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This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. I am
making such material available in my efforts to advance understanding of environmental, political, human rights, economic,
democracy, scientific, and social justice issues, etc. I believe this constitutes a 'fair use' of any such copyrighted material as provided
for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed
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Lombardi calls mayor’s budget plan unrealistic
01:00 AM EDT on Friday, May 18, 2007
By Daniel Barbarisi
Journal Staff Writer
Lombardi
PROVIDENCE — Councilman John J. Lombardi is firing out at the mayor’s budget in a letter to the
City Council’s Finance Committee, saying that his budget is unrealistic and instead proposing some
grand plans — including selling the city’s water system and eliminating future tax breaks — to fix the
city’s finances.
Mayor David N. Cicilline’s $625.9-million budget for the fiscal year beginning July 1 projects that the
state will give Providence $7.5 million in direct state aid on top of the $7-million increase the city is
slated to receive under the governor’s budget. It also banks on the General Assembly approving five
new programs that would give Providence a total of $10.5 million in new revenue.
Lombardi said that these are “unrealizable expectations” and that the mayor should have known better,
while noting that he has tried similar measures in the past.
“To put a budget of this kind together is foolhardy,” Lombardi said.
In the budget for the 2006 fiscal year, for instance, the mayor hoped to receive $11.3 million in
additional state aid that was never realized, and, in that same year, the mayor banked on receiving $4.5
million in payments from the state for managing the Providence water system, a proposal that was
rejected by the General Assembly. The mayor is again counting on that state payment in his proposed
budget.
Lombardi said that when, as predicted, the General Assembly rejects these measures, it will force the
council to enact a tax increase.
“I can’t see how not. This budget was voodoo economics,” he said.
He says that there are measures the city could take to raise money.
It could minimize or eliminate future tax breaks given to developers. It could sell the Providence Water
Supply Board, which would undoubtedly bring in hundreds of millions in cash.
It could modify its benefit structure with city employees, and it could switch to a biweekly payroll
schedule, Lombardi said. He also promoted floating a pension obligation bond to pay off the debt to the
city’s pension system.
“Everything needs to be put on the table,” he said.
Cicilline’s chief of administration, John Simmons, said that some of these ideas are already in motion —
the pension obligation bond, for instance — and others, the city is trying to enact.
On selling the water board, he said that the city has “been in discussion on that for months, if not years.
The question is, for what and to whom,” he said.
Any changes to employee benefits are subject to collective bargaining, which is under way, and he said
that while switching to a biweekly payroll system wouldn’t hurt, it also wouldn’t save much.
Council Finance Chairman John J. Igliozzi agreed with some of Lombardi’s suggestions, but said that
eliminating or publicly minimizing tax breaks is premature, and would rob the city of a valuable
economic development tool.
“We shouldn’t shut the door on that economic development tool yet,” he said.
Igliozzi said that after several weeks of reviewing the mayor’s budget, he has found that there are
places where the city can save — although it may have to focus on its core services and cut back on
some popular but nonessential programs.
“I think the City of Providence… needs to refocus [its] efforts to going back to the basics, and
providing all the basic things a city provides. Some of the boutique items in the budget that provide
positive public relations for everybody may need to be looked at,” he said.
dbarbari@projo.com
01:00 AM EDT on Friday, May 18, 2007
By Daniel Barbarisi
Journal Staff Writer
Lombardi
PROVIDENCE — Councilman John J. Lombardi is firing out at the mayor’s budget in a letter to the
City Council’s Finance Committee, saying that his budget is unrealistic and instead proposing some
grand plans — including selling the city’s water system and eliminating future tax breaks — to fix the
city’s finances.
Mayor David N. Cicilline’s $625.9-million budget for the fiscal year beginning July 1 projects that the
state will give Providence $7.5 million in direct state aid on top of the $7-million increase the city is
slated to receive under the governor’s budget. It also banks on the General Assembly approving five
new programs that would give Providence a total of $10.5 million in new revenue.
Lombardi said that these are “unrealizable expectations” and that the mayor should have known better,
while noting that he has tried similar measures in the past.
“To put a budget of this kind together is foolhardy,” Lombardi said.
In the budget for the 2006 fiscal year, for instance, the mayor hoped to receive $11.3 million in
additional state aid that was never realized, and, in that same year, the mayor banked on receiving $4.5
million in payments from the state for managing the Providence water system, a proposal that was
rejected by the General Assembly. The mayor is again counting on that state payment in his proposed
budget.
Lombardi said that when, as predicted, the General Assembly rejects these measures, it will force the
council to enact a tax increase.
“I can’t see how not. This budget was voodoo economics,” he said.
He says that there are measures the city could take to raise money.
It could minimize or eliminate future tax breaks given to developers. It could sell the Providence Water
Supply Board, which would undoubtedly bring in hundreds of millions in cash.
It could modify its benefit structure with city employees, and it could switch to a biweekly payroll
schedule, Lombardi said. He also promoted floating a pension obligation bond to pay off the debt to the
city’s pension system.
“Everything needs to be put on the table,” he said.
Cicilline’s chief of administration, John Simmons, said that some of these ideas are already in motion —
the pension obligation bond, for instance — and others, the city is trying to enact.
On selling the water board, he said that the city has “been in discussion on that for months, if not years.
The question is, for what and to whom,” he said.
Any changes to employee benefits are subject to collective bargaining, which is under way, and he said
that while switching to a biweekly payroll system wouldn’t hurt, it also wouldn’t save much.
Council Finance Chairman John J. Igliozzi agreed with some of Lombardi’s suggestions, but said that
eliminating or publicly minimizing tax breaks is premature, and would rob the city of a valuable
economic development tool.
“We shouldn’t shut the door on that economic development tool yet,” he said.
Igliozzi said that after several weeks of reviewing the mayor’s budget, he has found that there are
places where the city can save — although it may have to focus on its core services and cut back on
some popular but nonessential programs.
“I think the City of Providence… needs to refocus [its] efforts to going back to the basics, and
providing all the basic things a city provides. Some of the boutique items in the budget that provide
positive public relations for everybody may need to be looked at,” he said.
dbarbari@projo.com
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Campaign for Justice
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