Rhode Island
Killed during budget talks, Citizens Bank bill brought back to life • Rhode Island Current
House Speaker K. Joseph Shekarchi assured reporters Friday night that a proposed tax law rewrite requested by Citizens Bank was not dead, despite its glaring absence in the revised fiscal 2025 budget.
Less than 72 hours later, the Warwick Democrat produced the proof: revised legislation authorizing the shift in state bank income tax calculations, with hearings before both chambers’ finance committees Tuesday.
What changed?
“It wasn’t ready,” Shekarchi said, speaking to reporters at the State House Monday afternoon. “Taxation was opposing it. The administration was opposing it. I certainly wasn’t going to put it in the budget for debate. Now, those two House priorities have been met.”
He added, “I wanted to make sure the taxpayer was protected.”
McKee pushes state tax rewrite to keep Citizens Bank rooted in Rhode Island. But will it fly?
The updated companion bills, sponsored by Rep. Joe Solomon, a Warwick Democrat, and Sen. Lou DiPalma, a Middletown Democrat, come after months of behind-the-scenes negotiations between state officials and bank executives dating back before Christmas, Shekarchi said.
The tax change, in essence, offers banks the option to calculate their taxable income based only on in-state sales, replacing the longtime “three-factor” calculation encompassing in-state sales, property and payroll. While not explicitly written for Citizens, the financial services giant has the most to gain from the proposal; unlike other banks in Rhode Island, Citizens makes most of its money from services outside state borders, yet its physical presence and payroll are weighted toward the Ocean State.
Other states, including neighboring Massachusetts, have already moved to a similar tax calculation method, a trend referenced by Mike Knipper, executive vice president and head of property and procurement for Citizens Financial Group Inc., in an April letter to state lawmakers.
Knipper in his letter warned that without a similar tax update in Rhode Island, the company “would strongly consider expanding its corporate footprint and employee base outside of Rhode Island because of differing tax treatment among the states.”
On May 10, Gov. Dan McKee proposed a budget amendment offering up the requested rewrite of the bank income tax calculation, with an estimated $15.6 million in state tax revenue loss for a full fiscal year.
However, McKee’s proposal did not make the cut when lawmakers unveiled their revised fiscal 2025 spending plan on May 31, with Shekarchi citing lack of detail and time to vet the proposal before finalizing the state budget.
Yet Shekarchi also said he would not be responsible for losing one of the state’s top employers, which boasts a 4,200 in-state payroll and a $285 million Johnston headquarters.
Negotiations ramped up in earnest over the last week and half, with Shekarchi texting key players in the tax proposal from the rostrum of the budget debate Friday night. A weekend of closed-door meetings and phone calls later, the deal emerged.
Key to Shekarchi’s change-of-heart was the OK from the Rhode Island Division of Taxation, which had initially expressed concerns with the legislation when first introduced by Solomon in March. Tax officials gave the green light to the revised proposal Sunday, Shekarchi said.
The updated legislation clarifies the way taxes are calculated to avoid double-taxation — one of Citizens’ concerns — and refines the information the state tax division must collect and review, with a report to lawmakers detailing the impact of the tax change due no later than March 2027.
“Citizens is encouraged by recent progress and greatly appreciates the leadership of Governor McKee, Speaker Shekarchi, Senate President Ruggerio and all others involved,” Keith Kelly, president of Citizens Bank Rhode Island, said in a statement. “We look forward to continuing to work closely with the state towards an outcome that is a win for both the business community and Rhode Island.”
Citizens declined to offer further comment Monday.
‘Vigorous and robust debate’
The tax calculation change is still expected to reduce state tax revenue by $7.5 million in tax year 2025, with a forecasted $15 million revenue loss in fiscal 2026. While the policy is not accounted for in the state’s fiscal 2025 budget, there won’t be any cuts or structural imbalances, Shekarchi said.
Instead, the state will take $6.5 million from the $55 million set aside for a supplemental rainy day fund in fiscal 2024, with another $1 million siphoned from the state surplus, to make up for the expected revenue shortfall in fiscal 2025.
