38 Studios collapsed upon itself in a heap of flaming disaster last year, and Rhode Island taxpayers ended up stuck with the bill. The state used a $75 million loan, acquired through the sale of taxable bonds, to convince 38 to operate within its borders, and RI is now on the hook for around $89 million after the studio declared bankruptcy.
Some state lawmakers in Rhode Island flirted with the idea of "walking away" from the debt, which is apparently a privilege afforded to a government and not its citizens. However, the state's House Finance Committee has approved a budget that includes, at the very least, making an interest payment of $2.5 million on the debt in May 2014. If Rhode Island is running off the plan it talked about last month, this first payment will be followed by yearly payments of $12.5 million until the debt is repaid.
The budget hasn't passed; it still needs to get through the state's House and Senate. Future interest payments will also have to be approved by the state legislature.
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