USA Today summarizes what happened when this community (located near Beantown) maxed out the credit card: "[State-appointed receiver Robert] Flanders had earlier indicated that seeking Chapter 9 bankruptcy protection in federal court might be the only option unless municipal retirees and city workers made major voluntary concessions. Retirees, for instance, were asked to take cuts of up to 50% to their pensions, a move they did not accept ahead of last Thursday's deadline, set by Flanders."
This is the first community in the Ocean State to ever file a bankruptcy petition. Central Falls has a population of 19,000, and it was once a textile, blacksmithing, and gun manufacturing center, according to Boston.com.Now the little city is going to have to 'borrow' the municipal services of nearby communities. What a mess.
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