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The Boston Globe

Business

Cuts to local governments hit economy

FALL RIVER — For decades, Billy’s Cafe in Fall River was a favorite watering hole for the city’s police officers. So when Fall River lost $2.9 million in aid from the state in 2009 — prompting the layoffs of 53 officers, almost a quarter of the force — the bar and restaurant known for chourico and chips lost many of its regulars.

Billy’s Cafe never recovered, according to owner Rachel Valente, and after 80 years in business, Billy’s will close on Dec. 31.

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