BREAKING: Providence to Run Out of Money by June
Saturday, January 28, 2012
Citing a combination of revenue shortfalls (including $7 million from the nonprofits), $5 million in over-expenditures in the public safety departments and the failure to achieve $8 million in savings from transferring retirees to Medicare, the memo says the city is facing an $11 million shortfall and will run out of money at least seven weeks before the next tax collection period in August.
A similar memo went out to members of the City Council last spring, but the new memo, issued by internal auditor Matthew Clarkin and city treasurer James Lombardi and addressed to City Council finance committee chairman John Igliozzi, suggests the city’s problems are more dire.
Last year, the city was able to pass a budget earlier than normal (which moved the due date for taxes up by one month) and it used about $8 million from a Port of Providence bond to cover expenses. The memo suggests those extra funds will not be available this year.
A city spokesman did not respond to a request for comment.
Providence isn’t the only city facing cash-flow issues. This week, state lawmakers agreed to allow Pawtucket to borrow $12.6 million in tax anticipation notes to help pay bills after March. This is the second consecutive year the city has to borrow money. Earlier this month, Governor Chafee signed off on legislation that gave East Providence a $12.6 million advance it its state education aid to help the city from running out of money.
Enjoy this post? Share it with others.
Commenting is not available in this channel entry.
Comments:
anthony sionni
8:25pm on Saturday, January 28, 2012
Thank you Cicilline! I blame him,wake up people!
john paycheck
9:17pm on Saturday, January 28, 2012
Tavares plug some holes last year. But this is
A systemic issue. He has laid off about ten people
He has to lay off a hundred.
Look at procap. They canned half the employees
anthony sionni
2:09am on Sunday, January 29, 2012
Taveras gave out pay raises and hires people at salaries of over a hundred thousand dollars
vinny coia
11:53am on Sunday, January 29, 2012
cicilline should be held accountable for his deception and machinations . time should not lessen his destructive financial impact .
guy smily
12:23pm on Sunday, January 29, 2012
Cicilline gets full credit! He should be held accountable for all of it!
Odd Job
2:26pm on Sunday, January 29, 2012
Half the budget goes to retirees with their 6% colas. Ask them to help out..ha ha ha...too funny.....just kidding!
Jim Okolowitcz
10:47am on Monday, January 30, 2012
How come no one blames Buddy??
Bill Healy
12:08pm on Monday, January 30, 2012
It's difficult to blame the unions for asking for more and more, but the fault lies with politicians who crumbled under pressure to get re-elected and bought votes with promises (and the taxpayers money) they couldn't keep.
Seven decades of one party control isn't working. Get out and push for the checks and balances of a two party general assembly. If we stay with the same old faces, can we expect anything different?
Charles Drago
6:59pm on Monday, January 30, 2012
__________________________
David Cicilline blames Buddy Cianci.
Then again, David Cicilline would blame Woodrow Wilson if he thought he could get away with it.
Apologies to apologist Tom Sgouros, but David Cicilline presided over -- and thus carries full accountability for -- the economic and, for that matter, educational ruin of Providence.
Enough is enough.