Rhode Island’s rising unemployment rate, a decline in student chronic absenteeism,
and an upcoming RIPEC report on housing highlight this month’s agenda
RIPEC on Public Policy
- RIPEC President and CEO Michael DiBiase spoke to the Boston Globe concerning Rhode Island’s unemployment rate rising to 4.5 percent in July—a two-point rise since the same time last year and the highest it’s been since October 2021. DiBiase explained that Rhode Island’s “labor force keeps going up and our employed Rhode Islanders keeps going up and setting records” but Rhode Island-based jobs numbers had “gotten a little sluggish,” falling by 400 in July.
- Providence Business news interviewed Michael DiBiase for a story about how municipalities in Rhode Island have been spending their $536.8 million allocation of federal pandemic-era American Rescue Plan Act (ARPA) funds ahead of the funding allocation deadline in December. DiBiase noted that “it would be advisable to invest in capital investments that would provide value in the long term,” and not to use ARPA dollars to pay for ongoing municipal expenditures, which could create long-term deficits.
- RIPEC recommended changes to the state’s 2025 Qualified Allocation Plan (QAP) for the Federal Low-Income Housing Tax Credits program, the largest allocation tool at the state’s discretion, in public testimony to RIHousing. RIPEC recommended greater incentives for mixed-income developments and improvements to the program’s efficiency by reinstituting cost controls, enhancing penalties for cost overruns, and de-emphasizing social and other objectives supplemental to housing. RIHousing made one relatively minor adjustment in favor of mixed-income developments, but otherwise rejected RIPEC’s recommendations. The QAP requires the governor’s signature for final approval.
Inside Insights
- Rhode Island Education Commissioner Angélica Infante-Green announced plans to extend the state takeover of the Providence Public School District, which began in 2019, to October 2027. Rhode Island Businesses for Better Education (RIBBE), of which RIPEC is a founding member, released a statement urging state and city leaders “to commit to promoting greater accountability … and demonstrate greater urgency around delivering real improvement.”
- The U.S. Bureau of Economic Analysis released its revised real Gross Domestic Product (GDP) estimate for the second quarter of 2022, announcing a 3.0% increase (annualized). This figure is higher than initial real GDP estimates from last month and higher than the first quarter increase of 1.4%.
- The Rhode Island Department of Education and Governor Dan McKee announced a decrease in student chronic absenteeism to 24.7% in the 2023-2024 school year, down from 28.9% the previous year. Chronic absenteeism is still markedly higher than pre-pandemic levels (19.1% in 2018-2019).
- The Rhode Island Association of Realtors reported that Rhode Island’s housing market continued to break records in July, with the median price of a single-family home reaching $495,000, a 12.5% increase over July 2023.
What to Look for in September
- RIPEC will release a report analyzing the Ocean State’s historic investment in affordable housing from its allocation of pandemic-era federal State Fiscal Relief Fund dollars. The report will outline Rhode Island’s reliance on federal housing programs, analyze recent state policy developments, and provide recommendations for policymakers.
- Save the Date for RIPEC’s 81st Annual Meeting on October 23rd at the Crowne Plaza in Warwick. Invitations will be arriving soon.