At $10,108 per person, New Yorkers bear the highest unfunded burden for retired public workers’ health benefits among the 15 biggest U.S. municipalities. Investors have responded by driving the city’s relative borrowing cost almost one-third below the five-year average.
Providence was so close to running out of cash a year ago that it couldn’t pay for tires on police cars. This month, Wall Street lined up to lend to Rhode Island’s capital, shrinking its yield penalty 30 percent.
Central Falls, the first city in Rhode Island’s 222-year history to go bankrupt, is preparing to exit court protection after 13 months by keeping bondholders whole while raising taxes and cutting workers and pensions.
The receiver for Central Falls, the Rhode Island city that declared bankruptcy last month, proposed a five-year plan for fiscal recovery that shields bondholders from losses while cutting benefits to retirees, imposing givebacks on unions and raising property taxes.
The $3.7 trillion municipal market is proving an oasis for Wall Street job hunters as the dwindling role of bond insurance and yields at four-decade lows fuel demand for analysis of the 89,000 U.S. local governments.
Providence, Rhode Island’s capital and biggest city, probably will seek bankruptcy court protection to deal with a budget deficit, Robert Flanders, the state- appointed receiver for nearby Central Falls, said yesterday.