NORTH PROVIDENCE — The local property tax levy has grown by 12.8 percent, the greatest levy increase in Rhode Island towns and cities this fiscal year, according to analysis by the state Department of Revenue.

The total amount of taxes levied in 38 cities and towns has increased by 3.54 percent, or $66 million, in the fiscal year that began July 1.

The levy increases ranged from 0 percent in Little Compton to 8.6 percent in New Shoreham, the second-highest increase.

In North Providence, officials increased the levy from $53.3 million to $60.1 million to absorb about $2.5 million in lost state aid, and to address structural budget problems that contributed to a projected deficit of $10 million when the fiscal year ended on June 30.

The levy increase supports an allocation of about $900,000 for deficit elimination. But a projected deficit of about $9 million still challenges officials and presents the possibility of additional tax increases in the year ahead.

Mayor Charles A. Lombardi blamed the state legislature, naming each of the town’s representatives in the General Assembly, in a letter that officials mailed out with tax bills last month.

Lombardi accuses legislators of cutting state-aid allocations to the town without taking steps to help the town deal with the loss.

He cites the defeat of a legislative proposal that would have required town employees to pay 25 percent of their health-care expenses. A 20-percent co-pay would have saved the town $1.2 million, Lombardi said.

Other legislative action, Lombardi said, could have helped the town sidestep about $700,000 in overtime expenditures for firefighters.

Lombardi also described the recent tax increase as a necessary correction to a local government policy that has gone too light on taxes the two previous years, including last year when the town absorbed a mid-year $490,000 cut in aid without a tax increase.

He said that he hopes his various cost-saving programs will help the town slowly erase the deficit without additional tax increases.

“I’m going to do whatever I can for that not to happen,” Lombardi said. “Whatever I can.”

mreynold@projo.com