Taveras proposes ‘shared sacrifice’ budget

PROVIDENCE – Mayor Angel Taveras delivered his proposed 2012 budget to the Providence City Council on Monday evening, emphasizing the need for “shared sacrifice.”
The $616.7 million budget includes reductions across the board: schools, police and fire, as well as increased contributions from nonprofits.
For taxpayers, the budget outlines a real estate tax hike of 5.25 percent, which exceeds the state’s mandated 4.25 percent levy cap, to generate $15 million in new revenue for the city.
As for the cuts, Taveras highlighted the revised labor contract with Local 1033 that will save the city $26 million through pay cuts, increases health insurance co-pays and other measures, during the next four years.
The police and fire departments are also facing a $6 million cut, Taveras said while noting that there was room for negotiation on where the cuts will take place.
Current tax-exempt organizations will be asked to increase their current levels to $9 million; the city is supporting legislation at the State House requiring tax-exempt institutions to pay 25 percent of what their real estate taxes would be if they were not a non-profit corporation.
“We are hopeful that we might reach a negotiated agreement directly with our colleges and universities, but we will continue to fiercely advocate for passage of this legislation,” Taveras said, while noting that if they paid the full tax value on their properties, the city would receive $97.5 million.
“Our relationship with the tax-exempt institutions simply cannot continue on the path we are on and this budget reflects the reality that, moving forward, our city must be able to rely on these organizations for substantially more financial assistance.”
Taveras also outlined several new revenue generators for the city, including a resident overnight parking program slated to generate $1 million in revenue, increased dumpster fees and a $20 fee for mattress disposal. It also foresees taking in $2 million through increased parking enforcement and $300,000 in parking meter revenue by hiking the hourly parking rate by 25 cents.
The city also said it is seeking support from the General Assembly to amend its retiree health care benefits system to save $11.6 million.
“Let it be said that while some looked to Providence’s fiscal crisis and saw nothing but darkness and foreboding, we seized this opportunity to show that hard work and shared sacrifice made brought about Providence’s finest hour,” said Taveras while noting that the city will be continue negotiations with the union and begin to address the long-term pension obligations in coming weeks.