Rhode Island

Rhode Island

Budget Cycle

Governor Submits Budget
January (3rd Thursday)

Fiscal Year Begins
July 1 

Governor Signs Budget 

Budget Links

FY2025 (proposed)
FY2024 (enacted)
FY2023 (enacted)
FY2022 (enacted)
FY2021 (enacted)
FY2020 (enacted)

Proposed Budget - Fiscal Year 2025

On January 18, Rhode Island Governor Dan McKee submitted a budget recommendation for fiscal 2025. The budget calls for all funds spending of $13.7 billion in fiscal 2025, including general fund spending of $5.5 billion. This represents an all funds spending decrease of 2.4 percent and a general fund spending increase of 1.4 percent compared to enacted fiscal 2024 levels. The decrease in spending from all funds is largely driven by a projected 12.6 percent reduction in federal fund expenditures, which are expected to total $4.9 billion in fiscal 2025.
The governor’s budget is based on a general fund revenue estimate of $5.5 billion in fiscal 2025, reflecting 2.9 percent growth over the revised fiscal 2024 estimate. The fiscal 2025 estimate includes $21.1 million in recommended revenue actions. After a $170 million transfer to the state’s rainy day fund, the recommended budget projects a general fund ending balance of $0.9 million and a balance in the state’s rainy day fund of $283.6 million (about 5 percent of general fund spending, per the cap). The governor also recommends revisions to the fiscal 2024 enacted budget that would increase spending from all funds by $398 million, while reducing general fund spending by $46 million.

Proposed Budget Highlights 

The governor’s “Team Rhode Island” budget invests in education, small businesses and the economy, and health care, while continuing to exercise fiscal discipline by using one-time resources for one-time purposes and closing a modest projected deficit without any broad-based tax increases. Highlights of the governor’s budget proposal include:


  • $19.2 million to increase state funding formula per-pupil aid, along with placing a cap on the per-pupil amount used to calculate state funding equal to the average inflation rate over the past five years to smooth year-over-year growth.
  • Increasing additional per-pupil funding for multilingual learners from 15 percent to 25 percent.
  • $15 million for coaching services for local education agencies with the most acute needs, professional development opportunities for teachers, and other funds to improve math and language arts outcomes.
  • $0.8 million to transition 6,500 students from reduced-price school meal eligibility to free school meal eligibility.
  • $3 million general revenue and $2 million in State Fiscal Recovery Funds for out-of-school programming (initiative previously funded with Governor’s Emergency Education Relief and State Fiscal Recovery Funds).
  • $7.1 million increase to fund 700 new pre-K seats (35 classrooms).

Health and Human Services

  • $20.4 million in general revenue to phase-in higher Medicaid reimbursement rates.
  • $1.7 million general revenue to fully fund Early Intervention rate increase.
  • $29.1 million general revenue for new Certified Community Behavioral Health Clinics.
  • $90 million in general revenue for additional state payments to hospitals to increase parity between commercial health insurance and Medicaid rates.
  • $0.4 million for a new permanent program to provide children with free school meals over the summer.
  • $10 million in State Fiscal Recovery Funds to support nursing homes.
  • $0.4 million for a vaping abatement initiative as well as a cigarette tax rate increase and a shift to taxing e-cigarettes like other tobacco products.

Small Businesses, Economy, and Raising Personal Income

  • Increase taxable retirement income exemption, saving taxpayers $3.0 million in fiscal 2025 and $6.2 million in fiscal 2026.
  • Reduce corporate minimum tax from $400 to $350.
  • Eliminate various nuisance fees.
  • $1.4 million increase for tourism and business travel advertising.
  • $0.5 million to increase efforts to register minority and women business enterprises.
  • $1 million in grants to local governments and agencies to revitalize main streets and business districts. 

General Obligation Bonds

  • $345.0 million in general obligation bond ballot questions recommended, including:
    • $135 million for two higher education facilities.
    • $100 million to increase affordable and middle-income housing production.
    • $60 million for a new state archive and history center.
    • $50 million for several environmental infrastructure projects, including port improvements, financial assistance to municipalities for resiliency improvements, improvements to Newport Cliff Walk, and a variety of matching grant programs.