East Providence Councilors Face $3.9 Million Budget Deficit

East Providence's proposed budget has a $3.9 million deficit.

To get the city's finances back in balance, newly hired Finance Director Ellen Eggeman proposed cuts to services including closing two library branches and merging the Affirmative Action Office with Human Resources. Those changes were discusssed during a council meeting Tuesday night. She also recommended that business permit fees be increased and summer recreation fees implemented.

If implemented as proposed, the budget would increase the average tax bill for an East Providence homeowner by $115 per year.

According to Eggeman, the deficit has been caused by a variety of factors, including increases in pension costs, municipal employee salaries, workers' compensation payouts, retiree health care benefits and Blue Cross Blue Shield price hikes. 

Councilors were reluctant to consider cuts to the city's libraries after Eggeman reported the closing of the Fuller and Weaver libraries was one of the less "painful" areas to cut financially.

"Great communities have great libraries; fine cities have fine libraries," said Councilor William J. Conley Jr. "When a city falls into decay, the first thing they seem to desert is their library. It's the core of the community, where [people] can gather, share ideas. It really is an embryonic place for an enlightened community."

Councilor Michael DiGioia said his family utilized the library and many people in the community would be affected by the two branches' closing.

Library Director Eileen Socha said the department could function at the same level with $150,000 less in the budget. The finance director proposed a $700,000 reduction.

Conley also said he would be hesitant to cut aid to social services departments, such as the Affirmative Action office, in a time of economic stagnation.

"Dog officers and affirmative action. These are the areas we need when in a financial crisis," he said.

Elmer Pina heads the department and said there is "a lot more work to do" in the city, adding he is one of the only black male employees who works in City Hall. According to Pina, other department budgets aren't being as severely reduced compared to his office. Furthermore, he wasn't a part of the budget process, noting he had plans to apply for cost-saving grants.

'I had ideas ... I wasn't asked," he said.

Councilors also discussed the possibility of eliminating an IT director position but were wary of making the cut without a person to run operations.

A public hearing on the budget will be held at 6 p.m. on Friday, Oct 14.

Increases in budget are due to: