PROVIDENCE – Mayor Brett P. Smiley on Wednesday laid out his 2026 legislative priorities, which will focus on amending state reimbursement structures for revenue lost to tax-exempt institutions and placing a $25 million general obligation housing bond before voters in November.
Smiley is still not fully satisfied with the PILOT agreements that have been reached to date with the city's largest nonprofit organizations. So to increase the property tax revenue being lost, the city is requesting legislation from the General Assembly increasing the payment-in-lieu-of-taxes reimbursement rate from 27 to 30% of foregone revenue.
In a press briefing at City Hall, Smiley acknowledged nonprofits are vital employers in the city, however, the 27% rate has been fixed since 1986. By contrast, Connecticut currently reimburses 77% of lost tax revenue to its municipalities, he said.
“It’s past time that starts to move up,” he said.
In addition, his administration will ask for changes to the state income payroll tax to direct 25% of revenues from new employees hired at nonprofits with which the city has PILOT agreements to its general fund.
“We want growth in these institutions to be good for the city,” he said.
In addition to the housing bond, Smiley said the city’s Affordable Trust Fund, which last year preserved more than 1,600 affordable homes, is nearly depleted and currently has a balance of less than $1 million.
The city's high level of low income and moderate income taxpayers has made the state’s Distressed Communities Relief Fund a “critical” program for Providence residents, so his administration is requesting the state budget fully funds the program, from which the city received $8.2 million last fiscal year.
Smiley’s administration, again, will be seeking legislation mandating that the state returns the school district to local control in July 2026.
Since the takeover, the city has increased school district funding to historic levels and has “continued to demonstrate effort in all the ways we have been asked to do so,” he said. “It’s time.”
There will also be a request submitted to the legislature enabling the creation of a Crook Point Bascule Bridge authority to help facilitate the transfer of the historic structure from the R.I. Department of Transportation to city control. The authority would be managed by a board and responsible for the development and maintenance of the bridge.
After community pushback, RIDOT abandoned initial plans to demolish the bridge, which Smiley said he doesn’t support.
“I’m doing this so it does not get demolished,” he said.
Before formulating its legislative agenda, Smiley said his administration held talks with state leaders to get a sense of “what is reasonable” given the state’s fiscal deficit.
“We recognize the state has financial burdens of its own,” he said.
Christopher Allen is a PBN staff writer. You may contact him at Allen@pbn.com.
