Budget Commission Isn't the Work of 'Political Intrigue'

City councilors unanimously voted to table a resolution that would have altered tax collection schedules to help pull East Providence out of its .

It's no secret administrators are anxious to secure a stopgap in cash flow. They project the city will be broke by the end of January unless they secure additional Tax Anticipation Notes (TANs). The city's borrowing ability has been constricted by the latest ; Bank of America only lent $10 million leaving administrators scrambling.

After this morning's third meeting, members agreed to further study the impact of the proposal. Mayor Bruce Rogers said many residents would not be able to handle an extra bill, that some would be "forced out of their homes." 

According to City Manager Peter Graczykowski, it's likely the city will not run out of cash by the end of January. Administrators are currently shopping around to find the most affordable lenders with the lowest interest rates while calculating exactly the amount of TANs needed to float the city until March.

Councilor William Conley Jr. said state intervention was inevitable as prior city councils racked up millions of dollars of debt, citing 2008 as one of the worst years for East Providence's financial health. Councilors failed to heed the advice of bond rating company advisers.

"The point is that real progress isn't being demonstrated," he said, noting his proposed deficit reduction plan was ignored by his fellow council members. "We went from $1.2 to $5.2 million [in debt]. There's been no progress, it's gotten worse."

Dirty politics reaching up to the State House isn't in the cards, according to Conley. He urged administrators to take advantage of budget commission members' expertise.

"I loathe the loss of the autonomy... It is unacceptable," he said. "But if you want to understand...don't insinuate political intrigue. The constitutionality of state law has nothing to do with this disaster."

The city manager said he was "surprised" by the implementation of the budget commission at the time as administrators were originally given 120 days after the appointment of the to create a sustainable budget reduction plan. He does not anticipate the commission will be working in East Providence for long. Mayor Bruce Rogers said he was "actively working" with the commission.