Lawmakers Push for More Help to Cash-Strapped Cities and Towns
Wednesday, January 18, 2012
With cities and towns struggling to pay bills and meet pension obligations, state lawmakers are lining up to offer support cash-strapped municipalities.
On Tuesday, the House and Senate gave final approval to bill that will bail out East Providence, which was expected to run out of money by Friday. The legislation gives the city’s budget commissioner the authority to certify to the state Department of Revenue that the city needs an advance of its education aid, and to determine the amount necessary. Under the legislation, if the state were to lose any interest by forwarding the advance, the general treasurer is to deduct that amount from the funds advanced.
According to a news release, the advance would be more cost-effective for East Providence than borrowing more tax anticipation notes, since the city’s bond rating was recently lowered. Under the legislation, the city will be allowed to receive a $12.6 million advance on its education aid. The money is not a loan, but an early payment of aid the city is already scheduled to get from the state during this fiscal year.
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State Representative Lisa Tomasso has also said she is committed to championing support for bills that will continue providing relief for both the taxpayers and individual municipalities.
“Between the pension overhaul and the passing of the budget, I have stood in support of anything that would assist the cities and towns in this time of economic stress,” Tomasso said. “It is imperative that we keep our eye on individual cities and towns and keep in mind that our decisions must not only help the state as a whole, but provide assistance to communities that are currently fighting to stay afloat.”
Tomasso said then pension overhaul passed last November will save the taxpayers millions of dollars. She said she supports the “sweeping changes.”
“Sweeping changes to the state pension system were absolutely necessary, but now we need to take a closer look at those pension systems within our own communities,” Tomasso said. “I fully support the new commission and their work, which hopefully set our municipalities on the right path toward financial stability.”
Tussling with Obligations
Tomasso also pointed out that she supported and enacted bill that permitted municipalities to require immediate payment of only late installments last year. The bill requires that a municipality may only impose an interest charge based on that late installment and not the entire payment.
“This law is a direct savings to the taxpayers of both my communities and others all over the state,” she said. “My colleagues and I came to the realization that the legislation in place at the time was unfairly taking money out of the pockets of our taxpayers. I supported it then, and I will continue to support future bills that will ease the burden on my constituents.”
The representative said she is looking forward to a new year where she can join her colleagues in putting a strong focus on good government and fiscal responsibility.
“As a former member of the Coventry School Committee, I know how much cities and towns are tussling with their obligations right now,” she said. “It’s important that as we move forward, this theme of supporting our local communities continues to be a prevalent topic in the current legislative session.”
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