Commission to manage EP financial woes

EAST PROVIDENCE, R.I. (WPRI) - The state of Rhode Island takes an unprecedented action to fix one of its city's deficit.

A budget commission was appointed on Tuesday afternoon to manage East Providence's finances.

This is the second of three steps the state can take to intervene in a city's finances, the third would be to appoint a receiver like in Central Falls.

“This step will allow the state to further assist the City of East Providence and help it reach fiscal stability,” Governor Chafee said. I am confident that East Providence elected officials, employees, and taxpayers will ultimately view this as a positive and will welcome the establishment of the budget commission to assist in the development of a plan that resolves the prior year deficits, brings the current year into balance, and provides for structural balance in the future.”

• State may take over East Prov finances

The state previously appointed a fiscal overseer to help the city cope with a deficit that was once more than $7 million.

• Financial crisis worsens in East Prov.

The current deficit is estimated to be just over $1 million.

East Providence leaders claim the city was on the verge of solving its financial problems and they are not happy with the decision.

Mayor Bruce Rogers says the city may actually sue the state and tells Eyewitness News that he believes the decision was arbitrary, unfair and politically motivated.

"We're fighting to resolve this on behalf of our people, we're there, we're there - and they are not allowing us to do our job," said Mayor Bruce Rogers.