No Budget for the City of Providence

No Budget for the City of Providence

The city of Providence is set to close 2010 without an approved budget—leaving one more potential headache for Mayor-elect Angel Taveras when he takes office next month.

Councilman John Lombardi described the situation as unprecedented saying it had “never, never” happened in his 26 years as member of the council. “We’re in worse shape than predicted,” Lombardi, who ran unsuccessfully for mayor this year, told GoLocalProv.

Proposed budget in dispute

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The city council and Mayor David Cicilline have been at odds over the budget since this summer, when the council passed a tax levy that increased the tax rate on residential and commercial properties and removed the homestead exemption for some rental properties—sparking an outcry among landlords. Cicilline initially threatened to veto the levy, but then let it become law without his signature. The council for its part accused Cicilline of giving out raises and creating new positions in his proposed budget.

Most recently, Internal Auditor James Lombardi released a report warning that the city had depleted its cash reserves and was behind on pension payments. Lombardi declared that there was “no question” the city would run out of money in 2011 while the mayor’s office denounced his report as politically motivated—coming about a week before the election.

Another issue for the budget: yet another estimated $30 million cut in state aid in the current fiscal year, which began on July 1.

Mayor's office calls on council to approve a budget

The council is holding its last meeting of the year tonight, according to the city clerk’s office, and the budget is not on the agenda. “My understanding is that they’re not going to pass a budget,” Lombardi told GoLocalProv.

In the absence of an approved budget, the city is operating based on the previous year’s budget, as stipulated in the city charter, according to Karen Watts, a spokeswoman for the mayor’s office.

Watts yesterday called on the council to pass a budget for 2011. “We’d be pleased to see the budget passed before the end of the year and we’re continuing to work with the City Council to that end,” Watts told GoLocalProv.

Council Finance Chairman John Igliozzi could not be reached for comment yesterday.