Projo 7 to 7 News Blog

NORTH PROVIDENCE, R.I. -- The Town Council ended its series of budget workshops Wednesday night by cutting $700,000 in spending, settling on an $81.1-million budget that would require an estimated tax increase of almost 14 percent in the fiscal year that begins July 1.

Adding an estimated $2.30 to the property tax rate will provide enough extra revenue to plug budget holes created by sweeping reductions in state economic aid, but it will not provide the money needed to eliminate the town's projected $10-million deficit, according to the council President Joseph Burchfield.

The council will hold a public hearing on the budget proposal before it formally adopts the spending plan and sets the tax rate about three weeks from now, Burchfield said, speaking after the council's unanimous vote to cut $700,000 in spending.

The proposed budget would cushion taxpayers from the larger-scale tax hike -- an increase of more than 23 percent or more -- that officials feared would be necessary for an immediate resolution to the town's financial crisis.

Instead, the council has opted to plot a slower course that would give officials more time to work on the deficit problem in the next fiscal year, as town lawyers work out contracts with police, fire and teachers unions.

"We have taken care of this year's budget," said Councilman Frank Manfredi. "We don't know what the deficit is. We'll have to do a lot of work going forward."

Burchfield said "we're being very optimistic" that the town can run a surplus in the next fiscal year and he also noted that local officials will meet with legislative leaders to see if "we can come up with something creative to address the deficit."

In May, the town's proposal to raise about $3.5 million for deficit reduction -- an end-of-year supplementary tax increase -- was defeated in the state Senate.

The council's workshop Wednesday night started with some talks with two lawmakers, state Rep. Arthur J. Corvese, D-North Providence, and Rep. Gregory J. Schadone. Both warned the council that securing special legislative approval to exceed the state's cap on tax increases could be difficult.

"That's becoming more and more difficult," Schadone said.

Town officials, including Finance Director Maria Vallee, said the town would need to secure a layer of approvals from officials at the state Department of Revenue and from Rhode Island Auditor General Ernest A. Almonte.

"I don't think we need to go before the General Assembly to exceed the cap," said Mayor Charles A. Lombardi's chief of staff, G. Richard Fossa.

After that, the council rebuffed Councilman Paul Caranci's proposal to cut each department by 10 percent.

Instead, the panel opted for across-the-board cuts of 2 percent to the spending of each town department, carefully noting that debt service would be carried at the same level. The cut also would not affect spending in the school system.

Lombardi said he was not disagreeing with the proposal, but he asked the councilman "to please understand," their 2 percent cut might be hard to implement without "going after" some of the employees in the departments.

Afterward, Lombardi's budget advisers suggested that a blind 2 percent cut, could leave the town in deficit trouble again next year.

"We can't comply with what they just did," said the director of administration, Rocco Gesualdi, who happened to be studying line items for the assessor's department.
"There isn't 2 percent here," he said.

Said Vallee: "I'm skeptical of the budget that's been passed. I think it's a little bit unrealistic."

 Tags  budget deficit economy North Providence North Providence RI

Comments

mra said:

the schools win again NO ONE DARES to touch the schools the golden cows.

Link | June 4, 2009 6:19 AM
Report Abuse

---

more lies said:

the school department will be broke by the first of the year. the town council wants to take over the school finances and merge them with the town which will be a huge savings but the school committee won't give it up, wonder why? just look at their record. too bad the students don't benefit but the administrators and their families are well taken care of.

Link | June 4, 2009 2:21 PM
Report Abuse

---

The Voice of Truth said:

Just what is the education of Lombardi and Fossa....and these dummys are running the Town!?!

Does anybody know...???

Link | June 4, 2009 11:07 PM
Report Abuse

---

Leave a comment

Please be civil. Vicious comments, personal attacks and profanity won't be published. Name and email are required; email address will not publish.

Name:

Email:

URL:  

Remember personal info?

Captcha:

Type the characters you see in the picture above.