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BREAKING: Providence Budget Approved by City Council Committee

Monday, July 11, 2011


The Providence budget for the new fiscal year is headed for a vote before the full City Council after the Finance Committee approved the $614 million plan earlier this evening.

A council vote on the budget—which decreases spending from $638 million in the previous year—is expected this Thursday.

“This budget makes significant progress on addressing Providence’s structural deficit,” said Council President Michael A. Solomon. “Despite the City facing a $110 million structural deficit the Council and Administration worked together to minimize the effects of a tax increase on property owners. Working side by side, we have produced a budget that maximizes savings and will make City government leaner and more efficient.”

The budget includes $6 million in savings from the police and fire contracts, $18 million in savings thanks to new state legislation, and $28 million from closing five schools and reducing teacher positions. It also includes a significant property tax increase and major changes to the car tax.

“Everyone has come together to tighten our belts and look internally for savings and ways to be more efficient,” said Finance Chairman John J. Igliozzi. “The steps the Committee on Finance took today will improve the long-term stability and economic viability of Providence.”


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