Selecting the top news story of 2008 was an easy task for The Sun’s reporters and editors. The national economic malaise and its effect on our towns topped just about everyone’s list. After that, it was harder reaching a consensus.

Among those items in 2008 that were in contention but did not make the final cut: the home invasion of an elderly couple in Pawcatuck last January, the stump dump saga in Richmond, the long-awaited introduction of the MIOX drinking water system in Westerly and Pawcatuck, and the rebirth of the Ocean House in Watch Hill.

It took a few rounds of voting, but here are the Top 10 news stories of 2008 as selected by The Sun’s news staff.

1. Job cuts in the local economy

News of a weakening economy had been relegated to The Sun’s national news pages late in 2007 and early in 2008, but by March a wave of bad economic news crashed over our towns, and the headlines that weeks before had referred to “other people” were now about our families, friends and neighbors.

It started here in late February when Darlington Fabrics, a division of Westerly’s George C. Moore Company, laid off 31 workers. Weeks later in March, medical software imaging company Heartlab eliminated 29 jobs and, later that month, BlueSky Brands catalog company — formerly The Paragon — shut its doors, leaving 180 out of work.

In early April, Bradford Dyeing Association laid off 43 workers, and throughout the year news coming from the mill only got worse. On Nov. 21, the community fixture for nearly a century closed its doors.

In a sad irony, Foxwoods laid off 170 workers in June, shortly after opening the upscale MGM Grand. In October, the casino laid off another 700 employees, including the CEO of Foxwoods, and recently sought to trim its workforce even more by seeking volunteers for a buyout program.

Also in 2008, the planned closing of the Charbert Mill in Alton came to pass, plans to close the Garrity Industries plant in Ashaway were announced, and other employers such as Dodson Boatyard in Stonington, Mystic Seaport, and Davis-Standard in Pawcatuck were trimming their workforces.

By the end of the year, as the nation sunk deeper into recession, our region saw glimmers of hope. Former employees of the Bradford Dyeing Association announced they would reopen the plant and start operations next week on Jan. 6. Another catalog company, Gardens Alive, opened in the facility that housed BlueSky Brands, and in the most positive economic news of the year, Electric Boat landed a $14 billion contract to build eight submarines, leading to the hiring of nearly 700 employees.

2. Rhode Island’s burgeoning budget deficit

By the close of 2008, local residents learned that they would no longer be able to make a short trip to the Division of Motor Vehicles office on Franklin Street, but they could gamble at 3 a.m. on a Sunday at Lincoln’s Twin River if they wanted to. Such were the ironies brought on by the state’s ever-increasing budget deficit.

The legislature started the year fretting about a $151-million deficit and ended the year looking for creative ways to deal with a shortfall that had ballooned to $357 million.

Among those creative suggestions? All-night weekend gambling at Twin River and Newport Grand Slots in Newport, closing the DMV’s Westerly branch and letting private businesses take over bridges.

While it’s referred to as the state’s deficit, the problem is really the taxpayers’ problem. Taxpayers in the Chariho Regional School District, for instance, were told the state would contribute less to a much-needed construction project if the school bond was not approved this year, and cities, towns and school districts across Rhode Island are expecting much less in state aid in the upcoming year.

As a result, town and school leaders are expecting that local property taxes will shoulder more of the burden unless local services are reduced.

3. Westerly’s Tower Street School to close; fifth graders move to middle school

Westerly schools are in for considerable change this year thanks to decisions made in 2008.

With the district facing budget constraints and declining student enrollment, Westerly School Committee members opted to implement some restructuring they say will save money.

In early October, the school board voted to move fifth-grade classes from the district’s five elementary schools to Westerly Middle School and, later that month, supported shutting down Tower Street School in 2009.

The moves are expected to save a total of $1.37 million and provided school officials some flexibility as they enter the 2009-10 budget process, expecting reductions in state aid and increases in unemployment and pension costs.

While one elementary school will close, students and teachers from all schools stand to be affected. School officials said students will be redistricted among the remaining four elementary schools. The youths are expected to learn their new class assignments in January or February of the new year, while educators are currently selecting and receiving teaching placements for the 2009-10 school year.

4. Mageau: Charged with assault, sentenced to anger management and a lost re-election bid

It was the moment his political opponents had been waiting for: James M. Mageau’s hand slapping the handheld video camera of longtime rival Clifford L. Vanover.

Charged with simple assault by Charlestown police, the July 14 incident at Town Hall marked the apex of a year-and-a-half long war between Mageau, a first-term Democratic councilman, and a groundswell of residents organized to unseat him.

