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May 1, 2008

Update: Cicilline proposes 'working family tax credit'

PROVIDENCE -- Mayor David N. Cicilline has presented a budget proposal to the City Council that features a "Working Family Tax Credit" targeted at owner-occupied single-family homes valued under $200,000 and owner-occupied multi-family properties valued under $275,000.

Cicilline said about 6,500 homeowners would see a $250 credit on their tax bill, under the proposal for next fiscal year.

"That will amount to a much-needed property tax cut," Cicilline said in remarks prepared for delivery.

Cicilline said in his remarks: "We know that economic times are growing more difficult for many Providence families. But for some, the pressures are pushing them to the breaking point. For some families, the threat of prices rising any higher is putting them at serious risk."

So, the mayor continued, his first request is for the City Council to join him in "providing real help to working families who need it most" through the proposed tax credit.

Cicilline said two General Assembly lawmakers have already agreed to sponsor legislation to enable the city to carry out the credit.

The mayor’s aides have spent the last months hashing out the budget for the fiscal year that begins July 1.

While acknowledging that cuts in the city's schools budget are "the most difficult of all," Cicilline also said he could not avoid proposing cuts in that department, which represents half of the entire budget.

"I cannot responsibly propose a cut to any academic programming. These programs have already been reduced drastically," he said. "Therefore, in this budget, I propose a reduction in the operational side of the school budget by three million dollars. These savings will be achieved by overhauling our crossing guard system, our transportation system, or both, but will not reduce academic programs for our children."

-- projo.com staff writer Michael P. McKinney

Cicilline said "we must make cuts" because of the financial situation but at the same time "our residents can't afford a crippled government." They need police to be "even more effective" as economic problems create conditions for increased crime.

He proposes a 10 percent across-the-board cut a city grants program. He also said every city department has come up with "difficult, additional cuts."

And Cicilline said he proposes four-day mandatory furlough for all of the city's management and non-collective bargaining employees. He said this would be the second year he has "directed this action."

The budget calls for a 3.75 percent levy increase that, when the city's tax base growth is factored in, will translate to a tax icnrease of slightly less than that percentage, according to Cicilline.

"I fully understand the hardship that any tax increase causes," his prepared remarks say. "But it would simply not be responsible to propose a zero tax increase in this budget climate."

However, Cicilline added, families who would received the proposed taxed credit would have no tax increase and "most will see a reduction in their property taxes."

Cicilline, a Democrat, put the onus of expected tough economic times for the city on national forces. He cited "fallout" from a "failed admininistration in Washington," a "national recession" and what he called "significant cuts" in federal money to the states. That has a domino effect on Rhode Island, which in turn, the mayor asserts, leads to "major shortfalls" at the local level.

Continuing that theme, Cicilline said the costs of all that are "intellectual property challenges" at the federal level, "moral and political challenges" at the state level but, when they reach Providence's neighborhoods they "represent survival challenges."

Cicilline said the budget is based on a prediction of a 15 percent cut from what the General Assembly provided to Providence this fiscal year.

Read Journal staff writer Daniel Barbarisi's advance on the budget.

-- projo.com staff writer Michael P. McKinney

Posted by Mike McKinney at 7:05 PM | Permalink

Comments

Isn't Cicilline in jail yet?

Mary | May 1, 2008 8:47 PM link

I'm a working resident in the city and I work for the city of Providence however it's not my fault that the city has raised the value of my home. If the limit is $200,00.00 then it's going to leave a lot of people out including myself.

LAc | May 1, 2008 10:19 PM link

I agree. My taxes have gone up so high it's unbelievable. Oil to heat the home has put everyone who owns a home in a hole. The tax credit should be for everyone who owns a home in the city of Providence. Come on Mayor give us a break too.
Dakota

Dakota | May 2, 2008 4:34 AM link

Don't worry everybody, house values in Providence have been falling precipitously, and when the value of your lovely $300,000 home drops below $200,000 in the next city revaluation, you will then have something to celebrate!

Yay! My home value dropped!! | May 2, 2008 7:31 AM link

May 1, 2008

Update: Cicilline proposes 'working family tax credit'

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