By Sarah Mupo -- February 9, 2010
Amid criticism from state legislators and public outcry over the new
mayor's refusal to give up his job as state representative, a key
legislative committee will begin discussions on a bailout plan
for the struggling city of Lawrence.
The city is proposed to receive a $35 million bailout, and the measures discussed would let the city take out millions in loans and assign an outside overseer to work on budget stabilization.
Lawrence is close to bankruptcy, and could run out of money by the spring without sizable financial help.
Mayor William Lantigua, who has raised opposition to giving up one of his two salaries, has opponents wondering if the bailout plan does not contain enough conditions.
Critics have said that a salary surrender by the mayor is necessary so that he may divert more attention to Lawrence's financial problems. In addition, they say that the city's finances should have firm supervision with a state-appointed panel giving the last word on all spending matters.
"Lawrence is a leaking ship, and we need to make sure we've patched the holes before we pour the money in," House minority leader Bradley H. Jones said. "In the past, the city has not shown itself capable of managing the situation."
The current bailout plan gives the state officials the right to take over the city's finances in one year if they determine Lawrence has not made great enough economic strides. A finance control board with far-reaching powers would then be appointed.
