Providence, R.I., Mayor Angel Taveras said Thursday that the city will run out of cash in June unless it takes drastic measures to shore up its finances, including charging tax-exempt groups more for public services, The New York Times writes.
Mr. Taveras called on major universities and hospitals in the Rhode Island capital to contribute an additional $7.1-million to city coffers and said he would push for legislation to require higher payments. He also plans to seek a suspension of cost-of-living increases in retired city workers’ pensions and appeal a state court ruling preventing the city from cutting insurance costs by shifting retirees into Medicare.
“The worst-case scenario is bankruptcy,” Mr. Taveras said. “This will be the consequence if we are not able to accomplish our goals.”
Daniel P. Egan, president of the Association of Independent Colleges and Universities of Rhode Island, said private colleges agreed to a 20-year, $50-million contribution to the city in 2003, and it was “not feasible” to expect them to shoulder another $7-million. “It’s not like 2003, when we could just reach in and find that money,” he said.