PROVIDENCE – Mayor Jorge O. Elorza on July 16 signed a nearly $540 million city spending plan for the fiscal 2022 year, according to a news release.
The current year budget is about 5.7% higher than fiscal 2021 but keeps all tax rates the same, relying on about $16 million in federal stimulus funds to offset anticipated losses in meal and hotel tax revenue along with income from some city fees.
Increased funding for the Police Department, including an extra $50,000 tacked on to what Elorza originally proposed to help advertise for a new police training academy, drew opposition from some City Council members, who faulted the lack of police reform included in the plan. The budget does include $600,000 for a new crisis diversionary program to improve its Public Safety Department’s ability to address and respond to nonviolent and noncriminal needs such as mental health and substance abuse.
The budget also more than doubles the spending for city department-run services to deal with homelessness and substance abuse, from $150,000 in the current fiscal year to $330,000.
The budget also includes $130.9 million for the Providence Public School District, which is separate from the city’s fiscal 2022 spending plan because the district is now under state jurisdiction.
The budget makes a $77.8 million payment to the city pension fund and includes a $100,000 set-aside for its rainy day fund.
Though the city expects to receive about $150 million in stimulus funds under the American Rescue Plan Act, only about $16 million is included in the fiscal 2022 spending plan to help balance the budget. Most of that spending will be determined with input by a newly appointed committee.
Nancy Lavin is a PBN staff writer. You may reach her at Lavin@PBN.com.
