Rhode Island Public Expenditure Council

• RIPEC released a report on Rhode Island’s property tax system, finding that it is rife with disparities among taxpayers and across cities and towns. Building on a RIPEC analysis of property taxes from 2022, the report found that an extreme uptick in residential property values in the last few years has led to an acceleration of inequities, and exacerbated obstacles to growing the economy and making housing more affordable. RIPEC also found extremely wide disparities among cities and towns in property wealth, affecting their ability to provide services—particularly K-12 education. 
  • Providence Business News, “RIPEC: State’s property tax system broken.”
  • Providence Business News, “Are Rhode Island businesses overly burdened by property taxes?“
  • What’s Up Newp, “RIPEC analyzes shifting burdens in Rhode Island’s property tax system.”

• RIPEC President and CEO Michael DiBiase was quoted by WPRI 12 regarding Rhode Island’s FY 2025 enacted budget and the potential for large, structural deficits. DiBiase noted that the budget “relies on one-time surplus funds to continue to grow state spending at a relatively high rate, as much tighter fiscal times are just ahead.”

• A recent Providence Business News article on the enacted budget cited RIPEC’s cautioning that “overall growth in state expenditures . . . raise longer term fiscal concerns.”  The article also noted RIPEC’s support for a budget provision extending the period that businesses can carry forward net operating losses from five to 20 years, bringing Rhode Island more in line with other states.     

• A RIPEC report finding that Providence has experienced a 17% enrollment decline since 2019 was highlighted in a recent article on the future of the district by The74, an organization dedicated to improving education for the country’s 74 million students.  

• RIPEC’s finding that “higher nonresident tax burdens and commercial rates applied to apartment buildings make housing less affordable” and “discourage the development of . . . higher-density housing” was cited at a Middletown Town Council meeting this month in response to a vote to decrease tax rates for resident homeowners relative to nonresident homeowners and businesses. 

Inside Insights

• The National Low Income Housing Coalition’s annual Out of Reach report on housing affordability in the 50 states and Washington D.C. ranked Rhode Island’s housing wage—the wage necessary to afford a two-bedroom apartment—12th worst at $33.20 an hour.  

• The U.S. Bureau of Labor Statistics reported that nonfarm payroll employment increased by 206,000 jobs in June—close to the previous year’s monthly average of 220,000.  The May employment report from the Rhode Island Department of Labor and Training found that nonfarm employment had increased by 1.6 percent in the Ocean State and 1.8 percent in the U.S. in the previous 12 months.  

• Rhode Island’s Secretary of Housing Stefan Pryor announced his resignation in late June. He is expected to leave his post in the coming week, with an interim Secretary to be announced on his last day.

What to Look for in July

• Here’s your chance to shine a light on Rhode Islanders who have made outstanding contributions to public service. RIPEC is seeking nominations for its 48th Annual Public Service Awards recognizing outstanding local and state employees. Nominations are due by September 9th.  

• RIPEC will release the Key Performance Indicators Briefing for the second quarter of 2024 in partnership with the Center for Global and Regional Economic Studies at Bryant University. Rhode Island saw particularly strong growth in labor force participation in Q1, and continued to see increases in April and May.