Friday, March 14, 2025

At last night’s Committee on Finance meeting, Providence City Councilors amended a resolution introduced by Councilwoman Jo-Ann Ryan in support of state legislation which would allow the City of Providence to go above the state-mandated levy cap by up to an additional 4% for the upcoming fiscal year.  

The newly amended resolution urges caution and creativity as the mayor’s administration and Council work to generate new non-residential property tax revenue and balance the budget without disproportionately burdening the city’s working families.  

“It’s important to be clear that giving the City of Providence this extra flexibility doesn’t necessarily mean any taxes will be raised up to that maximum. It just means we have that option as a last resort,” said Finance Committee Chair and Ward 2 Councilwoman Helen Anthony. “At the end of the day, it’s the administration’s job to propose a budget and Council’s job to vet that proposal and either approve or vote it down. We are all committed to ensuring that no one group of residents, no one area of city services is asked to carry this load alone.” 

If passed, this resolution will serve as a formal request for the General Assembly to consider granting the city the option of a one-year exemption from the current levy cap, allowing for an increase over last year’s levy by up to 8%. The city will then decide as part of its annual budget process whether exercising that option is necessary to balance the Fiscal Year 2026 city budget. City Councilors view raising residential property taxes as a last resort, and are focused on working with the Rhode Island General Assembly to identify and pass enabling legislation to allow for new, sustainable sources of revenue.   

“The city is faced with significant financial headwinds. This resolution and the state legislation it supports will give us one more tool in our tool belt, should we need it, while we work collaboratively to deliver a balanced budget that reduces the negative impact on our residents,” said Councilwoman Jo-Ann Ryan, the resolution’s sponsor. “We are committed to doing the hard work to find a balanced approach to closing the anticipated gap, and to do that we need every option on the table.” 

The resolution was advanced as amended out of committee and will be voted on at next Thursday’s regularly scheduled meeting of the full City Council.