Economy
12:06 pm
Thu February 2, 2012

Taveras: city moving closer to bankruptcy

PROVIDENCE, RI – Providence Mayor Angel Taveras warned Thursday morning that without sacrifices by different stakeholders Rhode Island's largest city will be headed toward bankruptcy. Taveras also says the city will appeal a court decision blocking the city from moving city retirees into Medicare.

Taveras accused tax-exempt hospitals and universities of not doing their part to help fix the city's finances. He also says that public safety retirees getting 5 and 6 percent compounded raises will see those benefits reduced - one way or another.

"Either the retirees will accept a suspension of their guaranteed yearly raises and changes in healthcare," said Taveras, "or they will follow the path of Central Falls retirees who've had their full pensions slashed drastically in bankruptcy court."

Retirees and tax-exempt institutions have said they're willing to talk about efforts to shore up the capital city's finances. Taveras invited retired city workers to a March 3rd discussion at the Rhode Island Convention Center that will be streamed on the Internet.

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