The city of Providence is projected to face a 37 million-dollar budget gap in 10 years if it doesn’t turn around its current budget problems. That’s according to a new report that analyzes the city’s finances. The report outlines the source of the city’s money problems, but it also offers ideas for how to reduce expenses and increase revenue.
Mayor Jorge Elorza says in the coming weeks and months, he’ll meet with different key stakeholders to discuss a series of short- and long-term solutions.
“What makes me optimistic about the city, but about this process is that we have a number of tools at our disposal, we have different options to choose from,” Elorza said.
Providence has high tax rates and limited investment in roads and schools. Those are just a couple of factors making the city less competitive than others in the region, according to the new report unveiled by Mayor Jorge Elorza. To overcome these challenges, the report shares ideas for how to prevent budget shortfalls, as well as save and invest over the next 10 years. Elorza says the report is a call to action as Providence faces the risk of a slow and steady decline.
“We know that it might be six or seven years, it might be 11 or 12 years. We’re on an unsustainable path and we’ll eventually find ourselves at receivership in bankruptcy, unless we take correction action today.”
Elorza says his administration hasn’t zoomed in on specific solutions, but he’ll share immediate steps the city plans to make in his city budget address later this week.