Flanders emerging as leading national proponent of Chapter 9

March 30th, 2012 at 8:59 am by under Nesi's Notes, On the Main Site

Central Falls receiver Robert Flanders is making waves in Rhode Island, all the way from Philadelphia.

Flanders flatly told a Bloomberg reporter there this week he sees no way Providence can avoid bankruptcy, a comment that appeared to leave Mayor Angel Taveras aghast – even though Flanders is advising him.

“I was surprised and I disagree,” Taveras told WPRI.com on Thursday when asked about Flanders’ remarks. “Providence is not Central Falls. I will do everything in my power to avoid that.”

“Providence,” the mayor repeated, “is not Central Falls.”

Maybe not, but Flanders is now a true believer in the power of letting cash-strapped municipalities file for bankruptcy under Chapter 9 of the federal code. The Huffington Post’s Matt Sledge reports on what Flanders told attendees at a Bond Buyer conference in Pennsylvania’s capital:

From the comments of Flanders and others at the municipal bonds conference, it seems like the industry is in agreement about one thing going forward: someone is going to have to suffer, and it shouldn’t be bondholders. And the draconian measures needed to stave off financial disaster will often require an unelected official – be it a receiver in Rhode Island or an emergency manager in Michigan – to assume near-dictatorial powers.

Bankruptcy, Flanders said, should no longer be a dirty word. Sometimes it’s the only way to extract concessions from public employees unions and retirees, who he said weren’t very happy when he first proposed slashing pensions by 50 percent. …

It was only bankruptcy’s provisions that let Flanders, as city receiver, actually go through with those cuts, he noted. “We could blow up any contract we liked.”

Public employees’ concerns should be balanced, he argued, against the investors whose money allows cities to operate.

Read the rest here. All this comes as Taveras continues to struggle in Providence, Woonsocket prepares to slap a 13% midyear tax hike on its residents, and Governor Chafee is beating the drum for his far-reaching package of municipal-relief legislation. Chafee will discuss his proposal on “Newsmakers” this weekend.

HuffPo isn’t the only left-leaning publication covering Providence’s financial troubles, either. The Nation’s Erin Schikowski, who attended Taveras’s retiree town hall earlier this month, filed a story giving an overview of the situation on TheNation.com this week, too.

(photo: AP)

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7 Responses to “Flanders emerging as leading national proponent of Chapter 9”

  1. bobb says:

    There are 39 cities and towns in RI. That should keep you sufficiently busy.

    Oh yeah…Flanders for Gov.

    1. Cosmo says:

      Amen.

  2. bunchoffools says:

    blowing up all the public union contracts and reneogiating something more realistic sounds about right.

    The cost of living here is out of control. There are a lot of reasons for it, an unfriendly business environment is one and over paying for civil services is another.

  3. Downsized54 says:

    Most cities in RI are bankrupt.Thanks to greedy politicans and dishonest union leaders.Flanders should go every city and break those union deals.The taxpayer had no say in these deals.Politicans who made these contracts were in the pockets of union officals.Ri reputation for high taxes and dishonesty is why the unemployment is very high.

  4. [...] most fiscally distressed cities and towns. Robert Flanders, the receiver in Central Falls, has become a leading proponent of that view since putting that city into Chapter 9 last [...]

  5. [...] most fiscally distressed cities and towns. Robert Flanders, the receiver in Central Falls, has become a leading proponent of that view since putting that city into Chapter 9 last [...]

  6. Flanders has a nice fat pension, and now earns $ 400.00 per hour in his part time job and i am sure he will be happy to take on more bankrupcy jobs, it pays real well !!! Anyone that knows how to run a budget can slash and burn like he did. Yep ,leading proponent for himself !!!!