Enacted Budget – Fiscal Year 2024
Rhode Island Governor Dan McKee signed the state’s fiscal 2024 budget into law on June 16. The budget provides for total spending from all funds of $14.0 billion, a 3 percent increase over fiscal 2023, and general fund spending of $5.4 billion, a 7.6 percent annual increase. The budget is based on total general fund revenue of $5.28 billion, a 1.5 percent increase over final fiscal 2023 revenues. The legislature adopted the governor’s proposal to create a new supplemental budget reserve account and make an initial transfer of $55 million into the reserve; going forward, half of all general revenue collected in excess of adopted revenue estimates for the year will be automatically deposited into the new reserve. When combined with the state’s rainy day fund balance in the Budget Stabilization and Cash Reserve of $282 million (constitutionally limited to 5.0 percent of annual revenues), total reserves are equivalent to 6.0 percent of general fund revenue. The RI Ready budget creates a Low Income Housing Tax Credit (LIHTC) program, expands shelter capacity and makes other investments to address the housing crisis, as well as takes steps to support the economy and local businesses, including providing a one-time rebate to consumers for utility gross receipt taxes and other tax relief measures. Additional tax changes in the budget include an increase to the earned income tax credit (EITC) and extending the Rebuild Rhode Island Tax Credit by one year to spur real estate development. The budget also invests in K-12 and higher education, including one-time funding for the Fresh Start Scholarship program; leverages state funds to create a matching municipal grant program to fund road improvements and to unlock federal money to improve state transportation and water infrastructure; and provides funding to climate and energy efficiency initiatives.