Council predicts $80m in debt for RI communities

PROVIDENCE, R.I. - A new report predicts Rhode Island's cities and towns will be more than $80 million in debt collectively in the next fiscal year unless they make dramatic cuts.

The report by the business-backed Rhode Island Public Expenditure Council also says the shortfall could explode to a cumulative $425 million by 2014 for the state's 39 municipalities.

The report assumes expenses will grow twice as fast as revenues, based on the costs of municipal and educational services.

But the council said that even if they use budget numbers from just the past two years, when communities sharply cut back, the municipalities still have $35 million in debt next fiscal year.

The council makes several recommendations, including urging communities to share services and review their pension and health benefits programs.

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Information from: The Providence Journal, http://www.projo.com/

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