The Rhode Island House Finance Committee voted 13-1 Friday to approve a $13.947 billion budget for the 2025 fiscal year, directing substantial funding toward education, children, and healthcare, alongside a historic $120 million affordable housing bond. The budget, which is $60 million less than the current fiscal year’s, reflects the cessation of federal pandemic aid.
The budget bill (2023-H 5200A) now advances to the full House of Representatives, set for consideration on June 7 at 2:30 p.m.
“Through this budget, we are emphasizing education at every level and supporting children,” stated Speaker K. Joseph Shekarchi (D-Dist. 23, Warwick). “This budget is the result of a truly collaborative process between my colleagues here in the House, the dedicated members of the House Finance Committee, our partners in the Senate, and Governor McKee and his team to carefully create a plan that meets Rhode Island’s needs for education, students, and children first, while addressing our challenges, such as housing and health care.”
House Finance Committee Chairman Marvin L. Abney (D-Dist. 73, Newport, Middletown) added, “This year’s budget proposal reflects the fact that while the influx of federal pandemic funding has come to an end, Rhode Island is still on sound financial footing. We have continued to best position Rhode Island for future economic possibilities. This budget supports our residents, families, and children without adding financial burdens on the people of Rhode Island.”
The proposed budget includes a $70.9 million increase in state aid for schools, which is $33.8 million more than Governor McKee originally proposed, aimed at aiding schools and students still recovering from the pandemic’s effects.
Increases for multi-language learners (MLL), the governor’s Learn365RI initiative for out-of-school learning, and efforts to boost reading and math achievement were modest but significant. MLL students will now receive 20% extra over the core education aid, up from 15%. Learn365RI will get $5 million, and an additional $5 million is allocated for reading and math achievement. The budget also fully funds an $813,000 proposal to provide free meals to 6,500 students statewide who currently receive reduced-price school meals.
Higher education also sees benefits with an additional $1 million for the Community College of Rhode Island (CCRI) and $2 million for the University of Rhode Island (URI). The budget continues the Rhode Island Promise and Hope scholarship programs, which offer two years of free tuition at CCRI and Rhode Island College, respectively, and authorizes a two-year extension of the Hope scholarship. It also allocates $2.3 million for the dual and concurrent enrollment initiative for high school students.
Among the most notable elements is a $120 million affordable housing bond, the largest in the state’s history. This bond includes $90 million for affordable housing, $10 million for acquisition and revitalization, $10 million for homeownership programs, $5 million for site acquisition, $4 million for housing-related infrastructure, and $1 million for municipal planning.
Furthermore, the bill authorizes up to $10 million from the housing bond for public housing, following a six-month study on public developer models.
Healthcare receives significant attention with over $160 million allocated to raise Medicaid reimbursement rates next year, including $3.8 million for Early Intervention providers. Additionally, $10 million in unspent federal COVID funding will be redirected to nursing homes.
The budget proposal also includes a $30.6 million increase to support providers contracted by the Department of Children, Youth and Families and establishes a new program to purchase medical debts for struggling Rhode Islanders through the state Treasurer’s office.
Recipients of the Rhode Island Works program will receive a 20% raise in cash benefits, and eligibility for child care supports will be expanded. The budget also allocates $83.6 million for the state match for federal funds to reconstruct the shuttered westbound Washington Bridge and doubles assistance for businesses in East Providence affected by the bridge closure.
The House plan provides additional funding for the Rhode Island Public Transit Authority to close a budget gap following the end of federal pandemic aid, ensuring no service reductions in the coming year.
Not included in the budget were proposals to alter the state’s financial institutions tax and funding for a new state archives and museum, due to timing and complexity issues, as well as the lack of an identified site and partner organizations for the museum.
For retirees, the budget includes raising the exemption on certain pension plans and annuities income and repeals the suspension of full annual cost of living adjustments for state employees who retired before 2012. It also changes the calculation for pension benefits to be based on the highest three consecutive years of earnings instead of five.
Environmental initiatives feature in the “green bond” with $5 million for farmland protection and various other allocations for open space and habitat management.
Lastly, the budget includes a $10 million bond referendum to support arts infrastructure in Rhode Island and retains a proposal to hike the cigarette tax by 25 cents per pack, while creating a new tax structure for electronic nicotine delivery systems.
The House Finance Committee’s comprehensive budget plan reflects a careful balance of investment in key areas, ensuring Rhode Island’s continued progress and stability amidst the conclusion of federal pandemic aid.
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