This report identifies the budget articles that affect municipal government and local school districts and analyzes the potential impact on local government. The full report is available here.
Over the last several years, both State and local governments have come under pressure to restructure government. The pressure has increased dramatically with the coming of the recession. With no end in sight to the fiscal problems facing governments, Rhode Island State and local administrations must continue to focus on solutions that will lead to long-term stability. Without substantive restructuring, local governments in particular will not be able support the current demands for services.
The FY 2009 Supplemental Budget proposed many changes which would begin to restructure government; many of these articles would substantially change the basic cost structure of local government. The proposed changes are not the only method to address the structural issues that exist at the local level, but they go a long way to addressing the type of policy choices that are necessary. A review of the budget articles shows that they provide local government either structural relief or the ability to make the necessary structural changes that will provide budgetary relief over the years to come. This analysis attempts to identify those changes and will discuss the potential impact.
The table below shows the various budget articles that have been introduced by the Governor in his FY 2009 Supplemental budget and have the possibility for potential savings for local governments and school districts.