NEW YORK - Governor Lincoln Chafee on Thursday unveiled a legislative package of relief measures aimed to help several distressed municipalities in Rhode Island.
The move comes amid a tumultuous week in the nation’s smallest state. Capital city Providence on Tuesday received a three-notch downgrade of its general obligation bond rating from Fitch Ratings, to BBB from A, and Woonsocket said it would consider closing its schools in April.
Additionally, the state-appointed receiver for bankrupt Central Falls, Robert Flanders, has ordered the launch of a charter revision commission with an eye toward replacing the mayor’s position with a city manager. Flanders already has stripped the mayor and the city council of many of their powers.
Speaking at a press conference Thursday in Pawtucket, one of the state’s hardest hit cities economically, Chafee, flanked by several mayors, called for a series of relief measures. “The time of urgency has arrived,” he said, warning that other communities could follow Central Falls into bankruptcy court.
The state Legislature must approve the initiative, and unions are expected to contest it, as they did last year when Rhode Island overhauled its statewide pension plans.
The package includes seven bills, notably, offering mandate relief and binding arbitration overhaul for the four most distressed communities -- Providence, Pawtucket, Woonsocket, and West Warwick.
These communities were hit hardest by the loss of state aid to municipalities in recent years. According to Chafee, the state cut $220 million in municipal aid between fiscal years 2008 and 2011, but did not repeal costly mandates, forcing cities and towns to raise property taxes and slash services.
“This legislation provides mandate relief to control costs and reduce the need for additional property tax increases. It also limits the scope of binding arbitration in highly distressed communities to only salary-related issues, and places primary emphasis on a community’s ability to pay when deciding awards,” Chafee said.
