Rhode Island
Education, housing and health care come out on top in lawmakers’ revised fiscal 2025 budget • Rhode Island Current
Good news for transit riders, Medicaid providers and public school students, all of whom stand to benefit from the revised fiscal 2025 budget given first passage by a panel of House lawmakers Friday night.
The $13.9 billion spending plan unveiled late Friday falls just shy of the $14 billion high water mark that characterized fiscal 2024’s approved spending plan, but is $271 million more than what Gov. Dan McKee proposed in January.
The updated spending plan includes enough money to stave off service cuts at the financially struggling Rhode Island Public Transit Authority while offering Medicaid providers long-awaited reimbursement rate hikes in a single year, rather than the three-year incremental uptick McKee proposed. Meanwhile, a nearly $33.8 million boost in state aid to K to 12 schools, above what McKee called for, will offset a steep drop in federal funding, along with more dollars for multilingual learners.
“Through this budget, we are emphasizing education at every level and supporting children,” House Speaker K. Joseph Shekarchi said in a statement Friday afternoon.
Shekarchi stressed the changes as the result of a “truly collaborative process” including lawmakers in both chambers as well as Gov. Dan McKee.
However, lawmakers have axed several components of Gov. Dan McKee’s original, $13.7 billion spending proposal, including $60 million in bonds to help pay for a new, dedicated state archives and a proposed rewrite of state income taxes for banks intended to stop Citizens Bank from shifting its investments, and employee base, outside the state.
“It has been a difficult budget because we feel the pain of Rhode Islanders,” Shekarchi said, speaking to reporters Friday night. “We tried to do the most good for the people that need it most.”
The House Committee on Finance’s 13-1 vote Friday sends the updated spending proposal to the full House of Representatives for consideration on June 7, with Rep. George Nardone, a Coventry Republican, casting the sole vote in opposition. Lawmakers must approve a final spending plan before the new fiscal year begins July 1.
Top priorities: Housing and Washington Bridge
Acknowledging the skyrocketing cost to demolish and replace the I-195 Washington Bridge, the spending plan includes $80 million to cover the state’s share of the estimated $400 million cost. This includes repurposing unspent pandemic aid, as McKee suggested, but replaces the governor’s proposal to borrow against future gas tax revenue by instead allotting $40 million in long-term capital spending for the cost.
Combating the housing crisis, a top priority for Shekarchi, takes an even bigger role in the revised spending plan, with a historic $120 million bond to stimulate housing production, including authorization for a state public housing developer. This is $20 million more than the borrowing amount requested by Housing Secretary Stefan Pryor and included in McKee’s budget.
“We need to increase production, production, more production at every single level,” Shekarchi said.
Medicaid reimbursements, new health care initiatives
The updated budget also adds $40 million in state funding to the proposed increase in fee-for-service rates for Medicaid providers who work in behavioral health, community care and with infants and toddlers with developmental disabilities. The increase allows the state to meet the $100.3 million cost to offer rate hikes in a single year, as recommended by the Office of the Health Insurance Commissioner.
Meanwhile, the understaffed Department of Children, Youth and Families will see a $21 million funding boost to cover workforce expansion, foster care and congregate services, among others.
A new $1 million restricted receipts account, to be managed by the treasurer, will help residents pay off medical debt, one of the proposals in a 25-bill health package put forth by the Rhode Island Senate. A separate bill funding a scholarship program for doctoral and nursing students who stay and work in the state was also added to the updated spending plan.
Help for RIPTA’s fiscal cliff, green economy bond
Amid outcries over service cuts to the embattled transit system, lawmakers allotted an extra $5 million to RIPTA – still $3 million shy of closing the agency’s funding deficit but enough to stave off any reduction in bus route locations or schedules, Shekarchi said.
Also heeding advocates’ calls to preserve and protect forest and farmland, a $53 million green economy bond now includes $13 million for the cause, while money to help rebuild the Newport Cliff Walk was trimmed from $8 million to $3 million to account for a newly awarded federal grant.
Retirees
Retired state workers and teachers clamoring to reinstate the compounded cost-of-living adjustments that ended under a series of pension reforms enacted in 2012 still won’t get exactly what they asked for. Rather than reinstatement and retroactively applying COLAs — an estimated $169 million cost according to a legislative review that ended earlier this year —the revised budget includes new COLAs effective July 1 for retirees who stopped working before the pension reforms took effect.
“These people are the oldest, the people who have been retired the longest,” Shekarchi said. “They didn’t have the opportunity work longe into the system.”’
For other retirees, the budget preserves McKee’s proposal to raise the minimum income that retired workers from any job can earn without being taxed – from $20,000 to $50,000 (or double for joint filers).
Higher ed bonds
Two separate bond proposals supporting a Biomedical Sciences Building for the University of Rhode Island, and a separate Institute for Cybersecurity and Emerging Technologies at Rhode Island College were increased above McKee’s recommendation to reflect full funding requested by each school: $87.5 million and $73 million, respectively.
A fifth borrowing proposal, borrowing $10 million for three specific arts projects as well as grant money administered by the state arts council, was also added to the lawmakers’ version of the budget.
