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The verge of a financial breakdown
The verge of a financial breakdown
The script sounds familiar: a city on the verge of a financial breakdown, a mayor looking to move to [link widoczny dla zalogowanych] higher office, and accusations of a political cover-up of how bad the numbers really were.This was Providence three decades ago, in its worst fiscal crisis prior to today’s dilemma, which finds Mayor Angel Taveras staring at a 180-million hole over the next two years and critics pointing the finger at his predecessor, David N. Cicilline, now safely ensconced in Congress.
Back in 1981, the numbers, by comparison, seem quaint: a midyear budget deficit of 20.5 million, in a [link widoczny dla zalogowanych] budget of 150 million. Today’s budget, by contrast, tops 600 million. But the crisis threatened to plunge the city into bankruptcy, torpedoing the gubernatorial hopes of then-mayor Vincent A. Cianci Jr. and prompting a takeover of city finances by a coalition of business leaders and municipal finance experts.
Then, like now, years of financial neglect, unchecked spending and hiring, and insufficient revenues had conspired to [link widoczny dla zalogowanych] create the perfect fiscal storm. In both cases, says veteran public-finance expert Gary Sasse,[link widoczny dla zalogowanych], the trouble was exacerbated by “a lack of focus [by the mayor] on managing the finances of the city.”
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