Rhode Island Public Expenditure Council

• RIPEC’s  report on Rhode Island’s FY 2026 enacted budget was featured in a recent Providence Business News article discussing Truth in Accounting’s Financial State of the State report.  Rhode Island’s budget practices received a grade of D for not having sufficient funds to meet all current obligations. RIPEC’s report highlighted that Rhode Island state spending has grown 10.9 percent in the last two years, despite revenues increasing by only 6.4 percent over the same period.

• RIPEC’s Director of Policy and Research Justine Oliva spoke at the Rhode Island Hospitality Association’s 22nd annual Economic Outlook Breakfast. In her remarks, she noted that after a period of historically low rates, unemployment in Rhode Island has now surpassed both the New England region and the nation for six straight quarters.    

Inside Insights

• The Rhode Island Department of Education released 2024-2025 Rhode Island Comprehensive Assessment System results, showing modest year-over-year gains. Statewide, 31.4 percent of students demonstrated proficiency in Math and 33.7 percent demonstrated proficiency in English/Language Arts. In urban core districts, however, fewer than one in five—and in some cases fewer than one in ten—students reached proficiency.

• The National Association of State Budget Officers annual summary of enacted state budgets for FY 2026 highlighted that states overall have moderated spending increases in response to slowing revenue growth, maintaining structural balance in their budgets. The summary notes that Rhode Island raised taxes and fees to continue spending above projected revenue growth.    

• The Lincoln Institute of Land Policy issued a report on the fiscal impacts of the widespread adoption of remote and hybrid work on commercial property values in the Unites States. The Institute found that office valuations have declined nationally between 20 and 45 percent since 2019, with losses in some larger markets like Boston exceeding 50 percent.

• The Tax Foundation published a state comparison of online sports betting taxes for 2025. At 51.0 percent, Rhode Island tied for the highest tax rate in the country with New Hampshire, New York, and Oregon.  

What to Look for in October

• RIPEC will announce the recipients of its 49th annual Public Service Awards. The honorees will be recognized at RIPEC’s 82nd Annual Meeting on Monday, November 3rd at the Crowne Plaza in Warwick. Tickets are available for purchase here.