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:
Education
- $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.