State reviews N. Providence's use of stimulus funds
1:04 PM Tue, Jun 16, 2009 | Permalink
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NORTH PROVIDENCE, R.I. -- The state Office of Economic Recovery and Reinvestment has decided to launch a "fact-finding mission" to gather information on North Providence's use of stimulus money, Governor Carcieri's spokeswoman, Amy Kempe, said late Tuesday morning. The office will reach out to North Providence officials for information as part of a review that was prompted by newspaper reports on Mayor Charles A. Lombardi's comments about the use of stimulus money, Kempe said. "At this point," she said, "we need to collect the facts." Last week, Lombardi announced that Town Hall had amassed the money it needed to cover its June 12 payroll, but that its movement of money was "questionable" and he would not comment on the matter. Later, he said, the town's solicitor, Anthony Gallone, had assured him that using $380,678 in federal stimulus money on the payroll would not pose any legal problem. Kempe said she isn't able to say, at this time, if the town's use of the money on the payroll was appropriate or inappropriate. State officials had an internal meeting on Monday and decided to gather more information, she said. "We can't answer that question...until we collect all of our facts," she said. "It's just a first step," she said. "We're doing our due diligence in making sure the funds were appropriately used." Staff from the governor's office and also from Rhode Island Department of Education are dealing with the issue. "It's been a topic of discussion since last week," said a spokesman for the state education department, Elliot Krieger. "It's fair to say." 
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i can foresee a new election in a few months
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One question for the governor appointed highly paid Office of Economic Recovery and Investement: Where are your funds coming from and where is all that stimulus money in rhode island going to? Last I heard the governor wanted to cover shortfalls, and then he comes up with you political hacks..........isn't north providence doing the same thing? Too much of the pot calling the kettle black.....
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I am almost certain that the intended purpose of the federal stimulus money was intended to infuse growth into our local, state, and federal economies, NOT to meet payroll and close budget gaps. This stimulus money will wasted to meet current obligations and the roads, bridges, and other objectives it was intended for will not see one dime. This is just kicking the proverbial can down the road. We will have the same problems two years from now with zero money to cover the expenses. Unbelievable.
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Hey you get what you pay for... Another great job by our inferior MAYOR!! And this time he actually admits it's wrong to do it!! GO FIGURE...
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If he doesn't make payroll he's a lousy mayor, if he uses stimulus money to make payroll he's a lousy mayor, if he laid off more union workers he's a lousy mayor, if he raised taxes, he's a lousy mayor. What does he have to do?
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OMB Circular A-102, under Cash Management states in part "...Such transfers shall be made consistent with program purposes, applicable law and Treasury regulations contained in 31 CFR Part 205 Federal Funds Transfer Procedures." The operative term here is Consistent with program purposes. Borrowing from federal funds to cover general payroll expenditures for a purpose inconsistent with an educational purpose would be in violation of the terms of the award.
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like Lombardi is the only Mayor doing this??? all cities should be looked at. Like Providence hasn't needed to do this?
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