Calling it the first good financial news for Providence “in a very long time,” Mayor Jorge Elorza said the city operated nearly $9.5 million in the black during the fiscal year that ended in June.
“This is the largest operating surplus in over 20 years in the city,” Elorza said. “Our records only go back 20 years, but I’d say that this is likely the largest operating surplus in the history of Providence.”
Elorza cautioned that Providence still faces financial hardships, including pensions and health care costs expected to contribute to future deficits. The surplus funds will be used to pay down past-year deficits, which have added up to more than $13 million.
“We still have real, significant financial challenges over the long term,” Elorza said. “This is proof that with realistic budgeting, tough decisions and hard work, we can put Providence on a better fiscal and financial path.”
Elorza said the city is hoping to pay off the entire cumulative deficit by the end of the current fiscal year, about four years ahead of schedule. The city is also working on a long-term plan aimed at stemming future red ink.
