Chafee set to act in East Prov. after Bradley Hospital ultimatum
November 11th, 2011 at 3:05 pm by Ted Nesi under Nesi's Notes
By Ted Nesi
EAST PROVIDENCE, R.I. (WPRI) – The Chafee administration will likely make an announcement Monday regarding East Providence’s troubled finances, just days after Bradley Hospital issued the city an ultimatum for $4.6 million in unpaid bills.
“The Department of Revenue will probably have a statement on Monday” about East Providence, Chafee spokeswoman Christine Hunsinger told WPRI.com. She declined to offer further details.
East Providence ended its fiscal year on Oct. 31 with a $7.2 million deficit, and its deadline for giving the state a viable budget-balancing plan came and went on Thursday.
Department of Revenue Director Rosemary Booth Gallogly is likely to appoint a fiscal overseer, the first of the three potential steps the state can take to intervene in a community’s finances under the 2010 Fiscal Stability Act.
The fiscal overseer would have the power to “supervise and assist the municipality in all financial matters, review proposed contracts and obligations, approve the budgets of the municipality and its departments and develop a three-year plan for financial stability,” according to the General Assembly.
Treasurer sees more dominoes
East Providence would become the second Rhode Island city whose finances are under state control, joining Central Falls, which filed for bankruptcy in August. Central Falls has a state-appointed receiver, the most extreme level of financial control. The city’s unexpected receivership filing in May 2010 led state officials to pass the new law.
During a taping Friday of WPRI 12′s “Newsmakers,” Treasurer Gina Raimondo said she’s concerned about the situation in East Providence, though she hasn’t studied it closely.
The city has not made the full contribution to its locally run pension plan for police and fire personnel in at least five years. The plan – which won’t be fixed by the pension bill lawmakers will debate next week - is only 48% funded with a $65 million shortfall, and assumes an aggressive 8.5% return on its investments.
“There’ll be other cities right behind them,” Raimondo said of East Providence. “They’re next week. Providence is in trouble, too.”
Bradley move would be ‘disruptive’
On Thursday, Bradley Hospital warned East Providence Mayor Bruce Rogers and other state and local officials that the hospital is preparing to stop providing special-education services to the city because of the school department’s failure to pay the $350,000 monthly tab. East Providence owed Bradley $4.6 million as of Sept. 30.
“We are nearly complete in our planning process and will be in touch with you shortly to update you on its status,” Mary Wakefield, the hospital’s chief financial officer, wrote in a letter obtained by WPRI.com. “We do not take this potential change in our relationship lightly.”
Bradley is part of Lifespan, the nonprofit hospital network that is the largest private employer in Rhode Island.
“The impact on these students and their families is foremost on our mind, and we will do whatever is necessary to ensure as smooth a transition as possible, although we are quite aware that termination is a disruptive and highly regrettable outcome for a program that was innovative and cost effective,” Wakefield wrote.
(photo: Lifespan Corp.)
Tags: bradley hospital, central falls, chafee administration, east providence, fiscal stability act, municipal, rosemary booth gallogly
Nesi's Notes covers politics and the economy in and around Rhode Island for WPRI.com. (Twitter: 
East Providence, Providence, Woonsocket, Pawtucket, Cranston, North Providence, and maybe a couple of others are all prime Chapter 9 candidates. Beyond that with no local pension reform even some of the considered to be well off communities will be in trouble.
These anchors will sink the state unless they DO declare Chapter 9.
Didn’t they vote in those union puppets via “Working Families RI”?
Too funny!
This five alarm fire has been in the making for years and came to the forefront of the pension debate over the past several months. However, the Treasurer and General Assembly have done virtually jack nothing as the pending reform legislation provides no relief to cities and towns, which cannot wait until next year for enabling legislation to free themselves of the stranglehold of collective bargaining contracts. Gov. Gump had a reason to be mad at the fact that this wasn’t addressed and obviously saw this coming. Time for an emergency special session. East Providence won’t be the last as Jim points out but unfortunatetly, looks as if the damage has been done. Watch what happens to our state’s credit rating and what will become an inability for any government entity within RI to raise capital, i.e. issue bonds.
Guys and gals, this is really bad and we’re just about done. Very sad.
I just received a document that the city of East Providence is planning to reduce the deficit from 7.2 million to 3.2 million at Tuesday city council meeting. Plus Charlie Tsonos did announce that the school department plans to pay the 4.6 million that is owed to Bradley Hospital.
Richard Brown is responsible for all of this malfeasance.
He also stole peoples land in New London-He should get the hitler treatment for what he has sown for us.
