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Killed during budget talks, Citizens Bank bill brought back to life • Rhode Island Current

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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.”

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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.

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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.

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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.

From left: House Majority Whip Katherine Kazarian, House Speaker K. Joseph Shekarchi and Rep. Joe Solomon speak to reporters at the State House on Monday, June 10, 2024. (Nancy Lavin/Rhode Island Current)

‘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.

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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.

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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.

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“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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The Real Housewives of Rhode Island Recap: Wrong Side of the Tracks

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The Real Housewives of Rhode Island Recap: Wrong Side of the Tracks


As if the aftermath of her explosion at the Studio 54 party wasn’t enough to deal with, Liz also now has to figure out what to do with the six bunches of bananas that Gary accidentally ordered when he meant to order six individual bananas. But until they’re ripe enough to make banana bread, she’ll focus on the other issue. “I came across as a bitter, drunken, witch,” she tells Dolores — three words that I have to imagine also appear on the show’s casting notice.

Meanwhile, Ashley takes some of the other women to her favorite beach, and Alicia, who is used to her country club, is terrified. “This is not my vibe, I’m freaking out,” she whispers as she’s forced to carry her chair, bag, and snacks. The snacks in question are something called “pizza chips,” which appears to just be bread with sauce on it? Alicia, being the brain behind Pizza Mamma, tries to break down the science to us, saying that cheese can’t sit out in the sun, but she need not explain. She had me at pizza chips.

She also had me when she revealed that Rulla apparently met Brian while he was married to Alicia’s high school Spanish teacher. “I don’t know if this is true, Brian cheated on his first wife, my Spanish teacher,” she says with her hands over her heart, “with Rulla. I hope that’s not true because I really did like my Spanish teacher.” Yet again, I’m obsessed with how deep the ties between these women go. A game of six degrees of separation hates to see them coming. I also love Alicia starting a declarative sentence with, “I don’t know if this is true,” but she should say it in Spanish next time.

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And speaking of those deep ties, we already know that there was some connection between Jo-Ellen’s sister and Jo-Ellen’s husband while they were in high school, before Jo-Ellen swooped in. But now we’re finally getting to meet Jen, who is basically subbing for Jo-Ellen at the house while she’s on a work trip. “She perpetuates this fun little game of flirting with my husband,” Jo-Ellen explains, but assures us that nothing is going on. That being said, Jen does joke that they’re like an old married couple and Jo-Ellen tells us that Jen wants his sperm to have a baby…but apart from that I guess everything is totally normal! I’m putting together a list of side characters who should be in the running to hold clams in future seasons, and so far Jen and Alicia’s Spanish teacher are leading the pack.

But when it comes to side characters, the real stars are of course Alicia’s aunts, who are thankfully back on our screens for a backyard barbecue with some of the ladies. And what better group to speak frankly to Rulla about her situation with Brian? The second Rulla alludes to bumps in the road, this beautiful coven of scorned divorcées pounce, encouraging Rulla to leave him. “Do you want to spend the rest of your life looking over your shoulder?” one of them asks her, and later in her confessional Rulla even admits that those words stayed with her. I feel like we’re seeing something real with Rulla and she’s finally letting the glossy veneer slip. But the best commentary comes from Alicia’s mother, who says, “I just hope and pray that you somehow hurt him…I’m gonna pray you get him back.” Forget the usual Bravo aftershows, I want a show that’s just all of Alicia’s aunts watching and commentating on each week’s episode. The ratings will be higher than the MASH finale.

As for Liz and Kelsey’s simmering conflict, the pair finally meet up to clear the air by the water where Liz’s boat is docked. I’ve seen similar meetings play out just like this on The Sopranos, so I had to keep reminding myself that Kelsey was safe because surely Bravo would never broadcast a woman being murdered. Then again, this would be the show to break that glass ceiling. As it turns out, I had no reason to fear because the sit-down goes incredibly smoothly. Liz explains that it felt like Kelsey was co-signing the rumors by bringing them up, and Kelsey says her instinct for Liz to keep her distance from Dino actually had more to do with her own history. She explains that ten years ago she and Dino hooked up but it didn’t go well, and now his presence is a reminder of a time in her life that she’s trying to forget. She even says she has PTSD over it and now avoids him like the plague, but respects that Liz has a meaningful friendship with him. I still have a lot of questions about this, but ultimately Liz and Kelsey clear the air and reconcile.

