Providence's financial troubles may affect payroll
To mitigate the effects of what Providence, Rhode Island, Mayor Angel Taveras has referred to as a "Category 5 fiscal storm," the city recently passed a $613.8 million budget for the new fiscal year. The budget closed an estimated $110 million deficit, but the city will not see tax revenue from this immediately, which has raised concerns about how it will keep up with payroll, according to Go Local Providence.
"We are presently monitoring cash closely to make sure we have sufficient funds for employees to be paid," said City Treasurer James Lombardi in a statement quoted by the news source.
Lombardi offered assurances that the cash flow problems would not persist beyond next month.
At the beginning of August, the city is set to receive a total of $20 million worth of state payments in lieu of taxes and other forms of state aid.
"The city’s finances will be tight for many months to come, but we will continue to make payroll and manage bills," said mayoral spokesman David Ortiz, as quoted by the news source.
The city's former mayor, David Cicilline, blamed the financial shortfall on the burden of city employees' pensions, a $40 million reduction in state aid to the city and the expiration of federal stimulus funding, according to the Providence Journal.
"We are presently monitoring cash closely to make sure we have sufficient funds for employees to be paid," said City Treasurer James Lombardi in a statement quoted by the news source.
Lombardi offered assurances that the cash flow problems would not persist beyond next month.
At the beginning of August, the city is set to receive a total of $20 million worth of state payments in lieu of taxes and other forms of state aid.
"The city’s finances will be tight for many months to come, but we will continue to make payroll and manage bills," said mayoral spokesman David Ortiz, as quoted by the news source.
The city's former mayor, David Cicilline, blamed the financial shortfall on the burden of city employees' pensions, a $40 million reduction in state aid to the city and the expiration of federal stimulus funding, according to the Providence Journal.
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