RIPEC‘s new Economic Prosperity Scorecard for Rhode Island, the risks of taxing high earners, and uneven progress in addressing chronic student absenteeism highlight this month’s agenda
RIPEC on Public Policy
- RIPEC released Rhode Island’s 2026 Economic Prosperity Scorecard, which found that the Ocean State’s economy has lost ground over the last decade in nearly every measure, and particularly in gross domestic product (GDP) per capita and labor force productivity, both of which grew at less than half the U.S. rate. The Scorecard also found that high costs and taxes are dragging down prosperity; while Rhode Island ranks 23rd highest in personal income per capita, its position falls to 36th in real disposable personal income per capita, which factors in cost-of-living and taxes.
- Providence Journal, “New report shows how RI’s economy lagged behind the US for years”
- Rhode Island Current, “Rhode Island: Where often is heard a discouraging word on the economy”
- Providence Business News, “RIPEC: Rhode Island’s economy losing ground”
- WPRI 12, “Nesi’s Notes”
- Ocean State Media, “TGIF: Rhode Island politics roundup for May 1, 2026”
- What’s Up Newp, “RIPEC report says Rhode Island economy is losing ground”
- RIPEC President and CEO Michael DiBiase joined Greater Providence Chamber President Laurie White in a presentation to the Rhode Island Senate warning of the risks of enacting a 50% income tax hike on income over $1.0 million, as proposed in the governor’s FY 2027 budget. DiBiase’s presentation built on recent RIPEC analysis and legislative testimony on this issue.
- Michael DiBiase appeared at a press conference with a bipartisan group of lawmakers and business leaders to support income and estate tax relief. Noting that state revenues have outpaced the rate of inflation by $600 million since FY 2019, DiBiase remarked that “taxpayers deserve to have some of that revenue returned to them.”
- Providence Business News, “Bipartisan coalition rallies against ‘millionaires tax’, ‘death tax’”
- Providence Business First, “Chamber blasts RI ‘millionaires tax’ proposal”
- WJAR 10 featured RIPEC’s analysis of chronic student absenteeism in Rhode Island’s K-12 schools. RIPEC Director of Policy and Research Justine Oliva noted that Rhode Island’s progress in reducing chronic absenteeism has been among the strongest in the U.S., but improvements have not been evenly shared across the state, even after adjusting for student demographics. “The state overall doesn’t have the ability to require districts … to enact best practices in terms of chronic absenteeism,” she said.
Inside Insights
- The Lincoln Institute of Land Policy and the Minnesota Center for Fiscal Excellence released their annual 50-State Property Tax Comparison Study for FY 2025. The study found that while Providence’s commercial property tax burden decreased from 3rdto 8th highest in the nation, the city continued to stand out nationally in its significant preferential treatment for homeowners over renters and businesses. Providence had the nation’s 4th highest commercial-to-homestead tax ratio and 2nd highest apartment-to-homestead ratio, with commercial properties and apartments taxed at 3.5 times and 3.4 times the owner-occupied rate, respectively.
- Based on its tax structure and debt, Rhode Island continues to rank among the bottom tier nationally (41st), according to the 2026 Rich States, Poor States economic outlook Index. Rhode Island ranks 49th for debt service as a share of tax revenue and 44th for its property tax burden per $1,000 of personal income. The state remains last (50th) in the country for its estate/inheritance tax burden.
What to Look for in May
- RIPEC will release a policy brief analyzing state income tax trends, including the divergence in rates as most states have cut top rates while a smaller number of states have raised them, and migration patterns from high-tax to low-tax states.
- RIPEC will release the Rhode Island Key Performance Indicators (KPI) Quarterly Briefing for the first quarter of 2026.
- The May Revenue and Caseload Estimating Conferences are scheduled to wrap up later today, with state fiscal officers determining updated estimates that the General Assembly will use in formulating a state budget for FY 2027.