Projo 7 to 7 News Blog

PROVIDENCE -- Governor Carcieri is trying to speed up payment of the $10 million the state has offered to the Station nightclub fire victims.

He wants to use some of the federal stimulus money Rhode Island is getting to pay the settlement offer it has made to those who lost loved ones or were injured in the catastrophic blaze before the summer.

If the General Assembly agrees with Carcieri's proposal, the $10 million in settlement money from the state would be made available to the fire victims during this fiscal year - sometime before July 1.

In January, Carcieri proposed postponing payment of the settlement until the next fiscal year. But now, with the Obama administration's decision to send what state budget analysts expect will be more than $1 billion to Rhode Island -- including tax cuts for individuals and businesses -- the governor is moving to pay this one-time expense to the fire victims sooner rather than later.

State Budget Officer Rosemary Booth Gallogly said Tuesday that while the states must use the majority of the federal stimulus money for education, the balance can be used by governors for fiscal relief. Carcieri had projected a $357 million budget deficit in this year's budget before Congress approved the stimulus plan on Feb. 17.

It is still unclear, however, where the cash-strapped Town of West Warwick will come up with the $10 million it has offered the fire victims. Six weeks ago, the town's solicitor, Timothy A. Williamson, a Democratic state senator from West Warwick, told The Providence Journal in an interview that he and the rest of the town's delegation were hoping the state would pick up $6.5 million of the tab -- the amount not covered by its insurance. But Carcieri is not including any money in his revised budget proposal for this fiscal year, or his proposed budget for fiscal year 2010, to pay the town's share.

U.S. Magistrate Judge David L. Martin has scheduled a status conference in the mass liability case for Thursday. Last week, he approved a plan for distributing $176 million in settlement offers that have been made to the victims and appointed a neutral verification expert who will review damage claims.

Your Turn: Should R.I. use stimulus money to pay Station fire victims?

 Tags  Carcieri Station nightclub fire stimulus money West Warwick

Comments

Dan said:

In my honest opinion, this amounts to theft by the politicians. Yes, it is tragic what happened at The Station. However, this proposed mis-use of Federal funds to stimulate our lagging economy is heresy! What will this do to create jobs, improve infrastructure, or educate unemployed workers to get back to work to stimulate spending in the private sector? The Governor and West Warwick should stop playing games to fund their errors. If either political entity could not fund their offers, they never should have made them. Perhaps the West Warwick delegation and the Governor should be charged with fraud and panhandling which is what this latest proposal is. Bernie Maddoff has nothing on these slippery characters. Again, condolences to the victims of the Station fire, but this money was earmarked to get us out of a depression, yes depression.

Link | March 10, 2009 4:30 PM
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D said:

Dan, I agree. This is so stupid.

Link | March 10, 2009 7:08 PM
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Taxpayer said:

This is a moot question. Stimulus funds can't be used because they do not create jobs. If the Governor uses funds for this unallowable purpose, the taxpayers, who were not liable, responsible, or in any way party to this horrible situation, would be on the hook for repayment.

Yes, this was a devstating loss for those familes and friends affected by this tragedy, but unfortunately, lots of kids lose their parents everyday through no fault of their own, and don't have anyone to make sure they get a finanical windfall to take care of them for the rest of their lives.

Link | March 10, 2009 9:33 PM
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