Debt and Aid… Fixes for Budget Junkies

It’s impossible not to lapse into first-person voice when discussing such stories as this:

Governor Chafee is expected to sign legislation Wednesday giving East Providence its state education aid three months early so it can avoid default.

The Rhode Island Senate and House each passed bills Tuesday evening permitting East Providence immediate receipt of $12.57 million in state aid scheduled for April. Otherwise, East Providence would have run out of money on Friday.

Technically, the statutes allow early state aid to any municipality under a state-appointed budget commission or receiver when recommended by the director of revenue. Central Falls is under a receiver, and East Providence is under a budget commission, which petitioned for the legislation.

Having been a profligate spender in my youth — a condition from which I learned hard lessons and for which I’m still paying — I’ve been down the path that begins with debt and moves through advances on future income.  The common wisdom is that the state’s taking extreme steps, right now, to resolve underlying issues that will not need to be revisited anytime soon, not extending access to warning-sign financial maneuvers by which municipalities can continue on their habitual path.  Those of us who have experience manipulating our finances (as well as the people around us) see the state’s actions as a definition of the process.  This is how you get out of financial trouble in the future.  In other words, the habitual path has simply incorporated a pit stop, and “anytime soon” may be sooner than we think.

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