RI City Asking Permission to Borrow $12.6 Million
PAWTUCKET, R.I. (AP) – State lawmakers in Rhode Island are set to consider giving Pawtucket the go-ahead to borrow $12.6 million to resolve a cash-flow problem.
The city needs the money to pay bills and eliminate a $2 million deficit in the current fiscal year.
The House and Senate finance committees plan to review the proposal Tuesday at the Statehouse.
The city is seeking to issue tax anticipation notes, a type of short-term financing paid back with future tax revenue.
While city leaders have the final say on whether to borrow the money, they need the authorization of state lawmakers.
In the meantime, Pawtucket Mayor Donald Grebien has instituted a spending freeze and ordered a review of city operations to identify possible areas in the city budget that can be cut.
(Copyright 2012 by The Associated Press. All Rights Reserved.)