Taveras: Pensions still have city on a precipice

'You'll see more cooperation between the city and Brown'

Providence Mayor Angel Taveras last winter warned that the city was on the brink of bankruptcy and faced another large tax increase or state takeover without givebacks from employees and larger payments from nonprofit institutions. Three months later, the city passed new pension rules expected to save $16 million annually. In addition, Brown and Johnson & Wales universities agreed to increase their yearly contributions and Lifespan signed a deal to start making payments to the city. But Taveras says his warnings about bankruptcy were not idle threats, and Providence is still one successful legal challenge away from the precipice. Hours after the Brown and Lifespan announcements last week, Standard & Poor’s downgraded Providence’s credit rating from BBB to BBB-, the lowest investment-grade rating. More
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