Facing Bankruptcy, R.I. Town Awaits Retirees' Vote

by Catherine Welch, NPR

The small and poor Rhode Island city of Central Falls will likely go into bankruptcy if it can't cut a deal with city workers and pensioners. The receiver running the city gave them two options: take the cuts to pension checks and health care benefits, or risk losing even more in bankruptcy court. Because bankruptcy judges can terminate union contracts, the receiver has warned them: "a haircut looks better than a beheading." Central Falls is expected to announce Monday whether a majority of retirees accepted the cuts or rejected them. Catherine Welch of member station WRNI reports.

Broadcast Dates

• Morning Edition, August 1, 2011