A group of mayors and town managers testified before the finance committee Thursday against the proposed reduction in the motor vehicles excise tax, and in favor of removing mandates on communities.

As part of his supplemental budget, the governor has proposed cutting $125 million in aid to local cities and towns. The cut would cost Cranston almost $7 million. As part of the proposal, Governor Donald Carcieri included enabling legislation to allow cities and towns to tax residents on the first $6,000 of value for their cars — which is, at this point, exempt from taxation.

The budget proposal, while unpopular with leaders of local governments, represents the decision of a governor with few choices.

The state has an estimated $219 million deficit that needs to be closed. Caricieri, as part of accepting stimulus funds, had to agree to a “maintenance of effort,” which largely restricts cuts to social services. Last fall, the governor agreed to a “no layoff” clause with the state employee unions, preventing him from cutting labor costs.

That leaves the state with few places to turn. Carcieri is intellectually opposed to raising broad based taxes. That leaves local aid as one of his few areas left to cut costs.

Most of the mayors from Rhode Island’s larger cities, with the exception of Warwick Mayor Scott Avedisian, were in attendance. City Assessor/Tax Collector Ken Mallette stood in for Avedisian.

Also in attendance was Mayor Joseph Polisena, who has been a vocal advocate for increasing – or at least maintaining – state aid to cities and towns.

Providence Mayor David Cicilline said the state needs to take “fundamental, bold action here in our state,” instead of passing the costs onto cities like Providence. Cicilline said that in order to deal with the budget reduction, he would need to layoff workers, close departments or increase taxes.

Cicilline said the state legislature should develop a template that would set guidelines and uniform standards for pension provisions, wages, health benefits and other terms of employment. That way, Cicilline argued, communities would eventually offer comparable benefit packages for workers.

Cicilline also floated the idea of creating a “metro district,” which would open the door to wide scale regionalization—a move that would arguably cut costs.

Cranston Mayor Allan Fung said that it’s unfair to cut funding for struggling communities like Cranston, arguing that he has already implemented cuts, concessions from unions and consolidations “that you’re seeing on the private sector side.”

Fung promised taxpayers that he wouldn’t issue a supplemental tax increase to make up for the cutbacks, should the legislature implement them.

Fung asked the legislature to remove mandates on communities, particularly the Caruolo Act, which allows school districts to sue municipalities for more funding.

“We all have to live within our budget, there has to be a better way,” said Fung.

Pawtucket Mayor James Doyle agreed, and called for school governance reform.

“It is inherently wrong to have an entity that doesn’t have the responsibility to raise the money to be allowed to spend the money,” said Doyle.

North Providence Mayor Charles Lombardi said the current system of government creates an adversarial relationship between the school departments and municipalities.

“You have a school department and you have a city, and its an ‘us versus them’ mentality. And it’s not healthy,” said Lombardi.