monday. As part of the process, collective bargaining agreements with city employees, including police officers and firefighters, could be overturned, changes have been made to employee health care plans, and pension payments to retired employees have been reduced.

Central Falls Receiver Robert Flanders announced Monday that Central Falls filed for Chapter 9 bankruptcy in federal court. Flanders said that he had filed a motion to immediately reject the collective bargaining agreements with the police and firefighters' unions, as well as the municipal workers' union. Under the bankruptcy restructuring, active employees and retirees will pay a higher deductible on their health care plans, as well as higher co-payments and a 20 percent co-share of premiums. The next pension payments, which would be received at the end of August or early September, will be reduced by no more than 50 percent for retirees receiving a pension for more than $10,000.

Flanders also promised that, from the ashes of bankruptcy, Central Falls will rise again," albeit as a "slimmer, sleeker city." "Everything was done to avoid this day," Flanders said in a statement. "Services have been cut to the bone. Taxes have been raised to the maximum level allowable. We negotiated with Council 94 and the police and fire unions, without success, attempting to reach voluntary concessions, and we tried in vain to persuade our retirees to accept voluntary reductions in their benefits."

Gov. Lincoln Chafee said in a statement that the course of action would be difficult, but "the current situation is dire, and it necessitates decisive steps to put the city back on a path to solid financial footing and future prosperity

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http://americancityandcounty.com/admin/finance/bankruptcy-city-bondholders-20110805/

Balance at link......

doc

[thundley4]

Just a harbinger of things to come from across the country.

[StealingTime122]

Look at what is happening in Europe if you want to know about what happens when a Government pays for too many things.

[zeitgeist]

It appears they chose the beheading over the hair cut.

August 1, 2011 The small and poor Rhode Island city of Central Falls will likely go into bankruptcy if it can't cut a deal with city workers and pensioners. The receiver running the city gave them two options: take the cuts to pension checks and health care benefits, or risk losing even more in bankruptcy court. Because bankruptcy judges can terminate union contracts, the receiver has warned them: "a haircut looks better than a beheading." Central Falls is expected to announce Monday whether a majority of retirees accepted the cuts or rejected them. Catherine Welch of member station WRNI reports.
http://www.npr.org/2011/08/01/138884560/facing-bankruptcy-r-i-town-awaits-retirees-vote

Wonder how long before buyer's remorse kicks in.

[JohnnyReb]

Ever notice that most of the public office holders have never been in business for themselves and their personal finances are in a mess? But then they think they are more than smart enough to handle the publics money.

[Wineslob]

retirees to accept voluntary reductions in their benefits."

"What do you mean I can't recieve more per month than I was making?"