Earlier in the year, news out of Charlestown was similar in many ways to the previous year: the actions of 69-year-old Mageau and two other councilors gave local government its fourth Open Meetings violation.

But new battles brought new meaning to the term “political theater,” including a fight over the sale of balloons and flags at the annual Memorial Day parade; toggling over proposed amendments to the town’s charter; and a war of numbers over the long term cost of septic system upgrades at homes in sensitive coastal areas across town.

The hit on Vanover’s camera, however, brought local politics to a new low, and followed a June 4 melee in the parking lot at Town Hall — during which Mageau and Vanover accused each other of harboring, of all things, child pornography.

During Mageau’s trial in District Court, Charlestown Police Sgt. Jamie Quattromani and a Sun reporter took the stand as witnesses for the town — and after two days in Judge William Clifton’s courtroom, the councilman was found guilty of simple assault, but quickly appealed. He was ordered to undergo anger management counseling as a condition of his sentence.

Despite all the controversy and negative press, Mageau defiantly ran for reelection, and when Election Day came and went, he received the least number of votes — only 837.

Once gone, the newly elected Town Council fired Town Administrator Edward M. Barrett — who had shouldered criticism by the CCA for doing Mageau’s bidding — and set out to find candidates to replace him. A new administrator is expected in 2009.

5. The murder of Kyle Sheets in Mystic

An alleged, botched robbery and the subsequent stabbing of a boat owner rocked what should have been a typically quiet evening at a downtown Mystic marina on Friday, Sept. 26. Kyle Sheets, 29, who lived aboard the boat “Crucible” at Mystic Marine with his father, was rushed to Lawrence & Memorial Hospital but was pronounced dead on arrival.

The next day, Stonington police picked up two young suspects. Christopher Allen, 23, and Vincent Green, 17, of Mystic were charged with felony murder, home invasion, and robbery. Within a month, two more teens were charged in the case. Bryan Sutton, 18, of Mystic and Bruce Grisafe III, 15, were charged with felony murder and robbery. Green and Grisafe are half-brothers.

According to police reports, Allen and Green allegedly took plastic guns, tied bandanas over their faces, and boarded the boat looking for either money or drugs. Sutton and Grisafe stood on the dock as lookouts. When Sheets recognized the guns as fakes, Allen and Sheets fought, and Allen claimed he took out a knife to scare Sheets. Sheets was stabbed during the struggle, and the four suspects fled the scene.

All of the suspects have entered a not-guilty plea. Sutton is free on $250,000 bond, but the other three are behind bars while the legal system slowly works its way toward a resolution. Despite the fact that two defendants were in high school at the time of the incident, all four are being tried as adults.

6. Westerly voters support $30-million school bond

The second time was the charm for Westerly schools in 2008.

By a narrow margin, voters supported a $30-million bond for renovations at Westerly High School. While the same bond referendum failed in May 2007, it managed to pass by just 378 votes on Nov. 4.

With precinct totals close and 844 mail-in ballots uncounted, school officials and the community waited roughly two days for a final tally by the state Board of Elections.

The bond is projected to cost property taxpayers an additional 26 cents per $1,000 of assessed property value annually over 20 years. The calculation factors a 30-percent reimbursement from the state on the bond’s principal and interest.

The funding will cover work at the high school’s Ward and Babcock Hall buildings, including 10 new science labs, a fire alarm and sprinkler system in Babcock Hall, masonry work, replaced windows, technology infrastructure and wireless Internet and boiler and heating system upgrades.

School officials have projected the work will start during the 2009-10 school year and continue for several years because of simultaneous school classes and activities.

7. Chariho bonds finally pass

In November, voters in Charlestown, Hopkinton and Richmond passed a Chariho school construction bond for the first time since 1986.

Originally presented as a single ballot question totaling $26 million, it failed by 47 Hopkinton votes in November 2007. But tri-town voters considered the projects again, this time, presented as three questions for improvements to the high school and general campus; the middle school; and the Reaching Youth through Support and Education (RYSE) School.

Residents in each town approved $17.8 million for renovations and an addition to the high school, along with other repairs such as replacing the track, and another $2.7 million for renovations and an addition to the middle school. The projects are expected to carry a reimbursement rate of at least 56 percent.

Hopkinton voters, however, rejected the $4.4-million RYSE portion.

Four bond attempts had failed since 1986, as all three towns have to pass one in order for it to be valid. Only Richmond had passed each of the prior proposals; Charlestown and Hopkinton had rejected three each.

