Well, one thing’s for certain: it’s getting pretty serious in Providence financially judging by the study commissioned by Mayor Elorza and the solutions it contains.
Providence should consider implementing new taxes, selling assets and closing fire stations as part of its effort to reduce a projected structural deficit that could balloon to $37 million over the next decade, according to a study released Monday by the Elorza administration.
The problem, unless WPRI’s Dan McGowan left significant chunks of the study out of his report (quite unlikely), is that the study offers way more suggestions for raising revenue – sell assets, raise PILOT payments, create new taxes and fees – than for reducing spending. The proposal to “transfer city janitorial services to a prisoner reentry program” is welcome – but only seven FTE’s would be affected. Where is the proposal to look at compensation levels across the entire city payroll? Yes, the study suggests broadening the suspension of the pension COLA – but doesn’t mention the pensions themselves. This would clearly be inadequate as the city’s pension fund is at best 30% funded.
Tax rates in Providence, residential and commercial, are already among the highest in the country. When are Providence officials going to start taking steps to live within a budget that TAXPAYERS can afford rather than continuing to take the easy steps of only nibbling around the edges of expenses and continuing the inexorable increase of taxes and fees?