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I've seen a lot of comments talking about bankruptcy -- it doesn't work the same way for cities.
Under Rhode Island law, a city or town can't just "declare bankruptcy."
Instead, a city is put under the control of a state budget commission, which -- as the name suggests -- takes over its financial management.
The commission can raise taxes, impose budget cuts, and review contracts, specifically to avoid bankruptcy.
And there's no such thing as "starting over."
Warwick is going to go through some serious financial pain, soon, and the people who can do something about it are not doing their jobs.
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