To anonymous,
Big deal, it was announced at the council meeting about the deficit dropping. The state wants things balanced, city and school. No one said the school department wasn’t planning on paying the bill to Bradley, they want their money and I don’t blame them. Read the letters in the Post from these people, they know the real story. These people spend time at meetings and do research. They aren’t just residents they are investigators and they are doing a fine job. They were all right months ago, this city is in big trouble.
What is happening in this city is no different than the rest of the urban cities and towns in this state. This will be the second of many dominos to fall. Not surprised by this city not making the pension payments. There needs to be hard cuts made to turn this around. Time to get real here people!
The city claims to be broke but theres a handful of people that are recieving raises ? the city clerk, the superintendant of public buildings,and some others! there are 5 managers in the water department to watch over less then 15 union workers! and people think the unions are the big reason why states, cities.and towns are going broke! the people who have managed the taxpayers money are the reason why! its the less then qualified managers who waste and continue to waste money, not the laborers, truck drivers and and other labor people. maybe its good that the state come in and then maybe they will look and find that the city of east providence needs to get rid of assistant’s to the Assistant’s to the Assistant’s just down size the people who make more then 50k a year with bennies not the 30k laborer whos actually doing work!!
I have to disagree with you as far as the city workers. There should be definate cuts there. Being norn and bred in e.p. I cant tell you how many times I have driven by a construction site and EVERY TIME there is 1-2 workers actually doing something, and 4 more standing around eating, smoking, or drinking coffee. Its a joke through out e.p. Give me a break. Its enough. There could be cuts across the board.
Ha if you think that is bad, Blue Cross has hundreds of high level members of management ( all making over 100k) each managing between 1 and 4 people. That is why your premiums are so high. Just check out there management team, their credentials are laughable. The good all boys are back in town!
Centralfalls,East Providence, Providence, etc. are only the tip of the Iceberg. The countries debt both federal,States,Corp.,Private is 56 Trillion dollars. How will we ever get out of this Mess. God help us.
I’m with Peter.
You’d think that way back when the school committee found a 6 million dollar deficit, that would be a red flag. But they continued with business as usual. If any corporation functioned as the city & school committee had, they’d be bankrupt in a heartbeat because they could not just go to the tqaxpayers & demand more.
Inept people working within an inept system.
Our school committee is a joke run by incompetant, greedy, selfish fools. They get high pay for low quality education.
I was pulled out of public school in grade school because the kids are freaks around here (this was in the 70′s–but not much has changed–just a new generation of swine)…I went back at Riverside Jr. High–the kids were scummy there, too-(would be funny when kids were there at 18 and STILL in the 8th grade and would drive to junior high!)-but will say the teachers were great.
The High School was a 3 year joke! Their guidance counselors were pathetic (they’d meet with you like 3 times a year and act like they know you, they have no clue about your educational goals and try to talk you into taking classes that don’t even pertain what you would want to be studying in college) the classes were totally boring, the vocational school taught me NOTHING. Getting to school for 7:30am didn’t help either…I had a teacher there that said “I don’t care if you learn or not…I still get paid and get 180 sick days….” So glad you care! Whoa? 180 sick days–for a job with summers off, all holidays, half days, and 3 weeks vacation during the school year? Maybe THAT’S where the 7.2 million deficit has been building from?
So much more needs to be done about the school’s bullying, teen pregnant issues along with early stage of substance abuse…The vocational school needs to be revamped and job skills should be introduced in the junior high levels. The current school committe needs to be wiped out and replaced…
The best thing about E.Providence is that it’s on the line with Haines Park, The Carousel and the Weaver Library…..
SHAME!!!! SHAME!!!! WE NEED TO GET RID OF THE CIRCUS CLOWNS ON THE CITY COUNCIL ROGERS ROSE & KATIE. THEY NEED TO STAY IN HORTONS(ROGERS)ROSE FURNITURE(ROSE) KATIE SHOULD STICK WITH HER SINGING &WHATEVER!!
AS FAR AS THE SCHOOL COMMITTEE THEY ARE TRYING BUT I FEEL THEY DO NOT KNOW WHAT THEY ARE DOING MOST OF THE TIME!!!!
Blame, blame, blame, that’s all I ever hear, when we voted in these people they promised us he world, instead all they are doing is blaming the former committees we had before, well as I see it, they are all alike. Maybe instead of arguing an name calling. They should have done what they were voted in to do. I’m wondering if I can’t pay my taxes will they let me build up a huge bill, an then tell the city, I’ll pay, I’ll pay….it is a huge embarrassment for me to be living in East Providence…
The state would be wise not to consider supplemental taxes for East Providence residents.The state would be smart not to consider any ridiculous property tax increase to cover this.You will see a taxpayer revolt you will never forget.Unemployment in this city has to be close to 15 percent.There is no more money for the state to steal from the city taxpayers.The residents were foolish enough to vote in Rogers and Kleya.Those union fliers before the last election were all lies.To bad city residents fell for that garbage.
