State Officials Set to Take Control of City Budget

A fiscal overseer appointed by the state is ready to take charge of East Providence finances starting today, according to reports from WPRI.

The fiscal overseer is the first of three potential steps the state can take to intervene in a city's finances under the 2010 Fiscal Stability Act, according to reports.

For weeks, city officials have been ironing out a five-year budget deficit plan while City Manager Peter Graczykowski has been collaborating with the Rhode Island Department of Revenue. Consolidating city departments, reducing school staff and a potential contract negotiation with United Water has reduced some of the budget deficit.

City officials recently hired a consulting firm to , another measure to reduce outstanding debt, much of it stemming from the school department's special eduction services. , one the city's main providers, has been threatening to stop services, as the institution is owed millions of dollars.