Gov. Raimondo: Leadership, decision-making will save Providence from bankruptcy

By Alana Cerrone

acerrone@abc6.com

@Alana_Cerrone

When former Providence Mayor Joe Paolino spoke with Governor Gina Raimondo about the city’s financial future, he mentioned its pension system is only 23% funded.

He asked whether she thinks the city should just declare bankruptcy.

Her words were hopeful that they don’t need to take that drastic step, but she did offer some strong advice for Providence city leaders.

"Providence should not go bankrupt. I’ve looked at the numbers. However, they can’t do nothing."

The comments were made during a segment of ABC6’s “In the Arena”, discussing the capital city’s financial future.

"Parks will close. Lbraries will close. After school programs will go away. I just don’t think we have to do that if we see some leadership now. It’s time for the mayor to start making difficult decisions about where he can cut."

One of her suggestions – cutting the school budget, which she says increases every year.

But Mayor Jorge Elorza says they’ve already done that, mentioning in a statement to ABC6 News that an audit last year found "Providence Public School District’s central office was already deemed lean compared to other New England school districts with similar demographics."

One of the district’s shortcomings? Over-staffing of clerical support. So, Mayor Elorza said he moved workers into the schools.

Another hot bed issue…the city’s pension. "The pension system is woefully underfunded…people are going to get hurt if they don’t make some changes to that system."

We followed up with Governor Raimondo Monday. She said her team meets with city officials on a regular basis to set up a plan, but ultimately it’s their call on what to do.

"At the end of the day it comes down to leadership and having the will to make tough decisions, which will put the city on a brighter stronger future."

In reaction to the leadership comments, Mayor Elorza said, in his statement, that his efforts with the school district as well as his 10-year plan should be seen as leadership.

He says his administration does not have a ‘kick the can down the road’ mentality.

© WLNE-TV 2016