Wed June 22, 2011
Central Falls teeters on bankruptcy
By CATHERINE WELCH
PROVIDENCE, RI – Central Falls Receiver Robert Flanders says with the state failing to give the struggling city a financial boost, Central Falls is very close to bankrupt.
With the state refusing to give Central Falls the more than 6-million dollars he asked for, Flanders says bankruptcy is now likely. He's freeing up cash from various bank accounts and collecting taxes from residents. But the real job will be negotiating with unions, city workers, and pensioners.
"We're on a very limited time frame under any circumstances and this will be coming to a head this summer."
Flanders says he has met with the municipal employee union and is waiting on a study before approaching police and fire unions. If Central Falls can't find major savings, the city could find itself bankrupt by July or August.
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