Insolvency of Municipal Government
Financial straits of the city government of Central Falls have worsened in the past decade as the state cut money to cities and towns and pensions and pensioner health insurance for city employees have accumulated to the extent that the city government has been in receivership since it declared insolvency in May 2010. On August 1, 2011 Central Falls filed for bankruptcy under Chapter 9, Title 11 of the United States Code. It made the filing as it grappled with an $80 million unfunded pension and retiree health benefit liability that is over five times its annual budget of $17 million.
Read more about this topic: Central Falls, Rhode Island
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