R.I. State Police “Oversee” E.P.

It’s not a state ‘takeover’ yet, but Major Stephen Bannon, R.I. State Police Chief Administrative Officer, has been appointed by Governor Chafee to “oversee” the financial situation in troubled East Providence. Bannon is a twenty-four (24) year veteran of the Rhode Island State Police. He holds a Bachelor of Science Degree in Accounting from the University of Rhode Island and a Bachelor of Science Degree in Criminal Justice from Roger Williams University. Major Bannon is also a graduate of the Federal Bureau of Investigation (FBI) National Academy in Quantico, VA. Bannon also serves as the Chief Administrative Officer, responsible for the personnel and fiscal management of the Division.

In 2009, State Police Captain Raymond Studley (an EPHS graduate) also served as the Interim Chief of Police for the City of East Providence Police Department during a time of unrest and turmoil for the city’s police. The city eventually hired Joseph Tavares of the Warwick, R.I. police department as its’ new police chief. The move didn’t sit well with local officers who cited a provision in their contract which called for promotions from “within the department” if all candidates for police chief were otherwise equally qualified. The union lost a court challenge and Tavares’ (an EPHS graduate) appointment as chief was upheld.

In a November press release, city manager Peter Graczykowski and Mayor Bruce Rogers welcomed the advisory overseer appointed by the state. “The City of East Providence and School Committee officials have been continuously meeting with the Rhode Island Auditor General and Director of Revenue, discussing the progress of the deficit reduction plan. The projected deficit is on the School side of the budget in both the current and future fiscal years. A final working document was submitted to the State on November 10, 2011. The plan includes the Fiscal Year 2011-2012 budget deficit reduction from $7,250,728 to $3,242,317,) said their release in part.

During its’ November city council meeting, members discussed the various ways inj which to close the city’s budget deficit. City manager Graczykowski told the council that in addition to cutting more city expenses, there could be one of three different levels of supplemental tax increases. The first option would be to increase the rate from 3.5% to 4.25%. This would cost the ‘average’ homeowner $60.61 and would raise an additional $1,036,000. The second option would set the increase at 4% which would mean an additional $45.98 to the “average” homeowner. The city would receive an extra $798,000. The third option would be a rate of 3.5% which would cost an average of $33.44 and raise $560,000. All of these options would have to be combined with more cuts and other funding sources to achieve deficit elimination.

The city is currently undergoing a management audit of both school and city budgets for the purpose of recommending further budget savings, if found. Prior audits of a similar nature did not produce any appreciable savings and highlighted school department “underfunding” by the city as an issue. “The state wants us to close the gap (deficit),” Graczykowski told the council. He also outlined a few areas of potential cuts in the city budget. “We can carry forward a $500,000 surplus and look at elimination of non-essential services,” Graczykowski said. One proposal would entirely eliminate city recreation to save $250,000. Another would eliminate city senior services for $149,000. Energy savings which have already begun are expected to save some $281,000 per year over the next three years. On the school side, it was projected that the school committee will be considering further cuts to technology and instructional supplies as well as cuts in the book account and the elimination of 24 positions. These additional school cuts would save approximately $400,000 more.

All suggestions to cut these services more were met with disagreement by several speakers who lamented the loss of city recreation or senior programs. At-large councilman, William Conley asked Graczykowski if all departments were “being looked at differently.” Graczykowski replied that “we have already made general cuts across the board and are eliminating vacancies. All departments are at a bare minimum,” he said. Conley, Mayor Rogers and others made it clear that the total elimination of recreation and senior services would most likely not occur. “There is no appetite for this. These actions are unacceptable,” said ward 4 councilman Michael DiGoia. “I am embarrassed that Major Bannon (of the state police) is here,” DiGoia continued.

Both city manager Graczykowski and city finance director Ellen Eggerman outlined a history of the city’s budget problems before they introduced state police Major Bannon to the council. “In 2003 the schools had a $2.4 million deficit which went to $2 million in 2004. The deficit was brought down to $1.2 million in 2006-07 but went up to a $5.2 million deficit in 2008.” said Graczykowski. Eggerman and Graczykowski told the council that the 2008 “increase was attributed to the then school committee making budget cuts without offsetting revenues”. Graczykowski went on to state that the “deficit grew to $6.1 million in 2009 due to faulty a faulty school district special education census, which didn’t account for 19 additional tuition students not budgeted for”.

“We have made some progress working with this school committee,” said Graczykowski. “There is potential to save $800,000 with a high deductable health plan for teachers. A proposal to close Watters School (in Riverside) would save $80,000. $50,000 in non-instruction supplies; $30,000 in non-public bussing and returning 10 tuitioned students to the district are all possible savings,” Graczykowski said. All of these new school cuts may bring down the deficit by about $1.1 million. For the city side of the government, numerous options are underway such as higher permit fees, field rental and use policy changes, fire rescue fees, eliminating Heritage Days, reducing libraries, moving the Municipal Court and further union concessions. “We can get the deficit to about $3.2 million as of now and this is why we have help from the state,” said Graczykowski. “So, we have an overseer. The city maintains authority, still, but all expenditures over $25,000 must be reviewed by the overseer (Major Bannon). The state has some concerns and they don’t want us to end up in the same place again,” said Graczykowski.