Statement from Mayor Angel Taveras on the FY12 Budget

I am very pleased that a balanced budget has received a first vote of approval from the Providence City Council. The FY12 budget closes a $110 million structural deficit with no new borrowing or one time fixes. This budget is built on the shared sacrifice and difficult decisions that were needed to address a Category 5 fiscal hurricane and pull Providence back from financial collapse. The storm is not over yet, but passage of a balanced budget is an important milestone in our City's fiscal recovery.

A balanced budget would not have been possible without the support of the Providence City Council, who have partnered with my administration throughout this difficult budgeting process. We also owe great thanks to the members of Local 1033, firefighters, police, City employees, residents and taxpayers who all share deeply in the sacrifice needed to save our City.

The City also received $18 million in vital support from State House leadership, a sum that is reflected in the FY12 budget. I commend Governor Chafee and the General Assembly for recognizing Rhode Island's need for a strong, stable Capital City, and for delivering Providence the support required during this difficult time.

The first passage of the FY12 budget follows nearly five months of deep spending reductions. Providence faced a $70 million deficit in FY11, which we reduced to $23,000 by the close of the fiscal year in June. Closing this gap has not been easy, and I know that many in Providence are feeling the effects. The passage of a balanced budget will be an important turning point for our City and I truly believe that brighter days are ahead.

Even with all that we have accomplished, the eye of the hurricane has not hit us yet. The City still faces the possibility of cash flow issues this summer. I cannot say that the toughest decisions are behind us, but I do believe we will get through this difficult time.

I thank the City Council for their collaboration and leadership and look forward to the conclusion of the budget process.