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This site contains copyrighted material the use of which has not always been specifically authorized by the copyright owner. I am
making such material available in my efforts to advance understanding of environmental, political, human rights, economic,
democracy, scientific, and social justice issues, etc. I believe this constitutes a 'fair use' of any such copyrighted material as provided
for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed
without profit to those who have expressed a prior interest in receiving the included information for research and educational purposes.
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Copyright Providence Journal/Evening Bulletin May 2, 2007
But Providence's proposed spending plan for the next fiscal year does not include raises for city
workers, and is dependent on additional state aid.
* * *
PROVIDENCE - Mayor David N. Cicilline presented a $625.9-million city budget for the 2008
fiscal year that does not raise taxes and gives the schools nearly all the money they are asking
for, but is built on the assumption that the General Assembly will give Providence more money
and will allow the city to levy several new fees.
Cicilline said this budget reflects a new Providence of stability and government held in check.
"Our skyline has certainly changed some in the last four years, but that is nothing compared to
our bottom line. From a financial perspective, Providence is a whole new city."
The budget is only $15 million higher than the current fiscal year's $610-million budget. But
that is largely because Cicilline's plan does not include financing for salary increases for any
city employees next year, a number that could be in the tens of millions when more than 5,000
city and school employees are taken into account.
The contracts of every major city union will expire by July 1, and when new contracts are
reached, the city will have to find money to pay for the salary increases that are sure to come
with them. But there is no money set aside in the budget, and city officials refused to discuss
where this money would come from.
"I would prefer not to answer that," said John Simmons, the city's chief of administration,
citing a desire not to tip his hand in negotiations with the city's four major public employee
unions.
The budget also banks on the General Assembly approving several new fees, and on additional
state aid on top of what the governor's budget recommends. Almost half of the revenue
increases Providence is counting on to balance its budget require Assembly action.
Cicilline presented his plan last night in a budget address that was only partially about the
budget itself - much of it attacked state leadership and dealt with state economic policy and
education financing formulas.
"As you know, I have tried to ring the alarm bell for several years now that Rhode Island
critically under-funds its schools, despite the increased effort of Providence and other cities and
towns," Cicilline said, sounding familiar themes about the need to rethink education financing
formulas, and the danger of freezing state taxes and passing the tax burden on to cities and
towns.
In his address, Cicilline boasted that the city's tax rate would actually drop, perhaps giving the
impression that residents would be paying less in taxes. That is not the case. Because of the
ongoing property revaluation, the tax rate will be reduced to balance out the rise in property
values in the three years since the last property revaluation. But the amount that most citizens
pay in taxes will remain the same.
This budget relies far less on one-time revenues than does the current budget. In the current
fiscal year, the city sold several buildings to generate revenue, ending up with $23 million in
one- time income sources. This year, it counts on only $10 million in one- time revenue.
But it does count on the General Assembly approving a number of new revenue sources for
Providence, totaling $10.5 million. It also expects that the state will approve aid on top of the $7
million in the governor's budget, increasing Providence's share by an additional $7.5 million.
The budget assumes that the legislature will allow Providence to charge a new fee of $500 to
anyone who sells residential property, and $1,000 for commercial property. Half of the money
would go into an affordable-housing fund, and the other half to help balance the budget - $2.1
million worth.
Cicilline also proposes imposing a franchise fee on Cox Communications, the cable provider
serving Rhode Island. The city says that Cox brings in $300 million in receipts from Rhode
Island, and that the state should charge a franchise fee that would be split among every Rhode
Island city and town. Providence would get $1.4 million.
The city also wants the state to pay Providence $5.1 million for owning and operating the
Providence Water system, which is used by 70 percent of the state.
On the schools, the school department asked for a 3.5-percent increase to its $311-million
allocation. Cicilline said he will give them 3 percent, which would increase the city's payment by
$9 million.
Cicilline also committed to giving the Providence Public Library $3.3 million, an increase of 10
percent over its current allocation, but less than the $5 million library officials said was needed.
He also noted that the amount of new development in Providence in recent years has brought
more than $75 million in new taxable property onto the rolls this year - increasing tax revenue
by $2.5 million. The budget also reflects savings from pension reforms Cicilline hopes to enact
in the next few months.
The City Council will now spend the next two months reviewing the budget, and normally
passes its modified version close to the July 1 start of the fiscal year.
dbarbari@projo.com / (401) 277-8062
Budget highlights
Budget would rise 2.6 percent to $625.9 million and not raise taxes.
Schools would receive a 3-percent increase, close to the 3.5 percent they asked for - raising
their appropriation from $311.7 million to $320.5 million.
Does not include money for salary increases for city employees, despite contracts of all four
major city unions expiring by June 30.
Mayor Cicilline counts on the General Assembly granting Providence several new sources of
income, including a statewide cable television franchise fee on Cox Communications, an annual
state payment for operating the Providence water system and a $500 fee charged on the sale of
any residential property.