“It was a judgment call,” Shekarchi said when explaining his decision to not include the policy change in the fiscal 2025 budget. “I didn’t want this one unsettled article to be the focus of the budget.”
He insisted multiple times, however, that the proposal will have plenty of time for a thorough vetting by lawmakers; the House Committee on Finance hearing Tuesday marks the third time a version of the tax change has been considered, with prior hearings held on Solomon’s bill and the governor’s budget amendment.
“There will be a vigorous and robust debate,” Shekarchi said.
There’s still no guarantee that the hours of closed-door negotiations prevent Citizens from uprooting anyway, Shekarchi acknowledged.
However, he added, “I think Citizens would be hard-pressed to move. They wanted this very badly.”
As for concerns raised by some lawmakers that changing state tax law to benefit one business will set a precedent for other corporations, Shekarchi dismissed the logic.
“In my mind, there’s no precedent,” he said. “Just because you do it for one, doesn’t mean you do it for another.”
McKee and Senate President Dominick Ruggerio also expressed support for the tax deal in statements on Monday, stressing the importance of parity between Rhode Island and Massachusetts, which is scheduled to move to the single-factor tax calculation starting Jan. 1.
Laurie White, president of the Greater Providence Chamber of Commerce, also welcomed the revival of the tax change, having issued an email warning last week when it appeared the policy would not make it into the fiscal 2025 budget.
“Happy to see that all sides are working towards finding a solution,” White said in a text message Monday. “I applaud the progress being made by Gov. Dan McKee, Speaker Shekarchi, President Ruggerio and Citizens.”
If signed into law, the tax change would take effect Jan. 1.
The House Committee on Finance will take up the revised tax change at 3:30 p.m. Tuesday at the State House. The Senate Committee on Finance will follow suit with a hearing on companion legislation Tuesday night.
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Rhode Island
Man killed in RI shooting; suspect involved in Mass. car crash that killed 2 others
A man has died after a shooting in Cranston, Rhode Island, and investigators say a suspect was later involved in a car crash in Swansea, Massachusetts, that killed two other people.
The shooting victim was found Thursday on Legion Way, shot multiple times in the chest, Cranston police told NBC affiliate WJAR-TV. He was taken to Rhode Island Hospital where he later died. His name has not been released.
The suspect initially fled on foot, setting off a shelter-in-place order while investigators searched the area.
Police said Friday that investigators identified a suspect vehicle, which was later spotted by Massachusetts State Police. A trooper followed the car down Route 6 and Interstate 195, but stopped when it crossed back into Rhode Island. The car was later involved in a crash on Route 136 in Swansea, Mass.
Swansea police say that crash on Route 136 (James Reynolds Road) resulted in the deaths of two other people.
According to the Swansea Police Department, two officers saw a white Infinity G37 speed past them around 12:18 a.m. Friday on Route 6, otherwise known as Grand Army of the Republic Highway. Moments later, officers observed that the vehicle had crashed into the side of a blue Subaru Ascent that had been traveling southbound on Route 136.
Both vehicles sustained catastrophic damage, police said.
The vehicle that was struck was fully engulfed in flames. First responders and bystanders tried to extinguish the fire, but both occupants — a man and a woman — were pronounced dead at the scene, police said. Their names have not been released.
The 28-year-old Infinity driver, who struck the victims’ Subaru, was taken to Rhode Island Hospital with serious injuries and later into custody by Cranston Police. They have not been publicly identified at this time.
Swansea police said they are aware that the Infinity was the subject of a police pursuit, and know the driver was wanted in connection to the Rhode Island homicide investigation. While Swansea police had been alerted to be on the lookout for the suspect’s vehicle, however, they say they were not involved in the pursuit and were not pursuing the vehicle at the time of the deadly crash.
The crash in Swansea is under investigation by Massachusetts authorities, including state police and the Bristol County District Attorney’s Office. Meanwhile, Cranston police said they would give an update on their investigation around 1 p.m.
