By Dan McGowan, WPRI.com Reporter
Published: October 31, 2016, 11:44 am Updated: October 31, 2016, 12:17 pm
PROVIDENCE, R.I. (WPRI) – Calling it Providence’s largest operating surplus in at least 20 years, Mayor Jorge Elorza announced Monday Rhode Island’s capital city ended the 2015-16 fiscal year $9.5 million in the black...
[However] Providence is still facing a $3.9-million cumulative shortfall...
Unlike an operating deficit, which only accounts for a shortfall that occurs within any one fiscal year, a cumulative deficit includes all deficits incurred in previous years. In Providence’s case, that means shortfalls during the 2011, 2012 and 2015 fiscal years...
Elorza has warned the city still faces massive out-year deficits, thanks in part to growing pension and healthcare obligations to retirees. As it stands now, Providence’s unfunded pension liability is hovering around $900 million and its other post-employment benefits (OPEB) liability is projected to be $1 billion...
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