Schools
Schools to Seek Debt Waiver or Restructuring from City to Balance Budget
The School Committee approved a budget amendment that could balance their budget and calls upon the city to restructure or waive about $1 million of school debt.
Amidst admonishments of Mayor Allan Fung, the School Committee passed a proposed amendment to their budget that would just about balance it at a meeting at on Tuesday night.
The Committee has worked to close a $4.742 million budget gap primarily through $3.3 million in union cost concessions, $431,161 from 11 retirements and one resignation, as well as an additional $81,000 in state aid, according to Frank Lombardi, vice-chair of the School Committee. After their work they were left with about a $1 million gap to make up.
To do so, Lombardi proposed a line-item “debt restructuring” of $999,147 in the amount owed by the school department to the city.
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“We’re going to meet with mayor’s office to discuss either some sort of loan forgiveness or the mayor may be open to a deferral,” said Lombardi.
He said the committee would favor forgiveness of the debt.
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“That number is based on inevitability,” said Lombardi, “We have nothing else to cut.”
Lombardi said that Fung and the City Council had been notified and that they would be willing to negotiate with the School Committee on the terms of the restructuring.
Multiple members of the School Committee took a stand against Fung’s recent statements and actions.
Lombardi said he was "insulted and offended" with his name being personally mentioned in a letter to taxpayers alleging that the school system had a role in this year’s tax increase. He also voiced his displeasure, “that there was the use of the mail on city time, with city dollars, naming names,” by the mayor.
School Committee Chairman Andrea Iannazzi said she was disappointed that Fung rejected the proposal by the Cranston Firefighters to forego $15,000 in their clothing stipend to support a middle school music program.
“I ask that the mayor not stand in the way of the firefighters’ concession to support the middle school music program,” said Iannazzi.
The issue of the donation was raised at Monday's City Council meeting and city officials said the donation wasn't really blocked by the mayor's office and that the firefighter's union can donate the money directly to the schools. A story about that discussion will be posted later today.