Rhode Island
RI House speaker unveils housing bills for 2026. What to know
House Speaker Shekarchi unveils 2026 RI housing legislative package
House Speaker K. Joseph Shekarchi’s nine-bill package for 2026 seeks to cut red tape and relax rules on parking, dividing lots and staircases.
House Speaker K. Joseph Shekarchi is once again taking aim at the regulations he says are stifling new homebuilding.
The Warwick Democrat unveiled his sixth annual suite of housing legislation on Thursday, Feb. 26, a few weeks after announcing he would not be running for governor this year.
“We are still trying to play catch-up for all the years that Rhode Island was dead last in the country for new housing starts,” Shekarchi said. “While Rhode Island remains a relatively affordable option for people moving here from other states, our own residents are too often priced out of the neighborhoods they grew up in.”
The legislative text of the nine-bill housing package, and with it the specifics of how it would work, were not available for Thursday’s news conference.
But highlights of the package, according to summaries, include:
- Infill housing. Allow property owners to divide lots in single-family zoning districts, creating multiple dwellings instead of one, provided they have water and sewer service.
- Parking maximums. Put new limits on how much off-street parking communities require for new apartment buildings.
- Homeless Bill of Rights. Expand the state’s Homeless Bill of Rights to require 15-day notice to the occupants of encampments before local authorities clear them.
- Emergency shelters. Let communities build temporary shelters, such as the ECHO Village Pallet shelter in Providence, during a state of emergency.
- Stairs. Legalize the construction of four-story apartment buildings with a single staircase.
- Affordable housing taxes. Overhaul the tax system for income-restricted housing covered by the state’s “8 Law.”
Is land-use reform working?
Since Shekarchi was elected speaker in 2021, the General Assembly has passed dozens of bills he backed that tweaked state land-use statutes or streamlined the process for building.
How successful this approach has been is subject to debate.
Many local elected officials wary of development in their communities continue to rail against efforts to erode their power over construction.
Others in the growing Yes In My Back Yard movement see Rhode Island’s piecemeal approach as inadequate in comparison with the scale of the affordability problem and what other states are doing.
As evidence that his changes are making a difference, Shekarchi said Rhode Island saw a 70% increase in building permits in 2023 and a more modest increase in 2024. (Statistics for last year were not immediately available.)
Gov. Dan McKee’s 2030 plan calls for 15,000 new housing units built by that year.
Democratic primary challenger Helena Foulkes is slated to roll out her housing plan on Monday.
It is expected to include a millionaires tax to fund affordable housing, a revolving fund and target of 20,000 new homes.
What would the new laws do?
Letting property owners put multiple homes on a plot of land is one of the most direct ways that lawmakers can encourage the construction of more homes, but it is also one of the most controversial.
That’s especially true in areas zoned for large lots and single-family homes.
How far the new bill allowing lots to be subdivided in single-family zones goes is unclear. It is sponsored by Rep. Stephen Casey, D-Woonsocket.
Legislation setting maximum parking requirements for new developments, introduced by Rep. Joshua Giraldo, D-Central Falls, would apply to areas accessible by public transit.
Critics of off-street parking requirements say they make it harder to build new apartments and make the units that are built more expensive.
Shekarchi proposed the emergency shelter bill last year. It passed the House and died in the Senate.
It was the result of how long it took state officials to navigate Rhode Island’s building code and open the ECHO Village Pallet shelter in Providence.
The staircase bill, sponsored by Rep. June Speakman, a Warren Democrat and chair of the House’s home affordability study commission, follows a wave of cities and states relaxing rules on how many exits are required in new construction.
Currently, the state building code requires two stairways in buildings with more than three stories, and fire officials have opposed all efforts to change that.
Speakman’s bill would allow four-story buildings with a maximum of 16 units with a single staircase.
Supporters of single-stair buildings say they allow development of small sites that would otherwise sit vacant and allow family-sized units with more light and better ventilation.
