Farina Criticizes Fung’s Budget - Sparks Mayor’s Political Backhand UPDATED
Tuesday, May 05, 2020
The Farina for Mayor Campaign on Monday announced that Cranston City Council President Michael Farina is opposed to outgoing Mayor Allan Fung’s recently released budget.
“I am willing to take a fair look at all budget proposals however my early fiscal analysis of Mayor Fung’s proposed budget, [which is] set to take effect July 1, 2020, leads me to conclude that built into his proposed budget is a multi-million-dollar structural deficit," said Farina.
The budget policy positions announced by the Farina campaign are being challenged by Fung.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLAST"I know that the Council President is upset that I didn't endorse him after he sought my support, but ridiculous statements like this make me wonder if he really understands how to read a budget and why I am supporting Councilman Ken Hopkins to be my successor. I have seen the burden COVID-19 has put on our first responders, especially in terms of EMS, and actually increased overtime by a half a million dollars in this year's fire budget,” Fung told GoLocal.
“Additionally, we reduced the meals tax assumptions by 20% from the state's estimates for the year starting July 1st, which will be about two months into the reopening of the economy. I do not share Councilman Farina's bizarre expectation that fifty percent of Cranston's restaurants will not reopen. Councilman Farina is the type of old school politician who raises taxes when unemployment and financial stressors are at a boiling point for our residents. I'm glad he made that known now so the choice will be much easier for the voters of Cranston in this election,” added Fung.
Farina has a huge fundraising advantage over Hopkins. Farina has $90,310.30 cash-on-hand. Hopkins has just $21,485.24.
Budget Issues
Farina cited that Fung failed to account for the impact of the loss of revenues during the crisis.
"One example I’ve identified is that the Mayor’s budget forecasts only a small reduction in Meals Tax revenue. Realistically, in a post-COVID-19 Cranston, the City is likely to see losses in revenue from the Meal Tax in excess of 50% which is approximately $1 million in lost revenue and this budget does not address this shortfall based on the multi-phased opening of RI outlined by Governor [Gina] Raimondo," he said.
Farina’s campaign went onto criticize multiple other aspects of Fung's plan, “In addition, the administration’s budget assumes that there will be no additional overtime costs for our first responders? This is a wishful budget assumption. With a potential second wave of COVID-19 in the fall, this single budget item could easily result in a $1 million incremental expense not accounted for in Mayor Fung’s budget."
"Therefore, at a minimum, this results in a $2 million budget deficit the city and Cranston taxpayers will face next year. The administration’s budget does not adequately take in to account the potential expenses and financial requirements Cranston will face next year in relation to COVID-19 expenses. The first rule of budget construction is that one can never build a municipal budget on false hope. A responsible and fiscally prudent budget MUST be based upon actual facts and reasonable budget assumptions,” said the statement.
Farina said, “I was elected to lead and true leadership requires making hard fiscal choices and fact-based decisions. If Mayor Fung’s budget is passed 'as is' by the present City Council, such action may well require the incoming City Council and the next mayor to make the difficult decision on whether to propose major cuts in all City services; furlough and/or lay-offs of City employees; and/or enact a 'Special Tax Assessment' on the residents and taxpayers of Cranston. A big risk to put on the citizens of Cranston leaving them holding the bag.”
Farina Addresses Fung's Comments
Farina, when told of Fung's comments said, "Then why if first responder overtime understated based the actual spend for the past five years. I have no issue with him backing my opponent but financials are financials. If we spend over $5 million a year in overtime why is he only budgeting $4.5 million in a post COVID environment? His budget is just plain wrong. To boil it down to politics is avoiding his bad budget."
Monday night, Hopkins issued a statement in response to Farina's charges.
“In times of uncertainty, it is important that a leader keeps a steady hand. Though a difficult path for the economy on all levels of government may be ahead, it is important to lessen the burden for our citizens in any way possible. I will work with Mayor Fung and my fellow council members to conduct a thorough review of the budget. It would be irresponsible to comment on such an important matter for purposes of political posturing before we take into full account the potential impacts of our current situation," said Hopkins.
"That is what is expected of our leaders, and not a hasty criticism of the budget, as given by the city council president, in an attempt to utilize this moment for perceived political gain. This is not a time that tax increases upon the people of Cranston should be casually considered, as insinuated by the current council president in his attack on Mayor Fung’s budget. I can tell you this; Mayor Fung has had a decade long track record of fiscal responsibility. The people of Cranston are resilient, and I will continue to work to preserve the legacy of fiscal responsibility in the management of taxpayer dollars,” Hopkins added.
This story was first published 5/4/20 5:59 PM and was updated 5/5/20 at 5:52 AM
