Providence Misses Key Budget Deadline
Thursday, June 02, 2011
The City of Providence missed a deadline yesterday for resolving many of the big questions about how it will eliminate a $110 million deficit next year.
Late in May, the City Council set June 1 as the deadline for finalizing union concessions, state legislation to help the city deal with its fiscal crisis, and additional revenue from tax-exempt universities and hospitals. But many of those remain in limbo.
The city has yet to strike a deal with firefighters on how to save $6 million. Likewise, the General Assembly has yet to pass bills that would allow Providence to change retiree health care benefits and tax universities and hospitals at a lower rate—which combined could cut $37 million out of the deficit. And, so far, there have been no public announcements of any new agreements between the city and the tax-exempt institutions on additional payments in lieu of taxes.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTMelissa Withers, spokeswoman for Mayor Angel Taveras, said the city is still in negotiations with the city firefighters union. She said the city will make a $6 million reduction in the Fire Department budget one way or another. As for the General Assembly, she said “everyone” is working to get the support the city needs.
“We’ve been talking with the council regularly,” Withers said. “They will not be surprised that there's still some work to be done.”
Council members not worried—yet
Several council members yesterday did not seem too worried that the deadline had passed.
“We’re missing it by a couple of weeks. I’m not too concerned right now,” said Council President Michael Solomon. “If we couldn’t come to an agreement by the end of June, then I would be worried.”
But time is running out. According to the council schedule, a public hearing on the budget will be held on June 23 and the council has said it hopes to pass the balanced budget no later than July 7—immediately after the start of the new fiscal year. That leaves just weeks for the General Assembly to pass key legislation—when it hasn’t even decided what it will do with the state budget.
“I remain optimistic. I think people will come to the table, all of good will, and we will all buckle down and get to the task at hand,” said Councilman Luis Aponte. “At this point I am not worried but that is something that is looming in the foreground and we need to get to it.”
Although the deadline was missed, Solomon suggested it still served its main purpose. “It was just to get people moving—just motivate the urgency of the city moving forward,” Solomon said.
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