Mayors fear layoffs, tax hikes due to budget crisis

Mayors fear layoffs, tax hikes due to budget crisis
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PROVIDENCE—City and town officials are making hasty plans to reduce their budgets after Gov. Don Carcieri proposed cutting about $55 million in state aid to Rhode Island communities.

Carcieri said during a television budget address Wednesday that state aid accounts for about one-third of the state’s budget, or about $1.1 billion.

Providence Mayor David Cicilline, whose city stands to lose $13 million, told NBC 10 he has asked department heads to look at ways of absorbing the cut in state aid.  He said the cuts do come with some relief from state mandates. (Watch Video)

Cranston stands to lose at least $5.2 million of promised state funding in the middle of its budget cycle. Mayor Allan Fung said Thursday that he might furlough city workers, ask unions for concessions or consider property tax increases.

Related Article: Carcieri proposes slashing local aid, raising taxes
Download: Governor’s Budget Address

Carcieri has proposed legislation he believes will save local governments money by reducing the cost of workers’ pensions and consolidating school services. But West Warwick Town Manager James Thomas said those changes probably won’t be implemented fast enough to help in the short term.

West Greenwich Town Administrator Kevin Breene said the governor’s proposals are tough, but necessary.  He said the cuts would affect employees of his town and the Exeter-West Greenwich school district.

“The unionized labor on the municipal level—whether it be teachers, firemen, policemen, highway workers, garbage collectors, clerks—I think they’ve had 30 good years where they’ve gained and gained and gained.  And now, we’ve gotten to a point where the taxpayers just cannot afford it anymore,“ Breene said.

Lawmakers in the General Assembly will start reviewing Carcieri’s budget Tuesday.  The governor is trying to close a $357 million budget deficit for the fiscal year ending June 3.

The Associated Press contributed this report.

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Reader Reactions

Flag Comment Posted by kc12 on January 11, 2009 at 11:42 am

RIjim, I do agree with you regarding our GA and local politicians. I do find many times that in RI they have a lack of courage to stand up and do what is right.  RI,unfortunately, has a sad reputation through out the country for being know for corruption, maybe, with the crisis we are in, they can wash their hands of business as usual and do what is right for the citizens of this wonderful state and change how we are viewed nationally.  If they do not, I fear many people and companies alike will continue leaving as the economy starts to turn around and look for a better opportunities in states where the citizens are protected against the spineless decisions that are made here.
These are very difficult decisions that need to be made, and I do not envy those that are in the position to make them, but that is why they wanted to be elected, to represent the people of the state, not just their own best interest.  Always remember, election time is always around the corner, if they don’t do what is right, they need to be voted out and make way for people who wanted to be politicians for the right reasons.

Flag Comment Posted by RIJim on January 11, 2009 at 10:46 am

I also want to thank MSP1 for the thoughtful post.  I am not out to bash union workers, but we are ALL getting squeezed here.  EVERYONE, including the unions, need to make some sacrifices in these tough times.  Which means pay and benefit concessions on the part of the unions, as well as a property tax increase for all of us.  Mr. Nee’s comments are typical of the posturing that precedes negotitations, but I think even he will come around when faced with the reality of the situation—the choice will be either wage and benefit concessions or layoffs, which no one wants. 

It is wrong to criticize the Governor when he is doing the job we elected him to do—which is to provide leadership, lay a plan on the table, and stand up for the taxpayers in our State.  Now it is up to our GA and Local politicians who I fear lack the courage to make the hard choices that are required, and will just pass the revenue shortfalls onto the property taxpayer, who can ill afford the tax increases that are surely coming.

Flag Comment Posted by kc12 on January 11, 2009 at 10:31 am

MSP1 Thank you for your clarification.  There are many of us that use a broad brush when voicing our discontent with the situation.  I do have several friends of mine who are teachers, they love what they do, they work hard at it, and do a great job! yet they do support what Mr. Nee has to say, and it truly is scary.( yes we are still friends smile  So to hear someone say what you said in your blog, is extremely refreshing.  A harsh reality is here, unfortunaly, for all of us.  There are many people who are loosing their homes, or are struggling severly to feed thier families, these people do not need to hear Nee get on TV and say some of the things he says, people rightfully get angry, and so, if he respresents a certain employment block, people will be angry at them as well.  He should understand this and get real with the rest of us.  Things need to change, and they need to change NOW.  He should pull himself out of the 80’s when the unions were in the land of milk and honey.  It is 2009, and things are very, very different.

Flag Comment Posted by MSP1 on January 10, 2009 at 7:55 pm

I know that many people are rightfully upset by what union leaders say.  Please do not have the misconception that all of the people they represent agree with their protests to cuts.  I am a teacher, yet am appalled by how greedy our union leaders make us appear.  We are not ALL unwilling to face the reality!

