John J. Igliozzi is the Ward 7 councilman and majority whip for the Providence City Council, and also serves as chairman of the council finance committee. He has served on the council since 1997 and works as an attorney for the R.I. Department of Transportation.
PBN: The city has not yet approved a full fiscal year 21 budget, awaiting the state to set its own budget. How is the delay impacting city operations and services?
IGLIOZZI: The delay is impacting city operations and services in every way. Every day that goes by creates financial uncertainty. It is imperative for the state to finalize its budget so that we will know if it will fulfill its payment-in-lieu-of-taxes obligation and other commitments to the city.
We have a fiduciary obligation to the business owners and the residents of the city that we apply a fiscally conservative approach to the city’s spending and hiring practices. This is why the finance committee and I have amended the Compensation and Classification of the FY 21 budget, removing approximately $4 million in vacant and open-funded positions that the administration was requesting.
Since the finance committee meets year-round, the budget is a flexible document, and the committee can make the financially responsible adjustments to respond to the city’s ever-changing financial issues.
PBN: Municipal revenues across the state are down significantly as a result of decreasing tax revenue and state aid. What is your biggest concern with how continued low revenue will impact the city?
IGLIOZZI: One of my biggest concerns is that we have an obligation to ensure a financially stable city that maintains the quality-of-life services that both residents and business owners expect. Since other revenue sources such as occupancy tax, food and beverage tax, and speed camera revenues are at an all-time low, the city will need to make financial adjustments.
In order to avoid a decrease in essential city services, we need to prioritize public safety (our police and fire departments), Parks Department and the Department of Public Works to avoid any negative impact on those services.
PBN: What cost-cutting measures do you think have or will be most effective in reducing expenses amid this lower-revenue environment?
IGLIOZZI: I think that the city taking part in the federal furlough program has helped in many aspects, and by removing the $4 million in vacant and open-funded positions in the FY 21 budget gives us a savings of somewhere in the $6 million range.
Because of the tenuous nature of the city’s finances, there has to be greater oversight on the city’s day-to-day operations. The legislative body has to continue its strong oversight role of city spending, and we will challenge our departments to create savings without jeopardizing essential city services.
The committee expects the administration to work collaboratively with the legislative body to protect the city’s finances not just today but for the years to come.
PBN: What long-term financial effects will the pandemic have on city finances?
IGLIOZZI: Prior to COVID, the city of Providence was already facing a tenuous fiscal outlook. We have a $1 billion unfunded pension liability that continues to grow; we have a $1 billion unfunded OPEB [other post-employment benefits] liability that continues to grow; we have a shrinking tax base (approximately over 40% of property in Providence is untaxable), and the current pandemic has only exasperated these issues and has led to diminished revenue sources for the city.
The administration needs to get serious about our fiscal outlook and must immediately create a fiscally conservative 10-year financial plan to predict and provide financial stability. The plan must have strict controls on the city’s spending and borrowing in order to protect our businesses and residents alike.
The finance committee continues to meet weekly, even during this ongoing pandemic, for hours reviewing the city’s finances. As the chairman of the Committee on Finance, I welcome and ask business owners to come to our meetings and share their concerns and how we can work together to protect our city’s financial future.
PBN: What do you see as your role as finance committee chairman in helping advise and shape cautious fiscal policies for the city?
IGLIOZZI: Being a member of the legislative branch of government and the chair of the Committee on Finance, I, along with my colleagues, play a primary role in shaping the city’s present and financial future. We provide oversight and checks and balances on the administration and city departments, but also ensure that dollars are appropriated in order to provide for those departments who provide essential services to our businesses and residents.
Since the finance committee is always in session, we are constantly reviewing, advising and setting financial policies for the city. We have a financial team that includes the city treasurer, the city’s internal auditor and outside financial consultants who provide the committee and the council with guidance and assistance during these difficult financial times.
Nancy Lavin is a staff writer for the PBN. Contact her at Lavin@PBN.com.
