State actions helping ?E.P. deal with issues

East Providence has followed Central Falls down the path of fiscal disaster, finding itself with more than $10 million in debt as well as tens of millions of dollars in unfunded long-term liabilities. More

To continue reading this article, please do one of the following.



PBN Editorial

State actions helping ?E.P. deal with issues

Posted 1/9/12

East Providence has followed Central Falls down the path of fiscal disaster, finding itself with more than $10 million in debt as well as tens of millions of dollars in unfunded long-term liabilities.

Using the provisions of the Fiscal Stability Act of 2010, Gov. Lincoln D. Chafee appointed a fiscal overseer for the city in November, then in late December followed that up with appointing a five-member budget commission to oversee the city’s fiscal choices.

The next step, should East Providence’s administration (including elected and appointed leaders) and the commission not be able to set the city on a sustainable path, would be to appoint a receiver, who would be empowered to do whatever is necessary to fix the problem (think former R.I. Supreme Court Justice Robert G. Flanders Jr. putting Central Falls in bankruptcy as one example of potential actions).

East Providence Mayor Bruce Rogers has taken umbrage at the state’s intervention. His response indicates he is missing at least two important points:

• The state is involved because the city has shown itself incapable of solving the crisis by itself.

• Moody’s Investor Services downgraded the city’s bonds to three notches below investment grade, thus raising its borrowing costs.

By taking ever-more control of the city’s finances according to a proscribed path, the state is showing the markets that the situation is being dealt with, thus preventing contagion from infecting the rest of Rhode Island’s municipal debt. And, it is telling the city’s stakeholders that there are many difficult – but necessary – choices to be made in the near future. •

Calendar
PBN Hosted
Events

Join PBN for the best networking event and party of the winter - January 15, 2015 - the Book of Lists Party at the Providence Public Library. Reserve your spot by December 31st and get a holiday gift from PBN!
  • Best Places to Work
    Enrollment is now open for the 7th annual Best Places to Work program. Winners w ...
  • Manufacturing Awards
    Applications are now being accepted for the 2nd Annual Manufacturing Awards. Dea ...
Advertisement
Purchase Data
Book of Lists
Lists
Book of Lists cover
PBN's annual Book of Lists has been an essential resource for the local business community for almost 30 years. The Book of Lists features a wealth of company rankings from a variety of fields and industries, including banking, health care, real estate, law, hospitality, education, not-for-profits, technology and many more.
Data icons
Data can be purchased as single lists, in either Excel or PDF format; the entire database of the published book, in Excel format; or a printed copy of the Book of Lists.
  • Purchase an e-File of a single list
  •  
  • Purchase an e-File of the entire Book of Lists database
  •  
  • Purchase a printed copy of the Book of Lists
  •  
    National
    Local
    Latest News
    Advertisement