Typically, each town council endorses a construction project before it is sent to state officials who authorize it to be on a ballot. But this time around, the Hopkinton Town Council refused to support it, saying the district’s contentious funding methodology needed to change.

Officials in Charlestown, which has the lowest student enrollment, have adamantly opposed changes to the existing funding formula that requires each town to pay per capita, or per student.

8. Exit 1: A bright spot

As existing factories in the area have either shut down or laid off workers, new buildings were erected for incoming businesses around Interstate 95’s Exit 1 in Ashaway.

Early in the year, as construction was underway for some manufacturing companies that would later open, the Hopkinton Town Council approved a five-year phase-in of taxes for such businesses.

Manufacturers American Kuhne, Pro Systems and Renova Lighting have all opened facilities off Route 3. Hopkinton Industrial Park, so far home to seven businesses including Pawcatuck-based Hi-Tech Profiles, has also opened on Gray Lane.

And owners of the first business to arrive at the exit, the Hopkinton Golf Pavilion, are re-opening their doors. Last year the owners, Anthony and son Joseph Rando, closed the restaurant and driving range after just more than a year of operations, saying they wanted to wait for the area to develop.

Plans for a three-story retail and office complex have also progressed, although it has two more stages of review by the Planning Board. It has been pitched to include a 50-seat restaurant, professional offices and retail space on 3.4 acres at the corner of Wellstown Road and Route 3.

And a new proposal has been introduced for an undeveloped property, next to the Park and Ride: a 144-space truck stop, with a convenience store, restaurant and pumping stations.

Developers have said their proposal for Love’s Travel Stops and Country Stores, of Oklahoma, would be different from a typical truck stop. But residents and town officials say the plan is not what they envisioned for the area.

9. Who gets to argue before the U.S. Supreme Court?

In addition to local political turmoil, the year in Charlestown was dominated by a battle of wills — and some say egos — over who would argue a seminal case involving Indian rights before the U.S. Supreme Court.

The state and town were on the same side in Carcieri v. Kempthorne; both aimed to convince the high court to overturn a decision by the U.S. Department of the Interior to take 31 acres in Charlestown into trust for the Narragansett Indian tribe.

Oral arguments in the celebrated case, which is widely considered to impact tribes and states beyond Rhode Island, were set for Nov. 3.

But in the weeks leading up to that date, a public feud of unusual bitterness unfolded between Joseph S. Larisa Jr., the town’s assistant solicitor for Indian Affairs, on one side, and Gov. Donald Carcieri and Attorney General Patrick Lynch on the other.

Carcieri and Lynch wanted Theodore B. Olson to argue the case. A former U.S. Solicitor General with considerable experience before the Supreme Court, Olson was hired by the state at a cost of $200,000. But Larisa, backed by the Town Council, insisted on sharing the half-hour oral argument. The result was a flurry of motions before the Supreme Court, a war of words on talk radio and an eleventh-hour resolution at the Statehouse that saw Larisa back down.

Olson argued the appeal, but Larisa assisted with preparations and sat at the counsel table.

Larisa’s legal bills for 2008 topped $127,300, more than what the town budgeted for his work. Meanwhile, the Supreme Court has yet to rule in Carcieri v. Kempthorne; a decision is expected some time this spring.

10. Turnover on the Westerly School Committee

The Westerly School Committee lost two members in just as many weeks in the summer of 2008.

First-term Democrat Dominic DiFazio stepped down May 21, following a spate of legal trouble. And one week later, long-serving Democrat Margaret Stewart, a past chairwoman, surprised many by announcing her resignation for personal reasons.

The Town Council promptly filled the two vacancies, appointing Democrat Michael Ober, a past school board member, and then-Independent David Patten, now a Democrat, to seats.

DiFazio faced pressure to step down prior to his decision.

Westerly police charged him at the end of 2007 with unlawful appropriation, alleging that he bilked customers of his residential contracting business out of more than $1,000.

In February, DiFazio entered an Alford plea — meaning he did not agree to the facts as stipulated by the prosecution, but did admit enough evidence existed for a jury to convict him — and was sentenced to six months of probation. The court dismissed two separate felony charges of obtaining money under false pretenses over $500 at that time, and DiFazio also received a one-year not guilty filing for a separate, misdemeanor bad check charge.

DiFazio found himself back in court in late May after Westerly police charged him with misdemeanor domestic assault. The court handed down a one-year suspended prison sentence and one year of probation.