Town Council proposes 12% tax increase to address budget deficit in Rhode Island

In a pivotal meeting on May 20, 2025, the Little Compton Town Council confronted a pressing financial challenge: a structural deficit of approximately one million dollars. As council members gathered under the bright lights of town hall, the atmosphere was charged with urgency as they discussed the implications of rising expenses outpacing revenues.

The council's budget committee revealed that for the past two years, they had relied on the general fund's accumulated surplus to bridge the gap. However, with no additional surplus available for the upcoming fiscal year, the council faced a stark reality. The proposed budget for fiscal year 2026 could not be funded without addressing the deficit head-on.

To tackle this issue, council members proposed a significant tax increase, exceeding the state-mandated cap of 4%. The recommendation was to raise the cap by an additional 8%, resulting in a total increase of 12%. This move, if approved, would not only eliminate the current deficit but also stabilize the town's financial future.

Council member John emphasized that this increase was a one-time measure aimed at resolving the immediate fiscal crisis. The council's decision to seek legislative permission from the Rhode Island General Assembly was met with questions about the legal framework surrounding such a request. Council member Bradley Anderson sought clarification on whether the request fell within the allowable reasons for exceeding the cap, highlighting the careful consideration given to the town's financial governance.

As discussions unfolded, the council moved toward a motion to authorize the necessary steps for the tax increase, signaling a commitment to addressing the town's financial health. The outcome of this meeting could shape Little Compton's economic landscape for years to come, as residents and officials alike brace for the implications of the proposed tax adjustments. The council's proactive approach reflects a determination to navigate the complexities of municipal finance while ensuring the community's needs remain at the forefront.