Governor Chafee Discusses Municipal Reform and Relief Legislation at Mayor Taveras' State of the City Community Meeting

A week after releasing a legislative package aimed at providing relief to cities and towns in fiscal crisis across Rhode Island, Governor Lincoln Chafee attended Providence Mayor Angel Taveras' State of the City Community Report at Federal Hill House this evening to discuss with Providence residents the importance of equipping municipalities with the tools needed to make structural reform.

Mayor Taveras last month launched a series of town hall-style meetings in neighborhoods across the city to talk with residents and community leaders about the fiscal emergency Providence faces. The "State of the City: Community Reports" tour provides Providence residents with the opportunity to hear directly from Mayor Taveras and Michael D'Amico, the Mayor's chief of staff and director of administration.

"Governor Chafee's municipal legislative package is a way forward for cities and towns that need the necessary tools to make structural reform. We're making the tough choices to position Providence to compete in the years ahead. And when we are successful, we will strengthen not only our capital city, but our entire state," said Mayor Taveras. "I believe in openness and transparency and I want to ensure that every Providence resident has the opportunity to hear my plans to get our fiscal house in order. The State of the City: Community Reports tour is giving every resident in Providence the chance to ask questions about my plans, share their stories and offer their ideas for how we can survive this fiscal emergency."

Federal Hill House Executive Director Nina Pande hosted the hour-and-a-half meeting with more than 50 citizens who gathered to hear from and ask questions of Mayor Taveras, Governor Chafee and Mr. D'Amico.

"I am pleased to join with Mayor Taveras to speak directly to the citizens of Providence about the steps we are taking to help the capital city avoid bankruptcy and reach fiscal health," said Governor Chafee. "As Governor, I have made the well-being of our cities and towns a priority, and Mayor Taveras has been a key partner in this area. Last week, I unveiled a bold municipal reform and relief legislative package to help our communities - including Providence - achieve stability, avoid property tax increases, and bring back job creation and prosperity. I will continue to share this message in communities across Rhode Island."

Mayor Taveras has called on the city's large tax-exempt institutions and retired city workers to be a part of the shared sacrifice to solve Providence's fiscal emergency. Mayor Taveras has specifically identified the need to suspend guaranteed annual raises (COLAs) for all retirees to help get the city's fiscal house in order and make Providence's pension system healthy and sustainable for retirees and current workers.

Providence's seven large educational and health care tax-exempt institutions collectively own more than $3 billion of property in Providence. That property would be worth $105 million in revenue to the city if it were owned privately. The enacted FY12 budget assumes an additional $7.1 million contribution from those tax-exempts.

Earlier this month, Mayor Taveras and Johnson & Wales University Chancellor John Bowen announced a partnership agreement between Rhode Island's capital city and the university, in which Johnson & Wales will make a payment in lieu of taxes of $6.4 million, with potential for an additional $5 million, for a total of $11.4 million in additional payments over 10 years.

Additional information about the State of the City Community Reports tour is available at www.SavingProvidence.com.