Rhode Island Public Expenditure Council

• RIPEC analyzed the governor’s FY 2025 budget proposal, a transitional spending plan between a series of budgets flush with abundant federal pandemic relief funding and more challenging fiscal times ahead. RIPEC found that the governor used one-time surplus and federal resources to fund continuing expenses, contributing to large structural deficits for FY 2026 and beyond. The report also highlighted areas where the pressure to raise spending is likely to continue, including health and human services, K-12 education, transportation, affordable housing, and corrections.
  • Providence Business News, “RIPEC: General Assembly needs to pare spending growth”
  • Rhode Island Current, “RIPEC: McKee’s FY25 budget proposal makes structural deficit worse”
  • WPRI 12, “Nesi’s Notes”
  • The Public’s Radio, “Rhode Island politics roundup”

• The Key Performance Indicators Briefing for Q1 2024 found that Rhode Island-based jobs increased by 5,700 over Q4 2023 and labor force participation jumped to the highest level since this metric was first recorded in 1976. The Briefing, prepared by the Center for Global and Regional Economic Studies at Bryant University and RIPEC, showed positive results across most key metrics.
  • Providence Business News, “Strong job growth powers R.I. economy in Q1”
  • What’s Up Newp, “Rhode Island experiences strong growth in jobs and labor force participation in Q1 2024”

• In an  interview with WPRI 12 on the funding challenges associated with the Washington Bridge demolition and replacement, RIPEC President and CEO Michael DiBiase noted that the increase in estimated cost will affect “the other road and bridge projects that are planned … because we only get so much federal money.” He also highlighted the need for a long-term, sustainable transportation funding solution.

• Michael DiBiase served as a panelist at the Rhode Island Senate Education Summit, discussing how more accountability in education could be achieved through education governance reform. He noted that making the commissioner of education a state cabinet position would be an improvement over the current, fragmented system.

Inside Insights

• The independent forecasting firm S&P Global Market Intelligence delivered testimony on Rhode Island’s economic outlook at the May Revenue Estimating Conference, projecting that both employment and wage growth will decelerate somewhat after a recent surge.  

• Rhode Island KIDS COUNT released its annual Factbook, highlighting that 65% of all Rhode Island children in poverty live in just four cities—Central Falls, Pawtucket, Providence, and Woonsocket.

• In a memo to the Credit Committee of Rhode Island Housing, the Rhode Island Department of Housing outlined its intention to allocate $21.3 million in American Rescue Plan Act funding to eight affordable housing developments. Center City Apartments is set to receive $8.3 million (39%) of the funding.

What to Look for in May

• The May Revenue Estimating Conference is expected to wrap up today, with state fiscal officers determining updated estimates that the General Assembly will use next month in approving a budget for FY 2025.