NEW: Providence Councilman says He’ll “Go to War” Over Tax Hike
Thursday, February 02, 2012
A supplemental tax hike to avert bankruptcy in the city of Providence is completely off the table as far the Providence City Council is concerned.
“I’m prepared to go to war with the administration,” said Ward 6 Councilman Michael Correia. “You drive through the neighborhoods and you see what is happening. People cannot afford. We will not support any new taxes.”
Correia said his constituents cannot afford to pay any more. He has recommended a freeze on all hiring, promotions, non-union raises, overtime and an immediate three-day furlough for non-union personnel.
GET THE LATEST BREAKING NEWS HERE -- SIGN UP FOR GOLOCAL FREE DAILY EBLASTDuring a press briefing on the city’s financial problems this morning, Mayor Angel Taveras called a supplemental tax increase a “last resort,” but said all options are on the table when it comes to addressing the city’s financial crisis, including bankruptcy.
Taveras said a combination of Judge Sarah Taft-Carter’s recent decision affirming retirees’ rights to lifetime healthcare and a weekend report of the city running out money by June led him to call the press conference.
He made it clear that retirees will have their benefits cut, whether it’s through an agreement with the city or through bankruptcy. Taveras also called on the tax-exempt organizations, which he said are not paying $105 million in taxes to the city, to pay $7.1 million in payments in lieu of taxes. If that doesn’t happen, Taveras said a tax increase is a possibility. And sooner rather than later. He said the hike would likely come before June, when the city is expected to run out of money.
But City Council President Michael Solomon also expressed zero interest in raising taxes.
“There will not be a tax increase,” said Council President Michael Solomon. “It is off the table with the Council.”
