The Rhode Island House Finance Committee voted 13-1 Friday to approve a $13.947 billion budget for the 2025 fiscal year, directing substantial funding toward education, children, and healthcare, alongside a historic $120 million affordable housing bond. The budget, which is $60 million less than the current fiscal year’s, reflects the cessation of federal pandemic aid.

The budget bill (2023-H 5200A) now advances to the full House of Representatives, set for consideration on June 7 at 2:30 p.m.

“Through this budget, we are emphasizing education at every level and supporting children,” stated Speaker K. Joseph Shekarchi (D-Dist. 23, Warwick). “This budget is the result of a truly collaborative process between my colleagues here in the House, the dedicated members of the House Finance Committee, our partners in the Senate, and Governor McKee and his team to carefully create a plan that meets Rhode Island’s needs for education, students, and children first, while addressing our challenges, such as housing and health care.”

House Finance Committee Chairman Marvin L. Abney (D-Dist. 73, Newport, Middletown) added, “This year’s budget proposal reflects the fact that while the influx of federal pandemic funding has come to an end, Rhode Island is still on sound financial footing. We have continued to best position Rhode Island for future economic possibilities. This budget supports our residents, families, and children without adding financial burdens on the people of Rhode Island.”

The proposed budget includes a $70.9 million increase in state aid for schools, which is $33.8 million more than Governor McKee originally proposed, aimed at aiding schools and students still recovering from the pandemic’s effects.

Increases for multi-language learners (MLL), the governor’s Learn365RI initiative for out-of-school learning, and efforts to boost reading and math achievement were modest but significant. MLL students will now receive 20% extra over the core education aid, up from 15%. Learn365RI will get $5 million, and an additional $5 million is allocated for reading and math achievement. The budget also fully funds an $813,000 proposal to provide free meals to 6,500 students statewide who currently receive reduced-price school meals.

Higher education also sees benefits with an additional $1 million for the Community College of Rhode Island (CCRI) and $2 million for the University of Rhode Island (URI). The budget continues the Rhode Island Promise and Hope scholarship programs, which offer two years of free tuition at CCRI and Rhode Island College, respectively, and authorizes a two-year extension of the Hope scholarship. It also allocates $2.3 million for the dual and concurrent enrollment initiative for high school students.

Among the most notable elements is a $120 million affordable housing bond, the largest in the state’s history. This bond includes $90 million for affordable housing, $10 million for acquisition and revitalization, $10 million for homeownership programs, $5 million for site acquisition, $4 million for housing-related infrastructure, and $1 million for municipal planning.

Furthermore, the bill authorizes up to $10 million from the housing bond for public housing, following a six-month study on public developer models.

Healthcare receives significant attention with over $160 million allocated to raise Medicaid reimbursement rates next year, including $3.8 million for Early Intervention providers. Additionally, $10 million in unspent federal COVID funding will be redirected to nursing homes.

The budget proposal also includes a $30.6 million increase to support providers contracted by the Department of Children, Youth and Families and establishes a new program to purchase medical debts for struggling Rhode Islanders through the state Treasurer’s office.

Recipients of the Rhode Island Works program will receive a 20% raise in cash benefits, and eligibility for child care supports will be expanded. The budget also allocates $83.6 million for the state match for federal funds to reconstruct the shuttered westbound Washington Bridge and doubles assistance for businesses in East Providence affected by the bridge closure.

The House plan provides additional funding for the Rhode Island Public Transit Authority to close a budget gap following the end of federal pandemic aid, ensuring no service reductions in the coming year.

Not included in the budget were proposals to alter the state’s financial institutions tax and funding for a new state archives and museum, due to timing and complexity issues, as well as the lack of an identified site and partner organizations for the museum.

For retirees, the budget includes raising the exemption on certain pension plans and annuities income and repeals the suspension of full annual cost of living adjustments for state employees who retired before 2012. It also changes the calculation for pension benefits to be based on the highest three consecutive years of earnings instead of five.

Environmental initiatives feature in the “green bond” with $5 million for farmland protection and various other allocations for open space and habitat management.

Lastly, the budget includes a $10 million bond referendum to support arts infrastructure in Rhode Island and retains a proposal to hike the cigarette tax by 25 cents per pack, while creating a new tax structure for electronic nicotine delivery systems.

The House Finance Committee’s comprehensive budget plan reflects a careful balance of investment in key areas, ensuring Rhode Island’s continued progress and stability amidst the conclusion of federal pandemic aid.

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PROVIDENCE, R.I. (WLNE) — Rhode Island’s House Finance Committee voted to approve a nearly $14 billion budget for the 2025 fiscal year.

The budget is $60 million less than the current one due to an end to federal pandemic aid.

The committee said that the budget includes additional funding toward education and children, raises Medicaid reimbursement rates and includes a $120 million affordable housing bond.

“Through this budget, we are emphasizing education at every level and supporting children,” Speaker Joseph Shekarchi said.

