RIPEC joins with other business groups calling to hold the line on tax increases, the Key Performance Indicators Briefing for Q4, and RIPEC’s testimony on the state’s ongoing housing challenges highlight this month’s agenda
RIPEC on Public Policy
- RIPEC President & CEO Michael DiBiase joined leaders of other business groups in opposing broad-based tax increases, particularly to the state’s personal income tax, that would negatively affect Rhode Island’s economy and worsen its competitive position with its neighboring states.
- RIPEC and The Center for Global and Regional Economic Studies at Bryant University released the Key Performance Indicators (KPI) Briefing for Q4 2024. The Briefing showed that Rhode Island’s economy experienced strong growth in several key economic indicators, including in the number of Rhode-Island based jobs, which hit a record high in Q4 and were up by 7,400 jobs (1.5 percent) year over year. There were some cautionary signs, however, as the Ocean State’s unemployment rate remained higher than the region and nation for the third straight quarter.
- Boston Globe, “Number of R.I.-based jobs hit record high in late 2024, as unemployment rate held steady, report says”
- Providence Business News, “RIPEC: R.I.’s economy showed growth, signs of weakness in Q4”
- What’s Up Newp, “Report: Rhode Island economy’s positive momentum continued in the fourth quarter of 2024”
- Michael DiBiase spoke to the Brown Daily Herald about the governor’s $14.2 billion fiscal year (FY) 2026 budget proposal. DiBiase shared that “there’s a lot of positive things in the governor’s budget,” particularly in approaching the state’s projected deficit “as a spending problem more than a revenue problem.” However, DiBiase described the state’s projected funding gap of $300 million for FY 2027 as “very problematic.” RIPEC released a report on Rhode Island’s persistent structural deficits and the state budget outlook for FY 2026 in January.
- RIPEC testified in front of three different House Commissions tasked with addressing Rhode Island’s ongoing housing challenges. RIPEC outlined findings from its comprehensive October report on housing and recommended that the General Assembly alter the current real estate conveyance tax, consider rental assistance, and pursue a pilot public development program to improve the state’s housing production and ease the burden on renters.
Inside Insights
- Rhode Island Businesses for Better Education (RIBBE), of which RIPEC is a founding member, released its legislative priorities for 2025. RIBBE’s priorities focus on enhancing student outcomes, fostering accountability, and strengthening Rhode Island’s workforce through improvements in school funding, career and technical education, chronic absenteeism, high standards and accountability, and teacher professional development and recruitment.
- Newly released results from the 2024 administration of the National Assessment of Education Progress (NAEP) in Reading and Math for 4th and 8th graders show that Rhode Island outcomes are mostly on par with the nation but lag in 8th grade Math, with only 26 percent of students demonstrating proficiency. In both Math and Reading, Rhode Island’s scores on the 2024 NAEP were statistically similar to before the pandemic for 4th grade students, while 8th grade students were still behind.
- The Tax Foundation’s annual report on state corporate income tax rates and brackets for FY 2025 found an average top rate of 6.5 percent among the 44 states that levy a corporate income tax—lower than Rhode Island’s rate of 7.0 percent.
- At its January meeting, RIHousing provided an update on Dexter Street Commons, a 150 unit mixed-use development in Pawtucket. The project—originally approved by RIHousing as a 100.0 percent affordable and middle-income development—now contains only 30 units of middle-income housing and 120 units of market-rate housing. The project received nearly $16 million in pandemic era one-time funds as well as state commerce subsidies and tax credits.
What to Look for in February
- The House and Senate Finance Committees will conduct hearings throughout the month on the governor’s FY 2026 budget proposal.