No tax increase in Fung's $302.9M budget plan

15 positions would be left unfilled under plan; hearing schedule begins Saturday

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Mayor Allan Fung’s $302.9 million city budget plan for the fiscal year that begins July 1 includes no tax increase – but in anticipation of strained finances due to the current crisis, it does leave 15 positions unfilled and involve other cost-cutting measures.

“This has been the most challenging budget for me to put together. But I was determined to not add another penny to your worries this year. I know our residents and our businesses need help more than ever as people are stressed and out of work due to the pandemic … I want you to know right off the bat that I am not raising your taxes this year,” the mayor said during his final “State of the City” address, which he delivered from home on April 30 as part of a virtual meeting of the City Council.

The plan represents an increase of $4.8 million, or 1.53 percent, from the city’s $298.3 million budget for the current fiscal year.

In terms of state aid, it relies on the current year’s allocations – an approach that a budget summary says stems from a provision of Rhode Island General Law that “allows for the allocation of the same amounts appropriated in the previous fiscal year when the General Assembly fails to meet to pass a budget because of an emergency.”

“Our projections also consider the effects of the Covid-19 pandemic on the City’s revenue streams taking into account current and past collections,” the summary reads.

The mayor’s plan calls for a $168 million budget for Cranston Public Schools, a figure that includes a “probable increase” of $4.6 million in state education aid and a $400,000 increase in the local contribution to the district. In January, Superintendent Jeannine Nota-Masse presented a $169.2 million school budget plan that requested an additional $1.76 million from the city.

The budget plan includes no increase in the sewer rate and funds the police and fire pension fund at 100 percent of its annual required contribution or ARC, according to the summary.

During his address, Fung said the 15 positions that would not be funded under his plan are spread across “various departments throughout the city, including in police and fire.”

“This will save over $1 million in salary and benefits in this budget. The administrative staff will forego raises. But know that this is just the beginning,” the mayor said, adding: “If the state does not come through with our projected revenues to help our hurting residents, all options are on the table and we will have to seek concessions as well as further staffing reductions such as furloughs and layoffs.”

The mayor also called on the City Council to postpone pay raises for the next mayor and council – which were approved last year – as a “sign of solidarity to get us through the crisis.”

Elsewhere, the budget plan reduces projected revenue from the meals and restaurant tax by 20 percent, to approximately $1.8 million; accounts for increases in health care, waste disposal and other expenditures; and allocates $2.5 million for road work in the coming year, down from $4 million in this year’s budget.

The City Council held its initial public hearing on the budget Monday during a virtual WebEx gathering. No members of the public offered comments during the brief session.

On Tuesday, the full schedule of upcoming budget hearings – all to be held virtually through WebEx – was announced.

The schedule begins Saturday, May 9, at 9 a.m. with a number of department budgets to be reviewed, including the proposed appropriations for personnel, finance, information technology, community development, building inspections, senior services, CCAP, Parks and Recreation, city boards and commissions, canvassing, the City Council and the city clerk.

The hearings continue Tuesday, May 12, at 6:30 p.m. with the Cranston Public Schools budget. On Friday, May 15, starting at 9 a.m., the Finance Committee will review budgets for the executive branch, Law Department and Fire and Police departments.

On Saturday, May 16, starting at 10 a.m., the committee is slated to review the proposed appropriations for the Cranston Public Library, economic development office, Public Works Department, sewer enterprise fund and Planning Department.

A budget amendments meeting is scheduled for 6 p.m. on Wednesday, May 20, followed by a special meeting of the full council for budget adoption at 7 p.m. that night.

Following the release of the hearings schedule, Ward 3 Councilman John Donegan – who objected to the scheduling of Saturday hearings during Monday’s Finance Committee meeting – issued a statement critical of the adopted schedule.

“As I stated last night during Finance Committee discussion, I object to the Saturday meeting. Additionally, [Wars 1] Councilwoman [Lammis] Vargas and I both advised that we work during the week, and would have difficulty making a meeting during the day on Monday-Friday,” Donegan said. “Regardless of how many members of the public join the meeting, a budget hearing during the work day will make it impossible for working people to participate; that is at best an affront to transparency, and undemocratic.”

He adds: “I recognize that we must review the budget in a timely manner, and that the current circumstances make for an unprecedented scenario. I feel that the current schedule fails to balance the need for an expeditious process, with one that ensures transparency and public participation. I urge the body to reconsider the budget hearing schedule.”

The full budget document and hearings schedule are available on the city’s website, cranstonri.com.

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