ANGEL TAVERAS STATEMENT ON PROPOSED TAX INCREASES IN FY011 PROVIDENCE BUDGET   

PROVIDENCE - Providence Democratic Mayoral candidate Angel Taveras issued the following statement in regards to the proposed tax increases in the FY 2011 Providence budget.   

"Once again the General Assembly has put Providence in a perilous financial situation by underfunding our schools and slashing revenue sharing. As a result, city officials are proposing to increase the property tax rate on all residential and commercial property owners in Providence including the removal of a homestead tax exemption for some landlords.  

However, tax increases should only be contemplated when all other options have been exhausted.  And there are additional spending cuts and cost controls which should be implemented before further burdening the property taxpayers of Providence:       

• Immediate reductions must be made in every department.  Each department director should be called on to immediately submit cuts in discretionary spending.  In addition, zero-based budgeting should be immediately implemented.     
• We must renegotiate our PILOT agreements.  Tax-exempt property owners contribute less than one percent of the City’s revenue, yet own nearly 40% of our property.  The 2003 agreement was a step in the right direction, but time and circumstances have changed and it is now imperative for us to forge a new path forward.      
• We must work closely with our city employee unions to achieve savings in our labor agreements - including reform of our pension system.  We have an accrued liability of $1.2 billion.  We are 70% unfunded - one of the lowest funded pension plans in the entire country. We must rethink our retirement plan for future employees and find ways to reduce healthcare expenses for all retirees. City workers also need to make concessions on cost-driving expenses.     
• Finally, we must seek opportunities for regionalization and consolidation of services.   

As I campaign all across our great city, people tell me that they are fed up.  They are fed up with increases in property taxes year after year, declining home values, a stagnant jobs market and crumbling schools.  I share the people's anger.  As Mayor, I will bring all parties together - from department heads to employee unions - to reduce spending, to contain costs and to stretch a dime into a dollar - including opportunities for regionalization and consolidation of services. In tackling the city's dire financial straights, I believe leadership starts at the top.  I will ensure that all staff in the Mayor's office and all non-union personnel are asked to sacrifice first.  

As Mayor, I will take on the underlying structural problems with our City’s budget and put our City on a sound long-term financial footing.  We cannot keep relying on one-time fixes and borrowing tens of millions of dollars in order to balance our budget.  Solutions like these are band-aids at best.  At worst, they add to our debt burden without fixing any of the long-term structural problems.  

In addition to strong fiscal responsibility, the most important thing we can do to improve our financial shape is to grow our tax base.  That means investing in economic development - my number one priority.  And true economic development - expanding our small businesses and putting residents back to work - will require the City of Providence to implement bold reforms for the financial challenges we face."