Rhode Island Public Expenditure Council

• RIPEC’s comprehensive report on housing policy in Rhode Island received continuing news coverage. “Our findings suggest that to eliminate the wide gap in affordable housing in the Ocean State, we need both significant additional state resources and substantial improvement on the state’s return on investment,” said Michael DiBiase.
  • Providence Business News, “Voters need to start seeing better ROI on housing”
  • Providence Business News, “Building Bonds: New housing, higher ed facilities top $343M in bond issues on ballot”
  • Rhode Island Current, “The number of R.I. communities where a household earning under $100K can afford a home is zero“
  • WPRI 12, “Nesi’s Notes“
  • The Public’s Radio, “TGIF: Rhode Island politics roundup for October 11, 2024”
  • Rhode Island PBS, “A Lively Experiment”

• Rhode Island’s economy showed mixed performance across key indicators in the third quarter of 2024, according to the Rhode Island Key Performance Indicators Briefing, released by RIPEC in partnership with The Center for Global and Regional Economic Studies at Bryant University. Michael DiBiase told the Boston Globe that, despite an increase in the unemployment rate, the Briefing showed a lot of “positive signs,” including an increase in consumer spending and growth in the state’s labor force participation rate. “By some measures we are performing better than Massachusetts and Connecticut, which is not typical for Rhode Island,” he said.    
  • Providence Business News, “RIPEC: R.I. economy shows mixed performance in Q3”
  • Go Local Prov, “How is Rhode Island’s Economy Performing—Experts Have a Lot of Opinions”
  • What’s Up Newp, “Rhode Island economy shows mixed performance in Q3 2024”

• RIPEC President & CEO Michael DiBiase spoke to the Rhode Island Current concerning the projected $400 million budget deficit for fiscal year (FY) 2026 and beyond. “This is a very serious deficit situation,” DiBiase said. “We’d have to go back more than 10 years for something proportionally this big.” The Rhode Island Office of Management and Budget pointed to retroactive raises for state government workers, adjustments to Medicaid reimbursement rates, as well as increased spending on education aid, as causes for the deficit.

• RIPEC held its 81st Annual Meeting in October featuring an engaging conversation on the upcoming election between WPRI 12 News Politics Editor Ted Nesi and Nathan Gonzales from Inside Elections. RIPEC also celebrated recipients of the 48th Annual Distinguished Public Service Awards: Donna M. Murray, Labor Market Information Division Director for the Rhode Island Department of Labor and Training, and Randy R. Rossi, former Town Manager of Smithfield.
  • WPRI 12, “RIPEC looks at the state’s financial future”
  • WPRI 12, “Nesi’s Notes”
  • What’s Up Newp, “RIPEC honors Murray and Rossi for public service”

• RIPEC’s report on enrollment and absenteeism trends in Rhode Island public schools was featured in a recently-published volume of select works from the Government Research Association (GRA). The volume includes public policy analysis from around the country on topics including K-12 education, housing, fiscal policy, and infrastructure.

Inside Insights

• Rhode Island ranked 39th highest (12th worst) among states on the Tax Foundation’s new 2025 State Tax Competitiveness Index. Formerly the State Business Tax Climate Index, the new Index reflects methodological changes and a focus on a state’s tax competitiveness from an individual, as well as business, standpoint. Rhode Island fell two spots (from 37th) year-over-year because of tax reforms in similarly ranked states but is ranked higher than neighboring Massachusetts (41st) and Connecticut (47th). The Ocean State did not receive credit for the extension of its net operating loss carryforward provision because the change does not go into effect until January 1 of next year.    

• The Rhode Island Department of Education released annual Rhode Island Comprehensive Assessment System (RICAS) scores for the 2023-2024 school year. The scores show Rhode Island has recovered to pre-pandemic levels in math (30.1 percent proficiency), but scores for English Language Arts—with only 30.8 percent of students meeting expectations—remain a full eight percentage points behind pre-pandemic levels.

• Moody’s released economic forecasting testimony for Rhode Island in advance of the Revenue and Caseload Estimating Conferences. Moody’s found that unemployment increases are largely due to increased labor force participation. The forecast also highlighted that wage growth in the state is outpacing surrounding areas and the nation as a whole, but that high prices—especially in the housing market—continue to strain the local economy.

What to Look for in November

• Rhode Island’s November Revenue and Caseload Estimating Conferences will release estimates for the current (FY 2025) and next fiscal year (FY 2026) later this month. The estimates determined by the conference principals will shape Governor Dan McKee’s FY 2026 budget submission in January.