Flag Comment Posted by kc12 on January 10, 2009 at 9:07 am

The Govenor is absolutely correct in what he is doing, we need to balance a budget in a really devasted economy. This is not based on how the governor ran the state, this is national and interntational recession, Governor Carcieri is not responsible for this.  Why are some people so blind as to think they should not be affected by this situation, WE ALL ARE!  Union workers are not better than the rest of the hardworking people in this state.  GROW UP!  Mr. Nee had the unbelievable NERVE to say why not raise taxes!!  WOW!!  Now I know he is an idiot!  ARE YOU JOKING!!  Buddy, go back to school, and learn some economics.  I could not believe my ears, and quite frankly it is comments like that by labor leaders as to why unions are going down little by little.  The unions say the governor is trying to kill the middle class, what does Nee think he is doing by trying to raise our taxes!!  He does not even make sense!!  He is absolutly clueless.  With the economy like it is today, we are all taking less from our employers, most people in the private sector are glad to have jobs and are really pissed off attitudes like this, he wants us to give more to handout to the teachers!!!  I COULD NOT BELIEVE WHAT HE SAID.  NO NO NO MORE TAXES, YOU ARE RAPING US ENOUGH AS IT IS!
We need to stop this attitude like the taxpayers should be in awe of what these people do for a living, it is a job, like everyone else, and when you stop acting like you are better than everyone else, maybe some respect might come your way.  The general population has had enough of the better than you attitude, get real, come back down to earth and join in the global recession, like everyone else and stop acting like complete morons! 
Also, Mayors know they do not need to raise taxes, they can cut and cut some more.  There is still alot of fat in the cities budgets.  Some of these Mayors need to do the job they are paid to do and balance thier budget with the unbelievable amount of revenue they collect from property taxes.  Grow up and back bone and do what the govenor has been doing, even if some people are not happy( union workers are the only ones I can think of)  They don’t like it, get another job! (and Good Luck finding one!!)  Welcome to real world.

Flag Comment Posted by john on January 09, 2009 at 3:31 pm

Massachusetts Gov. gave up a pay raise…why can’t our RI Gov do the same….oh I get it..RI Gov doesn’t want to. Lead by example or is it just a bad example. I just don’t get it.

Flag Comment Posted by par on January 08, 2009 at 9:29 pm

It is devastating that a sitting governor would pass on the state’s ineffective economic strategies to cities and towns who fund the best police and fire departments in the country ( I do not work for either of these resources), and expect Mayors to do his dirty work of passing tax increovernorsases and firing/laying off personnel. Teachers, as well, often the target of misplaced tax payer anger, must endure, after years of education, the stigma of being “pink slipped.“ Shame on this worst of all governors.

Flag Comment Posted by lauriebatek on January 08, 2009 at 9:13 pm

Governor Carcieri obviously does not care about the well being of the children in our state because he wants to force hundreds of experienced teachers out of their jobs before the end of the school year.

Governor Carcieri obviously does not sympathize with the families of the station night club fire because he wants to defer their settlement.

Governor Carcieri obviously is more of a disgrace to this state than George W. Bush is to this country.

Laurie of Smithfield

Flag Comment Posted by djoyal1@cox.net on January 08, 2009 at 7:47 pm

I DON’T AGREE WITH THE ELIMINATION OF BUS MONITORS THROUGHOUT THE STATE. THATS ALL IT TAKES IS FOR ONE CHILD TO GET HURT OR KILLED FOR US TO REMEMBER WHY THE MONITORS WERE PUT INTO PLACE IN THE FIRST PLACE.WHAT WILL WE DO THEN GOVERNOR PUT THEM BACK AFTER ITS TO LATE.AS FAR AS GETTING PEOPLE TO VOLUNTEER FOR BUS MONITORS. WAKE UP AND SMELL THE COFFEE GOVERNOR. WHO DO YOU HAVE IN MIND GOVERNOR? DON"T EXPECT PARENTS TO VOLUNTEER. MUST FAMILIES NEED TWO INCOMES TO SURVIVE SO THEY HAVE TO WORK. AND DON’T EXPECT OUR SENIORS TO VOLUNTEER BECAUSE A GOOD PART OF THEM HAVE NEEDED TO GO BACK INTO THE WORKFORCE BECAUSE OF HOW YOUR REPUBLICAN PARTY HAS MESSED UP THIS COUNTRY.

          DOROTHY FROM JOHNSTON

Flag Comment Posted by djoyal1@cox.net on January 08, 2009 at 7:29 pm

I DON’T BELIEVE THE CUTS THE GOVERNOR PROPOSED ARE FAIR.MAYBE HE SHOULD TAKE A LOOK AT HIS OWN STAFF. DIDN’T HE GET A PAY RAISE THIS YEAR.HE SHOULD BE ASHAMED OF HIMSELF FOR TAKING MORE MONEY WHILE PEOPLE ARE LOSING THEIR JOBS AS WELL AS THEIR HOMES.AND KNOW HE WANTS US TO SACRIFICE MORE. MAYBE ITS YOUR TURN GOVERNOR TO SACRIFICE.

              DAVE FROM JOHNSTON

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