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Wed September 21, 2011
Flanders to file Central Falls recovery plan
By CATHERINE WELCH
PROVIDENCE, RI – Central Falls Receiver Robert Flanders Jr says Thursday he will file a five-year recovery plan for the struggling city. And Flanders is asking Bankruptcy Court Judge Frank Bailey if Director of Revenue Rosemary Booth Gallogly can outline the plan during a Friday hearing.
In the filed request, Flanders says the five-year plan not only protects bond ratings for other Rhode Island cities and towns, but it also puts the city on a road to recovery that stretches beyond five years.
The plan will address pension contributions and health benefits as well as a budget that gets Central Falls living within its means. Flanders says the city has made, quote, "tremendous progress" in negotiations with unions and retirees and talks are moving in what he calls a favorable direction.
Flanders calls the plan complicated, and says that's why he would like Judge Bailey to allow Gallogly to make a PowerPoint presentation. He emphasized that the five-year recovery plan should be viewed as a flexible document that could change with any agreements the city makes in its union negotiations.
Central Falls filed for bankruptcy on August 1st and since then Flanders has had to cut some retirees pensions in half. Critics say the cuts will harm elderly retirees who depend on those checks for survival. Flanders says this was the risk retirees took when they refused his offer before filing for bankruptcy on August 1st.
The Central Falls bankruptcy status hearing is scheduled for 10:30 am Friday at The Federal Center 380 Westminster Street in Providence.
Read the Brief
Read Flanders' request here
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