FY26 budget strengthens Providence’s financial stability, maintains essential city services and eases the tax burden for neighbors and businesses
PROVIDENCE, RI — Mayor Brett P. Smiley today joined City Council President Rachel Miller, members of the Providence City Council and city leaders to sign the fiscal year 2026 budget. The final budget maintains essential city services, limits the financial impact on neighbors and businesses despite significant financial challenges and underscores the Smiley Administration’s ongoing commitment to responsible financial management.
“This budget reflects our commitment to protecting essential city services, making smart investments and limiting the financial burden on our neighbors and businesses,” said Mayor Brett Smiley. “Despite real financial challenges, I’m proud to have worked closely with the City Council to deliver a balanced, responsible budget that strengthens Providence’s finances and keeps us on the path toward long-term stability and growth.”
Providence entered this budget season facing significant financial challenges as a result of last year’s settlement with the Rhode Island Department of Education (RIDE), which required the City to address more than a decade of underinvestment in the Providence Public School District (PPSD) in a single fiscal year. To balance the budget, the Smiley Administration made thoughtful spending reductions across departments and pursued new revenue sources beyond property taxes to maintain essential services.
The final FY26 budget includes an average residential property tax increase of 6%. The typical owner-occupied single-family home will see an increase of about $243 annually, or roughly $20 per month. Similarly, owner-occupied two-to-five-family homes will experience an average increase of $240 per year, also about $20 per month. The budget also doubles the veteran’s exemption and raises the elderly exemption by 25%, providing targeted relief to those most affected by rising costs.
“This was a team effort. Councilors across the city and Mayor Smiley worked together to listen to residents and share the core issues facing the city,” said City Council President Rachel Miller (Ward 13). “It took a lot of people – residents attending meetings and public hearings as well as Councilors and staff working a lot of late nights to get here. Thank you to everyone who helped deliver this balanced and equitable levy and budget for our residents.”
This final budget includes three new budget neutral initiatives to further improve services and expand support for both residents and local businesses. For local businesses, the City is establishing a multi-department one-stop business center that positions all of the supports and services a small business needs in one central location. For residents the City is creating a singular, city services hub for the most requested city services. And to further support housing development, the Smiley Administration is establishing a singular location for all permitting and infrastructure requests.
Ongoing investments in public safety continue to show results, including lower violent crime, two completed police academy classes and innovative EMS programs aimed at better responding to mental health and substance use emergencies.
The final FY26 budget is available online at openbudget.providenceri.gov.