Providence Budget Battle — South Side Says It’s Time for East Side to Pay, Igliozzi Looks for Cuts
Wednesday, June 19, 2019
The budget battle in Providence is heating up as the clock is ticking against the end of the city’s fiscal year and the adjournment of the Rhode Island General Assembly.
The City Council is now calling for cuts to Mayor Jorge Elorza's proposed 2020 budget. And to push the enabling legislation at the State House to change the tax structure, the City Council has hired Peter Baptista to lobby for $5,000 a month, according to state records.
Legislation was submitted in the House of Representatives by Rep. Daniel McKiernan on Tuesday to enable the Providence City Council's new tax structure that hits the affluent East Side the hardest but reduces the taxes for more than 80 percent of the homeowners in the City versus Elorza's proposed tax structure.
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And, on Tuesday, neighborhood groups in the other parts of the city weighed in and voiced support for the City Council looking to produce a new tax plan.
South Providence Supports New City Council Plan
Dwayne Keys of the South Providence Neighborhood Association appeared on GoLocal LIVE on Tuesday and said it was time for the East Side to pay its fair share the city’s taxes.
“Where was all this concern [by East Side residents] about this when it was us not you?” asked Keys, of other parts of the city getting hit hard following the recent property revaluation.
Keys said that the new tax structure being offered by Council President Sabina Matos and Finance Chairman John Igliozzi is much fairer to the majority of the residents in the City of Providence.
Keys said under Mayor Jorge Elorza's current plan, many in the city would not be able to afford their homes and that cannot sell their homes for the assessed values.
Igliozzi Calls Elorza’s Budget In Equitable
Providence City Council Finance Chairman John Igliozzi unleashed on Elorza claiming the Mayor’s plan is unfair and hits the poorest neighborhoods the hardest.
“When we received the budget from the Mayor at the end of April it included an increase of $15 million over last year, and a tax plan that disproportionately raised the tax levy on the lowest valued houses; while the most valued homes would see a decrease in their taxes, which ironically is only 1% of the properties in our city. How is that fair?” Said Igliozzi.
“We hear the Mayor speak about ‘equity’ all the time, but his tax plan is nothing if not inequitable. It taxes the poorest while giving the most affluent the biggest breaks. The Council Leadership team proposed a plan that we believe to be equitable, but what we keep hearing from the community is that we must cut the budget to bring down the tax rate. That’s what we plan to do,” added Igliozzi.
Joining Igliozzi in calling for cuts to Elorza’s budget is Council Majority Leader Jo-Ann Ryan. The councilwoman, who represents Ward 5, the middle-class Elmhurst and Mt. Pleasant neighborhoods said, “We have worked very hard to bring to the table a plan that is not just equitable, but fair. We will continue to look at the budget to reduce inefficiencies and reduce spending so that we can lower the tax burden further. The Council was handed a budget that called for an increase in spending of $15 million, and while many of those line items are worthy of support, we can’t take from the most vulnerable to pay for them. We are committed to thinking creatively and to working outside the box to make sure that everyone is starting at the same baseline.”
Igliozzi said that the City Council will have two additional Council Finance Committee meetings — Wednesday and Thursday at 5:00 PM. The City Council has a full meeting at 7:00 PM on Thursday.
“It is paramount that citizens get a voice in decisions that affect them, and holding open meetings, and allowing for this discourse will ensure that residents will be heard. It’s not easy governing a city with massive obligations and liabilities, and for four years we have managed not to raise taxes, but with such a significant increase in spending in the Mayor’s budget we needed to create equity. I know the Committee looks forward to hearing from the community in the coming days,” said Ryan.
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