And thank god, because then they’re able to go rail biking in peace. All of the women split up into groups to cycle their way three miles down an old railroad track, with drinks in hand of course. “Rullala, how you doing back there?” Alicia asks as they ride, which made me scream out in delight upon once again getting to hear my new favorite word: “Rullala.” It’s my mantra. I say it no fewer than 50 times a day. It’s a greeting, it’s a prayer, it’s a way of life. Better yet, when the camera cuts to Rulla, she finally wins me over. Mid-cycle she’s shaking a cocktail shaker and pouring her tequila into a wine glass. Leave Brian and his bullshit at home, this is the woman that I want to see on my screen.

I’m even more enamored with her once they get to their location and she’s horrified to discover Alicia’s financial situation. She’s telling the ladies about not feeling valued given that her husband won’t put her name on the house or business, and Rulla, being a financial planner, springs into action. Seeing this smart, powerful side of her, especially as she’s trying to empower Alicia, is a great look and is far more compelling than watching her meekly defend her cheating husband. It gives a glimpse at what an independent Rulla might look like on this show in a couple of seasons.

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But she’s not the only one supporting Alicia — Kelsey steps up to play Billy in a role-play so Alicia can practice airing her grievances. Sidebar: everyone talks about these women looking alike, but the real problem is that all of their partners have such similar names. Alicia’s is Billy, Kelsey’s boyfriend’s is Bill, Rulla’s is Brian, Jo-Ellen’s is Gary, Liz’s is Gerry, Ashley’s is Jared, and thankfully Rosie’s is just Rich. But oh my god, how am I supposed to keep that all straight? Anyway, the little role-play Alicia does ends up being heartbreaking, as she gets emotional saying that he makes her feel worthless in their relationship. But the fact that we’re talking about this so much feels promising, and I hope we get to see Alicia ultimately bring all of these feelings to Billy. And if he doesn’t listen, I hope her aunts attack him.

The conversation then turns to how Liz has been gelling with newbie Ashley, and they joke about how Ashley is a little scared of her. When the Studio 54 party comes up, Liz says that that wasn’t her finest moment and wasn’t a good representation of what she’s really like. “Alicia, you said she’s always like that,” Rosie says, throwing Alicia right under the bus. “Don’t flip that shit, don’t do that to me, don’t put shit in my mouth,” Alicia fires back, as Dolores looks on like a proud mother. “She twisted my words, you’re a fucking troll,” Alicia yells, saying that Rosie fucked her. It’s a line-o-rama of iconic outbursts, one after another: “Welcome to Rhode Island, bitch, this is how we roll,” then, “Fucking thirsty bitch, so thirsty its scary,” and finally, “I need to get out of here cause I’m gonna end up killing her.” Our first death threat!

But the craziest part of this comes when Alicia and Rosie step away from the group for a moment. It’s allegedly to sidebar, but I was convinced it was so Alicia could murder her with fewer witnesses. Alicia tells her that if she apologizes everything will be good, Rosie apologies, and then things are good. “Did she just hug her?” someone asks from the circle, shocked. The series has had a lot of incredible moments thus far, but this one is what is most promising about its longevity as a Housewives show. The secret sauce of these shows is resilience — the ability to be as angry at someone as humanly possible, and move on like nothing happened so they can do it all over again. Long, drawn-out grudges make for bad television (as RHOBH proves), so this cast’s ability to reconcile and move on will be the thing that makes it great.



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Pulled funding creates a bike path to nowhere. Let’s hope RI fixes it.

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Pulled funding creates a bike path to nowhere. Let’s hope RI fixes it.


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I’ve long thought bike paths are among Rhode Island’s premier attractions, up there with the beaches, the mansions and the bay.

We like to knock government, but credit where it’s due, the state has done an amazing job building out an incredible pedaling network.

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It’s clearly a priority.

At least I thought it was.

But they’ve just dropped the ball on what should have been a beautiful new stretch.

The plan was to finish a mile-long connector from the East Providence end of the Henderson Bridge all the way to the East Bay Bike Path.

There was even $25 million set aside to get it done.

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Except WPRI recently reported that it’s now been canceled.

The main fault lies with the Trump administration, which is no friend of bike paths, and moved to kill that $25 million.