New state archives is out
No longer in the borrowing list: a $60 million bond that would have covered a portion of the $100 million price tag for a new state archives, a top priority for Secretary of State Gregg Amore.
Shekarchi cited lack of details on where the archive would go or a funding partner to cover the rest of the cost as reason why the revised budget does not include any borrowing for the project.
No tax rewrite for Citizens
The need for more information and time is also why Shekarchi said a proposed tax rewrite intended to benefit Citizens Bank was nixed from the updated spending plan.
“I don’t want to be the speaker who loses Citizens Bank,” Shekarchi said in a statement Friday. “I will roll up my sleeves and get to work with them over the summer so we can prefile legislation that can be vetted early in the year, but right now, we don’t have enough information to know whether this plan is the right move for our state.”
Rory Sheehan, a spokesperson for the bank, issued an emailed response Friday.
“We are disappointed that Budget Amendment 19 was not included in the State Budget,” Sheehan said. “This decision will make it difficult for the state to compete on a level playing field with Massachusetts and other states and is not in the best interest of Rhode Islanders. We urge the Rhode Island General Assembly to address the issue before the end of the session. We are committed to working diligently to achieve a positive outcome.”
No sales tax cut
McKee’s budget proposal offered a wishlist of extra spending items if state revenue beat expectations, including trimming the state sales tax. Senate President Dominick Ruggerio has also pushed for reducing the state sales tax to remain competitive with neighboring states.
Shekarchi’s response to a prospective sales tax cut?
“Absolutely not,” he said Friday.
The revised budget maintains the existing 7% sales tax while striking McKee’s proposal to cut the corporate minimum tax. However, McKee’s proposed 25-cent tax increase on cigarette packs survived, as did a slightly different version of the governor’s recommendation to tax vaping products.
Unlike years past, McKee and Ruggerio did not attend a press briefing on the budget held Friday night at the State House. Each indicated general support for the revised spending plan in prepared statements.
“I am pleased that the budget will invest in many Senate priorities, particularly in the areas of health care, child care, education and providing some needed relief to retirees,” Ruggerio, a North Providence Democrat, said.
“The Speaker and I are aligned in our priorities of improving the education, housing, and health of all Rhode Islanders, and this budget makes key investments in all those areas,” McKee said. “Like the Speaker, I too appreciate the collaborative spirit in which this budget was shaped.”
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Rhode Island
A new safety role at Rhode Island College comes into sharper focus after Brown shooting – The Boston Globe
Lawrence was recently named RIC’s first emergency management director, a role college leaders had been planning before the December mass shooting across town at Brown University, but which took on new urgency after the tragedy.
Few resumes are better suited to the job.
A 20-year career in the New York Police Department. Commanding officer of the NYPD’s Employee Assistance Unit. A master’s degree from Harvard.
Lawrence got to Rhode Island the way a lot of people do: through someone who grew up here and never really left, at least not in spirit. Her husband, Brooke Lawrence, grew up in West Greenwich, and is director of the town’s emergency management agency.
“I couldn’t imagine retiring in my 40s,” Lawrence told me. “And I couldn’t imagine not giving back to my community.”
Public service has been part of Lawrence’s life for as long as she can remember. A New Jersey native, she dreamed of following in the footsteps of her mentor, a longtime FBI agent. She graduated from Monmouth University and earned a master’s degree in forensic psychology from John Jay College in 2001, shortly before the Sept. 11 attacks.
There was high demand for police in New York at the time, so Lawrence raised her hand to serve. She worked her way up the ranks from patrol to lieutenant, eventually taking charge of the department’s Employee Assistance Unit, a peer support program that helps rank-and-file officers navigate the most traumatic parts of the job. She later earned a second master’s degree from Harvard’s Kennedy School.
“It’s making sure our officers are getting through their career in the same mental capacity as they came on the job,” Lawrence said.
There’s a version of Lawrence’s new job that feels routine, especially at a quiet commuter campus like Rhode Island College. And when Lawrence was initially hired part-time last fall, it probably was.
Then the shooting at Brown University changed the stakes almost overnight.
On Dec. 13, Claudio Manuel Neves Valente, a Portuguese national and one-time student at Brown, opened fire inside the Barus and Holley building, killing two students and injuring nine others. Neves Valente also killed an MIT professor before he was found dead in a New Hampshire storage unit of a self-inflicted gunshot wound.
In eerie videos recorded in the storage unit, Neves Valente admitted that he stalked the Brown campus for weeks prior to his attack. He largely went unnoticed by campus security, which led the university’s police chief to be placed on leave and essentially replaced by former Providence Police Chief Colonel Hugh Clements.
Lawrence assisted with the response at Brown. She leads the trauma response team for the Rhode Island Behavioral Health Medical Reserve Corps, which staffed the family reunification center in the hours after the shooting.
RIC’s campus is more enclosed than Brown’s — there are only two major entryways to the college — but there are unique challenges.
For one, it’s technically located in both Providence and North Providence, which requires coordination between multiple public safety departments in both communities.
