It All Makes Sense if you Understand They’re Planning to Sell Their Rights to the Gold Mines Under Kennedy Plaza
Ted Nesi of WPRI (CBS 12) notes two developments in the the collapse of ProCAP, an organization that is supposed to address poverty issues that, while outside of the government-proper, receives “96% of its…revenue from taxpayers”…
Superior Court Judge Michael Silverstein granted ProCAP’s request and named Thomas Hemmendinger as the agency’s temporary court-appointed receiver during a brief hearing Wednesday. A permanent receiver will be named in early January.Let me get this straight. A city that has no money, because it spends more than it takes in, is loaning money to an organization that receives all of its money from public sources — raising the question of how the “loan” will be paid back — at the same time that a source of revenue is going to need to be found to pay for the services of a “receiver”, who I assume is not working for free.
The board voted 10-0 “to seek the protection of the courts through receivership” after a presentation by interim executive director Frank Shea that showed the taxpayer-funded nonprofit’s financial woes are “much direr, quite frankly, than anybody thought,” spokesman Bill Fischer said….
The city [of Providence] will loan ProCAP $250,000 on an emergency basis to keep its doors open and repaying the money will have priority in court, [Mayor Angel Taveras] said. The judge approved a $10,000 bond and described the step taken Wednesday as an “operational receivership” because the organization will remain open.
I’m not suggesting a connection here, just pointing out that the Rhode Island solution to ProCAP’s problems seems to be to pile new debts on an already bankrupt organization that has no taxpayer-independent source of revenue with which to pay them back. Does Rhode Island’s governing class really think that this is legitimate, rational finance?