BREAKING NEWS: Providence Deficit Totals $180 Million Over Two Years
Wednesday, March 02, 2011
Providence Mayor Angel Taveras this morning released the preliminary findings of a mid-year finance report that shows the city currently has a $70 million deficit and faces a deficit of $110 million next year.
Without “immediate remediation efforts” the city is expected to end the current fiscal year with a $29 million deficit.
And those numbers assume that there will be no mid-year reduction in state aid, which could increase the budget shortfalls.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTThe report was issued by a Municipal Finance Review Panel which Taveras convened by executive order soon after taking office. The panel’s report comes on the heels of the annual audit for the city, which showed that it had a deficit of $57 million in the 2010 fiscal year, which ended June 30.
“The findings of the Municipal Finances Review Panel lay bare the true extent of Providence’s financial crisis,” Taveras said. “When I took the oath of office on January 3, I made a commitment to be honest with the people of Providence about the problems we face. I also promised that I would not shy away from making tough decisions to put our city back on firm financial footing. We are taking immediate actions to make the tough decisions needed to move Providence forward. Our citizens expect and deserve nothing less.”
The full findings of the report are expected to be released tomorrow morning.
Members of the panel were: Director of Administration Michael D’Amico, former Rhode Island Auditor General Ernest Almonte, Acting Rhode Island Auditor General Dennis Hoyle, former Providence Finance Director Alex Prignano, and Certified Public Accountant Ken Richardson.
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