PROVIDENCE, R.I. -- Sen. John J. Tassoni, a business agent for Rhode Island's largest public employees union, has parted ways with his employer: Council 94, American Federation of State, County & Municipal Employees.

Tassoni, who has thrown his name into the ring as a potential candidate for lieutenant governor, would not discuss the circumstances that led to his resignation on May 22, except to say in a telephone interview on Friday that that it was by "mutual agreement between both parties.'' He would not say if he was asked to leave or made the decision on his own, saying that both sides had agreed not to comment.

"I can't comment on anything. There was a mutual agreement between both parties,'' he said. "The issue is that me and Council 94 agreed mutually to part ways and that's the end of it.''

But he denied that his departure from the job stemmed from a reported dispute over the union's reimbursement for his cell phone expenses. He said he has two cell phones, one that he used for union business for which he was reimbursed, and another that he used for political business.

Council 94 president J. Michael Downey was unavailable for comment. Acting executive director Joseph Peckham had no comment except to confirm Tassoni's resignation. He said the job paid roughly $87,000, and he was unsure why Tassoni has publicly reported his compensation at $103,665 a year.

Just before issuing a formal statement on Friday, Tassoni, 50, a Smithfield Democrat who chairs the Senate Committee on Housing and Municipal Government, talked about his new business venture.

He said, "The statement I was going to issue is that I parted ways with Council 94 to start my own business. I started doing that today. It is called The Sentinel Group, and it is going to help small businesses to get ahead since we have no economic development in the state.''

With his past experience in the union and the private sector, Tassoni said: 'I think I have a lot to offer the small business, and there is too much red tape for small business to get to where they need to be...at least I can I help them go to where they need to be to start their small business.''

Tassoni is known for being outspoken on labor union issues. When he announced his interest in running for lieutenant governor if the incumbent, Elizabeth Roberts, makes a bid for another office, he said: "I worked for Amica Insurance for 10 years. I worked for private business. I went into the union. I'm well rounded."