NEW: Cranston Labeled a “Distressed Community”
Wednesday, February 01, 2012
The city of Cranston has been labeled a "distressed community" and is now eligible for extra state funding, according to Mayor Allan Fung.
"No receiver is coming in," Fung said. "Our operations are stable. Ours is just purely because of the property values. We've got plenty of cash flow."
Under state law, a city or town can become eligible for extra funding if they fall into the lowest 20 percent in three of four possible indicators: The indicators include: Tax levy to full value of property, per capita income, percent of personal income to full value of property, and per capita full value of property.
In the current fiscal year, Central Falls, North Providence, Pawtucket, Providence, West Warwick, and Woonsocket qualify for additional state aid.
During his State of the State address last night, Governor Lincoln Chafee's said municipalities are in "crisis" due in part to $192 million in cuts in the five years prior to his taking office.
The Governor proposed accelerating the education funding formula, which includes fully fund the second year of its implementation plus an additional $11 million for a total of $39 million in additional dollars going to public schools. That money would come from increased taxes.
“Cuts in state aid to cities and towns have not only led to higher property taxes and stifled job creation, it has also drawn resources from our schools,” Chafee said. “If we want our children to compete for the jobs of the future, they must have good schools. I am proud to announce tonight that my budget maintains my commitment to education, while also reducing the financial burden on Rhode Island property taxpayers. My budget devotes nearly $40 million in additional education funding to cities and towns.”
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Comments:
Wuggly Ump
10:25am on Thursday, February 02, 2012
Well Mayor since there is "plenty of cash flow" now would be the time to make sure the pensions are funded so the city doesn't have a future worries.
Wuggly Ump
10:26am on Thursday, February 02, 2012
Once the pensions are properly funded we can fund the schools and cut taxes.
David Beagle
10:43am on Thursday, February 02, 2012
Fung said the label comes as a result of decreasing property values in the city. How many tax payers had their property tax bills DECREASE at the same rate as property values? The city still gets its money, they just spend more than they take in.