Local aid cuts leave town in pinch

Another town is feeling the pinch of the financial crisis.

Johnston is operating on a balanced budget but the town is forced to find ways to save money because of the proposed cuts in local aid.

Johnston's state funding was cut by millions of dollars this fiscal year and now they're exploring ways to make up the loss. But raising taxes, the mayor says, isn't an option. Members of the firefighters union met for a second time to decide what kinds of concessions to make this late in the year.

" I try to say to them, keep in mind, there are people that are out of work that are paying your salaries. They understand that time's are tough,” says Mayor Joseph Polisena.

In an effort to balance the state's budget deficit, Governor Carcieri cut Johnston's aid by $3.5 million this fiscal year. Now, after balancing the town's budget the mayor is back to crunching numbers.

"It's grossly unfair. If he said to us, next year you're going to lose $3.5 million, then we can prepare for that," says Mayor Polisena.

Lay-offs and furloughs are all on the table and ever municipal department could be affected. They haven't made a decision, but the mayor promises one thing, no new taxes.

" Many people have lost their jobs, are losing their jobs. You cannot go back and ask the taxpayers for anymore money," says Mayor Polisena.

All three town unions are discussing concessions, and they'll give their suggestions to the mayor this week. He'll then present those proposals to the town council.