Providence finance committee approves amended FY2026 budget with 5.85% levy increase

The Providence City Finance Committee voted on Monday to approve an amended Fiscal Year 2026 budget and send the package to the full City Council for final votes, adopting an overall tax levy increase of 5.85% and revisions to property tax classifications intended to spread increases more evenly among residents.

“I can say tonight confidently that we have delivered on our commitment,” Chair Helen Anthony said, describing the committee’s goal of advancing “a balanced budget that met all obligations and protected core city services while ensuring that no one group of residents was favored or punished over any other.”

The committee approved changes negotiated with Mayor Smiley that the chair said reduce what would have been disproportionately large increases for owner-occupied two- to five-unit homes. The chair said owner-occupied single-family homes and owner-occupied two- to five-family units will see an average increase of about 6% under the amended plan; the committee said that figure replaces an earlier projection as high as 16% for some two- to five-family properties. Committee members also highlighted restoration of a sustainability policy associate position that had been cut in the mayor’s original proposal and secured funding to cover bulky-item disposal fees, removing a proposed $20-per-item charge.

Why it matters: Committee members described the package as an attempt to meet obligations— including funding for schools and public safety—while distributing tax increases more evenly across property classes. Several speakers at the public hearing urged alternatives to raising property taxes, and many warned that higher tax bills for multifamily owners could be passed on to tenants as rent increases.

Public testimony and council discussion

Dozens of residents spoke during the committee’s public hearing before the vote. Small landlords and tenants described competing concerns. Jacob Miller, a self-identified “small mom-and-pop landlord,” told the committee, “I am here against passing this tax bill still,” arguing that non–owner-occupied two- to five-family properties still faced steep increases. Hillary Brem, who described herself as a small landlord, warned that tax increases on two- to five-family buildings would be “passed on to tenants via higher rents.”

Other speakers pressed the committee to find alternatives to property-tax increases, including changes at the state level. Kari Lang thanked the committee “for the additional state aid of $6.5 million” and for improved tax classification changes. Several commenters asked the city to pursue a higher tax on luxury homes and to consider taxing polluting industrial properties or college-owned housing; council members said some of those state-level measures had not passed the General Assembly in time to be included.

Council members defended the amended budget as the product of negotiations and legal constraints. Councilor Sanchez and other members said the committee sought additional revenue sources and emphasized a roughly $15 million allocation to the Providence School Department tied to a settlement referenced during the hearing. Council members credited state legislators—including Representative Rebecca Kislak and Senator Sam Zurer—for sponsoring legislation that allowed the city to exceed the typical 4% levy cap and, separately, to permit a tax-class separation of single-family and two- to five-family dwellings; councilors said one of the enabling bills did not pass until late in the legislative session and needs further study before additional tax-class changes are implemented in future years.

Votes and next steps

The committee approved substitutions and amendments for agenda items 1–4 (the amended budget package) and then voted to forward the amended items to the full City Council. The committee’s roll call recorded five ayes, no nays. The committee clerk marked testimony received prior to and during the hearing as an exhibit. Chair Anthony said the amended items will go to the full City Council for two readings as required.

Budget specifics and clarifications

- Overall tax levy increase: 5.85% (committee statement). - Committee said this figure is “much lower than the 8% increase that was authorized by the General Assembly.” - Owner-occupied single-family and owner-occupied two- to five-family homes: committee cited an average increase of about 6% under the amended plan, down from a projected 16% for some two- to five-unit homes in the mayor’s original proposal; committee estimated average savings of “over $400” for affected owners compared with that earlier proposal. - Bulky-item pickup: committee secured funding to cover associated fees so that residents will not be charged the $20-per-item fee proposed under the city’s contract with a waste-management vendor. - School funding: councilors referenced an additional roughly $15 million directed to the Providence School Department; speakers tied the funding pressure to a recent settlement and to state oversight of the district.

Council members, committee staff and department representatives who spoke during the meeting noted the compressed schedule: because state legislation enabling the city to exceed the 4% levy cap arrived late in the session, the committee held a second public hearing and moved to act quickly to meet cash-flow needs. Chair Anthony said she had instituted a second hearing this year to consider an amended budget before the council’s votes.

The committee did not adopt several suggestions made by public speakers, including a higher rate targeted at homes valued above $1 million (one commenter referenced a so-called “Taylor Swift tax” at the state level) and a newly defined commercial class tied to pollution levels; councilors said those approaches either did not pass at the state level or require complex analysis that could not be completed in time for the current fiscal cycle.

Quotes

“I can say tonight confidently that we have delivered on our commitment,” Chair Helen Anthony said about the amended budget. “I am here against passing this tax bill still,” said Jacob Miller, a small landlord who testified during the public hearing. “I most wanna especially thank you for the additional state aid of $6.5 million,” Kari Lang told the committee.

Ending

The Finance Committee’s amended FY2026 budget will now proceed to the full Providence City Council for the required readings and votes. Committee members said they intend to work with the mayor’s office and state legislators over the coming year on longer-term tax-class changes and other revenue options cited during testimony.