Central Falls on the Brink of Economic Collapse

by Rich Epstein

Central Falls, RI financial disasterCentral Falls City Services Being Shut Down

Since 1980, only about 46 cities or towns in the entire U.S. have filed for bankruptcy protection. Central Falls could be number 47.

Central falls has roughly 19,000 residents and 15% unemployment.  The state took over Central Falls last year following the uproar of every teacher being fired from the High School.

Negotiaitions are being held with labor unions and retirees. Cuts are being made throughout the budget, including:

 

  • At the community center, the subsidized lunch for seniors is no longer being served.
  • The pool has been drained.
  • Health screenings have been cancelled.
  • The locks to the building were changed last week.
  • The public library has been closed.

Overall, Central Falls faces $80 million dollars in unfunded pension and benefits obligations and an estimated $25 million in deficits over the next five years.

 

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