Blasting the General Assembly for passing a state budget that put Providence’s own budget in a deep hole, Mayor David N. Cicilline last week said he plans to raise taxes, cut staff and freeze wages while boosting health care costs for non-union city workers.
“The state budget passed last week will have a serious consequence on every Rhode Island city and town,” Cicilline said on Wednesday.
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The budget Cicilline expects to present to the City Council today would boost Providence’s property tax levy up to 5.25 percent. Some of that increase would come from growth in the tax base, he said, and a citywide revaluation will affect the distribution of any increases, but tax bills are expected to grow overall.
In May, Cicilline submitted a budget with no tax increase, but he said he was forced to change that plan because fiscal irresponsibility in state government has reached “crisis” proportions.
Cicilline blamed the state lawmakers for passing a budget that ignored virtually all aid requests by cities and towns. In particular, he blasted the General Assembly’s decision to level-fund state education aid.
“As a direct result of these decisions, Rhode Island leaders have forced a statewide property tax increase and a cut in municipal services,” he said.
Cicilline also said he was being forced to eliminate all unfilled, though necessary, city jobs, including a “substantial reduction” in the School Department. He also said he would impose mandatory furloughs of four days and increase health care co-share payments for non-union city employees.
The mayor also urged the City Council to pass a comprehensive pension reform package currently before the finance committee, which he said would ultimately reduce the burden on property-tax payers.
