PROVIDENCE – City officials confirmed Tuesday the fiscal 2026 budget will not be finalized by the July 1 deadline.
"It's definitely not happening," said Josh Estrella, a spokesperson for Mayor Brett P. Smiley's office.
The first full council vote is now set for July 3 before a final budget vote slated for July 17.
The city charter stipulates that if the city council fails to pass the annual appropriation ordinance by the beginning of the fiscal year, “the same amounts appropriated in the fiscal year immediately preceding shall be available for each department, office and other agency of the city government … in accordance with seasonal requirements as determined by the finance director and approved by the mayor.”
Over the past two months, the Committee on Finance has reviewed Smiley’s $624 million proposal that was unveiled in April, which must receive a public hearing, now set for June 30, and two approvals from the full council.
On June 20, the General Assembly approved legislation to allow Providence to exceed the state 4% cap on property tax levy increases to up to 8% for one year, a major need for city officials to balance a fiscal 2026 budget while addressing a projected $25 million shortfall.
Without the tax legislation city officials had anticipated $7 million in budget cuts and the potential elimination of up to 10% of the municipal workforce.
While city employees will not experience the once feared layoffs or furloughs if the tax levy legislation had failed to pass, Estrella said that the issuance of quarterly tax bills are likely to be postponed until the second or third week of July, in turn causing delays in payments to some outside vendors and potentially payroll obligations to city employees.
The council plans to share any budget amendments with the public before the public hearing, according to City Council President Rachel Miller.
”It’s been a tough budget year,” she said, adding that it is her belief that paychecks to city staff should not be impacted if the current meeting timeline holds.
Smiley's proposed budget incorporates various tax and fee increases to address the budget gap, due in part to a $15 million settlement with the city’s public schools, which Estrella said could also be receiving city payments past schedule.
Miller declined to offer specific proposals but said the council is now working to craft amendments to “even out” some of the tax burden on constituents.
Estrella said Gov. Daniel J. McKee has assured the administration his intention to sign the tax levy legislation into law.
“We are still negotiating internally, but it's in the City Council's hands now," he said.
Christopher Allen is a staff writer for PBN and can be reached at Allen@PBN.com.
