Governor Carcieri Comments on Municipal Consolidation Discussions

10-02-2009

Governor Carcieri today commended the recent discussions by the mayors of many of the State’s cities and towns to consolidate and regionalize municipal services.

“This action by seven mayors of our cities and towns is a step in the right direction, and I am encouraged by the discussions to find cost savings through consolidating municipal services,” said Governor Donald L. Carcieri.

“My Administration has consistently called for these types of initiatives. Perhaps the magnitude of the financial challenges the state, and our cities and towns, face will take these ideas beyond discussion to meaningful action. I strongly support the efforts by our cities and towns that will make the delivery of government services more efficient and affordable.”

As part of the FY 09 supplemental budget, Governor Carcieri proposed a high-level Government Reform Commission to study the feasibility of consolidation and regionalization of services in the cities and towns. The commission, which was not taken up by the General Assembly, would have special powers and authority to make detailed recommendations to the General Assembly for a mandatory vote during the upcoming legislative session. Following that, if necessary, it will be brought to the general public as a referendum during the next election.

“The time has come to get serious and decide once and for all if we, as elected officials, have the will to come together, break down boundaries, and share our resources,” said Governor Carcieri.

“Revenues in the last fiscal year dropped by $450 million, and there is no sign of economic recovery in the near future. We must find solutions that will lead to long term stability through substantive restructuring and consolidation. We know there is a potential for our cities and towns to save tens of millions of dollars by consolidation and regionalization. The statewide bus contract legislation I proposed, and passed by the General Assembly, this year is anticipated to save $10 million annually.”

Governor Carcieri included a legislative package that would have brought significant relief to cities and towns, freeing them from unfunded mandates and sought consolidation of municipal contracts. According to a report by the Rhode Island Public Expenditure Council, Summary of FY 2009 and FY 2010 Budget Articles Relating to Structural Changes for Local Governments and School Districts, the Governor’s legislation would save cities and towns approximately $125 million annually. Other than the statewide school bus contracts, the General Assembly did not take up any of the Governor’s municipal savings proposals.

“In order to affect change, our mayors and town managers need the General Assembly to support legislation that will allow them to manage through this economic recession without raising taxes. The solutions are there, but we need to have the political will and courage to move past the talking stage to meaningful action,” concluded the Governor.