Sunday, February 19, 2012

Bankrupt Rhode Island city pays employees $26,000… a month

CENTRAL FALLS, R.I. --

Central Falls is Rhode Island's smallest city and also one of its poorest. Boarded up homes line many streets and one-quarter of the city's families live below the poverty line.

"The people are not getting better. Five years of tax increases, people who make $14,000 to $20,000 a year," said state Sen. Elizabeth Crowley, D-Central Falls.

Some at City Hall make more money than that in a month.

Chief of Staff Gayle Corrigan has essentially replaced the mayor as the executive in charge and answers directly to state-appointed receiver Robert Flanders.

Corrigan owns Municipal Management Solutions, a company aimed at righting the city's sinking ship. For her services, she's paid $100 an hour. Her deputy gets $60 an hour. That's roughly $26,000 a month and more than $300,000 a year. All of it comes from the coffers of Central Falls.

"That's ridiculous. It's not right when we're not financially doing great in this city," said Luis Lubo, a Central Falls resident. Read More