Providence faces potential shortfall from budget proposal
PROVIDENCE, R.I. (AP) — Rhode Island Gov. Gina Raimondo’s budget proposal could leave Providence with a $4 million hole in its current budget if it is approved by lawmakers later this year.
The Democratic governor’s proposal to cut the state’s payment-in-lieu-of-taxes program could leave Providence with a shortfall in the current budget. WPRI-TV reports Democratic Mayor Jorge Elorza says a balanced budget needs the full amount of PILOT funds it was expecting.
City spokeswoman Emily Crowell says she is hopeful state lawmakers will fully restore PILOT funding.
The PILOT program is designed to help communities with nonprofit institutions like colleges that may not pay tax on their properties.
Raimondo has proposed giving cities the power to tax certain nonprofit properties, but Crowell says it’s unlikely new tax revenue could be applied to current budgets.
Information from: WPRI-TV, http://www.wpri.com