RIPEC reports on property taxes and education funding, prior reports on education and housing in the news, and RIPEC’s legislative advocacy highlight this month’s agenda
RIPEC on Public Policy
- RIPEC released a new report and interactive data dashboard analyzing a major shift in Rhode Island’s state and local tax mix. The findings show that while property values have boomed, property taxes have not kept pace with inflation whereas state tax revenues have exceeded inflation. At the same time, inequities among property taxpayers are growing, affecting housing affordability and economic development. RIPEC also found local aid increases to schools have been far outpaced by state aid increases.
- Providence Journal, “This group says RI municipalities need to give more money to schools. Here’s how.“
- Boston Globe, “Property taxes went down in R.I. as property values went up, affecting education funding, RIPEC study shows”
- Providence Business News, “RIPEC: Major shift in R.I. tax revenue creating imbalances”
- WPRI 12, “Nesi’s Notes: March 22, #9”
- A Providence Journal article assessing Rhode Island students’ recovery from the COVID-19 pandemic five years later cited RIPEC’s in-depth report on education reform in the Ocean State, highlighting the finding that student outcomes fell during the pandemic, and key recommendations for improvement, including more targeted aid for disadvantaged communities.
- RIPEC’s recent comprehensive housing report analyzing the rising costs and high subsidy levels required to develop affordable housing was featured in the Providence Journal. The article detailed the wide coalition of stakeholders calling for creative solutions to the state’s growing housing challenges.
- RIPEC offered testimony to the Rhode Island House Committee on Housing and Municipal Government in support of legislation that would ease regulations to bolster the development of moderately priced, middle-income housing. The bill would loosen the restrictions on eligible buyers by adopting current mortgage underwriting guidelines of affordability, rather than federal Section 8 and public housing program standards.
- Justine Oliva was promoted to Director of Policy and Research at RIPEC. For the past five years, she has played a pivotal role leading RIPEC’s research and policy agenda as Manager of Research.
Inside Insights
- The Rhode Island Department of Administration presented to the General Assembly a new estimated cost of $197 million to develop a 100-bed long-term care facility in Burrillville—an 82% increase over the prior cost estimate. RIPEC has previously raised questions about high patient costs at the state-run system, reporting per patient costs exceeding $750,000 in FY 2023.
- The National Association of State Budget Officers surveyed the tax reforms called for by governors in their State of the State addresses. The survey found that a vast majority of governors are continuing to seek tax relief, rather than revenue increases.
- A new study from the Pew Charitable Trusts found that by the end of FY 2024, Rhode Island’s rainy day fund equaled 18.8 days’ worth of state government spending, much lower than the 50-state median of 49.1 days and below all other states but Illinois and New Jersey. Rhode Island increased its contribution to the rainy day fund in FY 2024 but as RIPEC reported, the contribution was not enough to bring Rhode Island near median levels.
What to Look for in April
- The Joint House and Senate Commission on Student Transportation Needs and System Costs will discuss its findings and recommendations at its meeting Monday, April 7. The Commission began meeting in 2024 amid concerns about costs associated with Rhode Island’s nearly half-century-old state transportation system.