Mayor, Council at Odds Over Budget Cuts in Cranston

Strategic Insights -

Mayor Allan W. Fung's budget proposal, which included over 40 layoffs and a 5.46 percent increase in property tax levy, was rejected by the City Council's Finance Committee. The committee instead recommended no layoffs and a 4.75 percent tax levy increase, citing concerns about struggling residents and the need to negotiate concessions from unions. The move has put the mayor and council members at odds, with Fung accusing the council of playing politics and setting the city up for another deficit.

Key Takeaways:

  • The City Council's Finance Committee rejected Mayor Fung's budget proposal, which included over 40 layoffs and a 5.46 percent increase in property tax levy.
  • The committee recommended no layoffs and a 4.75 percent tax levy increase, citing concerns about struggling residents and the need to negotiate concessions from unions.
  • Mayor Fung and his administration are at odds with the council over the budget, with Fung accusing the council of playing politics and setting the city up for another deficit.
  • The full council is scheduled to vote on the budget on May 12.
  • The current-year budget deficit is estimated at $5.4 million, and the proposed police contract that was rejected last month would have provided $1.39 million in savings over three years.
  • The police union has declared an impasse and announced its intention to seek binding arbitration, making it uncertain how concessions will be negotiated.

Statistics:

  • 40: Number of layoffs included in Mayor Fung's original budget proposal.
  • 5.46 percent: Increase in property tax levy proposed by Mayor Fung.
  • 4.75 percent: Tax levy increase recommended by the City Council's Finance Committee.
  • $2.2 million: Amount of yet-to-be-negotiated union concessions recommended by the Finance Committee.
  • $1.2 million: Cut to the city's budget recommended by the Finance Committee.
  • $2.6 million: Amount of spending on a line item that would halt the layoffs, which Mayor Fung might be able to veto.
  • $5.4 million: Estimated current-year budget deficit.
  • $1.39 million: Savings over three years that would have been provided by the proposed police contract.

Sources:

  • Randal Edgar, "Mayor, Council at Odds Over Budget Cuts in Cranston," The Providence Journal.
  • "State law sets a 4.75 percent cap on local property tax increases for fiscal 2010," quoted in The Providence Journal.
  • "The police union has declared an impasse and announced its intention to seek binding arbitration," quoted in The Providence Journal.
  • The Providence Journal, "Council Rejects Police Contract, Crashes Budget Talks," April 22, 2009.
  • The Providence Journal, "Fung Gets State Waiver to Raise Taxes," April 29, 2009.