Shekarchi added that schools will receive a $70.9 million increase in state aid, as well as increases for multi-language learners, the governor’s Learn365RI initiative for out-of-school learning, and reading and math achievement.

On the college level, the budget includes an additional $1 million in operating supports for Community College of Rhode Island and $2 million for University of Rhode Island, continues both the Rhode Island Promise and the Hope scholarship programs, and includes bond questions for additional facility improvements for CCRI, URI, and Rhode Island College.

For healthcare, the plan allocates $160 million to fully fund the plan recommended by the Office of the Health Insurance Commissioner to raise Medicaid reimbursement rates next year, as well as $10 million in unspent federal COVID funding to nursing homes, and $1 million to purchase medical debts of struggling Rhode Islanders.

On the housing end, the proposed budget includes $90 million for affordable housing, $10 million for acquisition and revitalization, $10 for homeownership programs, $5 million for site acquisition, $4 million or housing-related infrastructure, and $1 million for municipal planning.

Other proposals in the budget include a proposal to raise the exemption on certain pension plans from $20,000 to $50,000 for single filers and $100,00 for joint filers, and an additional $5 million to “help the Rhode Island Public Transit Authority close a $18.1 million budget gap.”

“This year’s budget proposal reflects the fact that while the influx of federal pandemic funding has come to an end, Rhode Island is still on sound financial footing and we have continued to best position Rhode Island for future economic possibilities,” House Finance Committee Chairman Marvin Abney said. “This budget takes care of and supports our residents, families and children without putting any additional financial burdens on the people of Rhode Island, many of whom are struggling due to the higher costs of daily life we are now seeing.”

The full bill can be read here.

Here are some of The Providence Journal’s most-read stories for the week of May 19, supported by your subscriptions.

Here are the week’s top reads on providencejournal.com:

Is your Stop & Shop closing?

Its corporate parent, the Dutch-based Ahold Delhaize, said at an investor meeting last week that it will close underperforming stores, without saying how many or which ones.

“Stop & Stop has done a thorough evaluation and is focused on assuring a stable and thriving future,” the Dutch company’s chief executive for the United States, JJ Fleeman, said during an online presentation dated May 23. That includes “optimizing the portfolio to focus on core markets where it can win.”

Stop & Shop has 395 stores in Massachusetts, Connecticut, Rhode Island and parts of New York and New Jersey. That includes 26 locations in Rhode Island.

Business: Stop & Shop plans to close underperforming stores. What we know so far.

Out of sight for more than a month, 75-year-old Senate President Dominick Ruggerio had hoped to return to his powerful, front-and-center perch in the Senate chamber this week.

But that is not happening.

Ruggerio, the long-serving political warhorse who acknowledged last month that he is battling cancer, is no longer giving an estimated time for his return to work at the State House, though he says he hopes to return soon.

In a statement, Ruggerio attributed his absence to “health complications” from a virus he contracted in April. He says that even at a distance, he is actively engaged by phone in high-level, end-of-session negotiations on legislation, including the big budget bill still in progress.

Ruggerio has not presided over the Senate since April 23, and has not attended a session since April 25.

Politics: Where is Dominick Ruggerio? RI Senate president has been out over a month. What we know.

Narragansett’s summer tourist season began with a cloud hanging over property owners like Joseph Volpe, who rent a room, apartment or house on websites like Airbnb and VRBO.

One of the most aggressive local ordinances in Rhode Island to curtail the short-term rental of homes is set to go into effect there in September, so this may be the last summer Volpe offers his four-bedroom house online for use by visitors.

Most observers, including state Housing Secretary Stefan Pryor, say the sale and conversion of homes from year-round use to vacation rental is contributing to the shortage of apartments and houses on the market.

Will cracking down on vacation rentals actually make the problem better or worse? That’s unclear.

State House reporter Patrick Anderson explains the state law that legalized short-term rentals, the local ordinances enacted to impose restrictions or ban them outright, and the House study commission that is delving into the matter.

Housing: Vacation is over: New regs tamp down Narragansett Airbnbs as RI studies short-term rentals

Journal reporter Amy Russo is leaving Rhode Island, but she says she’ll take many memories with her, including experiences she had in her adopted state while writing her New to RI column. She spent time tending the braziers at WaterFire, did some quahog digging and clam cake eating, and, at one point, plunged into a practically frozen Greenwich Bay in January.

In her farewell, she lists the places she’ll miss the most. If you’re a seasoned Rhode Islander, you’ll know them all.

Entertainment: RI has plenty of quirky and fun hidden gems. Here are a few to visit.

It is not often that Journal food editor Gail Ciampa is so taken by a meal that she forgets to take a photo of what she’s eating. But she did just that on a recent visit to Providence’s Capital Grille.

While Gail and her husband were sipping cocktails and listening to the list of specials, the mention of a bone-in filet sealed her decision. What makes this special cut so intensely flavorful that it’s worth every penny of the $80 price? Gail can explain.

Dining: There’s a secret menu item at this Providence steakhouse. Why you’ve got to try it soon

To read the full stories, go to providencejournal.com. Find out how to subscribe here.