A few words tells it all – incompetence at the Polls – results? incompetence in Government – results? the mess you’re in.
Yeah, with having Obama and Chaffee in office, I think a written exam should be required before you can vote….Seems that only the “who you know” & the stupidity crowds are the only ones voting.
This can be fixed…
1. Layoff (permenently) 85% of all city employees.
2. Contract out the services needed… fire, police, teachers, etc.
3. Reduce all pensions significantly and eliminated COLAs.
4. When the court rules against the changes (in a year) ignore the court.
5. All elected officials should serve free… no compensation of any type.
YOU should run for EP Mayor!
watch out, we are about to get whacked with a special assessment. The behavior, however, will never change
Refuse to pay assesment or supplemental taxes.Politicans and Unions have been stealing from the taxpayer long enough.
If I remember the last city council meeting correctly not all of the city’s unions agreed to the savings offered from the new medical insurance plan. At least one union is still only paying some $30 a week for medical. I pay over $150 a week for my family plan. Also, I think there are way to many secretaries. At our company the lower supervisors lost that perk a long time ago. My boss does his own memos, payroll, answer phones, etc. Someone needs to look at how many secretaries there are and how to consolidate them. I also agree with the comments regarding people standing around. Do we really need all these dpw workers cause they plow snow in the winter. It’s time to reduce staff city wide and contract out most of the snow plowing. Still plenty of room to cut before we talk about a supplemental tax. Find out what every worker does and see who else does it. Workers putting in over 40 hours and not begging for extra money get to stay, the rest have to go. As soon as someone says ‘my contract says I don’t have to…’ get rid of them. Enough is enough for this Townie!!
So it has come down to this…a State takeover of our City.
When this new council and school committe were voted in, we had every right to be skeptical (given that the “Working Families Coalition”, a cover for big union interests, was backing them), but we also had every right to be optimistic.
The optimisim was quickly snuffed when they wasted months dealing with issues like name tags for city employees and time clocks, while our City was sinking deeper into a financial abyss. It was all capped by last minute scrambles during the final City Council meeting before the State deadline, where budget cuts were hastily made with little or no coordination or discussion with the School Committee.
This group has failed us miserably. A once proud City has been brought to its financial knees by the likes of Kleyla, Rose, Rogers, and yes, even DiGioia and Connolly who should have known better, done more, flipped over desks, and even resigned to get this issue on the front page of every newspaper in Rhode Island before it was too late. Alas, they all played along. And we didn’t even get the name tags.
Lou do you really think the current committees caused $7.5 million deficit? Be realisitic. I do believe they do not know how to recover from such a deficit but they certainly didn’t create it nor could they prevent what’s happening now. It was ineveitable.
Now lets see what former councilor will try to run again? He will tell everyone he can fix the problem, even though he’s one of many who put the city where it is today.
No, the current ones didn’t, but it doesn’t seem they are trying to do anything about it to fix it.
Like the rest of the country and our state, things have been running on empty for awhile–and the govt. won’t do anything to help things-except make cuts to human services for the communities–or not pay for the services rendered from the likes of Bradley Hospital..
Let’s merge like companies do–We’ll join Central Falls…We can be called “East Central”–they name makes no sense–and niether does our leadership!
Still amazes that when the city was 1 million in debt why no one spoke up?? Why is it now, millions of dollars later someone opened their eyes.
I used to be very proud to say I lived in East Providence, now that image has been tarnished because of lack of leadership in our local government to make the right financial decisions to avoid such a fiscal failure.
Please, we don’t even get the chance to vote for our mayor in EP, which is a bit strange…
We’re in debt because EP pays MANY of the school teachers and cops in our city WAY too much with little to show for it (Education at the high school is not very fulfilling and the guidance counselors don’t seem to give a crap, either)! It’s like what’s going on in Providence with the, (HAHAHAHA) pension “reform.”
7.2 million deficit? On what? Our roads are crummy, roads get flooded out like nobody’s business in EP, where is all this money going to? How do you not pay a hospital for services that help the community? Our libraries offer decent programs to the community, but they aren’t filled with recent book releases…
I just don’t see this 7.2 million that EP is in the whole with being put to good use in the city….
I can’t believe you people are this thick-headed and simply DUMB and uninformed about literally EVERYTHING that you talk about. Seriously, can anyone come up with a reasonable argument here, or does everyone have to push the FOX talking points about ‘crazy unions’ that are destroying America?
You should all be old enough to realize that nothing is ever that simple – either a solution (Destroy the Unions that have a STRANGLE-HOLD on America!!) or the causes of a problem (UNIONS have a STRANGLE-HOLD on America!!).
