Projo 7 to 7 News Blog

EAST PROVIDENCE, R.I. -- A controversial $141.55-million operating budget for fiscal year 2010 was approved by the City Council in a split vote late Thursday night. After more than three hours of debate, Mayor Joseph S. Larisa Jr. and council members Robert Cusack and Valerie Perry approved the budget. Councilmen Bruce DiTraglia and Brian Coogan voted against it.

The spending plan that goes into effect Nov. 1 is 1.8 percent, or $2.65 million, less than what was budgeted this year. Despite the reduction -- because of state aid cuts -- it would raise taxes to the city-mandated maximum of 3.5 percent, if approved. The residential tax rate would go up 54 cents, to $15.97 per $1,000 of assessed valuation. Mayor Joseph S. Larisa Jr. said it results in a $100 increase for the average homeowner.

The budget reduces city staffing by 55 positions, most notably 16 in the Police Department and 28 in the Fire Department. Not all the positions are filled now. A total of 13 and 26 members of the two departments would actually lose their jobs. The police were laid off earlier this month and City Manager Richard Brown said he plans to cut the firefighters in January.

Yet the budget keeps the city's recreation center open and doesn't reduce the maintenance staff for the popular Pierce Memorial Field. It also keeps the Fuller and Rumford branch libraries open, although on a part-time basis. All of these closings and changes would have occurred if Brown's proposed budget was approved. The council modified Brown's budget on Oct. 6.

As for the school district, a little more than $43.5 million of the city's property-tax revenue was allocated to the School Department. It is the same amount given to the district this year, yet the council also gave the schools $500,000 of its meals tax money to chip away at the district's deficit.

With state aid and other local revenues, the budget says the district has $74.4 million for its expenses.

However, district chief operating officer Lonnie Barham said Thursday that the revenue numbers reported by city officials are incorrect. He said the state aid is much lower, possibly more than $1 million under what is budgeted. In addition, Supt. Mario Cirillo and the School Committee say the schools need $75.1 million to operate the district. Therefore, Barham said the committee and department officials have to cut their own spending plans over the next 30 days.

 Tags  budget East Providence RI economy

Comments

Dave F. said:

Virtually every year, it's the same thing - property taxes go UP by the maximum amount. Even in this time of deflation and drastically falling home values, taxpayers still pay through the nose.

I am gonna LOVE the day Rhode Island suffers a complete fiscal collapse. Taxpayers CANNOT afford the current system. It's simply unsustainable.

Link | October 23, 2009 3:23 PM
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Chris L. said:

I am grateful to those in office that made the hard choices to keep services at an acceptable level during this economic crisis. I hope when the economy recovers our leaders don't begin spending wildly again.

Link | October 27, 2009 7:07 AM
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