Central Falls to exit bankruptcy

CENTRAL FALLS, R.I. (WPRI) - A federal judge has signed off on a plan for the bankrupt city to exit municipal bankruptcy.

The 5-year recovery plan was presented to the judge Thursday by state appointed received John McJennett.

The plan calls to balance the city's budgets through a mix of pension and spending cuts and tax increases.

The city will remain under the control of receiver McJennett even after it exits bankruptcy.

McJennett's predecessor filed for bankruptcy on Central Falls' behalf in August 2011.

State Revenue Director Rosemary Booth Gallogly says there will be a gradual transition back to elected government.

Gallogly will decide when the receivership ends and what level of oversight to keep in place.