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Fri January 18, 2013
Moody's weighs in on Providence, East Providence, and North Providence
Moody’s Investors Service is giving Providence mixed comments on its fiscal condition.
Moody’s says an audit revealing a $15 million Providence deficit for the last fiscal year could hurt the city’s credit rating. But it says Providence now has a balanced budget, and it calls that a sign of progress toward restored fiscal stability.
Mayor Angel Taveras inherited a $110 million deficit when he took office in 2011. Moody’s says a series of previous deficits caused by state aid cuts leave Providence little room for error if other revenue gets squeezed.
What Moody’s does like is an influx of 60 million dollars to North Providence and East Providence. Federal authorities recently gave the ok for using part of the money to fund obligations in the communities’ locally managed police pensions. Moody’s says that could help the two communities’ credit ratings.