But it gets complicated, as government funding always does.

To try to rescue that money, the state DOT reportedly worked with the administration to refunnel it into a road project. Specifically, the $25 million will now be spent helping upgrade the mile-long highway between the Henderson Bridge and North Broadway in East Providence, turning it into a more pleasant boulevard.

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That totally sounds worthy.

But it’s insane to throw away the bike path plan.

Especially for a particular reason in this case.

They’d already put a ton of money into starting it.

When state planners designed the new Henderson Bridge between the East Side and East Providence, they included a bike path.

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It’s a beauty – well protected from traffic by a barrier, a great asset for safely riding over the Seekonk River.

The plan was to continue it another mile or so along East Providence’s Waterfront Drive, ultimately connecting with the East Bay Bike Path, which runs all the way to Bristol. Which, by the way, is one of the nicest bike paths you’ll find anywhere.

But alas, that connector plan has been canceled.

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So the expensive stretch over the Henderson Bridge to East Providence is now a bike path to nowhere. Once the bridge ends, the path on it continues a few hundred yards or so and then, just … ends.

Too bad.

We were so close.

Most of the stories on the issue have been about the complex negotiation to rescue the $25 million by rerouting it to that nearby highway-to-boulevard project. But I don’t want to get lost in the weeds of that bureaucratic process here because it loses sight of the heart of this story.

Which is that an amazing new addition to one of the nation’s best state bike path systems has just been scrapped.

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You can knock the Rhode Island government for blowing a lot of things.

The PawSox.

The Washington Bridge.

But they’ve done great with bike paths.

And especially, linking many of them together.

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Example: not too many years ago, Providence bikers had to risk dicey traffic on the East Side to get to the more pleasant paths in India Point Park and on the 195 bridge to the East Bay Path.

But the state fixed that by adding an amazing connector that starts behind the Salvation Army building and beautifully winds along the water of the Seekonk River for a mile or so.

That makes a huge difference – and no doubt has avoided some bike-car accidents.

We were close to a comparable stretch on the other side of the river – that’s what the $25 million would have done.

But it’s now apparently dead.

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Online commenters aren’t happy about it.

On a Reddit string, “Toadscoper” accused the state of being “complicit” with the feds in rerouting the money from bikes to cars.

And there was this fascinating post from FineLobster 5322, who apparently is a disappointed planner who worked on the project: “Mind you money has already been spent on phase one so rejecting it at this point is wasting money and also against the public interest … but what do I know? I only worked on the project as an engineer … I didn’t get into this to build more highways. I do it … to give back to communities and give them more access to their environment.”

Wow. One can imagine the state planning team is devastated. That’s not a small consideration. Good people go into government to make life better in Rhode Island, and it’s a bad play to take the spirit out of the job by first assigning a great human-scale project and then, after a ton of work, trashing it.

A poster named Homosapiens simply said, “We just accept this?”

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Hopefully not.

The first stretch of the path over the Henderson Bridge is done, money already sunk.

What a shame to leave that as a path to nowhere.

It doesn’t have to happen.

Between Governor McKee and our Washington delegation, there’s got to be a way to get this done.

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There’s got to be.

mpatinki@providencejournal.com



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2 dead, 1 seriously hurt after crash on I-95 South in Warwick

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2 dead, 1 seriously hurt after crash on I-95 South in Warwick


WARWICK, R.I. (WPRI) — Two people are dead and another person seriously hurt after a crash involving two vehicles on the highway in Warwick Saturday.

Rhode Island State Police said the crash happened around 1:34 p.m. on the ramp from Route 113 West to I-95 South.

According to police, a Hyundai SUV that was driving in the middle lane of the highway started to drift to the right, crossed the first lane, and then crossed onto the on-ramp lane. The car struck the guardrail twice before driving through the grass median.

The Hyundai then struck the driver’s side of a Mercedes SUV that was on the ramp, causing the Mercedes to roll over and come to a rest. The impact sent the Hyundai over the guardrail and down an embankment.

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The driver of the Hyundai, a 73-year-old man, and his passenger, a 69-year-old woman, were both pronounced dead at the hospital.

A woman who was in the Mercedes was rushed to Rhode Island Hospital in critical condition.

State police said all lanes of traffic were reopened by 4:30 p.m.

The investigation remains ongoing.

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