PROVIDENCE – Mayor Brett P. Smiley on Wednesday unveiled a $635.7 million fiscal year 2027 budget proposal, 1.75% more than the current year's spending plan, while maintaining existing tax rates and avoiding new fines or fee increases.
“This budget reflects a commitment to stability and service,” Smiley said in his annual address to the City Council.
Smiley said the plan was developed amid continued inflation, reduced federal support and rising fixed costs that account for more than 96% of city spending.
“Closing the budget gap in a year with historic inflation and high interest rates did not happen by accident,” Smiley said. “We examined every department to find ways to cut back without reducing core services.”
He noted that the flat tax rate was made possible by holding discretionary spending to a historic low and offsetting rising labor and school costs with internal savings, including renegotiated camera contracts, the elimination of rental costs at 444 Westminster St., and reduced operating expenses across utilities and services.
Overall expenses total $635.7 million, up from $624.8 million in fiscal 2026.
Fixed costs account for $613.9 million, while discretionary spending totals $21.8 million.
Salaries rise 4.4% to $171.2 million, employee benefits increase 0.7% to $167.2 million, and the city’s school appropriation increases to $149.6 million. Debt service rises 2% to $72.3 million.
Smiley said the city continues to operate under tight fiscal constraints, pointing to the expiration of American Rescue Plan Act (ARPA) funding and reduced federal support.
“Absent ARPA funding and with a reduction in federal support, we’ve learned to do more with less,” he said.
Despite those pressures, the budget maintains full pension funding for the 15th consecutive year and includes a $100,000 contribution to the rainy day fund.
Revenue projections show a 2% increase in the tax levy, along with gains in fines and forfeitures and departmental revenue, offset by declines in several state aid categories.
Housing remains a central focus of the proposal.
“The message I heard loud and clear from every corner of Providence was that our neighbors need financial relief,” Smiley said.
The budget includes $2.04 million in housing and human services investments, including rental assistance, eviction defense services and code enforcement-related housing stability programs.
Public safety funding includes emergency response equipment following the Brown University shooting, along with new dispatch and code enforcement positions intended to improve response times and oversight capacity.
The FY27 budget adds 11 full-time positions, including dispatchers, code enforcement staff and maintenance workers, partially offset by three eliminations.
The administration also submitted an updated Capital Improvement Plan proposing a $25 million bond for parks, public property, planning and public works projects across fiscal years 2027 and 2028.
The budget now heads to the City Council for review and must be approved by July 1.
"Through this budget we are proving that when the federal government lets us down – neighbors can look to local government to drive meaningful progress, deliver critical services, protect families and lay the groundwork for a better tomorrow," he said.
Matthew McNulty is a PBN staff writer. He can be reached at McNulty@PBN.com or on X at @MattMcNultyNYC.
