‘People elected the governor not to be queen and choose to ignore existing law ... you cannot just ignore past precedent because we’re in a pandemic.’”

Mayor Allan Fung

Mayor Allan Fung has filed a lawsuit against the administration of Gov. Gina Raimondo, alleging the state has unlawfully withheld aid to Cranston as it continues without an approved budget for the current fiscal year.

“We need to get these dollars from the state,” Fung said Tuesday morning. “It’s wrong what the governor and everyone has been doing, basically bleeding cities and towns to death. Enough is enough. They have to follow the law.”

He added: “People elected the governor not to be queen and choose to ignore existing law. The laws that are on the books were put in place anticipating situations like this, and you cannot just ignore past precedent because we’re in a pandemic.”

The city is being represented by attorney Michael Lepizzera in the suit, which was filed Friday in Superior Court. The defendants named in the complaint are Raimondo, Director of Administration Brett Smiley and General Treasurer Seth Magaziner.

During the coronavirus pandemic and without an approved state budget, the Raimondo administration has altered the way in which some local aid funding is dispersed. The case centers on three sources of aid – so-called “Distressed Communities” assistance, reimbursement for the phase-out of the car tax, and payment in lieu of taxes, or PILOT, funding. The suit seeks to compel Raimondo’s administration to provide all three sources of aid at anticipated levels.

The three sources of aid outlined in the suit mirror what Fung and the League of Cities and Towns have previously called a “COVID Trifecta” that has affected Cranston and other communities in Rhode Island during the pandemic. That includes lower-than-anticipated car tax reimbursement and reduced PILOT payments, as well as the proposed “Distressed Communities” aid cuts.

In specific terms, Raimondo has sought to reduce funding for the state’s Distressed Communities Relief Program by half. The $12.4 million program is designed to assist communities with high tax burdens relative to the wealth of residents.

The city’s complaint puts the total amount of withheld aid at $7.5 million to date.

In a statement to the Providence Journal, Raimondo spokeswoman Audrey Lucas said: “The Governor has the constitutional authority, as well as authority under … the Emergency Management Act, to constrain spending in a time of emergency. That’s exactly what she has done. Further questions about this lawsuit should be directed to the Attorney General’s Office, who will be representing the State.”

Fung framed the legal action as a means of pursuing the interests of Cranston’s taxpayers and business community.

“We are, through the filing of this lawsuit, basically telling the governor, the treasurer, her staff that we need these dollars … A lot of taxpayers in Cranston are hurting, a lot of business in Cranston are hurting, and we need that revenue, and that lawsuit is designed to fight for all of them,” he said.

Fung said other communities are exploring similar legal action through other counsel. He said there continues to be little clarity from leadership at the State House over when a state budget might be finalized.

“The General Assembly has refused to meet. There’s plenty of opportunities that they’ve had to help cities and towns, and they just have failed to do so,” he said.

In terms of Cranston’s cash flow, Fung said the recent issuance of car tax bills and the arrival of the Oct. 15 quarterly tax payment deadline have helped.

“When you’re missing millions from the state,” he added, “it hurts.”