Taveras: For Providence, it’s concessions or bust – literally
February 2nd, 2012 at 10:31 am by Ted Nesi under Nesi's Notes
“Bankruptcy.”
Providence Mayor Angel Taveras uttered the dreaded word – against the advice of his advisers, he said – not once, not twice, but probably more than a dozen times during a dire press conference Thursday morning.
Without major concessions from tax-exempt institutions and city retirees within the next few months, Taveras will be forced to seek a painful supplemental tax increase on Providence residents – and even that may not be enough to forestall a Chapter 9 filing by Providence’s capital. House Speaker Gordon Fox, who stood beside him at the gathering, said the impact would be devastating for all of Rhode Island.
Taveras’s message was aimed at three audiences: Brown University and the other nonprofits, all of which he wants to pony up more for the city; city retirees, whom he said need to sacrifice their 6% COLAs and lifetime Blue Cross coverage; and the General Assembly, reluctant to tackle municipal pensions after last fall’s bruising debate.
Read our full story on WPRI.com.
• Related: Providence’s financial options dwindling after major setbacks (Feb. 1)
(photo: Ted Nesi/WPRI)
Tags: angel taveras, providence, providence financial crisis
Nesi's Notes covers politics and the economy in and around Rhode Island for WPRI.com. (Twitter: 
[...] For Providence, it’s concessions or bust – literally [WPRI - Nesi's Notes] City of #Providence is seeking expedited review of Superior Court decision barring city from [...]
Why wait? Pull the trigger now. I keep hearing bankruptcy will hurt Providence and Rhode Island’s image. Frankly, I think our image is pretty much close to rock bottom anyway, so why not start the process of getting the city and the state on sound financial footing.
I would think the rating agencies would either welcome or remain neutral on a Chapter 9 due to the state law requiring that bond holders move to the front of the creditor line. It can be viewed that Providence would be trying to right an almost sunk ship. And given the recent rulings by Taft-Carter (who, oddly enough, always seems to receive these types of cases), there really is no other option.
Right you are Don.
Didn’t Taft-Carter rule that a law passed by the GA after a contract has been signed cannot be used to alter that contract? If that’s the case, the GA can’t do anything to help Providence.
I agree with Don above – declare bankruptcy and start fixing things. The world did not end when Central Falls, General Motors, etc. declared bankruptcy. I do not believe that bankruptcy can hurt the image of either Providence or Rhode Island – the image of both is at rock bottom now.
I concur! Until Rhode Islanders realize there is a problem and accept that it has too be fixed, that the social service parasites and the public sector parasites are going to see their compensation cut back, it won’t change.
It’s funny that almost ALL Civil Servants everywhere thought the gray train of 2, 4, even 6 times greater pensions than their Private Sector counterparts (and 80-90% paid-for not by them, but by taxpayers) could go on indefinitely.
Not many mathematicians in this bunch (the math doesn’t work, and it NEVER did). Sure the few at the front of the line (now quite old and retired for quite a while) benefited handsomely, but those that follow are going to be skewered but good (even if already retired).