Advanced search
11/4/2009

Caranci accuses Lombardi of budget fraud

Mayor dismisses attack as political

NORTH PROVIDENCE - District 1 Councilman Paul F. Caranci, who has criticized Mayor Charles A. Lombardi for this fiscal year's 17 percent tax increase, now accuses the mayor of "unabashed exploitation of the property owners," in his latest attack.

Caranci, a longtime council member, blames Lombardi, who was elected in 2007 to fill an unexpired term and re-elected last fall to a full four-year mayoral term, for the town's dire financial straits.

"I called for a reduction in what I termed an overly inflated budget rather than the pillaging of the taxpayers as proposed by Mayor Lombardi," Caranci said in a press release issued to The Breeze Friday, Oct. 30. "I stood alone in that fight at great personal expense as I stood alone in fighting the mayor's failed attempt at gaining General Assembly approval of a $1.50 supplemental tax that would have further exacerbated the taxpayers ability to afford their own home."

Asked to respond Friday afternoon, Lombardi said, "Where was he? He sat for 10 years on the council and he was mute? He sat back and did nothing on that council as the town accumulated a $5.5 million deficit. I guess some of his political friends have massaged his vocal chords."

Lombardi observed that Caranci was a member of the administration of former Mayor A. Ralph Mollis, who is now secretary of state. Caranci is employed by the Secretary of State's Office.

"He was rewarded for being mute with a $125,000 a year job in the Secretary of State's Office," Lombardi said.

Caranci argued that Lombardi "contractually increased minimum manning in the Fire Department by two men per shift (from 19 men and the chief to 21 men and the chief). He added new police positions to the budget. He funded a position (the finance director) that had been vacant for two years and originally proposed giving that vacant position a $9,000 raise. He inflated his high-level administration staff by creating the position of director of administration within the mayor's office. The total of these indiscretions alone cost the taxpayer approximately $400,000 per year."

"Despite presenting this information in paid newspaper ads and at the budget hearings, Mayor Lombardi refused to eliminate the positions saying that he presented a lean budget that was 'bare bones' and couldn't be reduced any further," Caranci said. "Since then, however, the director of administration quit and Mayor Lombardi said he would not replace him. The Police Department is understaffed by 14 positions and the mayor indicates that we can do without 10 of them and the finance director's position continues to go unfilled.

"Yet the taxpayers are paying for these services because Mayor Lombardi is taking their tax money and not using that money for the stated and intended purpose."

Lombardi Friday said Caranci is making "irresponsible, inaccurate statements."

"He has the audacity to ask how we plan to make up a potential $1.2 million and he questions why we have 30 unfilled jobs. Which is it? It would cost $1.3 to $1.5 million to fill those positions," Lombardi said. "If he caught me walking on water, he'd say I couldn't swim."

Caranci continued, "The mayor is collecting money that is based on a 'contract' with the people, the budget ordinance, and promises to use that money for a specific purpose. He is not using that money for that purpose and will have that amount of money available to use any way he sees fit - without approval of the taxpayer or the Town Council."

Caranci concluded, "In private industry this would constitute fraud. It is fraud in the private sector and it is fraud in the public sector. The only difference is that in the public sector it is accepted because it is the taxpayer and not the corporation that is being defrauded."

Caranci called on Lombardi to "either live up to the terms of the budget ordinance providing to the taxpayers the services that they are paying for or to return that money to the taxpayers in the form of lower taxes."