By PBN Staff
PROVIDENCE - Gov. Lincoln D. Chafee appointed Maj. Stephen M. Bannon of the state police to oversee the finances of East Providence Monday. The city is in the red for more than $10 million, according to a study done by state Department of Revenue Director Rosemary Booth Gallogly.
East Providence qualifies for state oversight, according to the governor’s office, under the Fiscal Stability statue, because it has a projected deficit and was recently downgraded by the ratings agency Moody’s.
Bannon, chief administrative officer of the R.I. State Police, will work to ensure that East Providence implements a balanced budget.
The City Council adopted a fiscal 2012 budget with a deficit of $3.2 million in the schools. And it retained an accumulated deficit of about $7.3 million from prior years.
“As a former mayor and City Council member, I understand the challenges cities and towns are facing, and I realize the importance of fiscally healthy municipalities to the overall wellbeing of our state,” Chafee said. “While East Providence has been experiencing financial difficulties for some time, recent payment problems have threatened vital city services on which city residents depend.