Proposed FY23 budget invests in City programs to support Providence families and makes critical capital investments in City schools and infrastructure
Tuesday, April 26, 2022
FY23 Budget Summary Resumen del presupuesto del año fiscal 23 Presupuesto de Providence
PROVIDENCE, R.I. — Mayor Jorge O. Elorza today proposed a $567,341,359 municipal budget for the Fiscal Year 2023 (FY23) for the City of Providence that continues critical investments in youth, city services and infrastructure, and improves the quality of life for every resident and business. Mayor Elorza delivered his budget address to the Providence City Council, residents, community members, and business owners in Council Chambers. Residents can read the speech here.
“Over the past seven years, my administration has prioritized strong financial stewardship, building our reserves and meeting our fiscal responsibilities all while continuing to provide increased programming and services for our City’s residents and visitors,” said Mayor Jorge O. Elorza. “This proposed budget builds on the investments we have made over the past seven years and continues that great work. As we all prepare to pass the baton to the next generation of city leaders, I am excited to see the new and unexpected directions that they will take our city.”
To account for significant increases in property values, the City’s FY23 budget proposes adjustments to municipal tax rates as follows: residential – $18.50/$1,000 (tax rate decrease of $6.06 or 24.67%); commercial – $33.85/$1,000 (tax rate decrease of $2.85 or 7.77%); tangible – $55.55/$1,000 (tax rate decrease of $0.25); and motor vehicle – $20/$1,000 ($6,000 exemption, an increase of $1,000). The budget also proposes increasing the homestead exemption by five percent to 45% owner-occupied homestead exemption.
The proposed FY23 budget continues to build Providence’s reserves, contributing an additional $100,000 to the City’s Rainy-Day Fund. When Mayor Elorza took office, the City faced a cumulative deficit of more than $13 million. Since then, the City of Providence has had six consecutive operating surpluses, creating a Rainy-Day Fund balance of $28.8 million. In addition, the budget includes funding to make the required FY23 contribution to the City’s pension system. While the pension system remains a pressing challenge, the City of Providence has made the required pension payment for the last ten years, and Mayor Elorza’s proposed budget will enable the City to continue doing so in the next fiscal year.
“Seven years ago, when many of us came into office, the city faced deficits and liabilities totaling over $20 million,” said Mayor Jorge O. Elorza. “Today, while we are still facing challenges such as the pension system, we’ve significantly improved the City’s finances and turned that deficit into an almost $30 million surplus — and Providence is seeing the benefits.”
Mayor Elorza’s proposed budget also continues to invest in public safety and community health. The proposed FY23 budget includes $1,526,715 for the 71st Police Training Academy, which is expected to develop a class of up to 50 recruits beginning later next year, as well as $309,625 for recruitment of the 53rd Fire Training Academy for the Providence Fire Department. Mayor Elorza’s proposed FY23 budget also invests in outreach supports for the most vulnerable residents in Providence, including programs like A Hand Up in partnership with Amos House.
The proposed budget demonstrates Mayor Elorza’s continued commitment to supporting Providence’s youth. In addition to a $130,046,611 contribution to the Providence Public School District’s annual budget, the proposed FY23 budget includes $1,000,000 for One Providence for Youth. Through the One Providence for Youth program, young people can access summer and year-round job opportunities that pay a wage of $15 per hour, providing both a learning and growing experience as well as a source of income. Additionally, the proposed budget includes $425,000 for early learning and development, which will be used to expand the number of pre-kindergarten classrooms in Providence and increase access to quality early learning programs.
“Since taking office, investing in our city’s youth has been a priority of my administration,” said Mayor Jorge O. Elorza. “I’m proud to continue these investments, providing critical opportunities to learn, play and grow for Providence kids and setting them up for success.”
Mayor Elorza’s proposed FY23 budget continues to position Providence as the Creative Capital. The budget includes $275,000 for PVDFest, Providence’s signature downtown arts festival, as well as $1,055,000 for a landmark public art installation in the City’s new Providence Innovation District Park. This inaugural, large-scale, signature, permanent work of art will be the first of its kind in the City and is the first activation of Providence’s percent for art allocation.
Mayor Elorza’s full proposed FY23 budget will be posted online at openbudget.providenceri.gov and is subject to approval by the Providence City Council.