Rhode Island Braces For Wave Of Muni Crises In Wake Of Central Falls Bankruptcy

Business Insider ^ | 08/08/2011 | Grace Wyler

[SeekAndFind]

In the wake of Central Falls's bankruptcy filing last Monday, lawmakers and local officials across the Ocean State have had to come to grips with the fact that the tiny city's fiscal "issues" are not unique.

As you may remember, Central Falls's financial woes are primarily the result of the city's $80 million unfunded pension liability.

The city was forced to file for bankruptcy after union retirees failed to agree to concessions that would have slashed pension benefits by as much as half.

The filing was a wakeup call for Rhode Island, which is suffering from widespread pension crises. Combined, the state's municipal pension plans are only 41% funded, and face an unfunded liability of $2 billion. Rhode Island's unfunded obligation (at the state level) is $6.8 billion, and some experts argue it could actually be as high as $9 billion.

[SeekAndFind]

Unless there’s pension reform, Central Falls may not be the last municipality in Rhode Island that faces bankruptcy. No question Central Falls was unique and was an economic basket case but there are other communities in the state with locally administered pension plans that are in serious trouble.

[MadMax, the Grinning Reaper]

All Rhode Island’s troubles are well-earned. They let the leftist Democrats shit on the state for decades and now they are complaining that “their chickens have come home to roost” and crap on them.

Cluck, cluck, cluck, you damned stupid liberal bastards.

You reaped what you sowed, so choke on it.

[ProudFossil]

Need I say it: Tea Party’s fault, Bush’s fault, Palin’s fault, ah hell, it’s my fault (I have never been to Rhode Island). /s