Improvidence

Despite shedding jobs, cutting pay, trimming benefits, curbing services and expanding the tax base (on top of an 11% tax rise last year), Providence still faced a shortfall of $21m or so. There was no way to set its finances to rights without tackling the city’s huge pension costs. Eleven towns in Rhode Island have pension shortfalls even more dire than Providence’s. One, Central Falls, has already declared bankruptcy; state-appointed officials are overseeing the budget of another, East Providence. A third city, Woonsocket, debated whether to join Central Falls in bankruptcy last month before raising property taxes by 14% instead.