Courtesy of Mish.
Providence, the capital of Rhode Island, is in such bad financial straits that Former Hasbro CEO Alan Hassenfeld has this scary message for state officials Providence Should Consider Bankruptcy.
In a candid interview with the Providence Business News, Hassenfeld said he fears Providence is in deeper trouble “than anyone comprehends” and that officials should consider bankruptcy in order to right the ship.
“I’m not sure, and this will shock you, I’m not sure if we shouldn’t pull a Detroit or Central Falls and level the playing field and start all over,” Hassenfeld told PBN.
Hassenfeld is among the most prominent Rhode Islanders to publicly suggest Providence should consider bankruptcy.
In 2011, tiny Central Falls filed for Chapter 9 bankruptcy, slashing pensions and ordering 4% annual tax increases for five straight years in order to improve the city’s finances. Under new Mayor James Diossa, the city has earned high praise for helping the city recover, but Central Falls had the state’s fourth-highest residential property tax rate ($27.63 per $1,000 of assessed value) and second-highest commercial tax rate ($39.67 per $1,000) in 2015, according to the state Division of Municipal Finance.
Illinois Needs Bankruptcy Solution
A least Rhode Island offers cities and municipalities a choice.
Illinois has no provision for municipal bankruptcies. As a direct consequence, Illinois cities and school districts sink deeper and deeper in debt, even though taxes go higher and higher.
Illinois “Too Big a Risk”
Chicago was supposedly on the “short list” of cities GE was considering for its new headquarters. But GE instead selected Boston.
GE said “Illinois Too Big a Risk“.
GE accurately cited Chicago schools, pensions, corporate tax rates, financial meltdowns, budget holes, and a rock-bottom state debt rating.
Too many risks? You bet. So what is mayor Emmanuel and the Illinois legislature going to do about it?…
