By News Staff
PROVIDENCE, R.I. (AP) - A federal judge has signed off on a state-appointed receiver's five-year recovery plan for Central Falls, paving the way for its exit from municipal bankruptcy.
U.S. Bankruptcy Judge Frank Bailey on Thursday approved the plan, which balances the city's budgets through a mix of pension and spending cuts and tax increases.
State Revenue Director Rosemary Booth Gallogly says the plan will help move the city forward.
The city will remain under the control of receiver John McJennett III even after it exits bankruptcy. McJennett's predecessor filed for bankruptcy on Central Falls' behalf in August 2011.
Gallogly says there will be a gradual transition back to elected government. She will decide when the receivership ends and what level of oversight to keep in place.