(a)  The fiscal overseer shall report in writing to the division of municipal finance if the fiscal overseer concludes that the city, town, or fire district: (1) Is unable to present a balanced municipal or fire district budget; (2) Faces a fiscal crisis that poses an imminent danger to the safety of the citizens of the city, town, or fire district, or their property; (3) Will not achieve fiscal stability without the assistance of a budget commission; or (4) That the tax levy of the fiscal year should not be approved.

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Terms Used In Rhode Island General Laws 45-9-5

  • Budget commission: means the budget and review commission established under § 45-9-5 and § 45-9-6. See Rhode Island General Laws 45-9-2
  • Charter: means the home rule charter or the legislative charter of any city, town, or fire district. See Rhode Island General Laws 45-9-2
  • Director of revenue: means the director of the department of revenue. See Rhode Island General Laws 45-9-2
  • Division of municipal finance: means the division of municipal finance in the department of revenue or any successor department or agency. See Rhode Island General Laws 45-9-2
  • Elected chief executive officer: means , in cities and towns having a popularly elected chief executive officer, the popularly elected chief executive officer, and in cities and towns where there is no popularly elected chief executive officer, the president of the city or town council. See Rhode Island General Laws 45-9-2
  • Fire district budget: means the fiscal-year operating budget of the fire district. See Rhode Island General Laws 45-9-2
  • Fiscal overseer: means the financial overseer appointed under § 45-9-3. See Rhode Island General Laws 45-9-2
  • Fiscal year: The fiscal year is the accounting period for the government. For the federal government, this begins on October 1 and ends on September 30. The fiscal year is designated by the calendar year in which it ends; for example, fiscal year 2006 begins on October 1, 2005 and ends on September 30, 2006.
  • in writing: include printing, engraving, lithographing, and photo-lithographing, and all other representations of words in letters of the usual form. See Rhode Island General Laws 43-3-16
  • Municipal budget: means the fiscal-year operating budget of the city, town, or fire district, inclusive of the school department budget and all other departments. See Rhode Island General Laws 45-9-2
  • Oversight: Committee review of the activities of a Federal agency or program.
  • town: may be construed to include city; the words "town council" include city council; the words "town clerk" include city clerk; the words "ward clerk" include clerk of election district; the words "town treasurer" include city treasurer; and the words "town sergeant" include city sergeant. See Rhode Island General Laws 43-3-9
  • town council: include city council; the words "town clerk" include city clerk; the words "ward clerk" include clerk of election district; the words "town treasurer" include city treasurer; and the words "town sergeant" include city sergeant. See Rhode Island General Laws 43-3-9

(b)  If the fiscal overseer believes, at any time, that a budget commission should be appointed, the fiscal overseer may report that belief to the division of municipal finance.

(c)  If the fiscal overseer reports to the division of municipal finance under subsections (a) or (b), the director of revenue may immediately abolish the fiscal overseer and appoint a budget commission.

(d)  A budget commission shall have all of the powers and duties set forth in § 45-9-3 and § 45-9-6.

(e)  If a budget commission has not been appointed, and if the division of municipal finance determines that the city, town, or fire district has taken steps necessary to achieve long-term fiscal sustainability and no longer requires active state oversight, the director of revenue may abolish the fiscal overseer.

(f)  If the division of municipal finance notifies the director of revenue in writing that the city, town, or fire district is unable to achieve a balanced municipal budget, then the director of revenue shall establish a budget commission.

(g)  Upon joint request by a city’s or town’s elected chief executive officer and city or town council, or, for a fire district, the request of the governing body as established by charter, which request is approved by the division of municipal finance, the director of revenue, in consultation with the auditor general, may establish a budget commission for such city, town, or fire district.

History of Section.
P.L. 2010, ch. 24, § 1; P.L. 2010, ch. 27, § 1; P.L. 2014, ch. 31, § 1; P.L. 2014, ch. 33, § 1.