PROVIDENCE – The City Council on Thursday approved a resolution expressing support for Mayor Brett P. Smiley's effort to increase the total property tax levy in fiscal 2026 beyond the 4% maximum enshrined in state law, with the caveat that any potential increase not exceed 8%.
Smiley's administration had already submitted the request to the General Assembly for a one-year exemption to the cap.
The primary sponsor of the House version is Rep. Scott A. Slater, D-Providence, whose bill was referred to the Municipal Government and Housing Committee.
On the Senate side, the legislation was Introduced by Sen. Tiara Mack, D-Providence, and referred to the Committee on Finance.
No hearings have yet been scheduled.
Though not required, Smiley’s administration has said if the City Council votes in favor of the plan, it would improve the chances of the General Assembly approving the legislation. Plus, current bills will likely be amended to include an 8% maximum.
City officials agree that alternative revenue streams are needed beyond a spike in property tax revenue. However, the one-year levy exemption is likely necessary to tackle an estimated $10 million budget shortfall for fiscal year 2026, spurred in part by a settlement reached last November with the R.I. Department of Education to increase the city's allocation to public schools by $15 million.
Current projections show a fiscal 2026 budget deficit of $10 million. If trends persist, that gap could balloon to $85 million over five years.
City Finance Committee Chairwoman Helen Anthony in statement reiterated any flexibility given by Smith Hill doesn’t necessarily mean taxes will be raised to the maximum, calling exceeding the 4% ceiling "a last resort.”
“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,” she said.
Indeed, the City Council's resolution states it “will be deeply circumspect and diligent” while prioritizing “thoughtful cuts over residential property tax increases."
However, Councilor Oscar O. Vargas said his working-class constituents cannot afford any increase, most of which could come in the form of hikes in rent. He also questioned the wisdom of “giving so much power to the administration.”
“I have a feeling we are giving [the administration] a blank check,” he said.
But the city will need to raise revenues significantly to cover the current budget shortfall, said Councilwoman Jo-Ann Ryan, who called the agreement with RIDE "unexpected" and “draconian."
She said the City Council will be judged by Providence taxpayers.
“We have our own cap,” she said. “Or we won't get reelected.”
Christopher Allen is a PBN staff writer. You may contact him at Allen@PBN.com.