A previous Rhode Island single-stair bill would have allowed six stories, but it died in committee.
Massachusetts Gov. Maura Healey signed an executive order in mid-February to study the idea.
Rhode Island
One of Africa’s soccer giants will be based in Rhode Island for the World Cup – The Boston Globe
Providence has positioned itself as an alternative to Boston, one of the official host cities for the 2026 competition. Located just 30 miles away from Gillette Stadium — or “Boston Stadium” as it will be known during the World Cup — Rhode Island’s leaders have been touting the tiny state as more-affordable for fans and closer to the action. Seven matches, including a quarterfinal, are scheduled to be played in Foxborough.
“Today we announce that Ghana will be staying in Providence and we’d also like to extend an invitation to the fans and families to come to our city,” said Providence Mayor Brett Smiley in a statement on Thursday. “We are committed to being a festive destination for soccer fans from around the world.”
The news has created excitement among the local Ghanaian community in the state.
Kwame Larbi, the president of the Ghana Association of Rhode Island, said Ghana’s decision will be a chance for people to celebrate the West African country’s culture through its soccer team and an opportunity to see what successful Africans look like on a grand stage.
“The Black Stars represent everything Ghanaian. They are Ghana’s pride and joy, our strength, perseverance, and freedom,” he said. “Hosting the Black Stars at Bryant would mean so much for our community. More specifically, our youth. Representation is everything.”
Larbi said the local community plans to show out for the team with traditional Ghanaian dances at Foxborough when they face England on June 23.
“We will all be in our Ghana T-shirts, Ghana flags and our drums,” he said. “I just came from Ghana. My shirts are ready.”
This is the fifth time that Ghana has qualified for the World Cup. Their best showing was in 2010, when they reached the quarterfinal after defeating Team USA only to be eliminated when Uruguay prevented them from scoring in extra time with an intentional handball on the goal line. The team boasts some world-class talent who compete in top leagues around the world, such as star players Mohammed Kudus, who plays for the English Premier League team Tottenham Hotspur, and Antoine Semenyo of Manchester City.
Larbi is bullish about Ghana’s chances at this year’s tournament.
“We are going to beat England. It’s a big name, but we have hope. We are going to surprise everyone, and with the spirit of brotherhood and all, we are going to be successful,” he said.

Rhode Island Congressman Gabe Amo said his father, who hails from Ghana, is excited about the team being based in the state.
“The first thing he texted back to me upon the announcement was ‘Nice. Exclamation point. Buy me a ticket,‘” he said. “There’s a lot of immigrants and immigrant kids who are going to feel some special feelings across the weeks that Ghana has us as their home base.”
Amo said he hopes Ghanaian fans from places such as Worcester, Mass., and New York City will join their compatriots in Rhode Island and create a vibrant atmosphere in the state.
“This is a big deal for our state. We get to showcase all the things that make us special — our food, our amazing Rhode Island summer and our people — to Ghana,” he said. “So it’s going to be great soccer … and it’s going to be a great setting for the World Cup.”
State officials say that the team’s training sessions will be closed to the public, but the country’s football association was planning some events with young players in the state.
“We’re working hard to ensure that the FIFA World Cup leaves behind a legacy of passion for the sport and a commitment to growing the game of soccer in Rhode Island. Partnering with the Black Stars will fuel these young players’ passion,” said Jonathan Walker, executive director of the Rhode Island Sports Commission.
For Larbi, he said Rhode Island’s Ghanaian community is ready to prepare some jollof rice for the team. He has lived in Rhode Island for more than 40 years and he never thought that he would see his country’s national team be based in the state for such a huge tournament.
“It has never occurred to us that one day the Ghana Black Stars will be based in Rhode Island…competing for the World Cup,” he said. “It’s not only Ghanaians, but it’s for the whole of Africa.”
Omar Mohammed can be reached at omar.mohammed@globe.com. Follow him on Twitter (X) @shurufu.
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