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Central Falls Goes Broke

Jacki Lyden in for Tom Ashbrook


The Rhode Island city of Central Falls is broke. Its cops and firemen wait to get paid. Is this the future for cities and states around the country?

Michael Long, a retired police sergeant and practicing lawyer asks several pension related questions at Central Falls High School in Central Falls, R.I. Tuesday morning, July 19, 2011. The state appointed receiver running the financially troubled city asked retired police officers and firefighters to accept significant pension cuts to help avoid municipal bankruptcy. (AP)

Michael Long, a retired police sergeant and practicing lawyer asks several pension related questions at Central Falls High School in Central Falls, R.I. Tuesday morning, July 19, 2011. The state appointed receiver running the financially troubled city asked retired police officers and firefighters to accept significant pension cuts to help avoid municipal bankruptcy. (AP)

Central Falls, Rhode Island a proud and historic place whose motto is “city with a bright future” took the rare step this week, for a municipality –- of filing for bankruptcy.

The city hasn’t been paying its pensions for years — and doesn’t plan to do so. The public employees have been told: get a lawyer.

How Central Falls became a city with a troubled future may be an object lesson for may other municipalities around the country who are in dire straits.

This hour On Point: The American community, struggling.

-Jacki Lyden


Guests:

John Hill, staff writer for the Providence Journal.

Marta Martinez, director of communications for Progresso Latino, the only non-profit social services provider in Central Falls.

Billy Folsom, mechanic for the City of Costa Mesa, California. Boardmember of the Costa Mesa City Employees Association.

John Garvey, acting chief of the Central Falls Fire Department.

Robert Flanders, state-appointed receiver for the City of Central Falls

Ryan Holeywell, staff writer for Governing Magazine and author of the blog ‘Fed Watch.’

More:

Central Falls, Rhode Island
View Central Falls, Rhode Island in a larger map

NBC Nightly News did a story on Central Falls, which you can find here.

Central Falls proposing reduction in Police and Fire budget


Central Falls residents concerned about public safety cuts

The Buzz: Central Falls bankruptcy

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