PROVIDENCE – When Providence Mayor Angel Taveras delivered his State of the City address this time last year, the city was $22 million short of closing a $110 million deficit, and it needed to find a way to spend less on its unsustainable pension system, and draw more from the city’s large, tax-exempt institutions.
“As I stood before you on Feb. 13, 2012, Providence was running out of cash, and running out of time,” Taveras said during this year’s address, held Tuesday evening (an embargoed copy of the text was released prior to the event).
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“Today it is my privilege to deliver a much more hopeful report on the state of our city: Providence is recovering,” he said.
Taveras said the city’s $110 million structural deficit has been all but eliminated, and he expects to end 2013 with a balanced budget. One of the reasons for that result is that after months of actuarial analysis, public testimony, and negotiations with unions and retirees, the city has arrived at a post-employment benefit reform plan that will cap pensions, eliminate 5 and 6 percent compounded cost of living allowances, and move retirees older than 65 into Medicare. Tavares said these changes will reduce Providence’s unfunded liability by an estimated $200 million.
And, he reported, the city’s major tax-exempt institutions have committed more than $48 million in new contributions to the city during the next 11 years. Taveras expressed gratitude to Brown University, Care New England, CharterCare, Johnson & Wales University, Lifespan, Providence College and Rhode Island School of Design, and thanked the General Assembly and Gov. Lincoln D. Chafee for their support in helping to reach agreements with these institutions.
“Make no mistake; we expect to face challenges in the months ahead. But every day, I am reminded that Providence is truly the beating heart of our state,” Taveras said.
“Signs of hope,” he added, are on the horizon, noting a reduced unemployment rate and a decline in foreclosure filings.
“We are already seeing signs of economic recovery. Projects representing tens of millions of investment are underway in the heart of our capital city, including the revival of the historic Arcade – America’s first indoor mall – into a mixed-use development of retail shops and micro-lofts; a project transforming the former Providence Gas buildings into residences; Johnson & Wales University’s construction of a new parking garage and physician assistant building; and the creation of six new retail shops on the ground floor of the Biltmore Garage on Washington Street,” Tavares said.
Also addressed in Tuesday’s address was the $40 million roads bond that was approved in November with nearly 90 percent support. The city will move forward with repaving more than 62 miles of roadway in the coming months and years, Tavares said. He also mentioned the city’s efforts to bring cargo cranes into Providence, a piece of the puzzle that he hopes will turn Providence’s working waterfront into a hub of the state’s economy.
Tavares reminded constituents that the city has been successful in attracting large conventions and events to Providence, and offers a variety of cultural and tourist events, which have also played a part in the city’s economy. Last summer, Providence’s hotel occupancy rate reached its highest level since 2004.
In the public safety arena, Taveras reported that crime rates in most categories have decreased or remain among the lowest in years. The city has tripled the number of neighborhood crime watch groups and has increased the availability of summer jobs and recreational activities through the Providence Dept. of Park and Recreation that will help teens stay out of trouble, he said.
On the topic of gun violence, Tavares said more work is needed, adding that he is committed to passing “reasonable, common-sense gun control legislation” that’s aligned with that of Massachusetts and Connecticut.
Tavares also announced that this year the city will use federal funds to conduct a police academy and hire up to 18 more officers. In addition, Providence will conduct a firefighter academy and hire up to 50 new firefighters – a measure that is expected to save up to $1 million by reducing overtime costs.
On the topic of education, Tavares said the city is still working to provide every child in Providence with a first-class education. The city has set a goal to have 70 percent of its students reading at grade level at the end of third grade by 2015. Currently, 46 percent of Providence’s fourth graders read at grade level.
“The ability to read on grade level is one of the greatest predictors of a student’s future success,” Tavares said. “Up to third grade, children are learning to read. After third grade, they are reading to learn.”
In 2012, Providence made gains in increasing sustainability by implementing its “Big Green Can” recycling program, which is expected to save $250,000. Since the fall, Tavares said the city’s recycling rate has improved by 67 percent. He also mentioned plans to convert vacant lots into urban gardens and implement a citywide biking plan and a pilot plan for composting.
“Almost two years ago, in my May 2011 budget address, I expressed my belief that together we would make history, saying, ‘As we move forward, let it be said of us that we came together and rose to the occasion. Let it be said that we set aside politics for the greater good. Let it be written that while others went into receivership, we solved our problems. Let it be written 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 brought about Providence’s finest hour,’ ” Tavares said.
“On behalf of everyone who has worked so hard and sacrificed so much for the city we love, it is my pleasure to extend a heartfelt invitation to our neighbors throughout Rhode Island and across New England and our nation. We invite you to be part of Providence’s comeback story.”
