On Wednesday, Providence Mayor Brett Smiley unveiled his $624 million fiscal year 2026 budget, proposing a 7.5% increase in the tax levy — the total amount of collected tax revenue.
In drafting the budget, “we had to make sacrifices, and we were faced with difficult decisions,” Smiley said during an address before the Providence City Council. He cited a need to balance education funding, the importance of meeting employee obligations and ensuring the provision of city services.
Smiley has called on the Rhode Island General Assembly for one-time permission to raise the tax levy of the city beyond its cap of 4%. Last month, the City Council approved a resolution supporting a State House bill that would allow the city to raise the levy up to 8%.
The budget would be “the largest investment in Providence schools since 2006,” Smiley said. The proposal comes after the city’s $15 million settlement with the Rhode Island Department of Education to address the Providence Public School District’s $11 million budget deficit for the 2024-25 academic year.
In addition to raising tax revenue, Smiley said that his proposal would prioritize new revenue sources and cut city costs. Providence has also removed 23 staff positions and cut expenses in the vast majority of the city’s departments.
Under the proposed budget, the property tax for Providence’s single-family homes will increase by 4% — an average increase of around $13 a month. But multi-family residencies with between two and five units may face a 16% increase in property taxes.
During a press conference after his speech to the city council, Smiley said that “the rent burden in the city is a real problem,” adding that the city planned on building “permanently supported affordable housing and cutting tax rates for apartment buildings.”
Smiley also said that “our primary problem is a supply problem — we have more people than we have homes.” He emphasized that his administration has built or maintained over 1,600 affordable housing units in Providence.
The proposal will also double Providence’s existing tax exemption for veterans and increase the elderly exemption by 25%.
Smiley also announced the creation of a new city services hub to expand service provisions for Providence locals — an initiative he promised will be tax neutral.
In his address, Smiley also emphasized the importance of community-centered policies despite uncertainty at the federal level.
“Amid the chaotic, hate-filled headlines that come from Washington every day, I want to reassure our neighbors that Providence is and will remain the safe, inclusive and welcoming city it is known to be,” Smiley said.