More specifically, Lawrence noted that every building on campus has the same address, which can present a challenge in an emergency. Lawrence has worked with RIC leadership and local public safety to assign an address to each building.
Lawrence stressed that she doesn’t want RIC to overreact to the tragedy at Brown, and she said campus leaders are committed to keeping the tight-knit community intact.
But she admits that the shooting remains top of mind.
“Every campus community sees what happened at Brown and says ‘please don’t let that happen to us,’” Lawrence said.
Lawrence said everyone at RIC feels a deep sense of responsibility to keep students safe during their time on campus.
And she already feels right at home.
“I want to come home from work every day and feel like I made a difference,” she said.
Dan McGowan can be reached at dan.mcgowan@globe.com. Follow him @danmcgowan.
Rhode Island
Taylor Swift And Travis Kelce Tying The Knot In RI? Online Casino Doesn’t Think So
If you thought the smart money was on pop icon Taylor Swift and gridiron star Travis Kelce tying the knot in Rhode Island, an online crypto casino and sportsbook is here to tell you you’re wrong.
The Ocean State was the second favorite at +155 and 39.22%, and Pennsylvania and Ohio were together at a distant third at +1,600 and 5.88%.
Tennessee was the fifth choice at +2,000 and 4.76%.
“New York is the favourite because it’s the city most closely tied to Taylor Swift’s public life, with multiple residences, strong emotional branding, and world‑class venues that offer privacy and security for a high‑profile event,” an unidentified spokesperson said in a media release.
Human Remains Found Near Taylor Swift’s Mansion Identified: Report
Rhode Island
Rent control won’t solve Providence’s steep rental prices – The Boston Globe
Part of the story is the pandemic-era shift toward smaller cities. But the larger truth is Providence has not built enough housing to keep up with demand. In 2024, Rhode Island ranked 50th in the nation for new housing permits – dead last. That isn’t ideology; it is economics.
As housing experts have said, including HousingWorksRI Executive Director Brenda Clement, we have a basic supply-and-demand problem. Expanding housing supply for everyone should be the focus.
To its credit, Providence has begun to move. Recent efforts by Mayor Brett Smiley, the City Council, nonprofit partners, and private developers have created hundreds of new units. More are in the pipeline. That progress must continue.
As rents rise, pressure for immediate relief has grown. The City Council’s proposed solution is rent control: a cap on annual rent increases at 4 percent. In practice, it fails to solve the underlying problem, and creates new ones.
First, rent control does not make today’s rent affordable, it only limits future increases by creating a cap. Many landlords will raise rents to the cap each year. A $2,000 apartment under a 4 percent cap becomes $2,433 after five years – an increase that renters still feel acutely. That is basic compounding, not a worst-case scenario.
Second, rent control would create a hole in Providence’s budget, as it reduces the taxable value of properties. The Smiley administration examined rent-controlled cities and applied the outcomes to Providence’s tax base. The projected annual revenue loss ranges from $10.3 million to $17.5 million.
When rental property values decline, cities are left with two choices: raise taxes or cut services. Education funding, park improvements, library funding, and basic infrastructure all come under pressure. Experience elsewhere shows this burden does not fall on landlords; it shifts to single-family homeowners. Portland, Maine, saw a 5.4 percent reduction in its tax base after rent control, forcing these tradeoffs. The implementation of rent control will affect all Providence residents, whether they rent or own.
Third, rent control discourages new housing production, the opposite of what Providence needs. Developers are less likely to build in cities where future revenue is capped, financing is harder, and long-term costs are unpredictable. St. Paul, Minnesota, offers a cautionary tale. After voters approved a strict rent cap in 2021, new unit creation dropped by more than 84 percent in the first quarter, forcing city leaders to exempt new construction, which is exempt in the Providence City Council rent control proposal.
When we build more housing at all price points, market pressure eases, as supply catches up with demand.
That does not mean ignoring the pain people feel today. I grew up here, attended our public schools, and bought a modest single-family home in the neighborhood where I was raised. I feel today’s housing pressures firsthand and hear them daily from family and neighbors. After 12 years on the council, including a leadership role in 2011 when Providence was on the brink of bankruptcy, I know our elected officials genuinely want workable solutions.
That is why, as executive director of The Providence Foundation, an organization of 140 private business and nonprofit members from myriad industries, I recommended we commission a study by the Rhode Island Public Expenditure Council to educate the public on this issue and identify solutions. The report revealed the most effective approach to housing shortages and high costs pairs aggressive housing production with targeted rental assistance for households most at risk of displacement.
Cities across the country have shown what works: modernized zoning, faster permitting, conversion of underused commercial space, and temporary rental assistance to help families stay housed while new supply comes online. These strategies outperform rent control. Overcoming the housing challenge will require all levels of government to play a role.
Reasoned policy will meet Providence’s housing needs and strengthen our economy for a brighter tomorrow.
David Salvatore is the executive director of The Providence Foundation, a nonprofit organization committed to supporting visionary projects downtown, and a former Providence City Council president and member.
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