Cranston projects $9.9 million shortfall; council confirms Robert Storm as finance director

The Cranston finance committee heard that the city now projects a $9.9 million deficit for the fiscal year and voted to confirm Robert Storm as the city’s next finance director.

Acting finance director Michael Igo told the committee the projected shortfall through June totals about $9.94 million, made up of roughly a $1.625 million revenue shortfall and approximately $8.3 million in overspending on expenditures. “Projecting a $9.9 million deficit for this fiscal year,” committee members summarized during the meeting and Igo confirmed the projection on the record.

The figure follows an earlier use of fund balance: the city began the year with an operating fund balance of about $14.5 million after drawing roughly $6.5 million to cover prior gaps. Committee members and administration officials warned that continued use of reserves could affect future borrowing if a corrective plan is not implemented, though both Michael Igo and others said they would present steps aimed at stabilizing the budget.

School finance also drew scrutiny: Joe Belduchi, chief financial officer for Cranston Public Schools, told the committee the district’s federal-aid reimbursements lag, noting roughly a quarter of expected federal reimbursements have been collected to date. Committee members pressed for faster grant reimbursements and clearer timing for school-related revenue flows.

Council members and the mayor asked about cost drivers. Officials pointed to overtime and underbudgeted line items across departments. Igo said several budget adjustments were under way and that, if a deficit remained at year-end, the city would rely on fund balance to close the gap. He and staff also flagged that the administration will try to avoid further draws on reserves in the 2026–27 budget.

During the hour-long finance discussion councilors asked about a voluntary separation incentive being offered to some long-tenured employees. City staff said eligible employees were offered early-separation payments as an option and that severance or similar payments would be accounted for in a finance department line item labeled “severance” so departmental budgets would show favorable variances while the finance account would reflect the payout.

Separately, the council approved the mayor’s nomination of Robert Storm to serve as city finance director. Storm joined remotely, said he would focus on accurate budget presentation and labor-cost management, and the council recorded a roll-call vote in favor of his appointment.

What’s next: The administration indicated final budget decisions are being finalized and the mayor’s budget is expected to be submitted in mid-April; the finance committee said it will review the proposed 2026–27 budget with attention to overtime, contract spend and revenue assumptions.

Votes and formal actions: The council voted to confirm Robert Storm as finance director (roll-call vote: approval recorded by the clerk).