City Finances: More Oversight Coming
Monday, June 20, 2011
The Providence City Council has passed a series of ordinances designed to create more oversight and transparency when it comes to the city’s finances in response to an April report that was critical of the way previous administrations handled the city handled fiscal matters.
The report, titled the “Corrective Action Plan to Restore Sound Financial Management,” was issued by Gary Sasse and Internal Auditor Matt Clarkin. Sasse and Clarkin laid out in great detail much of what led to the city’s projected $110 million structural deficit, which has prompted the Mayor to lay off teachers and police officers and threaten to cut back on essential city services.
Sasse and Clarkin’s recommendations were to replenish the city’s “Rainy Day Fund,” form an Audit Committee to oversee accounting procedures, and institute mechanisms to ensure management compliance with the city charter.
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The ordinances passed the Council unanimously Thursday. City law requires the Council to pass ordinances twice and it is expected the 15 Councilmen will make it official at the July 7 meeting.
Council President Michael Solomon said the ordinances are a step in the right direction for the city of Providence.
“This legislative package implements several good government reforms to help prevent future fiscal crises of this magnitude,” Solomon said. “While we cannot control economic conditions or management decisions, we can implement a framework where there is transparency and a strong system of checks and balances.”
Taking Necessary Steps
The April report issued by Sasse and Clarkin was not only critical of former Mayor (now Congressman) David Cicilline, but also how he rolled out the issues to the council. Some Councilmen have said Cicilline left the Council completely in the dark about the city’s problems and have questioned whether he violated the city charter by borrowing from the rainy day fund without approval.
Council Majority Leader Seth Yurdin said the new ordinances will help promote a more open form of government in the city.
“Through this legislation the Council is building a more efficient, accountable, and transparent government,” Yurdin said. “We are taking the steps necessary to make the government that the people of Providence deserve.”
Can’t Repeat Mistakes
Sasse agreed with Yurdin. He said passing the ordinances will help the administration and the Council avoid the dysfunctional relationship over finances it had during the Cicilline administration.
“I think the ordinances are necessary so [the Council and the city] don’t repeat the same mistakes of the last administration.”
Sasse said the ordinances create more oversight and transparency when it comes to explaining the city’s fiscal situation.
“They represent best practices,” he said. “They should have already been in place.”
Luna: Ordinances Tie Up Loose Ends
Following the April report from Sasse and Clarkin, Councilman Miguel Luna was one of Cicilline’s most outspoken critics. Luna claimed the former Mayor may have actually broken laws in regards to the way he handled the city’s finances and called for a complete investigation.
Luna said the new ordinances are good for the city and they are “tying up, politically, some loose ends.” He echoed Sasse’s statement about avoiding the same mistakes twice.
“We have to make sure we don’t have the same issues we’ve had in the past,” he said.
Must Follow Through
But that doesn’t mean he believes the ordinances will solve every problem. Luna said without punishment for violating rules, ordinances are just words on paper that the Council votes to support.
“It doesn’t matter how many ordinances you have if you don’t follow them,” he said.
Luna said without consequences, everything is still left up in the air. Luna said it’s the consequences that will create a truly transparent government.
“If we want to wash our hands,” he said. “We have to start the water.”
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