I’m really embarrassed that we Rhode Islanders are this stupid. Come on, people- smarten up!
-There’s enough blame to go around. Politicians bite… plain and simple. Saving money can easily be realized when everyone from the Federal Government, State Government & local Cities and Towns start cracking down on welfare fraud.
-Think I’m kidding. Go to any housing project in the dead of winter and see how many people have their windows wide open with kids running around in their underwear because the heat is cranked.
-I go home and tell the wife to put on a sweater to keep the heat down.
-I know unemployment is high, but that’s never mattered to some who simply don’t want to work anyway. Pop out a few more kids and get more State Aid. FROM YOUR TAX DOLLARS. I know, I know… I’m soooo mean!!!!
I totally agree – let’s blame the POOR!
If you added up all of the welfare benefits that we pay out, it wouldn’t even come CLOSE to the welfare that we’re giving to our richest citizens and corporations — they’re just harder to blame, because they’re usually well-dressed and driving a car that we wish we could drive, or living in a house that we wish we could live in….so I guess they’re cool (and therefore, untouchable and blameless).
After all, we need to give them tax breaks and coddle them, or they’ll take all of their jobs overseas, right?
“I know unemployment is high, but that’s never mattered to some who simply don’t want to work anyway. Pop out a few more kids and get more State Aid. FROM YOUR TAX DOLLARS”
—A lot of poeple in E. Providence f**k the system, are totally lazy, uneducated and do indeed keep having kids to stay on the dole. A generational trailer trash mentality in the city that is a bit disturbing.
Relax “Mr. Reason”,
-I’m not “blaming the poor” if you look at what I said, “some” not all. Unfortunately there are lots of people who need the assistance and help. Then, there are many more who are content to just suck the system dry. AND, I agree with you in regards to the rich or well to do. Time to start cracking down. I’m just suggesting a starting point that is well within the State’s grasp. They know who’s who with regards to welfare fraud. It’s not too tough to figure out.
-When was the last time you went in to a hospital emergency room. Do you think that all those people in there are actually paying for medical services they receive. I promise you they are not. And no… I’m not picking on the poor again, BUT, many of them don’t even belong in this country. Ut oh… I said it, immigrants. How dare I. Isn’t this country made up of immigrants??? Yeah, and it’s getting so much better year after year when we let more and more in and start letting them live of the Gov’t teet.
-Wake up. All I’m saying is there are lots of issues and lots of areas where money, substantial money, can be saved and instead of exploring those areas… we, as a society, choose to go after the “Big Bad Wolf”. It’s easier to yell “the sky is falling” than to actually look into why. The pension system is only the tip of the iceberg. Look at all the problems as to why this State, this Country, is bleeding out money and come up with a realistic comprehensive approach at fixing problems. “Government Control” has a poor track record of fixing things.
I love how there are so many Americans that can’t get medical care, yet illegal immagrants get things for free.
Hasn’t the USA the phrase to “Take care of your own?”
The real problem is all these high testosterone police officers in good ole EP…why do we need 4 officers to stop one car??? One to actually get out and do the work while the others just walk around like some big bad a**es…when most of these jokers are fat and over weight and couldn’t catch a crook if they had to….lets lay off some of these dead beat losers….why would you tell anyone you live in EP, EMBARRASMENT
Grow up loser!!!! What did you have a run in with one of those “fat and overweight” cops.
Let someone break into your house or steal something from you. You’ll be calling them too!!!
I hate people who bash the police because they are low life’s! ! ! ! Go beat your girlfriend or scam some pain kills off the scum bag down the road.
BRING BACK THE HEROS
Tony Carcieri, Santos, and Faria and Barbosa protected the kids and left with a BALANCED BUDGET.
LARISA, CUSACK AND PERRY saved the city from bankruptcy remember larisa’s no 10% tax increase sign and NOW thse clowns are letting it happen.
the LAST council ans school committee took office with a $5.1 million school debt and CUT CUT CUT to solve it.
these clowns give away the store.
what a mess. the other guys saved us from nackruptcy;’ these guys are putting us in it.
What are you smoking?????? Better get some air. You truly are one naive person!!!!!!!!!!!!
[...] Hospital roughly $5 million for special education services, and last week the hospital warned it’s preparing to end their [...]
I’m just courious about all these children the teachers send to Bradley Hospital, though. Are they using the facility like ridalin?
What is it? A child acts up, and BOOM! You need to go to Bradley?
Maybe it’s not the child with the problem–But the PARENTS may need to be sent to counseling and go to family & parenting training classes. Have you seen some of the people in Riverside that are parents?
It just may be the problem is the children in EP are receiving poor parenting and having to deal with lazy teachers–For niether parties don’t seem to know how to properly deal with children.