Enacted Budget – Fiscal Year 2025
Rhode Island Governor Dan McKee signed the state’s fiscal 2025 budget into law on June 17. The budget provides for total spending from all funds of 14.0 billion, a 0.3 percent decrease compared to fiscal 2024 appropriations. The budget includes general fund spending of $5.6 billion, a 3.1 percent increase over the originally enacted budget for fiscal 2024, and $5.1 billion in federal aid, a 10.2 percent decrease compared to fiscal 2024 enacted levels. The budget is based on general fund revenue of $5.5 billion, including enacted revenue changes, reflecting 2.1 percent growth over fiscal 2024, and a beginning balance (or free surplus) of $279 million. The fiscal 2025 budget spends down prior-year surplus funds, resulting in an ending balance of $0.1 million. The balance in the state’s rainy day fund (Budget Stabilization and Cash Reserve Account) is projected to increase, ending fiscal 2025 at $289 million.
The enacted budget makes key investments in housing, including additional funds for homelessness assistance programs, competitive tax benefits to incentivize developers to expand low-income housing options, and a $120 million housing bond that will go to voters for approval. The budget also invests in health care, including $163 million from all funding sources to fund recommended Medicaid provider rate increases and $80 million from all sources to set up new Certified Community Behavioral Health Clinics rates. For education, the budget increases K-12 state aid and pre-K funding, boosts per pupil funding for multi-language learners, puts more funding towards reading and math coaching, and directs funds to Learn365RI grants for out-of-school programming. Other budget initiatives include increased support for small businesses; funding for road, bridge, and transit projects; and assisting retirees by raising the retirement income exemption and changing provisions to increase cost-of-living adjustments for state employees.