Projo 7 to 7 News Blog

NORTH PROVIDENCE -- Despite an extreme pinch in cash flow, Town Hall will pay all employees Friday by rerouting about $380,000 in federal stimulus money that was previously earmarked for the School Department, Mayor Charles A. Lombardi said late Thursday afternoon.

Lombardi's comments on the matter demystified his plan for executing the town's $2.5-million payroll Friday.

In an interview with The Journal on Wednesday, Lombardi declined to provide details on his plan for dealing with the cash-flow problem, saying that officials were moving money around in a "questionable" manner and refusing to describe it any further.

He also declined to provide further details in interviews on morning talk radio shows Thursday.

Later in the day, in comments made to Dan Yorke on WPRO, Lombardi revealed his use of stimulus money.

Afterward, he told The Journal that he couldn't discuss his use of the stimulus money until North Providence's solicitor, Anthony Gallonio, told him that spending it on the payroll would be lawful. That authorization didn't come until about 3 p.m. Thursday, Lombardi said.

Due to the town's deficit, projected at about $10 million, North Providence needed about $550,000 to make Friday's $2.5-million payroll, Lombardi said. Some last-minute flows of tax revenue, the deferral of payments owed to vendors who are willing to wait and the use of the stimulus money will allow the town to make its payroll, Lombardi said.

He said he had decided to diverted the stimulus, in violation of the law if necessary, to avoid other legal problems that would crop up if he failed to pay town employees properly Friday. The town would face a penalty of $400 per employee in that scenario, Lombardi said.

"It basically comes down to the juggling act," Lombardi said. "Do we want to be illegal here? Or do we want to be illegal there?"

Lombardi said he was pleased to hear that using the stimulus wouldn't be illegal.
"It's just a relief now," he said. "It's a great relief."

But he doesn't know how he will pay the bills in two weeks.

 Tags  budget Mayor Charles A. Lombardi North Providence RI

Comments

disgusted said:

This is perposterous, no stimulus monies should be going to pay salaries of government workers. the administration should grow a set and make the necessary cuts and lay people off.

Link | June 13, 2009 12:53 AM
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DAE said:

This town should NOT be robbing Peter to pay Paul. It's about time our Mayor took a good look at uneccessary things... 4th of July fireworks finally cancelled!!!! As well as the Memorial Day parade should have been. Close the pool, or at least charge for it, cut out the summer work program for now. We all love having these things, but for right now we have to go without!!! And saving the best for last... our MAYOR should see about getting a refund on our new CRIME VAN???? Are you serious Charlie???

Link | June 15, 2009 9:28 AM
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BB said:

In regards to that new crime van.....bought with drug money...get your facts straight.

Link | June 15, 2009 12:07 PM
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DAE said:

The facts are that if our town has stooped so low as to use drug money then there are still more important things that money (drug or otherwise) could be used for right now. Love the fact that you obviously seem so proud of that BB!

Link | June 15, 2009 2:29 PM
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