CENTRAL FALLS, R.I. —
The price tag of the state receivership in Central Falls has climbed to $3.2 million.
State Revenue Director Rosemary Booth Gallogly says that’s the anticipated cost through the current fiscal year. The state took over Central Falls in 2010, and the appointed receiver filed for bankruptcy last August.
The state pays the costs of the receivership up front but is seeking repayment from the city.
A five-year recovery plan filed in U.S. Bankruptcy Court this week defers the costs to later years. Gallogly says that’s to give Central Falls time to stabilize and pay other creditors.
The city could exit bankruptcy in late summer or early fall.
Some local elected officials and state legislators representing Central Falls say the city can’t afford to pay the costs.