The City of East Providence is projecting an estimated 2.5% property tax rate increase for the fiscal year that runs from Nov. 1, 2026 to Oct. 31, 2027 — assuming the $209.9 million budget proposed by Mayor Bob DaSilva is approved without significant alterations and that projected revenue growth in the city pans out as anticipated.

Over the past two weeks, on Sept. 29 and again on Oct. 6, DaSilva and city department heads gathered at city hall to present their FY27 budgets to the city council. The council has thus far only listened to the presentations and asked questions for clarification. Proposals to amend to the budget will likely begin at the Oct. 13 meeting next week. The budget must be voted on and finalized by Oct. 26.

As for the budget workshops themselves, the crucial presentation occurred on Sept. 29 when Mayor DaSilva presented his budget summary and went into the major cost drivers and proposed tax increase for residents based on the most current information.

That evening also saw a presentation from the school department, which candidly explained the looming $3.8 million deficit that is baked into their FY27 budget proposal.

Key drivers and bottom lines

DaSilva went through the major cost drivers for FY27, which include a number of fixed costs such as:

• A $306,000 (1.7%) increase in debt service for bonded projects (86%, he said, were school related)
• A $966,481 (16%) increase in healthcare (driven by more employees taking healthcare, and an 8% rate increase from the city’s provider)
• A $196,558 (1.4%) increase in contributions to the city’s fire and police pension funds (an expense that we previously reported has nearly doubled in the last decade)
• A $1.63 million (4.8%) increase in labor expenses, driven by the city’s union employees being due for raises after taking one year of 0% wage increases with their most recent contracts

But by far the biggest budget driver in FY27 is the support going to the East Providence School Department.

The city is proposing sending an additional $2.38 million in local aid to the schools this year, which is the maximum 4% above last year’s total that is allowed under state law.

“The school department really is the source of creating that sense of pride for our city,” DaSilva said while explaining the proposed increase. “I see it from people who visit our school department, whether it’s for sports or other academic events, people gush over what we have going on here.”

In order to raise revenue to support the budget, the city would need to increase the tax levy by 3.5% to raise $127.2 million from residents. The good news, DaSilva said, was that the city is estimating $45 million in economic growth occurring across the city, which nets out to about $854,025 in new tax revenue, offsetting some of the burden to taxpayers.

As a result, according to city finance director, Glenda Delgado, the anticipated actual tax rate increase to residents would be 2.5%. However, that number may fluctuate up or down between now and March 15, 2027 as data rolls in from local businesses.

“This is the best estimate that we have with the data that we have as of today,” Delgado said.

DaSilva and Delgado presented a chart showing that, if realized, a 2.5% tax increase would be lower than the rate of inflation both in the country as a whole and for New England, which is 3.4%.

DaSilva said that the city was optimistic that relief was coming in the form of the state beginning to chip in reimbursement for the Martin Middle School and Waddington construction projects, where the city is currently shouldering the full responsibility for those bond payments.

“We’re not getting any state aid because we’re not substantially complete,” DaSilva said. “I believe in April we will be, so we should soon be seeing some funding come in from the state, which will hopefully put us in a better way for next year’s budget.”

Schools present their case

Superintendent Dr. Robert Perry, as he had done before the school committee in past weeks, laid out the situation plainly for the city council while explaining their $106.8 million budget (which, in reality, includes over $110 million in anticipated expenses as a $3.8 million projected deficit is included within it).

“This budget we’re presenting to you tonight, it’s stark,” Perry said.

Perry explained that although the amount of full-time staff (745), enrollment (5,018), and money spent per-pupil ($21,909 as of 2025) have not fluctuated much from last year, expenses have significantly outpaced available revenue sources.

Particularly problematic has been skyrocketing costs for transportation, utilities, and out of district tuition/special education costs.

Perry walked the council through a number of potential ways to save money, which cannot include cutting certified staff at this point due to the district missing the window allowable within state law. Those include concepts like cuts to athletics, reducing the number of students who can receive busing, closing/redistricting schools, offering retirement incentives, and negotiating 0% first-year wage increases for its two unions (which are now in the midst of contract negotiations).

Perry ended the presentation with a plea.

“I know that the school committee had vigorous conversations about what this means and they have their different opinions about how we got here and where we’re going to go. We are committed to righting our fiscal ship. We recognize that the city council has been generous in past years. We recognize that we have a 4% cap. We recognize that the mayor has done really laudable work in trying to increase the tax base, to provide services,” he said. “However, we know that our children are our greatest assert. We want to continue to be able to provide to the children of East Providence and the families of East Providence the excellent education they have always known. We want to make sure that we are providing opportunities for kids to learn, to develop their character, to work in a community that supports them.”