* * *
Mayor David N. Cicilline yesterday announces his proposed budget for the fiscal year beginning
July 1.
The Providence Journal / Ruben W. Perez
But Providence's proposed spending plan for the next fiscal year does not include raises for city
workers, and is dependent on additional state aid.
* * *
PROVIDENCE - Mayor David N. Cicilline presented a $625.9-million city budget for the 2008
fiscal year that does not raise taxes and gives the schools nearly all the money they are asking
for, but is built on the assumption that the General Assembly will give Providence more money
and will allow the city to levy several new fees.
Cicilline said this budget reflects a new Providence of stability and government held in check.
"Our skyline has certainly changed some in the last four years, but that is nothing compared to
our bottom line. From a financial perspective, Providence is a whole new city."
The budget is only $15 million higher than the current fiscal year's $610-million budget. But
that is largely because Cicilline's plan does not include financing for salary increases for any
city employees next year, a number that could be in the tens of millions when more than 5,000
city and school employees are taken into account.
The contracts of every major city union will expire by July 1, and when new contracts are
reached, the city will have to find money to pay for the salary increases that are sure to come
with them. But there is no money set aside in the budget, and city officials refused to discuss
where this money would come from.
"I would prefer not to answer that," said John Simmons, the city's chief of administration,
citing a desire not to tip his hand in negotiations with the city's four major public employee
unions.
The budget also banks on the General Assembly approving several new fees, and on additional
state aid on top of what the governor's budget recommends. Almost half of the revenue
increases Providence is counting on to balance its budget require Assembly action.
Cicilline presented his plan last night in a budget address that was only partially about the
budget itself - much of it attacked state leadership and dealt with state economic policy and
education financing formulas.
"As you know, I have tried to ring the alarm bell for several years now that Rhode Island
critically under-funds its schools, despite the increased effort of Providence and other cities and
towns," Cicilline said, sounding familiar themes about the need to rethink education financing
formulas, and the danger of freezing state taxes and passing the tax burden on to cities and
towns.
In his address, Cicilline boasted that the city's tax rate would actually drop, perhaps giving the
impression that residents would be paying less in taxes. That is not the case. Because of the
ongoing property revaluation, the tax rate will be reduced to balance out the rise in property
values in the three years since the last property revaluation. But the amount that most citizens
pay in taxes will remain the same.
This budget relies far less on one-time revenues than does the current budget. In the current
fiscal year, the city sold several buildings to generate revenue, ending up with $23 million in
one- time income sources. This year, it counts on only $10 million in one- time revenue.
But it does count on the General Assembly approving a number of new revenue sources for
Providence, totaling $10.5 million. It also expects that the state will approve aid on top of the $7
million in the governor's budget, increasing Providence's share by an additional $7.5 million.
The budget assumes that the legislature will allow Providence to charge a new fee of $500 to
anyone who sells residential property, and $1,000 for commercial property. Half of the money
would go into an affordable-housing fund, and the other half to help balance the budget - $2.1
million worth.
Cicilline also proposes imposing a franchise fee on Cox Communications, the cable provider
serving Rhode Island. The city says that Cox brings in $300 million in receipts from Rhode
Island, and that the state should charge a franchise fee that would be split among every Rhode
Island city and town. Providence would get $1.4 million.
The city also wants the state to pay Providence $5.1 million for owning and operating the
Providence Water system, which is used by 70 percent of the state.
On the schools, the school department asked for a 3.5-percent increase to its $311-million
allocation. Cicilline said he will give them 3 percent, which would increase the city's payment by
$9 million.
Cicilline also committed to giving the Providence Public Library $3.3 million, an increase of 10
percent over its current allocation, but less than the $5 million library officials said was needed.
He also noted that the amount of new development in Providence in recent years has brought
more than $75 million in new taxable property onto the rolls this year - increasing tax revenue
by $2.5 million. The budget also reflects savings from pension reforms Cicilline hopes to enact
in the next few months.
The City Council will now spend the next two months reviewing the budget, and normally
passes its modified version close to the July 1 start of the fiscal year.
dbarbari@projo.com / (401) 277-8062
Budget highlights
Budget would rise 2.6 percent to $625.9 million and not raise taxes.
Schools would receive a 3-percent increase, close to the 3.5 percent they asked for - raising
their appropriation from $311.7 million to $320.5 million.
Does not include money for salary increases for city employees, despite contracts of all four
major city unions expiring by June 30.
Mayor Cicilline counts on the General Assembly granting Providence several new sources of
income, including a statewide cable television franchise fee on Cox Communications, an annual
state payment for operating the Providence water system and a $500 fee charged on the sale of
any residential property.
* * *
Mayor David N. Cicilline yesterday announces his proposed budget for the fiscal year beginning
July 1.
The Providence Journal / Ruben W. Perez
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Campaign for Justice
| Christopher Young (Democrat) |