Bankruptcy: 17 to Watch in 2017 in RI

GoLocalProv News Team

Bankruptcy: 17 to Watch in 2017 in RI

It’s not a person, place, or thing — but it’s very real possibility for the City of Providence. 

2016 saw the city battling with the firefighters over the platoon shift change that Mayor Jorge Elorza implemented in 2015, and while both sides touted a new five year contract moving forward as a step in the right direction, the city’s internal auditor projected — multiple times — that the purported savings are off by the magnitude of millions (not to mention the underlying legal battle has not been resolved).

The topic of a potential bankruptcy has been broached in recent years — with Elorza continuously dismissing the prospect — but with critics of the city’s financial position repeatedly advocating for it. 

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“GoLocalProv readers of my column are fully aware that I believe Providence is bankrupt and that Providence officials have been misleading Municipal Bond Investors since at least 2006,” wrote GoLocalProv MINDSETTER™ Michael Riley this past July

“Providence will never climb out of its hole without declaring bankruptcy and RI will never be able to climb out of last place among the 50 states without a complete restructuring of its largest city,” wrote former Cranston Mayor Steve Laffey, who faced his own share of municipal fiscal issues, in an opinion piece for GoLocal in September. 

So will Providence — or won’t it? Riley pointed out what he saw as the opportunity costs. 

“Each day that Providence, Rhode Island avoids filing for bankruptcy and a nice clean “reset”, the city’s wealthy residents and property owners are placed in a more perilous condition. Delaying the inevitable will cause great harm.  A closer look at the financial circumstances shows that Providence has all the signs of Detroit before its downward spiral.


17 to Watch in 2017 in Rhode Island

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