EAST PROVIDENCE — Quietly and with little fanfare, the tenure of state oversight in East Providence in the form of the presence of Municipal Finance Advisor Paul Luba is scheduled to come an end next month, marking the conclusion of the Department of Revenue’s five-year period of direct involvement in city affairs.

His contract is set to expire in September during a very precarious time when it comes to the current and future financial structure of the city. Mr. Luba is slated to leave not only during the Fiscal Year 2018-19 budget season, but also during a time when the council and Acting City Manager/East Providence Police Chief Chris Parella must adjust the city’s forecast to include the change in governance to an elected mayor, which will take place upon the November 2018 election.

“It’s a couple of months short of what would be ideal,” Chief Parella said of Mr. Luba’s potential departure. “It’s not an exaggeration to say we’re approaching one of the most challenging fiscal years and budget processes we’ve ever faced with the change in the form of government. There’s going to be some significant changes in how this place (City Hall) is structured. It’s not going to be an easy process by any means.”

Chief Parella said he has engaged both Mr. Luba and current DOR Director Mark A. Furcolo about continuing the arrangement on a monthly basis through the start of the new fiscal year, November 1. He said both seem amenable, though the specifics, like how much and the split of Mr. Luba’s salary between the state and city, have yet to be worked out.

“We haven’t figured out if we’re going to use the same contract or if anything will be different, but both of them seem to be receptive to Paul staying on for a short, extended period of time,” Chief Parella added.

State oversight originally began when then Governor Lincoln Chafee authorized then DOR Director Rosemary Booth Gallogly to appoint Rhode Island State Police Major Stephen Bannon as an administrator in November 2011. The next month, under the auspices of the Fiscal Stability statute, a budget review commission was installed including Major Bannon, former state Budget Officer and House Fiscal Advisor Michael O’Keefe and Diane Brennan, the City of Warwick’s Fiscal Report Analyst. They were also joined by then City Council President Bruce Rogers and then City Manager Peter Graczykowski.

The commission, as constituted with the three state appointees and two city representatives, remained seated until the spring of 2013 before initially taking its leave and returning every-day operations back to the municipality. However, upon Mr. Graczykowski's abrupt decision to place then East Providence Police Chief Joseph Tavares on administrative leave, once and current council president Jim Briden requested the commission return. Director Gallogly affirmed the ask, and the commission was reseated, eventually staying into September of 2013 until once again disbanding.

Mr. Luba was subsequently appointed after receiving the approval of both state and local authorities to perform the five years of lingering oversight by and consultation with the DOR.

In addition to his duties in East Providence, Mr. Luba has performed a similar role in Woonsocket. Both cities have paid 25 percent of his approximately $130,000 salary package with the state paying the other 50 percent.