Mayors fear layoffs, tax hikes due to budget crisis
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Cities, Towns Bracing For Cuts
City and towns in Rhode Island are making plans to reduce their budgets after Gov. Don Carcieri's proposed budget cuts.
Published: January 8, 2009
Updated: January 8, 2009
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.
Reader Reactions
No, I do not think that the Governors plan is right. This is a man who has spent the last several years blaming the states bad economy on state employees, as oppose to his poor stewardship. He has carried the failed philosophy of trickle down economics like most of his Republican counterparts. And now that once again trying to place all the wealth in the hands of a few has backfired, lets blame those state workers. He speaks to “You the tax payer” as if state workers are somehow exempt from taxes. This is a person who cried “We have to tighten up on state spending” while he tried to sneak a 12% raise into the budget for the top administrators in his staff. I have yet to hear him demand that the individuals that earn top salaries in state government help take up the slack in their very generous compensation packages. I hope all these cuts affect the judges, and “State” police. It seems these two groups are on the “Do not touch” list of “State” workers. Can you really justify the money they make. Other than the 24 week academy, the very expensive uniforms; like the $300 beaver skin hats and trying to be more mysterious than the C.I.A. What do they do that municipal departments don’t? It seems that everyone in the media is afraid to report when they do something wrong. Mr. Carceri should stop trying to use class warfare to get his point through. This is a state problem and EVERYONE should be asked to help. Enough of blaming this on state workers. I guess if he had the chance he would blame the housing crisis, the banking crisis, and every other problem on the workers of the state.
I agree with the Governor’s plan. The Legislature and the individual municipalities also have to show some leadership and not pass the buck to the taxpayer and simply raise property taxes to make up for the shortfall. We need to bring the bloated union contracts with their overly generous pension and health benefits back in line with what the rest of us have to pay for. I applaud East Providence for standing up to the unions, and the other municipalities should follow their example.
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