PROVIDENCE – Mayor Brett P. Smiley on Monday laid out his 2025 legislative priorities, which will focus on narrowing the city's fiscal 2026 budget gap of at least $14 million by diversifying the city’s tax base.
In anticipation of submitting his third budget proposal since becoming mayor, enabling legislation will be introduced to the state legislature to allow the city to exceed the 4% cap on one-year increases to the total property tax levy.
In a press briefing at City Hall, Smiley said city leaders "need to diversify revenue streams beyond property taxes," but vowed “not to put this entirely on taxpayers."
Smiley could not disclose what level of increase property owners could be expected, but said the proposed one-time legislation will be open-ended. There are citywide property revaluations underway which must be finalized before the administration has a clearer picture of the fiscal 2026 budget finances, he said.
In addition, as recommended from last year's report from the City Council Special Tax Commission on finding new revenue sources, the administration will seek approval to levy a 7% sales tax on commercial parking lots and garages, which could raise an estimated $1.8 million next fiscal year and become a predictable revenue stream in future years.
The city had already implemented a freeze on hiring and overtime for the rest of the fiscal year. Smiley said the city may have to cut unspecified grant programs or institute layoffs, but is awaiting the outcome of the property revaluations expected later this month as well as the budget proposal from Gov. Daniel J. McKee.
The administration also wants its schools back. If approved, a request to the General Assembly would mandate the district be turned back to local control in July, well before the current timeline running through 2027.
Separately, the administration seeks a three-part reform to the state's Crowley Act governing state takeovers by instituting a state manager to vet school finances; amending the formula calculating so-called “maintenance of effort" to a baseline 20% on annual levy growth; and prohibiting education commissioners from the ability to withhold funding to school districts under state control.
The reforms would not assist Providence but would be advantageous to future school districts who are taken over by the R.I. Department of Education.
To generate an estimated $4 million toward the revitalization of the Superman building, other requests include asking state lawmakers to amend the Rebuild RI Tax Credit program by breaking out the sales tax rebate on construction costs that is currently included in the $15 million per-project cap.
Smiley said the city must do something to “finally getting Superman going...so it doesn’t continue to do meaningful harm to Providence.”
Because it is limited to the sales taxes paid on construction expenses, Smiley predicts there is an appetite among legislators to provide more assistance to High Rock Westminster LLC, the owners of the iconic and vacant building that for years has been “an anchor threatening to drag the entire downtown Providence down with it.”
And to incentive affordable housing development, Smiley will once again seek changes to the state’s 8% law, mandating the incentive can only be used for affordable housing – defined as 40% of the units being deed-restricted to 80% of area median income – and secondly, allowing developers of both new construction and commercial to residential conversions to be eligible for its treatment for a predefined period.
Smiley said he envisions downtown Providence in the coming years to “continue to evolve into a residential neighborhood.”
"We have a glut of commercial office space,” he said. “Some of it is never going to be rented ever again.”
Christopher Allen is a PBN staff writer. You may contact him at Allen@pbn.com.
