Chafee: E. Providence likely to get next level of state oversightDecember 19th, 2011 at 3:45 pm by Ted Nesi under Nesi's Notes, On the Main Site
By Tim White
PROVIDENCE, R.I. (WPRI) – Gov. Lincoln Chafee said Monday his administration is likely to appoint a budget commission shortly to oversee East Providence’s troubled finances.
The governor told WPRI 12 his administration is “very close” to making a decision about increasing its oversight of the city, which required the state’s backing last week in order to borrow $10 million from a major bank and avoid running out of cash. The city wants to borrow $20 million more next month.
“I think it’s a logical next progression to make better headway with our finances in East Providence,” Chafee said of a budget commission, adding that the question of whether to appoint one “is being discussed as we talk,” though there was “no definitive answer” as of early afternoon.
On Nov. 14, the Chafee administration named R.I. State Police Maj. Stephen Bannon as the city’s fiscal overseer, the least serious of three steps it can take to intervene in a city’s finances under the 2010 Fiscal Stability Act. The next step is a budget commission. The third step is a receiver, the role Robert Flanders holds in Central Falls.
More details from Chafee’s exclusive interview with WPRI 12 will air at 6 p.m. Monday.
• Related: Growing crisis in East Prov.; RI’s help required to borrow $10M (Dec. 16)
Ted Nesi contributed to this report.