Add another problem to Rhode Island’s lengthy list — the New York Times reports that the City of East Providence has just gone into receivership due to the usual cause, to wit: an inability to pay its bills. The state government, which is facing serious financial problems of its own, has appointed an overseer to direct the city out of its crisis. He will have his work cut out for him — as the Times notes, this is the second Rhode Island city in as many years that has been forced into receivership.Because of its small size, inbred political system and collusive relationships between irresponsible union and political officials, Rhode Island is reaching the end of the road faster than many other places — but Rhode Island and its cities are not alone on the highway to doom. Unrealistically high pension promises matched by unrealistically low savings with a gap papered over by sci-fi and fantasy rate-of-return assumptions; a declining real economy unmatched for years by appropriate reductions in state and municipal overhead; serial failure of one legislature and governor after another to take the state’s declining economic condition seriously to heart: the road to hell is paved with good intentions, and filled to capacity by carloads of get along, go along politicians.
Rhode Island Update: The Meltdown Continues
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