Proposed Budget Highlights
The governor’s “RI Ready” budget for fiscal 2024 prioritizes fiscal responsibility and tax relief, as well as investments in education, economic development, housing, healthcare, and climate. The budget proposal aims to make further progress toward the state’s goals outlined in RI 2030, the state’s master plan, in part by using fiscal 2023 projected surplus funds. The governor also proposes additional investments using American Rescue Plan Act (ARPA) State and Local Fiscal Recovery Funds (SLFRF). Key budget proposals to support these priorities include:
Fiscal Responsibility
- $55 million in surplus funds to create an additional reserve fund as a supplement to the rainy day fund (which is currently capped at 5 percent of general revenue)
- $60 million in surplus funds transferred to Rhode Island Capital Plan Fund for various projects
- $15 million in surplus funds to pre-fund increase in Rebuild Rhode Island tax credit program cap
- $35 million in surplus funds to pay off various debt
Tax Relief
- Reduce sales tax rate from 7 percent to 6.85 percent ($25.8 million general revenue impact)
- Forgo scheduled 3-cent increase in gasoline tax ($24.6 million impact over two years)
- Reduce corporate minimum tax by $25 ($1 million impact in fiscal 2024)
- One-time refund of gross receipts tax on utilities for four months using surplus funds ($35.6 million one-time)
- Eliminate litter tax paid by local businesses ($1 million)
- Exempt trade-in value of trucks below a certain weight threshold ($3.7 million impact in fiscal 2024)
- Deposit $4.4 million in Workers’ Compensation Fund to prevent employer rate increase
Education
- $7 million to preserve 800 pre-K seats to offset an expiring federal grant and $1.3 million to prepare new classrooms
- $57.8 million in additional K-12 funding and modifies the school funding formula to help school districts navigate enrollment shifts and prevent state funding declines, as well as additional funds for multilingual learner funding, special education, economically disadvantaged students, and homeless students
- $14 million (6.8 percent) increase in aid to higher education institutions
- $2.5 million one-time funds for the Fresh Start Scholarship program
- $8 million in SLFRF to strengthen the RI Reconnect initiative
Economic Development
- $2.6 million added to the Small Business Assistance Program to help businesses access capital
- $2.4 million in funding for Wavemaker Fellowship student loan forgiveness program and expands eligibility to include teachers
- $20 million added to First Wave Closing Fund to help attract and retain businesses
- $45 million in SLFRF for a program to foster growth in the life sciences sector
- $25 million in SLFRF to continue offshore wind growth as part of the South Quay Marine Terminal Project
- $5 million in SLFRF to help small businesses with ventilation improvements
Housing and Healthcare
- Proposes additional FTEs to support newly created Department of Housing
- $7.5 million for care reimbursement at new community behavioral health clinics
- $30 million in SLFRF to expand homeless shelter capacity
- $1.3 million in additional SLFRF to help people retain health coverage once they are transitioned off Medicaid at the end of the public health emergency
Climate and Natural Resources
- $31.5 million over seven years to the Executive Climate Change Coordinating Council to implement climate efforts
- $28.5 million in surplus funds transferred to Rhode Island Infrastructure Bank to cover state match for Clean/Drinking Water State Revolving Funds through fiscal 2028
Transportation
- $87.8 million in surplus funds to cover state match requirement for transportation projects under the Infrastructure Investment and Jobs Act (IIJA)
- $70 million in surplus funds for lost revenue from commercial truck tolling program, which is still pending
- $20 million fund created, using SLFRF, for local governments to complete road projects