Providence, RI - Rhode Island Governor Lincoln D. Chafee announced today that state Department of Revenue (DOR) Director Rosemary Booth Gallogly has appointed Major Stephen M. Bannon, Chief Administrative Officer of the Rhode Island State Police, as fiscal overseer for the City of East Providence. Major Bannon began his service today.
"As a former Mayor and City Council member, I understand the challenges cities and towns are facing, and I realize the importance of fiscally healthy municipalities to the overall wellbeing of our state," Governor Chafee said. "While East Providence has been experiencing financial difficulties for some time, recent payment problems have threatened vital city services on which city residents depend. As Governor, I am grateful that the Fiscal Stability Act allows the state to offer support and guidance to cities and towns that are struggling. This will be a collaborative, cooperative process with the best interest of East Providence residents at heart. I truly believe that state assistance will help this proud city develop a plan to achieve financial stability."
"The Department of Revenue will work cooperatively with the City Manager to ensure a viable city in the future," Director Gallogly said. "To expedite that process, I have asked Major Bannon, who I have worked with for many years, to serve as the fiscal overseer. He will be working with the Division of Municipal Finance, led by Susanne Greschner, and the Acting State Auditor General, Dennis Hoyle, to guide the city through its fiscal challenges."
The appointment by the state of a fiscal overseer is to ensure that the City of East Providence develops and implements a balanced budget including – but not limited to – the elimination of the cumulative deficit incurred by the schools.
The decision was made by Director Gallogly after weeks of reviewing the city's financial position and amid increasing concerns that the cash flow shortages were negatively impacting city vendors and potentially the continuation of essential city services.
The city qualifies for state oversight under the Fiscal Stability statute because it has a projected deficit and has experienced a recent downgrade by a national rating agency. The FY 2012 budget adopted by the City Council left an unresolved deficit of $3.2 million FY 2012 in the schools, and an estimated $7.3 million in cumulative prior year deficits which would be reduced by only $1.9 million in the current year if the school department lived within its budget expenditures. The fiscal overseer is the first level of oversight under the statute.
Major Bannon is a 24-year veteran of the Rhode Island State Police. He holds a Bachelor of Science Degree in Accounting from the University of Rhode Island and a Bachelor of Science Degree in Criminal Justice from Roger Williams University. Major Bannon is graduate of the Roger Williams University School of Law, is a member of the RI Bar Association and admitted to practice law in the United States District Court for the District of Rhode Island. Major Bannon is also a graduate of the Federal Bureau of Investigation (FBI) National Academy in Quantico, VA.
Major Bannon serves as the Chief Administrative Officer of the State Police, responsible for the personnel and fiscal management of the Division. These responsibilities include the management of the Rhode Island Law Enforcement Telecommunications System (RILETS) and the connection to the National Law Enforcement Telecommunications System (NLETS). Major Bannon has previously been assigned to all barracks, the Detective Bureau, Accreditation and Inspectional Services Units. He also previously served as the Liaison to the Department of Public Safety.