Pension Costs Choking Providence

by Ryan on June 27, 2011

in Anything Else,Economy,Politics,Rhode Island

Why is it that whenever I hear news about Rhode Island it’s usually bad?  Like any story about Buddy Cianci, The Station Nightclub Fire, the Floods of 2010, electing a mentally handicapped man governor last year, etc.

Now, it turns out that the Wall Street Journal, taking a look at local government shortfalls around the nation, noted Providence’s nightmare scenario — roughly 50% of the city’s annual spending goes to merely supporting retirement and pension costs!  No city, state, town, or hamlet will be able to maintain that forever — Providence has borrowed tens of millions just to stay solvent, even using their firehouses as collateral!  Firehouses are on the table, but cushy pensions and moocher benefits are as robust as ever?  Trouble.  Big trouble.

Also, I’d be remiss if I didn’t mention that the fiscal nightmare Providence has created for itself vindicates one man whose rants have been ahead of the curve on this issue for decades:  Dad — you were absolutely right!

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