Rhode Island Public Expenditure Council

• RIPEC President & CEO Michael DiBiase published an op-ed in the Boston Globe calling on Rhode Island’s General Assembly to use newly-projected surplus funds wisely when crafting the budget for fiscal year (FY) 2025 in light of leaner fiscal times ahead. He encouraged the use of continuing revenues to pay for continuing expenses to help close the structural deficit and called for additional resources to be dedicated to K-12 education, transportation, and affordable housing.

• RIPEC’s recent report on the governor’s proposed FY 2025 budget was cited in a WPRI 12 story on budget negotiations. The report details how the governor’s use of surplus and federal one-time funds contributed to a sizable structural deficit for FY 2026 and beyond.

• In a story on the growing wealth inequality between communities in the Ocean State, Michael DiBiase told the Providence Business News that “our cities and towns … are different universes” and that property values are an important indicator of real wealth disparities between communities. Highlighting this disparity, RIPEC’s Manager of Research Justine Oliva explained that property wealth was over $250,000 per resident in nine communities, while Central Falls, Woonsocket, Pawtucket, and Providence had per capita values below $100,000.

• In a WJAR 10 story, Michael DiBiase discussed the need to find new revenue sources to fund critical transportation infrastructure in Rhode Island. Citing declining gas tax revenues and the suspended truck toll program, DiBiase echoed earlier concerns about state transportation funding noting, “if we don’t put any new revenue sources in place, we will likely need to borrow that money.”

• RIPEC’s recent work on affordable housing was the basis for a recent Providence Business News story on the limited production the state is likely to receive for its historic investment of federal pandemic-era funding for housing. RIPEC found that 21 of 24 affordable housing developments ran over preliminary estimates, with 15 projects requiring an additional $47.8 million in state subsidies.   

• Reporting on U.S. News and World Report’s ranking of Rhode Island at 47 out of 50 states for fiscal stability, the Providence Journal interviewed Michael DiBiase, who noted that Rhode Island has been trending in the right direction on fiscal measures, and that the state’s low ranking appears to be due to its relatively small “rainy day” fund.

Inside Insights

• Rhode Island’s House of Representatives passed the Attendance for Success Act in a floor vote earlier this week. The legislation, supported by the Rhode Island Department of Education, addresses historically high levels of student absenteeism, requiring districts and schools to have attendance policies and to produce plans, reporting, and supports to address student absenteeism. The Senate companion to this legislation remains in committee. 

• At its May Board of Directors meeting, Rhode Island Housing approved $102 million in awards for housing construction, preservation, and operating costs. Governor McKee was in attendance, calling the spending a “strong package of investments.” Of the allocations, $63 million were from federal pandemic relief dollars, leaving only roughly $10 million remaining for a final funding round in June.  

• In a survey of states, the National Association of State Budget Officers (NASBO) reported that revenue trends for all states are coming in close to forecasted levels. NASBO cited tax cuts, low levels of economic growth, and declining inflation as reasons for limited revenue growth across the country.

What to Look for in June

• RIPEC will release a report on property tax systems across Rhode Island, detailing how those municipal systems have grown further out of balance in recent years, with wide disparities in property wealth across cities and towns, and growing inequities in property tax burdens for businesses and renters.